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Marketing strategy
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Marketing strategy is a long-term, forward-looking approach to planning with the fundamental goal achieving a sustainable competitive advantage.[1] Strategic planning involves an analysis of the strategic initial situation of a company and the formulation, evaluation and selection of market-oriented strategies that contribute to the goals of the company and its marketing objectives.[2]
Contents
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1 Definitions of marketing strategy
2 Marketing management versus marketing strategy
3 Brief history of strategic marketing
4 Strategic marketing planning: An overview
5 Strategic planning tools and techniques
5.1 Brief description of gap analysis
5.2 Brief description of Category/Brand Development Index
5.3 Brief description of PEST analysis
5.4 Brief description of SWOT analysis
6 Developing the vision and mission
7 Developing the generic competitive strategy
7.1 Porter's approach to strategy formulation
7.2 Resource-based view (RBV)
7.3 Other approaches
7.3.1 Market position and strategy
7.3.2 Entry strategies
7.3.2.1 Pioneers
7.3.2.2 Close followers
7.3.2.3 Late entrants
7.3.3 Growth strategies
7.3.3.1 Horizontal integration
7.3.3.2 Vertical integration
7.3.3.3 Diversification
8 Developing marketing goals and objectives
9 Strategy typologies
9.1 Raymond Miles' strategy categories
9.2 Marketing warfare
10 Relationship between the marketing strategy and the marketing mix
11 See also
12 References
13 Further reading
Definitions of marketing strategy[edit]
Scholars continue to debate the precise meaning of marketing strategy. Consequently, the literature offers many different definitions. On close examination, however, these definitions appear to centre around the notion that strategy refers to a broad statement of what is to be achieved.
Strategy is:
“An over-riding directional concept that sets out the planned path.” (David Aaker and Michael K. Mills, Strategic Market Management, 2001, p. 11)
"Essentially a formula for how a business is going to compete, what its goals should be and what policies will be needed to carry out these goals." (Michael Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors , NY, Free Press, 1980)
"The pattern of major objectives, purposes and goals and essential policies and plans for achieving those goals, stated in such a way as to define what business the company is in or is to be in. (S.Jain, Marketing Planning and Strategy, 1993)
"An explicit guide to future behaviour.” (Henry Mintzberg, “ Crafting Strategy,” Harvard Business Review, July–August, 1987 pp 66-74)
"reserved for actions aimed directly at altering the strengths of the enterprise relative to that of its competitors... Perfect strategies are not called for. What counts is... performance relative to competitors.” (Kenichi Ohmae, The Mind of the Strategist, 1982, p. 37)
Marketing management versus marketing strategy[edit]
The distinction between “strategic” and “managerial” marketing is used to distinguish "two phases having different goals and based on different conceptual tools. Strategic marketing concerns the choice of policies aiming at improving the competitive position of the firm, taking account of challenges and opportunities proposed by the competitive environment. On the other hand, managerial marketing is focused on the implementation of specific targets." [3] Marketing strategy is about "lofty visions translated into less lofty and practical goals [while marketing management] is where we start to get our hands dirty and make plans for things to happen." [4]
Brief history of strategic marketing[edit]
Linden Brown has suggested that strategic marketing arose in the late 1970s and its origins can be understood in terms of a distinct evolutionary path: [5]
Budgeting Control
Date: From late 19th century
Key Thinkers: Frederick Taylor, Gilbreths etc
Key Ideas: Emphasis on quantification and scientific modelling, reduce work to smallest possible units and assign work to specialists, exercise control through rigid managerial hierarchies, standardise inputs to reduce variation and defects, use forecasting to predict any changes. [6]
Long Range Planning
Date: From 1950s
Key Thinkers: Herbert Simon
Key Ideas: Managerial focus was to anticipate growth and manage operations in an increasingly complex business world.
Strategic Planning (also known as corporate planning)
Date: From the 1960s
Key Thinkers: Michael Porter
Key Ideas: Organisations must find the right fit within an industry structure; advantage derives from industry concenttation and market power; firms should strive to achieve a monopoly or quasi-monopoly; successful firms should be able to erect barriers to entry
Strategic Marketing Management
Date: from late 1970s
Key thinkers: Buzzell and Gale
Key Ideas: Each business is unique and that there can be no formula for achieving competitive advantage; firms should adopt a flexible planning and review process that aims to cope with strategic surprises and rapidly developing threats; management's focus is on how to deliver superior customer value.
Resource Based View (RBV) (also known as resource-advantage theory)
Date: From mid 1990s
Key Thinkers: George Day, Prahalad and Hamel, Shelby D. Hunt, G. Hooley
Key Ideas: The firm's resources are financial, legal, human, organisational, informatinal and relational; resources are hetergenous and imperfectly mobile, management's key task is to understand and organise resources for sustainable competitive advantage [7]
Strategic marketing planning: An overview[edit]
The strategic gap
Marketing strategy involves mapping out the company's direction for the forthcoming planning period, whether that be three, five or ten years. It involves undertaking a 360° review of the firm and its operating environment with a view to identifying new business opportunities that the firm could potentially leverage for competitive advantage. Strategic planning may also reveal market threats that the firm may need to consider for long-term sustainability.[8] Strategic planning makes no assumptions about the firm continuing to offer the same products to the same customers into the future. Instead, it is concerned with identifying the business opportunities that are likely to be successful and evaluates the firm's capacity to leverage such opportunities. It seeks to identify the strategic gap; that is the difference between where a firm is currently situated (the strategic reality) and where it should be situated for sustainable, long-term growth (the strategic intent).[9]
Strategic planning seeks to address three deceptively simple questions, specifically:
* Where are we now? (Situation analysis)
* What business should we be in? (Vision and mission)
* How should we get there? (Strategies, plans, goals and objectives)
On the surface, strategic planning seeks to address three deceptively simple questions. However, the research and analysis involved in strategic planning is very sophisticated and requires a great deal of skill and judgement.
