MARKETING DIFFERENTIATED STRATEGY
 

 

 

 

 

 

 

 

 

 

 

 

 

A differentiated strategy combines broad scope with differentiation across one or more of the three dimensions. A differentiated strategy serves several cus- tomer groups, functions, or technologies while tailoring the product offered to each segment’s specific needs. An example of a differentiated strategy applied to customer groups is athletic footwear. Athletic footwear serves a broad range of customer groups and is differentiated across those groups. Tennis shoes are tai- lored to meet the needs of one specific customer group; basketball shoes, another. An undifferentiated strategy combines a broad scope across one or more of the three dimensions. This strategy is applied to customer groups in a business that serves a wide range of customer groups but does not differentiate its offerings among those groups. Docutel’s strategy was focused with respect to customer function but not with respect to customer groups: they offered exactly the same product to commercial banks, savings and loans, mutual savings banks, and credit unions. To sum up, the strategy that a business chooses to follow, based on the amount of scope and differentiation applied to the three dimensions, determines the definition of the business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The objectives and goals of the SBU may be stated in terms of activities (manufacturing a specific product, selling in a particular market); financial indicators (achieving targeted return on investment); desired positions (market share, quality leadership); and combinations of these factors. Generally, an SBU has a series of objectives to cater to the interests of different stakeholders. One way of organizing objectives is to split them into the following classes: measurement objectives, growth/survival objectives, and constraint objectives. It must be emphasized that objectives and goals should not be based just on facts but on values and feelings as well. What facts should one look at? How should they be weighed and related to one another? It is in seeking answers to such questions that value judgments become crucial. The perspectives of an SBU determine how far an objective can be broken down into minute details. If the objective applies to a number of products, only broad statements of objectives that specify the role of each product/market from the vantage point of the SBU are feasible. On the other hand, when an SBU is created around one or two products, objectives may be stated in detail. Exhibit 8-4 illustrates how SBU objectives and goals can be identified and split into three groups: measurement, growth/survival, and constraint. Measurement objectives and goals define an SBU’s aims from the point of view of the stockholders. The word profit has been traditionally used instead of measurement. But, as is widely recognized today, a corporation has several corporate publics besides stockholders; therefore, it is erroneous to use the word profit. On the other hand, the company’s very existence and its ability to serve different stakeholders depend on financial viability. Thus, profit constitutes an important measurement objective. To emphasize the real significance of profit, it is more appropriate to label it as a measurement tool.