Marketing Objective | Source of Volume
The framework approaches strategic marketing as a system where changes in one aspect of the strategic plan affect other aspects, and where strategic decisions have executional ramifications. This interrelatedness of the modules forces a discipline and unity of purpose that results in efficient decision making.
Marketing Objective
There are two growth levers in the firm: customer acquisition and customer retention. We balance the resources allocated to customer retention and customer acquisition with the revenues the firm garners from retained vs. acquired customers. By understanding and managing this important relationship between acquisition and retention, the firm can assess the true impact of its resource expenditures. A firm that understands this relationship is therefore in a much better position to optimize the efficiency of its strategic marketing efforts.
Source of Volume
The strategic manager does not default to established business category definitions but rather defines the business category that best suits firm capabilities and ambitions. The definition of our category, in turn, determines our competitive position within it. Growth can come from stimulating demand, growing our category through product or business process innovation, or by earning share, that is, engaging in comparative strategy to take customers away from competitors or substitute products in adjacent categories.