Strategic planning tools and techniques[edit]
Traditional market research is less useful for strategic marketing because the analyst is not seeking insights about customer attitudes and preferences. Instead strategic analysts are seeking insights about the firm's operating environment with a view to identifying possible future scenarios. Strategic planning focuses on the three 3C’s, namely: Customer, Corporation and Competitors.[10] Each factor is key to the success of this strategy; The corporation factor mainly focuses on maximizing the strengths of the business from which the business can influence the relevant areas of the competition to achieve success within the industry.[10] Customers are the basis to any business. The most important factors of customers and the wants, needs and requirements that the business needs to fulfill in order to attract buyers. The competition can be looked at in various different ways such as; purchasing, design, image and maintenance. The more unique steps a business takes the less competition a business will face in that field.[10]
The BCG Matrix is just one of the many analytical techniques used by strategic analysts as a means of evaluating the performance of the firm's current stable of brands
Perceptual mapping assists analysts to evaluate the competitive performance of brands
A product evolutionary cycle helps to envision future directions for product development
Porter's five forces
Mintzberg suggests that the top planners spend most of their time engaged in analysis and are concered with industry or competitive analyses as well as internal studies, including the use of computer models to analyze trends in the organization.[11] Strategic planners use a variety of research tools and analytical techniques, depending on the environment complexity and the firm's goals. Fleitcher and Bensoussan, for instance, have identified some 200 qualitative and quantitative analytical techniques regularly used by strategic analysts [12] while a recent publication suggests that 72 techniques are essential.[13] No optimal technique can be identified as useful across all situations or problems. The choice of tool depends on a variety of factors including: data availability; the nature of the marketing problem; the objective or purpose, the analyst’s skill level as well as other constraints such as time, motivation etc.
The most commonly used tools and techniques include:[13]
Research methods
Environmental scanning[14]
Marketing intelligence (also known as competitive intelligence)[15]
Futures research [16]
Analytical techniques
Category/Brand Development Index (BDI)
Benchmarking [17]
Blindspots analysis [18]
Functional capability and resource analysis [19]
Impact analysis [20]
Counterfactual analysis [21]
Demand analysis
Emerging Issues Analysis [22]
Experience curve analysis
Gap analysis
impact analysis [23]
Industry Analysis (also known as Porter's five forces analysis) [24]
Management profiling
Market segmentation analysis [25]
Market share analysis
Market Segmentation analysis
Perceptual mapping [26]
PEST analysis
Portfolio analysis, such as BCG growth-share matrix or GE business screen matrix [27]
Precursor Analysis or Evolutionary analysis [28]
Product life cycle analysis and S-curve analysis (also known as technology life cycle analysis)* Product evolutionary cycle analysis [29]
Scenario analysis [30]
Segment Share Analysis
Situation analysis
SWOT analysis [31]
Trend Analysis [32]
Value chain analysis [33]
Brief description of gap analysis[edit]
Gap analysis is a type of higher order analysis that seeks to identify the difference between the organisation's current strategy and its desired strategy. This difference is sometimes known as the strategic gap. Mintzberg identifies two types of strategy namely deliberate strategy and inadvertent strategy. The deliberate strategy represents the firm's strategic intent or its desired path while the inadvertent strategy represents the path that the firm may have followed as it adjusted to environmental, competitive and market changes.[34] Other scholars use the terms realized strategy versus intended strategy to refer to the same concepts.[35] This type of analysis indicates whether an organisation has strayed from its desired path during the planning period. The presence of a large gap may indicate the the organisation has become stuck in the middle; a recipe for strategic mediocrity and potential failure.

Brief description of Category/Brand Development Index[edit]
The category/brand development index is a method used to assess the sales potential for a region or market and identify market segments that can be developed (i.e. high CDI and high BDI). In addition, it may be used to identify markets where the category or brand is under-performing and may signal underlying marketing problems such as poor distribution (i.e. high CDI and low BDI).
BDI and CDI are calculated as follows:[36]
BDI = (Brand Sales (%) in Market A/ Population (%) in Market A) X 100
CDI = (Category Sales (%) in Market/ Population (%) in Market A) X 100
Brief description of PEST analysis[edit]
PEST analysis: variables that may be considered in the environmental scan
Strategic planning typically begins with a scan of the business environment, both internal and external, this includes understanding strategic constraints.[37] An understanding of the external operating environment, including political, economic, social and technological which includes demographic and cultural aspects, is necessary for the identification of business opportunities and threats.[38] This analysis is called PEST, it stand for Political, Economic, Social and Technological. A number of variants of the PEST analysis can be identified in literature, including: PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental); STEEPLE (adds ethics); STEEPLED (adds demographics) and STEER (adds regulatory).[39]
The aim of the PEST analysis is to identify opportunities and threats in the wider operating environment. Firms try to leverage opportunities while trying to buffer themselves against potential threats. Basically, the PEST analysis guides strategic decision-making.[40] The main elements of the PEST analysis are:[41]
Political: political interventions with the potential to disrupt or enhance trading conditions e.g. government statutes, policies, funding or subsidies, support for specific industries, trade agreements, tax rates and fiscal policy.
Economic: economic factors with the potential to affect profitability and the prices that can be charged, such as, economic trends, inflation, exchange rates, seasonality and economic cycles, consumer confidence, consumer purchasing power and discretionary incomes.
Social: social factors that affect demand for products and services, consumer attitudes, tastes and preferences like demographics, social influencers, role models, shopping habits.
Technological: Innovation, technological developments or breakthroughs that create opportunities for new products, improved production processes or new ways of transacting business e.g. new materials, new ingredients, new machinery, new packaging solutions, new software and new intermediaries.
When carrying out a PEST analysis, planners and analysts may consider the operating environment at three levels, namely the supranational; the national and subnational or local level. As businesses become more globalized, they may need to pay greater attention to the supranational level.[42]
Brief description of SWOT analysis[edit]
A SWOT analysis, with its four elements in a 2×2 matrix.
