LECTURE SLIDES 19th March 2021

Marketing Management
MARKETING MANAGEMENT

Course Code : MKT 351

 INSTRUCTIONS
• Mark your attendance one time only.
• Login from your official ID
• Follow the below mention pattern for attendance
Name , Reg. ID, Program & Semester
• Meeting will be locked at 9:30 A.M.
• Class will be of 2.5 hrs 09:00 P.M-11:30 A.M.
• Lecture Slides, Videos & Reading Material are available at Kasbit
LMS
• For any query contact me through email/In Person.
• For class clashes/email troubles or any management related issue
kindly contact Student Coordinators/Counselors
 Michael Porter’s Five Generic Strategies

• Michael Porter’s Competitive Strategy (Free Press,

1980), Competitive Advantage (Free Press, 1985), and
Competitive Advantage of Nations (Free Press, 1989).
• strategies allow organizations to gain competitive
advantage from three different bases:
• cost leadership,
• differentiation,
• focus.
• Porter calls these bases generic strategies.
 Cost Leadership
• Cost leadership emphasizes producing standardized products at a
very low per-unit cost for consumers who are price-sensitive.
• Two alternative types of cost leadership strategies can be defined.
• Type 1 is a low-cost strategy that offers products or services to a
wide range of customers at the lowest price available on the market.
• Type 2 is a best-value strategy that offers products or services to a
wide range of customers at the best price-value available on the
market;
• the best-value strategy aims to offer customers a range of products
or services at the lowest price available compared to a rival’s
products with similar attributes.
• Both Type 1 and Type 2 strategies target a large market.
 Cost Leadership Examples
• Several example firms that are well known for
their low-cost leadership strategies are
• Wal-Mart,
• BIC,
• McDonald’s,
• Black & Decker,
• Lincoln Electric,
• Briggs & Stratton.
 Differentiation
• Porter’s Type 3 generic strategy is
differentiation, a strategy aimed at producing
products and services considered unique
industry wide and directed at consumers who
are relatively price-insensitivity .
 Differentiation EXAMPLES
• For example,
• Mountain
• Dew and root beer have a unique taste;
• Lowe’s, Home Depot,
• Wal-Mart offer wide selection and one-stop shopping;
• Dell Computer and FedEx offer superior service;
• BMW and Porsche offer engineering design and
performance;
• IBM and Hewlett-Packard offer a wide range of products;
and E*Trade and Ameritrade offer Internet convenience
 FOCUS
• Focus means producing products and services that fulfill the needs of
small groups of consumers.
• Two alternative types of focus strategies are Type 4 and Type 5. Type 4
is a low-cost focus strategy that offers products or services to a small
range (niche group) of customers at the lowest price available on the
market.
• Type 5 is a best-value focus strategy that offers products or services to
a small range of customers at the best price-value available on the
market.
• Sometimes called “focused differentiation,” the best-value focus
strategy aims to offer a niche group of customers products or services
that meet their tastes and requirements better than rivals products
do.
• Both Type 4 and Type 5 focus strategies target
a small market.
• Type 4 strategies offer products services to a
niche group at the lowest price,
• Type 5 offers products/services to a niche
group at higher prices but loaded with
features so the offerings are perceived as the
best value
 FOCUS EXAMPLES
• Sara Lee Corp. is pursuing a focus strategy as it is trying
to divest of its European household and personal-care
business so the firm can focus on its core food and
beverage business.
• The company is asking about $2 billion for its household
business. Sara Lee sells Jimmy Dea sausages and Ball
Park Franks and a mix of coffee and baked goods.
Possible bidders for its household business are Unilever
PLC, Johnson & Johnson, and Colgate-Palmolive.
• EG : Rooh Afza