1. Strategic Marketing, 3rd edition
Chapter 4: Strategic marketing decisions, choices, and mistakes

2. Structure A. INTRODUCTION 1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
Perspectives
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
C. WHERE DO WE WANT TO BE?
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
D. HOW WILL WE GET THERE?
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution Strategies
11. Marketing Communications Strategies
12. International Marketing Strategies
13. Social and Ethical Strategies

3. Functional Level

4. Functional Level: Strategic decisions of products to offer and markets to target
Diversification
Ansoff’s product/market matrix

5. What kind of strategies are each of your teammates referring to?
You are a manufacturer of pens. Your team and you decide that it’s time for your company to grow. Four of your teammates propose four different growth strategies as follows:
Teammate 1 says, ‘Let’s start manufacturing diaries’
Teammate 2 says, ‘We should improve the distribution system so that the pens reach customers more easily. This will lead to more purchase and help us grow’
Teammate 3 says ‘Why don’t we introduce a color pencil line beside the pen line? Customers who buy pens would love to buy color pencils’
Teammate 4 says, ‘We should definitely start selling our pens in Sri Lanka. They demand a lot of pens each year!’
What kind of strategies are each of your teammates referring to?
diversification
mkt penetration
product development
mkt development

6. Competitive position tactics

7. Competitive tactics for market leader
Offensive tactics:
Expand total market: new users, new uses, more usage
Expanding market share: heavier advertising, improved distribution, price incentives and new products
Defensive tactics:
Protect the current market share
Expanding market share: best defence is a good offence

8. Defensive tactics: Protect Market share
Position defence: involves occupying the most desirable market space in the minds of the consumers, making the brand almost impregnable.
Flanking defence: aimed at capturing market segments that are not being well-served by the firm's competitors. Flanking compels the threatened competitor to either allocate resources to the segments being attacked (and thus dilute the competitor's marketing efforts) or to lose them to the attacker.
Pre-emptive defence: the leading firm can be aggressive and strike competitors before they can make any move against it
Position defence: Wheel bar
Flanking defence: Singapore Airlines and Tiger Air
Pre-emptive defence: GP blocked all TV spots, billboards, newspapers to thwart Warid’s launch plan

9. Defensive tactics: Protect Market share
Counter-offensive defence: This involves that the market leader will attack the attacker in its main territories so that the attacker will have to put back some resources for the attacked territories and will have to divert its attention from launching attack on the market leader. This may involve significantly lowering the prices of the product or aggressive marketing communications or flooding the market with the products.
Mobile defence: the leader extends itself to new markets that can serve as future bases for defence or offence
Contraction defence: when resources are spread too thinly, firm opts to withdraw from those segments in which it is most vulnerable or that which has least potential. Then it concentrates resources in other segments believed to be more valuable
Counter-offensive defence: RB’s Mortein, Harpic and Dettol. Square’s Xpel, Shakti and Sepnil. To protect Mortein, RB can go attack the toilet cleaning segment, so that Square diverts all resources to that segment and can’t do anything with Xpel, so Mortein is safe
Mobile defence: say Unilever, has started exploring water filters, ice cream.
Contraction defence:

10. Competitive position tactics

11. Competitive tactics for market challenger
Frontal attack: challenger opposes competitor directly using its own weapons and trying not to expose its weak points
Flanking attack: challenger focuses on competitor’s weaker flanks or gaps in the competitor’s market coverage
Encirclement attack: challenger encircles competitor’s position in terms of products or markets or both. It attacks rivals in as many ways as possible by stretching product lines
Frontal attack: Mortein killer coil vs. aci fighter coil
Flanking attack: ACI went strong in areas like Mymensingh and Bogra where Mortein had poor distribution. Cheap coils started cropping up in these areas as well.
Encirclement attack: Casio has a diverse collection of watch models in different price brackets.

12. Competitive tactics for market challenger
Bypass attacks: the challenger chooses to diversify into unrelated products, moving into new markets, technologies to replace existing products
Guerrilla attack: smaller companies with relatively limited resource base employs this
Bypass attacks: Partex introduced the concept of Partex, to be used instead of wood. Hatil Otobi started brinking these specific boards, which were made of wood but not really wood

13. Example of guerrilla marketing

14. Example of guerrilla marketing

15. Competitive position tactics

16. Competitive position tactics