Critical Evaluation of Strategic Marketing

1997 Words Dec 3rd, 2010 8 Pages
Strategy
Strategic marketing plays a significant role in today’s competitive environment. Strategic marketing can help to distinguish the company from its competitors. Proper planning and implementation of strategy can provide advantage over other companies. According to Johnson & Whittington (2008), strategy is a long term planning of the company, think of the near of distant future where the company wants to be and what it wants to achieve. Its direction and scope helps exploit companies’ available resources in the best possible manner helping it to achieve advantage over others and fulfil stakeholders’ expectation. According to Henderson (sited at Marketing news 1982) strategy works as a “system” which looks after internal activities
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It is used in a broader market where production is at mass level. In this strategy efficient production is required which can be achieved with excellent engineering and strong distribution point (Carpenter, Bauer and Erdogan 2010). As per Baines (2008) low cost strategy is not about low prices but it is about striking balance between cost and price of the product. For cost leadership to be effective there should be a market were customer is price sensitive and there is no prospect of differentiation. There is always a threat of price war in this strategy if new competitor comes in market. Organisations like Morrisons and ASDA used this strategy
Focussed low cost strategy
Focussed low cost strategy is used for shallow markets. Focussed cost strategy is used when a organisation is targeting a particular area or group of buyers who are looking for product which fulfils their demand but at the same time doesn’t want to pay much for it. The customer is generally looking for basic requirements and is not interested in extra services. To meet the price organisations eliminate extra cost by avoiding such services and focus on the very basic necessity of the product like Vectone mobile in UK it does not provide extra services like Orange but it concentrates on basic necessity of mobile users and delivers it at cheaper price (Carpenter and etal 2010)..
Differentiation
Differentiation strategy is used were a
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