Chapter Twelve

Offensive Strategies

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Offensive Strategies

• Strategic market plans

• Offensive strategic market plans– Invest to grow sales– Improve competitive position– Enter new markets

• Choosing offensive strategic market plans

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Strategic Market Plans

• When are offensive market plans employed?• Why are strategic market plans necessary?• What three performance objectives do they

address?– Share position– Sales growth– Profit performance

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Product Life Cycle and Offensive and Defensive Strategies

Figure 12-2 Market Growth and Offensive and Defensive Strategies

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Portfolio Analysis and Strategic Market Plans

Figure 12-3 Portfolio Analysis and Strategic Market Plans

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Core Offensive Strategies

Core Strategy 1 Core Strategy 2 Core Strategy 3

Invest to grow sales

Invest to improve competitive

position

Invest to enter new markets

Grow in Existing Markets

Improve Margins

Diversified Growth

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Offensive Core Strategy 1: Invest to Grow Sales

Sub Strategy A

Sub Strategy DSub Strategy C

Sub Strategy B

Grow Market Share

Grow Revenue Per Customer

Enter New Market Segment

Expand Market Demand

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Offensive Core Strategy 2: Invest to Improve Competitive Position

Sub Strategy A

Sub Strategy DSub Strategy C

Sub Strategy B

Improve Customer Loyalty

Improve Differentiation

Advantage

Lower Costs/Improve Marketing Productivity

Build Marketing Advantage

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Offensive Core Strategy 3: Invest to Enter New Markets

Sub Strategy A

Sub Strategy DSub Strategy C

Sub Strategy B

Enter Related New Markets

Enter Unrelated New Markets

Enter New Emerging Markets

Develop New Markets

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Offensive Strategy Selection

• Why enter new markets?– New source of growth– Smoother performance– Diversification and reduced vulnerability

• Why invest to grow sales?• Why improve competitive position?

– Achieve price premiums– Customer retention– Improve margins and NMC

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Review

• Strategic market plans

• Offensive strategic market plans– Invest to grow sales– Improve competitive position– Enter new markets

• Choosing offensive strategic market plans

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Copyright © 2009 Pearson Education, Inc.  Copyright © 2009 Pearson Education, Inc.  Publishing as Prentice HallPublishing as Prentice Hall