Strategic

Market Management
PPT 1-1
 What is a Business
Strategy?
The Product-Market Investment Strategy –
where to compete

The Customer Value Proposition

Assets and Competencies

Functional Strategies and Programs

PPT 1-2
 Where to Compete
The product-market investment decision

A Business
A Business Strategy
Strategy

How to Compete
Value Assets & Function area
proposition competencies strategies and programs
PPT 1-3
Figure 1.1
The Product-Market Investment
Strategy

Invest to grow (or enter a product market)

Invest only to maintain the existing position

Milk the business by minimizing investment

Recover as many of the assets as possible by liquidating

or divesting the business
PPT 1-4
 Product-Market Growth
Directions

Present
Present New
New
Products
Products Products
Products

Present
Present Market
Market Product
Product
Markets
Markets Penetration
Penetration Expansion
Expansion

New
New Market
Market Diversification
Diversification
Markets
Markets Expansion
Expansion
PPT 1-5
Figure 2.4
 The Customer Value
Proposition
Perceived benefit to customer:

Functional

Emotional

Social

Self-Expressive

PPT 1-6
 Customer Value Proposition
Examples:
A good value

Excellence on an important product or service attribute

The best overall quality

Product line breadth

Innovative offerings

A shared passion for an activity or a product

Global connections and prestige

PPT 1-7
 Assets and Competencies

Strategic Competency:

What a business unit does exceptionally well

Has strategic importance to the business

Based on knowledge or a process

Strategic Asset:

A resource

PPT 1-8
 Functional Strategies and
Programs
• Global strategy
• Manufacturing strategy

• Logistical strategy
• Distribution strategy

• Quality program
• Brand-building strategy

• Communication strategy
• Customer relationship program
• Information technology strategy

• Sourcing Strategy • Social technology strategy

PPT 1-9
 Overview of Strategic Market
Management
External Analysis
• Customer Analysis Internal Analysis
• Competitor Analysis • Performance Analysis
• Market/submarket Analysis • Determinants of strategic options
• Environmental Analysis

Strategic
Strategic Analysis
Analysis Outputs
Outputs

Creating,
Creating, Adapting,
Adapting, and
and
Implementing
Implementing Strategy
Strategy
PPT 1-10
Figure 2.1
 Why Strategic Market Management?
Precipitate the consideration of strategic choices.

Help a business cope with change.

Force a long-range view.

Make visible the resource allocation decision.

Aid strategic analysis and decision making.

Provide a strategic management and control system.

Provide both horizontal and vertical communication and

coordination systems.
PPT 1-11
 “It isn’t that they can’t see the
solution, it’s that they can’t see the
problem.”
- G. K. Chesterton

PPT 1-12
 “Business has only two basic
functions - marketing and innovation.”
- Peter Drucker

PPT 1-13