Transcript ch20 - GEOCITIES.ws

OHT 20.1
Strategic marketing
Brassington and Pettitt: Principles of Marketing, 3rd Edition
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OHT 20.2
Interaction between marketing
and corporate strategy
Figure 20.1
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OHT 20.3
Corporate versus marketing strategy
Corporate strategy:
Marketing strategy:
• Allocation of resources
within an organisation to
achieve the business
direction and scope
specified within
corporate objectives.
• Defines target markets,
direction and
requirements in order to
create a defensible
position compatible with
the overall corporate
strategy.
• Helps to control and
co-ordinate the different
areas of the
organisation.
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OHT 20.4
Marketing plans and programmes
Marketing plan:
•
Turning strategies into implementable actions.
•
A detailed written statement specifying target markets,
marketing programmes, responsibilities, time scales and
resources to be used within the defined budgets.
Marketing programmes:
•
Actions, often tactical, using marketing mix variables to
gain advantage within target market.
•
Means of implementing the marketing strategy.
•
Normally detailed in the marketing plan.
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OHT 20.5
Influences on marketing strategy
Figure 20.2
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OHT 20.6
Strategic marketing analysis models
All of these models view products as:
•
Manageable individual entities on an operational basis.
•
A product portfolio (set of products each of which make
a unique contribution to the corporate picture) on a
strategic basis.
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OHT 20.7
Analysis models
•
Boston Box.
•
GE matrix.
•
Shell’s directional policy matrix.
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OHT 20.8
The Boston Box
Figure 20.3
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OHT 20.9
Boston Box
•
Dog - holds a weak market share in a low growth
market.
•
Question mark - high market growth with low share.
•
Star - a market leader in a growth market.
•
Cash cow - as market growth starts to trail off, stars can
become cash cows.
•
War horses - market leaders, whose cash generating
position under threat due to negative market growth.
•
Dodos - low share of a declining market means that
sales are dwindling away.
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OHT 20.10
GE matrix
Figure 20.4
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OHT 20.11
Shell’s directional policy matrix
Figure 20.5
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OHT 20.12
Analytical models - the advantages
•
Useful planning tools.
•
Forces managers to think more strategically.
•
Useful diagnostic tools giving overview of current
position.
•
Can stimulate debate on possible consequences of
actions.
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OHT 20.13
Analytical models - the constraints
•
Do not give solutions.
•
Simplistic use of variables.
•
Fail to consider synergies between businesses.
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OHT 20.14
Types of growth
•
Market penetration.
•
Market development.
•
Product development.
•
Diversification - concentric, conglomerate.
•
Integration - backward, forward, horizontal.
•
No growth - harvesting, entrenchment, withdrawal.
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OHT 20.15
Competitor analysis
A systematic attempt to identify and understand key
elements of a competitor’s strategy in terms of
objectives, strategies, resource allocation and
implementation through the marketing mix.
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OHT 20.16
Porter’s Five Forces Model
1. Bargaining power of suppliers.
2. Bargaining power of customers.
3. Threat of new entrants.
4. Threat of substitute products or services.
5. Rivalry among current competitors.
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OHT 20.17
Strategic groupings
Figure 20.8
Source: Adapted from Wilson et al. (1992).
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OHT 20.18
Examining competitive strengths and weaknesses
•
Provides a valuable insight into their strategic thinking
and actions.
•
Requires use of various information sources.
•
Consider in terms of critical success factors.
•
Rate competitors according to their strong and
vulnerable points.
•
Information can be used to plan and launch attack.
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OHT 20.19
Useful information about competitors
Table 20.2
Source: Wilson et al. (1992).
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OHT 20.20
Generic strategies
Figure 20.9
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OHT 20.21
Choice of generic strategy
•
Fit between the demands of the strategy and the
organisation’s capabilities and resources.
•
The main competitor’s abilities on similar criteria.
•
The key criteria for success in the market and their
match with the organisation’s capabilities.
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OHT 20.22
Competitive positions and strategy
Figure 20.10
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OHT 20.23
Attacking and defending
•
Aggressive strategies - frontal, flank, encirclement,
bypass, and guerrilla attacks.
•
Defence strategies - fixed position, mobile, flanking,
contraction, counter offensive.
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OHT 20.24
Attack strategies
Figure 20.11
Source: Kotler and Singh (1981). Reproduced with permission of Thomson Media, Eleven Penn Plaza, New York, NY 10001
Brassington and Pettitt: Principles of Marketing, 3rd Edition
© Pearson Education Limited 2003
OHT 20.25
Defence strategies
Figure 20.12
Source: Kotler and Singh (1981). Reproduced with permission of Thomson Media Eleven Penn Plaza, New York, NY 10001.
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© Pearson Education Limited 2003
OHT 20.26
Co-operative and independent strategies
Many situations can also be characterised by peaceful
coexistence and co-operative alliances between
competitors.
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© Pearson Education Limited 2003