Chapter 4: Strategic marketing
decisions, choices, and mistakes
Structure
A. INTRODUCTION
1. Overview and Strategy Blueprint
2. Marketing Strategy: Analysis &
perspectives
C. WHERE DO WE WANT TO BE?
B. WHERE ARE WE NOW?
3. Environmental & Internal Analysis:
Market Information & Intelligence
4. Strategic Marketing Decisions,
Choices & Mistakes
5. Segmentation, Targeting
& Positioning Strategies
6. Branding Strategies
7. Relational & Sustainability
Strategies
D. HOW WILL WE GET THERE?
E. DID WE GET THERE?
14. Strategy Implementation, Control
& Metrics
8. Product Innovation & Development
Strategies
9. Service Marketing Strategies
10. Pricing & Distribution
11. Marketing Communications
12. E-Marketing Strategies
13. Social and Ethical Strategies
Learning Objectives
 To define ‘strategic choice’
 To outline strategic decisions taken at the corporate,
SBU and functional levels
 To review the strategic marketing decisions including
products to offer, markets to target and competitive
position strategies
 To review the analytical models and frameworks that
can be used by organisations to make their strategic
choices for the future
Strategic choice
Strategic choice involves generating a welljustified set of interrelated strategic alternatives
and choose from them the ones that will
contribute to the achievement of the corporate
overall goals and strategic objectives
WHERE DO WE WANT TO BE?
Strategic Decisions
Strategic decisions at the corporate level
Developing mission statement
Directional strategy
Resource allocation
Strategic decisions at the SBU level
Choosing generic strategy (strategic orientation):
Cost leadership strategy
Differentiation strategy
Focus strategy: Cost focus & Differentiation focus
Strategic decisions at the functional level
Products to offer
Market segments to target
Market position tactics
Directional (grand) strategies
Growth Strategies Stability Strategies
Retrenchment strategies
Concentration
Turnaround
Captive Company
Sell-Out/Divestment
Bankruptcy/Liquidation
Vertical Growth
Horizontal Growth
Diversification
Concentric
Conglomerate
Pause/Proceed with
Caution
No Change
Profit
Resource allocation: BCG matrix
General electric model
Strong
Business Position
Medium
Weak
Industry Attractiveness
High
Medium
Low
Most attractive: Investment for Growth
Least attractive: Harvesting/Divesting
Medium attractiveness: Selectivity
Competitive position tactics
Conclusion
• Strategic choice involves understanding the underlying bases guiding
future strategy, and generating strategic options for evaluation and
selecting from among them.
• Strategic decisions are usually taken at corporate level (e.g.,
directional strategy, resource allocation), at SBU level (e.g., generic
strategy), and at functional level in relation to various functional areas
(e.g., marketing, R&D, finance, HR, production, etc.).
• Strategic marketing decisions include products to offer, market
segments to target, and positioning strategies.
• Organisational failure is arguably a product of repeated strategic
mistakes and unsuccessful interactions between the firm and its
environment.