Marketing Strategy

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...