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9. IMPLEMENTING STRATEGIES -Marketing, R&D, Finance/Accounting and MIS Issues-

Two variables are of central importance to strategy implementation:

-          Market segmentation

-          Product Positioning


Market segmentation and product positioning rank as marketing’s most important contributions to strategic management.


9.1 Market Segmentation

Market segmentation is widely used in implementing strategies, especially for small and specialized firms. Market segmentation can be defined as the subdividing of a market into distinct subsets of customers according to needs and buying habits.

Market segmentation is an important variable in strategy implementation for 3 reasons:

  • Strategies, such as market development, market penetration, and diversification require increase sales through new markets and products.
  • Market segmentation allows a firm to operate with limited resources because mass production, mass distribution and mass advertising are not required.
  • Market segmentation decisions directly affect marketing mix variables: product, place, promotion and price.


9.2 Product Positioning

9.3 Evaluating the Worth of a Business

Various methods for determining business’s worth can be grouped into three main approaches: What a firm owns, what a firm earns or what a firm will bring in the market.


The first approach in evaluating the worth of a business is determining its net worth or stockholders equity. Whola’s stockholders have a different % participation in the organization.

Stockholder # 1 = 50%

Stockholder # 2 = 30%

Stockholder # 3 = 20%


9.4 Management Information Systems (MIS) Issues

It is important to recognize the importance of having an effective management information system (MIS), it is a requirement for the future.

In many industries, information is becoming the most important factor in differentiating successful from unsuccessful firms.


A good information system can allow a firm to reduce costs, offer a better quality service and reduce time of procedures.


Whola’s management information system is CRM (Go back to Internal Audit). This system would be used to collect customer’s information; retrieval and storage can be used to create competitive advantages in ways such as cross-selling to customers, monitoring suppliers, keeping managers and employers informed, coordinating activities among areas of the organization and managing funds. Information would be then recognized as valuable organizational asset that can be controlled and managed.


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