BUS 620 Managerial Marketing

Table 1.2: A matrix model of marketing management

The chosen generic strategy, as the name suggests, provides a broadly defined strategic orientation for pursuing the identified market opportunity. Beyond this initial determination of an overall strategy, three other closely related strategy decisions need to be made before an operational marketing plan can be developed. These more specific strategic options relate to market segmentation, product differentiation, and brand positioning.

Strategic planning is as much an art as a science, and there is no one "best way" to organize the effort.

Table 1.2 provides one simple model that you may find helpful.

The Marketing Mix

PRODUCT PRICE PLACE PROMOTION

Generic Market Strategy

Market Segmentation

Product Differentiation

Brand Positioning

Once decisions regarding the four strategy categories in the left-hand column have been made, their goodness of fit with the four elements of the marketing mix can be assessed by examining each intersection in the 16-cell matrix. For example, is our pricing strategy (column 2) consistent with our generic market strategy, market segmentation strategy, product differentiation strategy, and brand positioning strategy? In practice, managers may find it useful to fill in each cell of the matrix to demonstrate how each element of the marketing mix contributes to the strategic objectives established in the left-hand column. This exercise can refine the process of strategic planning and avoid costly mismatches down the road.

Marketing strategy provides the overall "battle plan" for capitalizing on the opportunities initially identified through the situation analysis. The next step in the process of marketing management is to develop the plans for the implementation of the marketing mix.