Strategic Marketing Management:

Types of Strategies

Dr. Robert Arciaga

Department of Marketing Management
College of Arts & Sciences, San Beda - Manila
DISCUSSION POINTS
Long Term Objectives

Business Strategies
Introduction
Types of Strategies
Porter’s Generic Strategies
Means of Achievement
 DEFINITION
LONG TERM OBJECTIVES
Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16 th

Edition, by Fred R. David and Forest R. David, published by Pearson Education © 2017.
 LONG TERM OBJECTIVES
Long-term objectives represent the results expected from
pursuing certain strategies, which represent the actions to
be taken to accomplish long-term objectives.

Objectives are commonly stated in terms such as growth in

assets, growth in sales, profitability, market share, degree
and nature of diversification, degree and nature of vertical
integration, earnings per share, and social responsibility.
 LONG TERM OBJECTIVES

Long-term objectives are needed at the corporate, divisional, and functional levels of an
organization.
 LONG TERM OBJECTIVES
Eight Desired Characteristics of Objectives
 LONG TERM OBJECTIVES
Ten Benefits of Having Clear Objectives
 LONG TERM OBJECTIVES
AVOID NOT MANAGING BY OBJECTIVES

“If it ain’t broke, don’t fix it.”

“measure of a good strate-

gist is to solve problems.”

“mystery approach to decision

making”
“decisions are predicated on the
hope ”
INTRODUCTION
BUSINESS STRATEGIES
Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16 th

Edition, by Fred R. David and Forest R. David, published by Pearson Education © 2017.
ALTERNATIVE BUSINESS
STRATEGIES
INTRRODUCTION TO STRATEGIES
INTRRODUCTION TO STRATEGIES

Levels of Strategies with Persons Most Responsible

 TYPES
BUSINESS STRATEGIES
Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16 th

Edition, by Fred R. David and Forest R. David, published by Pearson Education © 2017.
 BUSINESS STRATEGIES
FORWARD INTEGRATION
INVOLVES GAINING OWNERSHIP
OR INCREASED CONTROL OVER
DISTRIBUTORS OR RETAILERS
VERTICAL INTEGRATION
FORWARD OR BACKWARD
INTEGRATION BACKWARD INTERGATION
INTEGRATION STRATEGIES
STRATEGY OF SEEKING
VERTICAL AND OWNERSHIP OR INCREASED
HORIZONTAL ACTIONS BY CONTROL OF A FIRM’S SUPPLIERS
FIRMS HORIZONTAL INTEGRATION
A STRATEGY OF SEEKING
OWNERSHIP OF OR INCREASED
CONTROL OVER A FIRM’S
COMPETITORS
 BUSINESS STRATEGIES
MARKET PENETRATION
SEEKS TO INCREASE
MARKET SHARE
INTENSIVE STRATEGIES
REQUIRE INTENSIVE MARKET DEVELOPMENT
EFFORTS IF A FIRM’S INVOLVES INTRODUCING PRESENT
COMPETITIVE POSITION PRODUCTS OR SERVICES INTO NEW
WITH EXISTING GEOGRAPHIC AREAS
PRODUCTS IS TO
IMPROVE.
PRODUCT DEVELOPMENT
SEEKS INCREASED SALES BY
IMPROVING OR MODIFYING PRESENT
PRODUCTS OR SERVICES
 BUSINESS STRATEGIES
UNRELATED
DIVERSIFICATION
VALUE CHAINS ARE SO DISSIMILAR
THAT NO COMPETITIVELY
VALUABLE CROSS-BUSINESS
RELATIONSHIPS EXIST
DIVERSIFICATION
STRATEGIES
ENTERING INTO A NEW MARKET
OR INDUSTRY IN WHICH THE
BUSINESS DOESN'T CURRENTLY
OPERATE
RELATED
DIVERSIFICATION
VALUE CHAINS POSSESS
COMPETITIVELY VALUABLE
CROSS-BUSINESS STRATEGIC
FITS
 BUSINESS STRATEGIES
RETRENCHMENT
OCCURS WHEN AN
ORGANIZATION REGROUPS
THROUGH COST AND ASSET
REDUCTION

DEFENSIVE STRATEGIES
DIVESTITURE
A MANAGEMENT SELLING A DIVISION OR PART
APPROACH DESIGNED TO OF AN ORGANIZATION
REDUCE THE RISK OF LOSS

LIQUIDATION
SELLING ALL OF A COMPANY’S
ASSETS, IN PARTS, FOR THEIR
TANGIBLE WORTH
 PORTER’S
BUSINESS STRATEGIES
Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16 th

Edition, by Fred R. David and Forest R. David, published by Pearson Education © 2017.
PORTER’S STRATEGIES
COST LEADERSHIP (1&2)
EMPHASIZES PRODUCING STANDARDIZED
PRODUCTS AT A VERY LOW PER-UNIT COST
FOR CONSUMERS WHO ARE PRICE-SENSITIVE

DIFFERENTIATION (3)
STRATEGY AIMED AT PRODUCING PRODUCTS AND
SERVICES CONSIDERED UNIQUE INDUSTRY-WIDE AND
DIRECTED AT CONSUMERS WHO ARE RELATIVELY
PRICE-INSENSITIVE

FOCUS (4&5)
OFFERING A SPECIALIZED SERVICE IN
A NICHE MARKET
 PORTER’S STRATEGIES
TYPE 1
LOW-COST STRATEGY THAT OFFERS
PRODUCTS OR SERVICES TO A WIDE
RANGE OF CUSTOMERS AT THE
LOWEST PRICE AVAILABLE ON THE
MARKET

COST
LEADERSHIP
STRATEGIES
TYPE 2
BEST-VALUE STRATEGY THAT OFFERS
PRODUCTS OR SERVICES TO A WIDE
RANGE OF CUSTOMERS AT THE BEST
PRICE-VALUE AVAILABLE ON THE
MARKET.
 PORTER’S STRATEGIES
TYPE 4
LOW-COST FOCUS STRATEGY THAT
OFFERS PRODUCTS OR SERVICES TO
A NICHE GROUP OF CUSTOMERS AT
THE LOWEST PRICE AVAILABLE ON
THE MARKET RELATIONSHIPS EXIST

FOCUS
STRATEGIES
TYPE 5
BEST-VALUE FOCUS STRATEGY THAT
OFFERS PRODUCTS OR SERVICES TO
A SMALL RANGE OF CUSTOMERS AT
THE BEST PRICE-VALUE AVAILABLE
ON THE MARKET
MEANS TO ACHIEVE
BUSINESS STRATEGIES
Strategic Management: A Competitive Advantage Approach, Concepts and Cases, 16 th

Edition, by Fred R. David and Forest R. David, published by Pearson Education © 2017.
 MEANS OF ACHIEVEMENT
COOPERATION PARTNERSHIPS MERGERS
WITH & JOINT &
COMPETITION VENTURES ACQUISITION

PRIVATE- FIRST OUTSOURCING

EQUITY MOVER &
ACQUISITIONS ADVANTAGES RESHORING
 MEANS OF ACHIEVEMENT
Eleven Potential Benefits of Merging with or Acquiring Another Firm
 MEANS OF ACHIEVEMENT
Eleven Potential Benefits of Merging with or Acquiring Another Firm
 MEANS OF ACHIEVEMENT
Five Benefits of a Firm Being the First Mover
 MEANS OF ACHIEVEMENT
Thirteen Potential Benefits of Outsourcing
 MEANS OF ACHIEVEMENT
Thirteen Potential Benefits of Outsourcing