In addition to the PEST analysis, firms carry out a Strengths, Weakness, Opportunities and Threats (SWOT) analysis. A SWOT analysis identifies:[43]
Strengths: distinctive capabilities, competencies, skills or assets that provide a business or project with an advantage over potential rivals; internal factors that are favourable to achieving company objectives
Weaknesses: internal deficiencies that place the business or project at a disadvantage relative to rivals; or deficiencies that prevent an entity from moving in a new direction or acting on opportunities. internal factors that are unfavourable to achieving company objectives
Opportunities: elements in the environment that the business or project could exploit to its advantage
Threats: elements in the environment that could erode the firm's market position; external factos that prevent or hinder an entity from moving in a desired direction or achieveing its goals
Typically the firm will attempt to leverage those opportunities that can be matched with internal strengths; that is to say the firm has a capability in any area where strengths are matched with external opportunities. It may need to build capability if it wishes to leverage opportunities in ares of weakness. An area of weakness that is matched with an external threat represents a vulnerability, and the firm may need to develop contingency plans.[44]
Developing the vision and mission[edit]
At the conclusion of the research and analysis stage, the firm will typically review its vision statement, mission statement and devise a generic competitive strategy for the forthcoming planning period. A vision statement is a realistic, long term future scenario for the organisation. (Vision statements should not be confused with slogans or mottos.) [45]
A vision statement is designed to present a realistic long-term future scenario for the organisation. It is a "clearly articulated statement of the business scope." A strong vision statement typically includes the following:[46]
Competitive scope
Market scope
Geographic scope
Vertical scope
Some scholars point out the market visioning is a skill or competency that encapsulates the planners' capacity "to link advanced technologies to market opportunities of the future, and to do so through a shared understanding of a given product market.[47]
A mission statement is a clear and concise statement of the organisation’s reason for being and its scope of operations,[48] while the generic strategy outlines how the company intends to achieve its both it vision and mission.[49]
Mission statements should include detailed information and must be more than a simple motherhood statement.[50] A mission statement typically includes the following:[51]
This mission statement might be described as a "motherhood statement" because it lacks sufficient detail to be meaningful
Specification of target customers
Identification of principal products or services offered
Specification of the geographic scope of operations
Identification of core technologies and/or core capabilities
An outline of the firm's commitment to long-term survival, growth and profitability
An outline of the key elements in the company's philosophy and core values
Identification of the company's desired public image
Developing the generic competitive strategy[edit]
The generic competitive strategy outlines the fundamental basis for obtaining a sustainable competitive advantage within a category. Firms can normally trace their competitive position to one of three factors:[52]
Superior skills (e.g. coordination of individual specialists, created through the interplay of investment in training and professional development, work and learning)
Superior resources (e.g. patents, trade-mark protection, specialized physical assets and relationships with suppliers and distribution infrastructure.)
Superior position (the products or services offered, the market segments served, and the extent to which the product-market can be isolated from direct competition.)
It is essential that the internal analysis provide a frank and open evaluation of the firm's superiority in terms of skills, resources or market position since this will provide the basis for competing over the forthcoming planning period. For this reason, some companies engage external consultants to provide an independent assessment of the firms capabilities and resources.
Porter's approach to strategy formulation[edit]
Further information: Porter's generic strategies
Porter's Three Generic Strategies
In 1980, Michael Porter developed an approach to strategy formulation that proved to be extremely popular with both scholars and practitioners. The approach consisted of three key strands of thinking: analysis of the five forces to determine the sources of competitive advantage; the selection of one of three possible approaches to strategy to leverage the advantage and the value chain to implement the strategy.[53] In this approach, the strategic choices involve decisions about whether to compete for a share of the total market or for a specific target group (competitive scope) and whether to compete on costs or product differences (competitive advantage). This type of thinking leads to three generic strategies:
Cost leadership - the firm targets the mass market and attempts to be the lowest cost producer in the market
Differentiation - the firm targets the mass market and tries to maintain unique points of product difference perceived as desirable by customers and for which they are prepared to pay premium prices
Focus - the firm does not compete head to head, but instead selects a narrow target market and focuses its efforts on satisfying the needs of that segment
According to Porter, these strategies are mutually exclusive and the firm must select one approach to the exclusion of all others. Any ambiguity about the firm's approach is a recipe for "strategic mediocity" and any firm that tries to pursue two approaches simultaneously is said to be "stuck in the middle" and destined for failure.
Porter's approach was the dominant paradigm throughout the 1980s. However, the approach has attracted considerable criticism. One important criticism is that it is possible to identify successful companies that pursue a hybrid strategy - such as low cost position and a differentiated position simultaneously. Toyota is a classic example of this hybrid approach. [54] Other scholars point to the simplistic nature of the analysis and the overly prescriptive nature of the strategic choices which limits strategiest to just three options. Yet others point to research showing that many practitioners find the approach to be overly theoretical and not applicable to their business.[55]
Resource-based view (RBV)[edit]
Further information: Resource-based view
During the 1990s, the resource-based view (also known as the resource-advantage theory) of the firm became the dominant paradigm. It is an inter-disciplinary approach that represents a substantial shift in thinking. [56] It focuses attention on an organisation's internal resources as a means of organising processes and obtaining a competitive advantage. The resource-based view suggests that organisations must develop unique, firm-specific core competencies that will allow them to outperform competitors by doing things differently and in a superior manner.[57]
Barney stated that for resources to hold potential as sources of sustainable competitive advantage, they should be valuable, rare and imperfectly imitable. [58] A key insight arising from the resource-based view is that not all resources are of equal importance nor possess the potential to become a source of sustainable competitive advantage.[59] The sustainability of any competitive advantage depends on the extent to which resources can be imitated or substituted. [60] Barney and others point out that understanding the causal relationship between the sources of advantage and successful strategies can be very difficult in practice. [61] Thus, a great deal of managerial effort must be invested in identifying, understanding and classifying core competencies. In addition, management must invest in organisational learning to develop and maintain key resources and competencies.
Market Based Resources include:[62]
Organisational culture e.g. market orientation, research orientation, culture of innovation,etc.
Assets e.g.brands, Mktg IS, databases, etc
Capabilities (or competencies) e.g. market sensing, marketing research, relationships, know-how, tacit knowledge, etc
In the resource-based view, strategists select the strategy or competitive position that best exploits the internal resources and capabilities relative to external opportunities. Given that strategic resources represent a complex network of inter-related assets and capabilities, organisations can adopt many possible competitive positions. Although scholars debate the precise categories of competitive positions that are used, there is general agreement, within the literature, that the resource-based view is much more flexible than Porter's prescriptive approach to strategy formulation.
