Chapter 2: Growth and Strategy

Types of Growth

1. Intensive Growth: To capture more share in the same market with sae product
2. Integrative Growth: To increase sales and profits with backward, forward, verticla or horizontal integration within the indutry
3. Diversified Growth: To grow by tapping opportunities outside the industry
4. Downsizing and Divesting older business: If the things are not going its way and there is no hope to improve in future too, the company divests from the business to use resources elsewhere.

Porter's Generic Strategies

1. Overall cost leadership: lowest production and distribution costs, lowest prices in the market to beat the competition (eg South West)
2. Differentiation: Superior performance, features over the competitors.
3. Focus/ Niche: Focusing on a narrow market segment; pursue either cost or differentiation leadership within the segment.

Strategic Alliances

1. Product or Service alliance
2. Promotional Alliance
3. Logistics Alliance
4. Pricing Collaborations

Marketing Planning Framework (By Prof. Shailendra Jain)

• Market Analysis
• Consumer Analysis
• Company Analysis
• Competitor Analysis
• Goals & Objectives
• Segmentation and Positioning
• Marketing Strategy

1. Product Strategy
2. Pricing Strategy
3. Place (Distribution) Strategy
4. Promotion Strategy
5. Organization & Implementation

• Financial Projections

Contents of a Marketing plan

1. Executive Summary and table of contents

2. Situational Analysis

• Market Summary- target market, market demographics, behaviour factors, market needs, market trends, market growth
• SWOT Analysis
• Competition
• Product Offering
• Keys to success: Product Quality, differentiation
• Critical Issues

3. Marketing Strategy (Mision, Marketing Objectives, Financial Objectives, Target Markets, Positioning, Strategies, Marketing Mix, Marketing Research)

4. Financial Projections (Break-even Analysis, Sales Forecast, Expense Forecast)

5. Implementation Controls (controls, implementation, contingency planning)