Lecture 3

strategic marketing management process (Johnson and Scholes, 1999): after analysis (1) the strategic choice (2) meaning based on the analysis the company needs to generate strategic alternatives and choose one that is most in line with the corporate goals and strategic objectives

Corporate level to determine directional strategy (either growth, stability or retrenchment), Mission statement and resource allocation

SBU (strategic business unit) level to choose generic strategy (cost leadership or differentiation)

Marketing related strategic decisions (7Ps and STP)

corporate strategy informs, directs, guides and controls marketing strategy

marketing strategy achieves, supports and operationalises the corporate strategy

groth (through either concentration or diversification)

Stability strategy (pause, profit or proceed with caution)

retrenchment strategies (make turnaround, divestment, bankruptcy)

market leaders (largest market share and sustainable competitive advantages)

market challengers (proactive and aggressive)

fast movers (small but growing rivals)

market followers (firms with small market share, not proactive)

market nichers

portrais portfolio management using two dimensions: market share and market growth which results in four kind of product categories: star (high ms and mg), cash cow (high ms and low mg), poor dog (low ms and mg) and wildcat (low ms and high mg)

Classifies different strategies by products and markets (MacIntosh and MacLean, 2014)

Market penetration (existing p and m)

Market development (Existing p and new m)

Porduct development (new p and existing m)

Diversification (new p and m)

• contribution to creating a superior value for customers

• difficult to replicate

• unique to the form

Hooley et al. (2017)

If target market is broad: either cost leadership (advantage: low relative cost) or differentiation (advantage: perceived uniqueness)

if target market is narrow: either focused cost leadership of focused differentiation

Porter (1980)

Expand overall market (non-confrontational, expansive)

defend existing share (defensive)

build share of market (confrontational, expansive)

Fifield and Gilligan, 1996

vision statement: aspiration

mission statement: action-oriented

For evaluating options

Suitability

Acceptability

Feasibility

Johnson et al., 2008

Johnson, 2008