Hooley et al., suggest the following classification of competitive positions:[63]
Price positioning
Quality positioning
Innovation positioning
Service positioning
Benefit positioning
Tailored positioning (one-to-one marketing)
Other approaches[edit]
The choice of competitive strategy often depends on a variety of factors including: the firm's market position relative to rival firms,[64] the stage of the product life cycle.[65] A well-established firm in a mature market will likely have a different strategy than a start-up.
Market position and strategy[edit]
In terms of market position, firms may be classified as market leaders, market challengers, market followers or market nichers.[66]
Market position and strategic implications
Market leader: The market leader dominates the market by objective measure of market share. Their overall posture is defensive because they have more to lose. Their objectives are to reinforce their prominent position through the use of PR to develop corporate image and to block competitors brand for brand, matching distribution through tactics such as the use of “fighting” brands, pre-emptive strikes, use of regulation to block competitors and even to spread rumours about competitors. Market leaders may adopt unconventional or unexpected approaches to building growth and their tactical responses are likely to include: product proliferation; diversification; multi-branding; erecting barriers to entry; vertical and horizontal integration and corporate acquisitions.
Market challenger: The market challenger holds the second highest market share in the category, following closely behind the dominant player. Their market posture is generally offensive because they have less to lose and more to gain by taking risks. They will compete head to head with the market leader in an effort to grow market share. Their overall strategy is to gain market share through product, packaging and service innovations; new market development and redefinition of the to broaden its scope and their position within it.
Market follower: Followers are generally content to play second fiddle. They rarely invest in R & D and tend to wait for market leaders to develop innovative products and subsequently adopt a “me-too” approach. Their market posture is typically neutral. Their strategy is to maintain their market position by maintaining existing customers and capturing a fair share of any new segments. They tend to maintain profits by controlling costs.
Market nicher: The market nicher occupes a small niche in the market in order to avoid head to head competition. Their objective is to build strong ties with the customer base and develop strong loyalty with existing customers. Their market posture is generally neutral. Their strategy is to develop and build the segment and protect it from erosion. Tactically, nichers are likely to improve the product or service offering, leverage cross-selling opportunities, offer value fo money and build relationships through superior after sales service, service quality and other related value adding activities.
As the speed of change in the marketing environment quickens, time horizons are becoming shorter. Nevertheless, most firms carry out strategic planning every 3- 5 years and treat the process as a means of checking whether the company is on track to achieve its vision and mission.[38] Ideally, strategies are both dynamic and interactive, partially planned and partially unplanned. Strategies are broad in their scope in order to enable a firm to react to unforeseen developments while trying to keep focused on a specific pathway. A key aspect of marketing strategy is to keep marketing consistent with a company's overarching mission statement.[67]
Strategies often specify how to adjust the marketing mix; firms can use tools such as Marketing Mix Modeling to help them decide how to allocate scarce resources, as well as how to allocate funds across a portfolio of brands. In addition, firms can conduct analyses of performance, customer analysis, competitor analysis, and target market analysis.
Entry strategies[edit]
Marketing strategies may differ depending on the unique situation of the individual business. According to Lieberman and Montgomery, every entrant into a market – whether it is new or not – is classified under a Market Pioneer, Close Follower or a Late follower [68][not in citation given]
Pioneers[edit]
Market Pioneers are known to often open a new market to consumers based off a major innovation.[69] They emphasise these product developments, and in a significant amount of cases, studies have shown that early entrants – or pioneers – into a market have serious market-share advantages above all those who enter later.[70] Pioneers have the first-mover advantage, and in order to have this advantage, business’ must ensure they have at least one or more of three primary sources: Technological Leadership, Preemption of Assets or Buyer Switching Costs.[68] Technological Leadership means gaining an advantage through either Research and Development or the “learning curve”.[68] This lets a business use the research and development stage as a key point of selling due to primary research of a new or developed product. Preemption of Assets can help gain an advantage through acquiring scarce assets within a certain market, allowing the first-mover to be able to have control of existing assets rather than those that are created through new technology.[68] Thus allowing pre-existing information to be used and a lower risk when first entering a new market. By being a first entrant, it is easy to avoid higher switching costs compared to later entrants. For example, those who enter later would have to invest more expenditure in order to encourage customers away from early entrants.[68] However, while Market Pioneers may have the “highest probability of engaging in product development” [71] and lower switching costs, to have the first-mover advantage, it can be more expensive due to product innovation being more costly than product imitation. It has been found that while Pioneers in both consumer goods and industrial markets have gained “significant sales advantages”,[72] they incur larger disadvantages cost-wise.
Close followers[edit]
Being a Market Pioneer can more often than not, attract entrepreneurs and/or investors depending on the benefits of the market. If there is an upside potential and the ability to have a stable market share, many businesses would start to follow in the footsteps of these pioneers. These are more commonly known as Close Followers. These entrants into the market can also be seen as challengers to the Market Pioneers and the Late Followers. This is because early followers are more than likely to invest a significant amount in Product Research and Development than later entrants.[71] By doing this, it allows businesses to find weaknesses in the products produced before, thus leading to improvements and expansion on the aforementioned product. Therefore, it could also lead to customer preference, which is essential in market success.[73] Due to the nature of early followers and the research time being later than Market Pioneers, different development strategies are used as opposed to those who entered the market in the beginning,[71] and the same is applied to those who are Late Followers in the market. By having a different strategy, it allows the followers to create their own unique selling point and perhaps target a different audience in comparison to that of the Market Pioneers. Early following into a market can often be encouraged by an established business’ product that is “threatened or has industry-specific supporting assets”.[74]
Late entrants[edit]
Those who follow after the Close Followers are known as the Late Entrants. While being a Late Entrant can seem very daunting, there are some perks to being a latecomer. For example, Late Entrants have the ability to learn from those who are already in the market or have previously entered.[74] Late Followers have the advantage of learning from their early competitors and improving the benefits or reducing the total costs. This allows them to create a strategy that could essentially mean gaining market share and most importantly, staying in the market. In addition to this, markets evolve, leading to consumers wanting improvements and advancements on products.[75] Late Followers have the advantage of catching the shifts in customer needs and wants towards the products.[68] When bearing in mind customer preference, customer value has a significant influence. Customer value means taking into account the investment of customers as well as the brand or product.[76] It is created through the “perceptions of benefits” and the “total cost of ownership”.[76] On the other hand, if the needs and wants of consumers have only slightly altered, Late Followers could have a cost advantage over early entrants due to the use of product imitation.[71] However, if a business is switching markets, this could take the cost advantage away due to the expense of changing markets for the business. Late Entry into a market does not necessarily mean there is a disadvantage when it comes to market share, it depends on how the marketing mix is adopted and the performance of the business.[77] If the marketing mix is not used correctly – despite the entrant time – the business will gain little to no advantages, potentially missing out on a significant opportunity.
