Unit III.

Market Opportunity
STRATEGIC MARKETING AND TACTICAL
MARKETING
  Seeks to establish a clear and concerted
STRATEGIC direction for all marketing activities of
MARKETING an organization. It includes plan to reach
PROCESS specific goals/objectives.
 1. Mission identification
2. Situation analysis
The strategic 3. Objective setting
marketing 4. Marketing strategy
process development
5. Strategy evaluation and
control
 COST LEADERSHIP

3 categories DIFFERENTIATION
of Marketing
FOCUSED
MARKETING STRATEGY
SUBCATEGORIES
 FORWARD INTEGRATION
This involves gaining ownership or
increased control over distributor or
MARKETING
STRATEGY retailers.
SUBCATEGO Example:
RIES
The Philippine daily Inquirer buying
418 stands of newspaper stands in
metro manila.
 BACKWARD
INTEGRATION
This involves gaining ownership or
MARKETING
STRATEGY increased control over suppliers.
SUBCATEGO Example:
RIES
Nestle Philippines purchasing a cow
farm and dairy facility in General
Santos City.
 HORIZONTAL
INTEGRATION
MARKETING This involves purchase of or
STRATEGY increased control over competitors.
SUBCATEGO
Example:
RIES
Pizza Hut buying a controlling
interest in Shakey’s.
 MARKET PENETRATION
The objective of this strategy is to increase
market share of current products or
MARKETING services in current markets through greater
STRATEGY and more intensive marketing efforts.
SUBCATEGO Example:
RIES
Krispy Kreme launching a P56 million
advertising campaign directed at current
customer.
 MARKET DEVELOPMENT
This strategy involves the
introduction of existing products
MARKETING
STRATEGY or services into a new
SUBCATEGO geographical area or market.
RIES Example:
The University Of Santo Tomas
opening a campuses in Cebu.
 PRODUCT DEVELOPMENT
The strategy involves the
improvements of a current products
MARKETING or services or the development of new
STRATEGY products with the purpose of
SUBCATEGO increasing sales.
RIES
Example:
Coca-Cola introducing Coke in extra
pack..
PRODUCT DEVELOPMENT
  RELATED DIVERSIFICATION
This involves introducing new but
MARKETING
STRATEGY related products or services.
SUBCATEGO Example:
RIES
Motolite introducing solar powered
automotive batteries.
RELATED DIVERSIFICATION
  UNRELATED
DIVERSIFICATION
This involves introducing new but
MARKETING
unrelated products or services.
STRATEGY
SUBCATEGO Example:
RIES Banco De Oro opening a chain of
BDO ice cream parlors.
  RETRENCHMENT
This involves halting or reversing
declining sales and profits through
MARKETING
STRATEGY cost or asset reduction.
SUBCATEGO Example:
RIES
Shoemart selling off its hardware
department and laying off 847 of its
department store employees.
  DIVESTITURE
This involves selling a division or
MARKETING part of an organization.
STRATEGY
SUBCATEGO Example:
RIES JG Summit selling Cebu Pacific.
  LIQUIDATION
This involves selling all of a
companys’ assets, in parts or as a
MARKETING
STRATEGY whole, for their tangible worth.
SUBCATEGO Example:
RIES
SM Prime Holding sellin all its
companies and the family retiring
from business.
  Complementing the strategic marketing
process, the tactical marketing process
means or tactics to implement the
TACTICAL stretegies. It involves the identification
MARKETING of specific activities, timetables,
PROCESS responsibilities, and budgets and their
implementation. The objective is to
ensure the strategies are implemented
successfully.