Strategic Marketing: Planning and Control, Third Edition

■ Strategy formulation –

an overview

Chapter 6 outlined the basic principles of setting objectives. It is import-
ant to recognise that alternative methods of achieving objectives exist.
The ability to identify and evaluate these alternatives forms the essence
of strategy development. The goal is to obtain sustainable competitive
advantage within predetermined markets. Figure 8.1 summarises the
process.

Marketing strategy aims to generate sustainable competitive advantage. The process is influ-

enced by industry position, experience curves, value effects and other factors, such as product

life cycle (PLC). In any given market place, businesses must adopt defensive and attacking

strategies. Such actions aim to maintaining and/or increasing market share. Organisations

need to ensure their strategic position is relevant to current/future market conditions.

About this chapter

Generic strategy Market position Ansoff matrix

Identify advantage Offensive strategy PIMS

Experience/value Defensive strategy PLC

Strategic wear-out

formulation

Competitive advantage

advantage

Industry position

position

Product/market

strategy

Figure 8.1
The formulation of strategy