Functional strategies

Examples of Functional strategies in the following topics:

• Strategic Business Units

  • Functional strategies include marketing strategies, new product development strategies, human resource strategies, financial strategies, legal strategies, supply-chain strategies, and information technology management strategies.
  • The emphasis is on short-term and medium-term plans and is limited to the domain of each department's functional responsibility.
  • Each functional department attempts to do its part in meeting overall corporate objectives, so to some extent their strategies are derived from broader corporate strategies.
  • The degree to which an SBU shares functional programs and facilities with other SBUs
  • Diagram the role and functionality of a strategic business unit (SBU)

• Channel Member Characteristics

  • There are many types of channels, and the selected channel becomes a function of the overall marketing strategy.
  • A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage.
  • This strategy is reflexive of the 4 P's of marketing:
  • This strategy is common for basic supplies, snack foods , magazines, and soft drink beverages.
  • A marketer will consider the three types of distribution and select the one that most closely fits the overall marketing strategy.

• Packaging Strategies

  • Since products are judged by the package they come in, marketers should spend a lot of time preparing strategies that best fit the product.
  • There are several different packaging strategies firms can use to make ordinary products look more exclusive.
  • Enhanced functionality is a key way to add value to packaging.
  • Use packaging functionality to bring new benefits to the category/brand and to differentiate from competitors.
  • One of the best ways to come up with functionality ideas is to observe your consumers using your products in their own environments and to ask questions.

• Advertising Strategy v. Creative Strategy

• Other Pricing Strategies

  • One pricing strategy does not fit all, thus adapting various pricing strategies to new scenarios is necessary for a firm to stay viable.
  • Pricing strategies for products or services encompass three main ways to improve profits.
  • The business owner can cut costs, sell more, or find more profit with a better pricing strategy.
  • There are many different pricing strategies that can be utilized for different selling scenarios:
  • For example, if a firm could replace its field sales force with telemarketing or online access, this function might be performed at lower cost.

• Positioning Bases

  • Functional Positions deal with solving a problem, providing benefits and getting a favorable perception from investors, stockholders and consumers.
  • One purchase solved a problem and exemplifies functional positioning while the other purchase is an example of symbolic and/or experiential positioning.
  • A company can create brand positioning strategies or product positioning strategies.
  • It is important to understand the strengths and weaknesses of both the organization and the competition when creating a positioning strategy.
  • Examine positioning and the strategy behind it relative to competitive perceptual positioning

• Competition Based on Value

  • ., a function of consumers' estimation) and relational (i.e., both benefits and cost must be positive values).
  • The migration from product-oriented to customer-oriented strategies is called Total Customer Value Management (TCVM).
  • TCVM goes beyond conventional customer value management, which provides a rational set of techniques, methodologies, and strategies to weave the needs and wants of customers into the key process designs and management activities of the enterprise.
  • TCVM starts with a customer strategy, which is the precursor of building a conventional business strategy.

• Cost-Based Pricing

  • Advanced pricing analysis actually views the 3 C's as describing a set of constraints that pricing strategies must overcome to succeed.
  • Costs are a function of sales, which are in turn a function of prices.
  • Rather than asking what prices firms need to charge in order to cover their costs and achieve their profit objectives, firms should ask how their pricing strategy will affect their cost structure.
  • Describe cost based pricing as it relates to general pricing strategies

• Strategy v. Concept

• Strategy-Based Ad Concepts