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What is strategy?
How does marketing contribute?
- The marketing concept
- Market orientation
Business-level strategy
-competitive strategy of a business unit in its
industry
Marketing strategy
-targeting, segmenting and positioning for a
product. Figuring out the marketing mix
Discussion questions
Q.1 : In defining their strategies, should companies
pursue broadly or narrowly defined missions?
Characteristics of Effective
Corporate Mission Statements
Broad
Specific
Functional
Based on
customer needs
Transportation
business
Long-distance
transportation for largevolume producers of lowvalue, low-density products
Physical
Based on existing
products or
technology
Ansoff Strategies
Current Markets
Current Products
Market penetration
strategy
New Products
Product development
strategy
New Markets
Market development
strategy
Diversification
strategy
Stars
Question marks
5
Market
growth
rate
10%
(in
constant
dollars)
6
Cash cows
9
Low
10
11
Dogs
12
3
7
10
1
Relative market share
Source: Adapted from Barry Hedley, Strategy and the Business Portfolio, Long Range Planning 10 (February 1977).
13
0.1
Question
marks
Stars
Cash
Flows
Low
Cash cows
High
Dogs
Low
Businesss
competitive position
Medium
Low
1 Invest/grow
2 Selective investment/ maintain position
3 Harvest/divest