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Date Submitted: 04/18/2012 10:40 PM
Lecture 2:
Part 1: Strategic Marketing Management
Outcome: Importance + role of strategy, how marketing strategy fits with corporate, growth + competitive strategy and understand difference between operational + strategic marketing
Strategy (Johnson + Scholes, 2006): “Strategy is the direction + scope of an organisation over the long-term, which achieves advantage for the organisation through its configuration of resources with challenging environment, to meet needs of market + stakeholder expectation”
- Define scope + future direction
- State how they will create value
- What product/s + market
- How it will perform better than competition
Corporate: overall direction attitude towards growth, management of businesses + product lines to produce a balanced portfolio.
Business Level: divisional level, concerned with competitive position of product/service.
Functional: departments pull together to maximise resource productivity.
Core competencies (Prahalad and Hamel, 1990)
1. Relevant (providing benefits + uniquely valued)
2. Inimitable (sustain competitive position by improving inimitable competency)
3. Leveraged to many products + markets (enable entrance to new markets to for growth)
Corporate Mission:
1. Market oriented + defined in terms of customer needs
2. Products/Services change, needs may last forever
3. Shared sense of purpose, direction and vision
4. Realistic, Specific, emphasize distinctive competencies + market environment
Strategic Business Units (SBU):
Single business/group of related businesses that can be planned separately from rest of company, own set of competitors and a managers responsible for strategic planning + profit performance
Corporate strategy
- Assigning resources to SBU’s: BCG’s Growth-Share Matrix
- Assessing growth opportunities: Ansoff’s product-market expansion grid
Strategic Objectives + Strategic focus:
Intense Growth: current products + markets increasing sales potential (market penetration, market...