Strategic Marketing Basics

Marketing managers generally manage several product lines and have often to tackle complicated and crucial questions such as :

 

•  when should a product be introduced on a market ? 

•  when should a product be withdrawn ? 

•  how should marketing budgets (always limited) be allocated among different product lines ? 

•  on which product line should the company focus and invest resources and energy ?

•  etc

 

To answer these questions, two variables will generally be taken into account :

 

 the attractiveness of the market/segment 
 the competitive position of the company in the market/segment

 

In combining these two variables, the strategic decisions mentioned hereabove will be enlightened. Product portfolio models will thus help general managers and chief marketing officers adjust the marketing investments.

 

When, for example, a company holds a strong competitive position in an attractive market, it is logical to capitalize on these advantages to reinforce its position. If, however, the competitive position is weak and the market unattractive, it is more logical to consider leaving the market.

 

Several well-known models have been developed to help with this reasoning (BCG matrix, GE-Mc Kinsey, etc.). These models are based on hypotheses that are sometimes different, for which their application must be considered, at the risk of making them unfounded thus leading to incorrect decisions.

 

For detailed explanations, look at available resources in the "learn more" section