Strategic Marketing: Planning and Control, Third Edition

■ Strategic alignment of assets and

competencies (targeting)

The critical stage in the segmentation process is matching the capabilities
of the organisation to attractive market segment opportunities. At a
largely operational level management analyse organisational assets and
competencies to identify the skills and resources available to build low
cost or differentiated positions. Where these assets or competencies cur-
rently, or with development could, surpass the competition, they form
the basis for creating a specific competitive position in a target market.
Company capability should always be judged relative to the competition.
Figure 9.4 illustrates some questions that should be asked when attempt-
ing to match assets and competencies with potential market segments
(Jobber, 1995).

Targeting, positioning and brand strategy 185

Marketing • New product development • Advertising development

• Business analysis • Customer service


• Category management • Marketing process


• Brand extension • Spending efficiency


• Brand equity measurement • Customer relationships


• Unique market research techniques • Customer targeting


• Planning skills • Testing Design


• Database management

Selling • Supply-chain management • New account development

• Account management • Merchandising


• Relationship development • Presentation skills


• Customer service • Space management


• Building partnerships • Negotiation


• Motivation and control • Pricing and promotion


• Planning • Trade marketing

Operations • Motivation and control • Speed of response

• Process engineering • Flexibility


• Industrial relations • Total quality management


• Inventory control • Purchasing


• Cost management • Payment systems


• Productivity improvement • Capacity utilisation


• Planning • Commercialisation of new products or


• Health and safety services


• New facility development • Method of supplier management


• Management training and development • Property skills
  
  
  • Global operation
  
  
  
  

Figure 9.3
Examples of competencies that create a competitive advantage (Source: Adapted from
Davidson, 1997).