The differentiated strategy
Further information: Marketing Mix Modeling
The customised target strategy
Further information: Strategy dynamics
The requirements of individual customer markets are unique, and their purchases sufficient to make viable the design of a new marketing mix for each customer.
If a company adopts this type of market strategy, a separate marketing mix is to be designed for each customer.[78]
Specific marketing mixes can be developed to appeal to most of the segments when market segmentation reveals several potential targets.[79]
Growth strategies[edit]
Growth of a business is critical for business success. A firm may grow by developing the market or by developing new products. The Ansoff product market growth matrix illustrates the two broad dimensions for achieving growth. The Ansoff matrix identifies four specific growth strategies: market penetration, product development, market development and diversification.[80]
The Ansoff Product/market Growth Matrix
Market penetration involves selling existing products to existing consumers. This is a conservative, low risk approach since the product is already on the established market.[80]
Product development is the introduction of a new product to existing customerst. This can include modifications to an already existing market which can create a product that has more appeal.[80]
Market development involves the selling of existing products to new customers in order to identify and build a new clientele base. This can include new geographical markets, new distribution channels, and different pricing policies that bring the product price within the competence of new market segments.
Diversification is the riskiest area for a business. This is where a new product is sold to a new market. There are two type of Diversification "Related" which means the business remains in the same industry that they are familiar with. The other is "Unrelated" which is when there are no previous relations or market experiences for the business.[80]
In addition, firms may consider the following growth strategies: horizontal integration, vertical integration, diversification and intensification.
Horizontal integration[edit]
Some benefits of the horizontal integration strategy is that it is good for fast changing work environments as well as providing a broad knowledge base for the business and employees.[81] High levels of horizontal integration leads to high levels of communication within the business. Another benefit of using this strategy is that it leads to a larger market for merged businesses, and it is easier to build good reputations for a business when using this strategy.[82] A disadvantage of using the horizontal integration strategy is that this limits and restricts the field of interest that the business is expanding the new products into.[83] Horizontal integration can affect a business's reputation, especially after a merge has happened between two or more businesses. There are three main benefits to a business's reputation after a merge. A larger business helps the reputation and increases the severity of the punishment. As well as the merge of information after a merge has happened, this increases the knowledge of the business and marketing area they are focused on. The last benefit is more opportunities for deviation to occur in merged businesses rather than independent businesses.[82]
Vertical integration[edit]
Vertical integration is when business is expanded through the vertical production line on one business. An example of a vertically integrated business could be Apple. Apple owns all their own software, hardware, designs and operating systems instead of relying on other businesses to supply these.[84] By having a highly vertically integrated business this creates different economies therefore creating a positive performance for the business.[85] Vertical integration is seen as a business controlling the inputs of supplies and outputs of products as well as the distribution of the final product.[85] Some benefits of using a Vertical integration strategy is that costs may be reduced because of the reducing transaction costs which include finding, selling, monitoring, contracting and negotiating with other firms. Also by decreasing outside businesses input it will increase the efficient use of inputs into the business. Another benefit of vertical integration is that it improves the exchange of information through the different stages of the production line.[85] Some competitive advantages could include; avoiding foreclosures, improving the business marketing intelligence, and opens up opportunities to create different products for the market.[86] Some disadvantages of using a Vertical Integration Strategy include the internal costs for the business and the need for overhead costs. Also if the business is not well organised and fully equipped and prepared the business will struggle using this strategy. There are also competitive disadvantages as well, which include; creates barriers for the business, and loses access to information from suppliers and distributors.[86]
Diversification[edit]
Diversification is an area included in the Ansoff Matrix strategy, where the most risk for a business is situated. This is due to the use of a new product being introduced to a new market, so there are no already existing target markets or competition.[87] There are two types of diversification, vertical and horizontal. Horizontal diversification is when a new product is introduced but doesn’t contribute to the already existing product line. Meaning horizontal diversification focuses more on product that the business has knowledge about, whereas vertical diversification focuses more on the introduction of new product onto new markets, where the business could have less knowledge of the ne market.[83] A benefit of horizontal diversification is that it is an open platform for a business to expand and build away from the already existing market.[83] A disadvantage of using a Diversification strategy is that the benefits could take a while to start showing, which could lead the business to believing that the strategy doesn’t work.[83] Another disadvantage or risk is, it has been shown that using the horizontal diversification method has become harmful for stock value, but using the vertical diversification had the best effects.[88]
Developing marketing goals and objectives[edit]
Whereas the vision and mission provide the framework, the "goals define targets within the mission, which, when achieved, should move the organization toward the performance of that mission." [89] Goals are broad primary outcomes whereas, objectives are measurable steps taken to achieve a goal or stategy. [90] In strategic planning, it is important for managers to translate the overall strategy into goals and objectives. Goals are designed to inspire action and focus attention on specific desired outcomes. Objectives, on the other hand, are used to measure an organisation's performance on specific dimensions, thereby providing the organisation with feedback on how well it is achieving its goals and strategies.
Managers typically establish objectives using the balanced scorecard approach. This means that objectives do not include desired financial outcomes, but also specify measures of performance for customers (e.g. satisfaction, loyalty, repeat patronage), internal processes (e.g., employee satisfaction, productivity) and innovation and improvement activities. [91]
After setting the goals marketing strategy or marketing plan should be developed. The marketing strategy plan provides an outline of the specific actions to be taken over time to achieve the objectives. Plans can be extended to cover many years, with sub-plans for each year. Plans usually involve monitoring, to assess progress, and prepare for contingencies if problems arise. Simulations such as customer lifetime value models can be used to help marketers conduct "what-if" analyses to forecast what potential scenarios arising from possible actions, and to gauge how specific actions might affect such variables as the revenue-per-customer and the churn rate.
