Unit 6 - Implementing Strategies in Strategic Management
Strategic Marketing Issues
1. Advertising Strategy
Make ads more interactive & engaging
Choose between TV, online, or hybrid platforms
2. Social Media Presence
Leverage online conversations for branding & feedback
Manage reputation and customer engagement
3. Distribution Channels
Decide between exclusive dealerships or multiple outlets
Ensure efficient delivery through intermediaries
4. Customer & Supplier Dependence
Avoid over-reliance on single customers or suppliers
Diversify to reduce operational risk
5. Pricing Strategy
Be a price leader (set market price) or
Be a price follower (match competitors)
6. Product & Warranty Decisions
Extend product lines or develop new ones
Offer comprehensive vs. limited warranties
Market Segmentation
Definition:
Dividing a broad market into smaller, defined groups based on shared traits
Segmentation Bases:
Geographic: Region, climate, urban vs. rural
Demographic: Age, gender, income, occupation
Psychographic: Lifestyle, values, social class
Behavioral: Usage rate, brand loyalty, benefits sought
Purpose:
Enables targeted marketing
Increases efficiency and effectiveness
, Marketing Mix (4Ps)
Segmentation impacts how each "P" is designed:
1. Product – Tailor products to each segment’s needs
2. Price – Adjust pricing based on value perception and affordability
3. Place – Choose distribution channels that suit each group
4. Promotion – Customize messaging and media for better reach
Strategic Impact:
Supports strategies like:
o Market penetration
o Market development
o Product development
o Diversification
Product Positioning
Definition:
The process of targeting specific customer groups by aligning a product’s attributes with
their needs and expectations
Key Components:
Perceptual Mapping:
o Visual tool to map consumer perceptions
o Compares products on key dimensions (e.g., quality vs. price, sporty vs.
conservative)
o Helps identify gaps or opportunities in the market
Examples:
Automotive:
o Porsche → Sporty & luxurious
o Plymouth → Practical & conservative
Hotels:
o Marriott → Positioned on luxury, service, or affordability
Strategic Purpose:
Ensures product is differentiated from competitors
Aligns product image with target market preferences
Enhances brand clarity and market capture
Strategic Marketing Issues
1. Advertising Strategy
Make ads more interactive & engaging
Choose between TV, online, or hybrid platforms
2. Social Media Presence
Leverage online conversations for branding & feedback
Manage reputation and customer engagement
3. Distribution Channels
Decide between exclusive dealerships or multiple outlets
Ensure efficient delivery through intermediaries
4. Customer & Supplier Dependence
Avoid over-reliance on single customers or suppliers
Diversify to reduce operational risk
5. Pricing Strategy
Be a price leader (set market price) or
Be a price follower (match competitors)
6. Product & Warranty Decisions
Extend product lines or develop new ones
Offer comprehensive vs. limited warranties
Market Segmentation
Definition:
Dividing a broad market into smaller, defined groups based on shared traits
Segmentation Bases:
Geographic: Region, climate, urban vs. rural
Demographic: Age, gender, income, occupation
Psychographic: Lifestyle, values, social class
Behavioral: Usage rate, brand loyalty, benefits sought
Purpose:
Enables targeted marketing
Increases efficiency and effectiveness
, Marketing Mix (4Ps)
Segmentation impacts how each "P" is designed:
1. Product – Tailor products to each segment’s needs
2. Price – Adjust pricing based on value perception and affordability
3. Place – Choose distribution channels that suit each group
4. Promotion – Customize messaging and media for better reach
Strategic Impact:
Supports strategies like:
o Market penetration
o Market development
o Product development
o Diversification
Product Positioning
Definition:
The process of targeting specific customer groups by aligning a product’s attributes with
their needs and expectations
Key Components:
Perceptual Mapping:
o Visual tool to map consumer perceptions
o Compares products on key dimensions (e.g., quality vs. price, sporty vs.
conservative)
o Helps identify gaps or opportunities in the market
Examples:
Automotive:
o Porsche → Sporty & luxurious
o Plymouth → Practical & conservative
Hotels:
o Marriott → Positioned on luxury, service, or affordability
Strategic Purpose:
Ensures product is differentiated from competitors
Aligns product image with target market preferences
Enhances brand clarity and market capture
