2.5 Types of marketing strategies
Many models have been designed to assist with strategic planning at both the corporate level and at the functional level of marketing. One reason for this is that a diversified organisation should conduct separate strategic planning for its constituent units as part of its overall planning process. It would be crucial to ascertain whether and how each strategic business unit fits the mission of the organisation.
A number of methods have been devised to help top management decide which business units to retain, invest in, and divest. The Boston Consulting Group (BCG) example given in your Kotler et al. (2004) text is just one of them, which has products caricatured as stars, dogs, cows and question-marks. This format is shown in Figure 2.3. Note that the vertical axis depicts the market growth rate and the horizontal axis indicates the relative market share for a brand relative to that of the largest competitor.
Your next reading briefly discusses several strategy models and domestic and international perspectives on evaluating market opportunities. Do not be overly concerned if you have difficulty fully understanding all of these models at this stage of your course because some of these models will also be discussed in other units.
In your text
Kotler et al. (2004) Chapter 3, pp. 89-102, 'Designing the business portfolio' to 'Migration planning'.
Consider this
If you have an interest in marketing strategies, further details can be found on pages 749-766 of your text.
Figure 2.3 SWOT analysis and the BCG matrix
Source: adapted from Quester et al. (2004, p. 93)
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