Strategy typologies[edit]
Developing competitive strategy requires significant judgement and is based on a deep understanding of the firm's current situation, its past history and its operating environment. No heuristics have yet been developed to assist strategists choose the optimal strategic direction. Nevertheless some researchers and scholars have sought to classify broad groups of strategy approaches that might serve as broad frameworks for thinking about suitable choices.
Raymond Miles' strategy categories[edit]
In 2003, Raymond Miles proposed a detailed scheme using the categories:[92]
Prospectors: actively seek out new market opportunities
Analyzers: are very innovative in their product-market choices
Defenders: are relatively cautious in their initiatives
Reactors: tend to vacillate in their responses to environmental changes and are generally the least profitable organisations
Marketing warfare[edit]
Marketing warfare strategies are competitor-centered strategies drawn from analogies with the field of military science. Warfare strategies were popular in the 1980s, but interest in this approach has waned in the new era of relationship marketing. An increased awareness of the distinctions between business and military cultures also raises questions about the extent to which this type of analogy is useful.[93] In spite of its limitations, the typology of marketing warfare strategies is useful for predicting and understanding competitor responses.
In the 1980s, Kotler and Singh developed a typology of marketing warfare strategies: [94]
Frontal attack: where an aggressor goes head to head for the same market segments on an offer by offer, price by price basis; normally used by a market challenger against a more dominant player
Flanking attack: attacking an organisation on its weakest front; used by market challengers
Bypass attack: bypassing the market leader by attacking smaller, more vulnerable target organisations in order to broaden the agressor's resource base
Encirclement attack: attacking a dominant player on all fronts
Guerilla warfare: sporadic, unexpected attacks using both conventional and unconventional means to attack a rival; normally practiced by smaller players against the market leader
Relationship between the marketing strategy and the marketing mix[edit]
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The 4P’s also known as Price, Product, Place and Promotion represent the tools of the marketing mix; the tools that marketers can use in day-to-day operational planning. This strategy was designed as an easy way to turn marketing planning into practice. This strategy is used to find and meet the consumer needs and can be used for long term or short term purposes. The proportions of the marketing mix can be altered to meet different requirements for each product produced.[95]
See also[edit]
Asymmetric competition
Business model
Business triage
Corporate anniversary
Customer engagement
First-mover advantage
Marketing
Market segmentation
Pricing strategies
Right-time marketing
Strategic planning
References[edit]
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Jump up ^ While this classification is not the only way to think about competitors, it is very widely used. See for example: Aaker, D. and Mills, M.K., Strategic Market Management, Pacific Rim edition, Wiley, 2001; Dibb, D., Simkin, L., Pride, W. & Ferrell, O.C., Marketing: Concepts and Strategies, Houghton, Boston, 1991
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Jump up ^ Isaksen, John R. "The Impact of Measurements and Industry".
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Jump up ^ Haq, F, Wong, H and Jackson, J (2008) Applying Ansoff’s growth strategy matrix to Consumer Segments and Typologies in Spiritual Tourism. Eighth International Business Research Conference
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Jump up ^ Sawyer, G. C., Designing Strategy, 1986, p. 5
Jump up ^ Belicove, M.R., "Understanding Goals, Strategy, Objectives And Tactics In The Age Of Social," Forbes, 27 September, 2013, Online: https://www.forbes.com/sites/mikalbelicove/2013/09/27/understanding-goals-strategies-objectives-and-tactics-in-the-age-of-social/#1e07d4a54c79
Jump up ^ Kaplan, S. and Norton, D.P., "Putting the Balanced Scorecard to Work," in Focusing Your Organization on Strategy—with the Balanced Scorecard, [Harvard Business Review Collection], 2nd edition, 1993
Jump up ^ Miles, R. and Snow, C.C., Organizational Strategy, Structure, and Process, Stanford University Press, 2003, ISBN 0-8047-4840-3, p. 29
Jump up ^ Laufer, D., "Marketing Warfare Strategies," in Wiley International Encyclopedia of Marketing, Volume 1, 2010
Jump up ^ Kotler, P and Singh, E., "Marketing Warfare in the 1980s," in Marketing: Critical Perspectives on Business and Management, Volume 3, Michael John Baker (ed),Taylor and Francis, 2001
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Further reading[edit]
Laermer, Richard; Simmons, Mark, Punk Marketing, New York : Harper Collins, 2007 ISBN 978-0-06-115110-1 (Review of the book by Marilyn Scrizzi, in Journal of Consumer Marketing 24(7), 2007)
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Substitute (association football)
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The examples and perspective in this article deal primarily with the United Kingdom and do not represent a worldwide view of the subject. You may improve this article, discuss the issue on the talk page, or create a new article, as appropriate. (December 2010) (Learn how and when to remove this template message)
The substitute bench of the national team of Argentina.
In association football, a substitute is a player who is brought on to the pitch during a match in exchange for an existing player. Substitutions are generally made to replace a player who has become tired or injured, or who is performing poorly, or for tactical reasons (such as bringing a striker on in place of a defender). Unlike some sports (such as American football, ice hockey or Kabaddi), a player who has been substituted during a match may take no further part in it.
Most competitions only allow each team to make a maximum of three substitutions during a game and a fourth substitute during extra time, although more substitutions are often permitted in non-competitive fixtures such as friendlies. A fourth substitution in extra time was first implemented in recent tournaments, including the 2016 Summer Olympic Games, the 2017 FIFA Confederations Cup and the 2017 CONCACAF Gold Cup final.[1][2][3][4][5] A fourth substitute in extra time has been approved for use in the elimination rounds at the 2018 FIFA World Cup, the UEFA Champions League and the UEFA Europa League.[6][7] Each team nominates a number of players (typically between five and seven, depending on the competition) who may be used as substitutes; these players typically sit in the technical area with the coaches, and are said to be "on the bench". When the substitute enters the field of play it is said they have come on or have been brought on, while the player they are substituting is coming off or being brought off.
A player who is noted for frequently making appearances, or scoring important goals, as a substitute is often informally known as a "super sub".
