Selecting Marketing Strategies

A2 Business Studies

Aims and Objectives

Aim: • Understand porters’ generic strategies

Objectives:• Define Porter’s Generic Strategies• Explain the Porters’ Generic Strategies• Analyse firms in relation to the theory• Evaluate the use of the theory

Starter

• Define Test Markets

• Define Moving Averages

• Define Extrapolation

Porter’s Generic Strategies

• Michael Porter 1980s

• Generic Marketing strategies which could be applied to all products and services in all industries, regardless of the type of organisation or size.

• Each of the strategies is a way of gaining a competitive advantage, or edge, over the competition.

Cost Leadership Differentiation

Cost FocusDifferentiation

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Cost Differentiation

Source of Competitive Advantage

Porters’ Generic Strategies

Porters’ Generic Strategies Task

Task:

• Decide upon which strategy is most appropriate for each business and place them on the diagram.

• Justify why you have placed each firm where you have on the diagram.

Case Study: European Organic Fruit Juices

Task:

In groups comment on the advice given to organic juice companies in relation to Porter’s four generic strategies.

Do you feel it is appropriate? If so, why?