Marketing Strategy: A Decision-Focused Approach Chapter 3

Front 1

All three levels of strategy within a company have good internal and external consistency.

Back 1

Strategic Fit

Front 2

Components of a firm engaged in multiple industries or businesses.

Back 2

Strategic Business Units (SBUs)

Front 3

1. A homogeneous set of markets to serve with a limite number of related technologies
2. A unique set of product-markets
3. Control over those factors necessary for successful performance
4. Responsibility for their own profitability

Back 3

Characteristics of an SBU (4)

Front 4

1. Technical compatibility
2. Similarity in the customer needs
3. Similarity in the personal characteristics or behavior patterns of customers

Back 4

How to cluster SBUs (3)

Front 5

1. The attractiveness of their industries
2. The strength of their competitive positions within those industries
3. Resource allocation decisions by corporate management

Back 5

Resource for different objectives in different SBUs (3)

Front 6

1. Prospector
2. Defender (differentiated or low-cost defenders)
3. Analyzers (differentiated or low-cost analyzers)
4. Reactors

Back 6

Generic Business-Level Competitive Strategies

Front 7

Focuses on growth through the development of new products and markets.

Back 7

Prospector Strategy

Front 8

Concentrates on maintaining their positions in established product markets while paying less attention to new product development.

Back 8

Defender Strategy

Front 9

Attempts to maintain a strong position in its core product-market(s) but also seeks to expand into new -usually closely related- product-markets.

Back 9

Analyzer Strategy

Front 10

Businesses with no clearly defined strategy.

Back 10

Reactor Strategy

Front 11

1. Scope
2. Goals and objectives
3. Resource Deployments
4. Synergy

Back 11

Components of Competitive Strategies (4)

Front 12

The success of a business's products and programs relative to those of its competitors in the market (sales growth or changes in market share)

Back 12

Effectiveness

Front 13

The outcomes of a business's programs relative to the resources used in implementing them (profitability as a percent of sales and return on investment)

Back 13

Efficiency

Front 14

The business's success in responding over time to changing conditions and opportunities in the environment (number of successful new products, percentage of sales accounted for by products introduced within the last 5 years)

Back 14

Adaptability

Front 15

1. Scope - well defined, narrow, and stable domains where product technology and customer segments are mature
2. Goals and objectives – better return on investment
3. Resource Deployments – focus the bulk of their resources on preserving existing positions in established product-markets

Back 15

Defender Strategy

Front 16

1. Scope – operate in broad and rapidly changing domains where neither the technology nor the customer segments are well established
2. Goals and objectives - best on new product development and market-share growth.
3. Resource Deployments - large proportion of resources to the development of new product-markets

Back 16

Prospector Strategy

Front 17

1. Scope – usually have a well-established core business to defend, and often their domain is primarily focused on that business

Back 17

Analyzer Strategy

Front 18

1. Industry and market
2. Technology
3. Competition
4. Business's relative strengths

Back 18

Environmental Factors that Affect Business Strategies

Front 19

1. Industry and market - early growth stage, many potential customer segments
2. Technology - newly emerging technology, applications to develop
3. Competition - few established competitors, one competitor is the strongest
4. Business's relative strengths - strong R&D, product engineering and marketing and research & capabilities

Back 19

Prospector

Front 20

1. Industry and market - late growth or early maturity, some potential segments are undeveloped
2. Technology - basic technology well developed but still evolving
3. Competition - many competitors but structure still evolving
4. Business's relative strengths - good R&D, product engineering and marketing research & capabilities but not as strong as some competitors'

Back 20

Analyzer

Front 21

1. Industry and market - industry in maturity or decline stage
2. Technology - few major modifications likely
3. Competition - small or moderate well established competitors, stable
4. Business's relative strengths - no outstanding strengths in R&D, costs are higher than some competitors, its strengths are quality, process engineering and marketing, distribution, customer service

Back 21

Differentiated Defender

Front 22

1. Industry and market - industry in maturity or decline stage
2. Technology - few major modifications likely
3. Competition - small or moderate well established competitors, stable
4. Business's relative strengths - superior sources of supply and process engineering and production capabilities.

Back 22

Low-Cost Defender

Front 23

1. Product Policies
2. Price Policies
3. Distribution Policies
4. Promotion Policies

Back 23

Marketing Policies (4)

Front 24

1. Product-line diversity
2. Technical sophistication
3. Product quality
4. Service quality

Back 24

Product policies concerns (4)

Front 25

1. Degree of forward vertical integration
2. trade promotion expenses as percent of sales

Back 25

Distribution policies concerns (2)

Front 26

1. Advertising expenses as percent of sales
2. sales promotions expenses as percent of sales
3. Salesforce expenses as percent of sales

Back 26

Promotion policies concerns (3)