Contents
1 History
2 English and Scottish leagues
3 Relevant laws
4 Super-sub
5 References
History[edit]
The origin of football substitutes goes back to at least the early 1860s as part of English public school football games. The original use of the term "substitute" in football was to describe the replacement of players who failed to turn up for matches. For example, in 1863, a match reports states: "The Charterhouse eleven played a match in cloisters against some old Carthusians but in consequence of the non-appearance of some of those who were expected it was necessary to provide three substitutes.[8]" The substitution of absent players happened as early as the 1850s, for example from Eton College where the term "emergencies" is used.[9] Numerous references to players acting as a "substitute" occur in matches in the mid-1860s[10] where it is not indicated whether these were replacements of absent players or of players injured during the match.
The first use of a substitute in international football was on 15 April 1889, in the match between Wales and Scotland at Wrexham. Wales's original goalkeeper, Jim Trainer, failed to arrive; local amateur player Alf Pugh started the match and played for some 20 minutes until the arrival of Sam Gillam, who took over from him.[11]
Substitution during games was first permitted in 1958.[12] (Although as early as the qualifying phase for the 1954 World Cup, Horst Eckel of Germany is recorded as having been replaced by Richard Gottinger in their match with the Saarland on 11 October 1953.)[13] The use of substitutes in World Cup Finals matches was not allowed until the 1970 tournament.[14]
The number of substitutes usable in a competitive match has increased from zero—meaning teams were reduced if players' injuries could not allow them to play on—to one (plus another for an injured goalkeeper) in 1958; to two out of a possible five in 1988. With the later increases in substitutions allowed, the number of potential substitute players increased to seven.[15] The number of substitutes increased to two plus one (injured goalkeeper) in 1994,[16] to three in 1995;[17][18] and most recently to a fourth substitute in certain competitions in extra time.[19]
English and Scottish leagues[edit]
Substitutions during matches in the English Football League were first permitted in the 1965–66 season. During the first two seasons after the law was introduced, each side was permitted only one substitution during a game. Moreover, the substitute could only replace an injured player. From the 1967–68 season, this rule was relaxed to allow substitutions for tactical reasons.[20]
On 21 August 1965, Keith Peacock of Charlton Athletic became the first substitute used in the Football League when he replaced injured goalkeeper Mike Rose eleven minutes into their away match against Bolton Wanderers.[21] On the same day, Bobby Knox became the first ever substitute to score a goal when he scored for Barrow against Wrexham.[22]
Archie Gemmill of St Mirren was the first substitute to come on in a Scottish first-class match, on 13 August 1966 in a League Cup tie against Clyde when he replaced Jim Clunie after 23 minutes.[20]
The first official substitute in a Scottish League match was Paul Conn for Queen's Park vs Albion Rovers in a Division 2 match on 24 August 1966. Previously, on 20 January 1917, a player called Morgan came on for the injured Morrison of Partick Thistle after 5 minutes against Rangers at Firhill, but this was an isolated case and the Scottish League did not authorise substitutes until 1966.[20]
In later years, the number of substitutes permitted in Football League matches has gradually increased; at present each team is permitted to name either five or seven substitutes depending on the country and competition, of which a maximum of three may be used. In England, the Premier League increased the number of players on the bench to five in 1996, and it was announced that the number available on the bench would be seven for the 2008–09 season.[23]
Relevant laws[edit]
The assistant referee indicating a substitution
Fourth official notifying the referee of the details of the substitution
According to the Laws of the Game (2018/19):[24]
A player may only be substituted during a stoppage in play and with the permission of the referee. The player to be substituted (outgoing player) must have left the field of play before the substitute (incoming player) may enter the field of play; at that point the substitute becomes a player and the person substituted ceases to be a player. The incoming player may only enter the field at the half-way line. Failure to comply with these provisions may be punished by a caution (yellow card).
A player who has been substituted may take no further part in a match.
Unused substitutes still on the bench, as well as players who have been already substituted, remain under the authority of the referee. These are liable for misconduct, though cannot be said to have committed a foul. For example, in the 2002 FIFA World Cup, Claudio Caniggia was shown the red card for cursing at the referee from the bench.
Under the Laws, the referee has no specific power to force a player to be substituted, even if the team manager or captain has ordered their player to be substituted. If a player refuses to be substituted play may simply resume with that player on the field. However, in some situations players may still be liable to punishment with a caution (yellow card) for time wasting or unsporting behaviour.
A player who has been sent off (red card) may not be substituted; the team will have to make do with the remaining players. In the case of a goalkeeper who is sent off, such as in the 2006 UEFA Champions League Final, when Arsenal midfielder Robert Pirès was replaced by second-choice goalkeeper Manuel Almunia to replace Jens Lehmann, who received a red card less than 20 minutes into the match, the coach will usually (but is not required to) substitute an outfield player so that the backup goalkeeper can enter the game. If all substitutions have been used, or if no goalkeeper is available, an outfield player will take up the role of the goalkeeper. A famous example of this is when Chelsea goalkeepers Petr Čech and Carlo Cudicini were both injured in the same game, which led to defender John Terry spending the remainder of the match in goal wearing third-choice goalkeeper Hilário's shirt.[25]
According to the Laws of the Game, "up to a maximum of three substitutes may be used in any match played in an official competition organised under the auspices of FIFA, the confederations or the member associations." Also:
In national A team matches, up to a maximum of six substitutes may be used.
In all other matches, a greater number of substitutes may be used provided that:
the teams concerned reach agreement on a maximum number;
the referee is informed before the match.
If the referee is not informed, or if no agreement is reached before the match, no more than six substitutes are allowed.
