Chapter 7

Implementing Strategies: Marketing,

Finance/Accounting, R&D, & MIS Issues
The Nature of Strategy Implementation
 Contd…

• Some examples of successful strategy

implementation

 Marketing goods & services well

 Raising needed working capital
 Producing technologically sound goods
 Creating sound information systems
 Marketing Issues

Marketing variables affect success/failure of strategy

implementation

Examples of marketing decisions requiring

policies
 Exclusive dealerships – multiple channels of
distribution
 Heavy, light, or no TV advertising
 Price leader or price follower
 Advertise online or not
 Offer complete or limited warranty
 Contd…

1. Market segmentation

2. Product positioning
 Marketing Issues: market segmentation

• Market segmentation is the subdividing of a market

into distinct subsets of customers according to
needs and buying habits
Contd…

Geographic

Demographic

Psychographic

Behavioral
 Marketing Issues: bases for segmentation
Geographic:
• Region Demographic:
• Province size  Age
• City size  Family Size
• Density  Family Life Cycle
• Climate  Income/Occupation
 Education
 Religion
Behavioral:  Race/Nationality
 Use occasion
 Benefits sought
Psychographic:
 User status
 Social Class
 Usage rate
 Lifestyle
 Loyalty status
 Personality
 Readiness stage
 Attitude toward product
 Marketing Issues: product positioning

Product positioning is the schematic representations that reflect

how products/services compare to competitors’ on dimensions
most important to success in the industry

Product
Positioning

Customer Wants Customer Needs

Finance/Accounting Issues
Contd…
Contd…
Contd…
Finance/Accounting Issues: financial
budget
 Research & Development Issues

New products and improvement of existing products

that allow for effective strategy implementation
Contd…
Contd..
Management Information Systems (MIS)
Issues
 Contd..

Functions of MIS