Understanding Strategic Marketing Management and Analyzing Marketing

UnderstandingStrategic Marketing Management and Analyzing Marketing Opportunities

UnderstandingStrategic Marketing Management and Analyzing Marketing Opportunities

Q.1: Is the hierarchy of strategies, an important concept for Carco?

Thereare three factors suggesting that the hierarchy of strategies adoptedby Carco is important. First, the growth strategy was formulated tosolve a specific problem that was identified prior to undertaking anyinvestment. From the case, Jones, the owner of Carco identified thathis company failed to achieve the necessary competitive advantage asa result of being insensitive to the consumer demand for economicmodels. This implies that, the hierarchy of strategies was designedto resolve an identified problem.

Secondly,the hierarchy of strategies formulated to increase Carco’s growthand increase its market share was based on the findings of andproperly conducted research. Carco conducted macro and micro analysisof market trends as well as market and survey tests to identify thecar versions needed by the target consumers. The research-basedhierarchy of strategies gives Carco a promise of success because itwill be able to respond to consumer needs and wants.

Third,the hierarchy of strategies offers viable solutions to the currentproblem. For example, establishing a strategic marketing plan andcompetitive strategy based on differentiation, cost leadership, andthe focus is practical strategies. In essence, the hierarchy ofstrategies adopted by Carco is important because the strategies willhelp the company in responding to the immediate needs of itscustomers, thus increasing its competitiveness in the market andmarket share.

Q.2: Identifying the significance of the alternative corporate growthstrategies for Carco

Thetwo major strategies (establishment of strategic marketing plan andthe generic business level competitive plan) are significant becausethey will enhance Carco’s competitive advantage over other playersin the motor industry. A strategic marketing plan will benefit Carcoin three major ways. First, the plan will ensure that the marketingefforts are properly aligned with the corporate objectives and goals.This will help Carco in achieving its pre-determined goals. Secondly,the strategic marketing plan will help Carco in becoming proactiveinstead of being reactive all the times. This will help the companyin developing the car models that address the needs of the consumers(including the young generation) ahead of its competitors. Lastly, asound strategic marketing plan will help Carco in evaluating newbusiness opportunities, which will enhance its capacity for futuregrowth.

Thethree aspects of a generic business level competitive strategy willbenefit Carco in both the long-run and in the short-run. The costleadership strategy will benefit the company in two major ways.First, Carco will be able to lower the cost of production, which willin turn help the company in selling its cars at lower prices than itscompetitors. This will increase profits and market share. Secondly,the low cost leadership strategy will provide more capital for acompany’s growth. For example, the reduction in the cost ofproduction will avail more funds that can be used for research anddevelopment, thus increasing the company’s capacity to apply themodern technology in its operations. Carco will get four benefits byadopting the product differentiation strategy. These benefits includethe increase in success of non-profit competitive strategies, valuecreation, brand loyalty, and creation of a perception that there isno substitute for the firm’s products. The focus strategy willimprove consumer satisfaction and improve competitive advantage ofthe company.