Super-sub[edit]
The term "super-sub" refers to a substitution made by the manager that subsequently saves the game, generally by scoring a late equalising or winning goal. Players regarded as "super-subs" include Tupãzinho and Dinei for Corinthians, Azar Karadas for Brann, Santiago Solari for Real Madrid, Jon Dahl Tomasson for AC Milan, Nwankwo Kanu for Arsenal, David Fairclough for Liverpool,[26] Adam Le Fondre for Reading,[27] Ole Gunnar Solskjær and Javier Hernández for Manchester United,[28][29] Mikael Forssell for Chelsea,[30] Leon Clarke for Wigan Athletic,[31] Brendon Santalab for Western Sydney Wanderers[32] Henrique for Brisbane Roar,[33] Stevie Kirk for Motherwell,[34], Archie Thompson, Joshua Kennedy and Tim Cahill for Australia.[35][36][37][38][39][40][41]
References[edit]
Jump up ^ https://www.theguardian.com/football/2016/mar/18/fifa-trial-fourth-substitute-extra-time-olympics
Jump up ^ https://www.theguardian.com/football/2016/jul/27/fa-cup-announce-four-substitutes-extra-time-martin-glenn
Jump up ^ https://www.fifa.com/about-fifa/news/y=2016/m=3/news=fifa-executive-committee-approves-key-priorities-to-restore-trust-in-f-2771049.html
Jump up ^ http://resources.fifa.com/mm/document/tournament/competition/02/85/41/57/fcc2017regulationsen_neutral.pdf
Jump up ^ http://www.concacaf.com/wp-content/uploads/2017/05/170301_GC-Regulations-Final_EN.pdf
Jump up ^ https://www.fifa.com/about-fifa/news/y=2018/m=3/news=fifa-council-decides-on-key-steps-for-the-future-of-international-competitions.html
Jump up ^ http://www.espn.com/soccer/blog-uefa/story/3432853/champions-league-cup-tied-abolished-uefa-approves-fourth-sub-in-extra-time
Jump up ^ Bell's Life in London and Sporting Chronicle (London, England), Sunday, February 22, 1863; pg. 7.New Readerships
Jump up ^ Bell's Life in London and Sporting Chronicle (London, England), Sunday, November 11, 1855; p. 7.
Jump up ^ Bell's Life in London and Sporting Chronicle (London, England), Saturday, December 17, 1864; Issue 2,226.
Jump up ^ "Wales 0 Scotland 0". www.londonhearts.com. 15 April 1889. Retrieved 17 December 2011.
Jump up ^ "History of the Laws of the Game". Fifa.com. Archived from the original on 4 June 2007. Retrieved 5 September 2017.
Jump up ^ "Switzerland 1954 : World Cup Football Host". Topendsports.com. Retrieved 2009-10-25.
Jump up ^ "FIFA World Cup: Milestones, facts & figures. Statistical Kit 7" (PDF). FIFA. 26 March 2013. Archived from the original (PDF) on 21 May 2013.
Jump up ^ Taylor Rash (3 July 2014). "FIFA World Cup: FIFA Considering Fourth Substitution in Extra Time". Guardian Liberty Voice. Retrieved 7 January 2015.
Jump up ^ Mark Mitchener (17 June 2014). "World Cup 2014: Golden goals, golf carts and other innovations". BBC Sport. Retrieved 7 January 2015.
Jump up ^ Mitch Phillips (5 November 2007). "Substitute the subs rule?". Reuters Soccer Blog. Reuters. Retrieved 7 January 2015.
Jump up ^ History of the Laws of the Game - 1990-2000, FIFA.com.
Jump up ^ http://www.concacaf.com/wp-content/uploads/2017/05/170301_GC-Regulations-Final_EN.pdf
^ Jump up to: a b c "Football Trivia". Soccerhistory.org.uk. Archived from the original on 2012-11-02. Retrieved 2009-10-25.
Jump up ^ Ingle, Sean (25 July 2001). "What ever happened to Len Shackleton's old club?". The Guardian. London. Retrieved 7 January 2015.
Jump up ^ Batty, Clive (2010). The Vision Book of Football Records 2011. Vision Sports. p. 174. ISBN 978-1-905326-99-0.
Jump up ^ "Premier League ratifies more subs". BBC Sport. 7 February 2008. Retrieved 7 January 2015.
Jump up ^ "The Laws of the Game. Law 3 - The Players. 3. Substitution Procedure". The IFAB. 15 July 2018. Retrieved 15 July 2018.
Jump up ^ http://news.bbc.co.uk/sport1/hi/football/eng_prem/5415980.stm
Jump up ^ "Liverpool FC super-sub David Fairclough suffers heart scare". Liverpool Echo. 4 October 2010. Retrieved 22 October 2012.
Jump up ^ "Adam Le Fondre named Barclays player of the month without starting a game". 6 February 2013. Retrieved 10 February 2012.
Jump up ^ "Sizzling super subs". BBC Sport. 11 April 2001. Retrieved 22 October 2012.
Jump up ^ Tongue, Steve (12 November 2012). "Javier Hernandez replaces Ole Gunnar Solskjaer as Manchester United's super-sub". The Independent. Retrieved 12 November 2012.
Jump up ^ "Super sub Forssell just Champion for Chelsea". Irish Independent. 7 March 2002. Retrieved 12 March 2015.
Jump up ^ James, Stuart (21 October 2012). "Edin Dzeko rejects 'super sub' tag after rescuing Manchester City". The Guardian. Retrieved 22 October 2012.
Jump up ^ Greco, John. "Santa's secret to his super-sub success". A-League. Football Federation Australia. Retrieved 10 February 2016.
Jump up ^ http://www.a-league.com.au/article/mulvey-lauds-super-sub-henrique/zqg1amor5oiu15nfb3o8g7wrv
Jump up ^ http://www.dailyrecord.co.uk/sport/local-sport/stevie-kirk-recalls-finest-hour-2570895
Jump up ^ http://theworldgame.sbs.com.au/news/1156317/Thompson-relishes-super-sub-role
Jump up ^ http://www.bordermail.com.au/story/43970/super-sub-josh-kennedy-has-socceroos-headed-for-world-cup/
Jump up ^ http://theworldgame.sbs.com.au/article/2013/06/18/super-sub-kennedy-sends-australia-brazil
Jump up ^ http://www.goal.com/en-au/news/4020/australia/2013/11/20/4418870/tim-cahill-happy-to-be-anges-super-sub
Jump up ^ "Archived copy". Archived from the original on 2014-06-06. Retrieved 2014-06-05.
Jump up ^ http://www.heraldsun.com.au/sport/football/tim-cahill-happy-to-play-role-of-impact-sub-after-coming-on-to-score-against-costa-rica/story-fni2wcjl-1226764604058
Jump up ^ http://www.abc.net.au/news/2007-11-01/super-sub--tim-cahill-celebrates-scoring-the/712890
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