Marketing Strategy and Situation Analysis

MarketingStrategyandSituationAnalysisStrategicPlanningTheprocessofdevelopingandmaintainingafitbetweenacompany’sgoalsandcapabilitiesanditschangingmarketingopportunitiesItinvolves:–Definingcompanyvision/mission–Specifyingobjectives–Designingportfolioofproducts/businesses–CoordinatingfunctionalstrategiesStrategicPlanningStrategicplanningflowsfromMissionandValuesImplementationfollowsStrategyMonitorsandControlsfollowImplementationTheStrategicMarketingProcess:ThePlanningPhase1.SituationandSWOTanalysis2.Market-productfocus&goalsetting3.MarketingprogramsThreeLevelsofStrategyinanOrganizationBusinessunitstrategy•Mission•Businessgoals•CompetenciesCorporatestrategy•Vision•Corporategoals•PhilosophyandcultureResearch&developmentInformationsystemsFinanceMarketingManufacturingHumanresourcesFunctionalstrategyMarketOrientedVision/MissionsCOMPANYPRODUCT-ORIENTEDVISION/MISSIONSTATEMENTSMARKET-ORIENTEDVISION/MISSIONSTATEMENTSRevlonWemakecosmetics.DisneyWerunthemeparks.Wal-MartWerundiscountstores.Weselllifestyleandselfexpression;successandstatus;memories,hopesanddreams.Weprovidefantasiesandentertainment--aplacewhereAmericastillworksthewayitissupposedto.WeofferproductsandservicesthatdelivervaluetomiddleAmericans.CompanyAnalysisCompetitiveAnalysisCustomerAnalysisOpportunityIdentificationMarketingStrategyMarketingPlansProductPromotionPlacePriceOtherEnvironmentalFactorsTHEMARKETINGPROCESSStep1a:SituationAnalysis:TheThreeCsCompanyCustomersCompetitors•MarketPotential(size,growthrate)•CustomerBehavior(wantsandneeds,segmentation,pricesensitivity)•IndustryStructureAnalysis(entry/exitbarriers,buyers,sellers,substitutes)•CompetitorResponseProfiles(capabilities,currentandfutureactions)•EconomicAnalysis(costs,break-even,profitability)•CompanyFit(strengths,weaknesses,resources,culture,goals)CompanyconsiderationsHistory/CultureResourcesExistingportfolioExistingcustomerbase–characteristics,esp.visavisfuturemarket–loyaltyExperience–withmarkets–withmarketingInternationalMarketingStrategyStrategicAlliancesGlobalCompanies–InternationalFirmTakeourdomesticpracticesoverseas–MultinationalfirmCustomizestrategiestoeachmarket–GlobalfirmStandardizestrategygloballyBusinessObjectives•Maximizeprofits•Maximizeshareholderreturns•Maximizemarketshare•Survival•Socialresponsibility1b:SWOTAnalysisStrengths:Opportunities:Threats:Weaknesses:FavorableUnfavorableInternalExternalDesigningtheBusinessPortfolioFitcompanystrengthsandweaknessestotheopportunitiesintheenvironment–AnalyzecurrentSBU’sStrategicIssueAnalysisOpportunitiesThreatsStrengthsAreastoLeverageProblemsWeaknessesChanceslostVulnerabilitiesDesigningtheBusinessPortfolioFitcompanystrengthsandweaknessestotheopportunitiesintheenvironment–AnalyzecurrentSBU’s–WhichSBU’sshouldreceivemore,less,ornoinvestment?BostonConsultingGroupgrowth-sharematrixMarketgrowthrate10xHigh1xLow0.1xRelativemarketshare(sharerelativetolargestcompetitor)?CashcowStarDogQuestionmarkBCDA20%High10%Low0%StrategiesAssociatedwiththeBCGMatrixBusinessunitstrategy:ManageyourportfolioMarketing/productstrategy:BuildHoldHarvestDivestLimitationsoftheBCGBeyondgrowthrate:–Barrierstoentry–Longterm,stableconsumerdemand–HighROIrelativetootheroptionsBeyondmarketshare:–Technologicalleadership–Relatedcompetencies•Distributionstrength•Supplierrelationships•Managementskills•Leverage/extendbrandequityGeneralElectric’sstoplightstrategychartMarketattractivenessBusinesspositionStrongMediumWeakHighMediumLowGreenband=“Go”signal=BuildYellowband=“Caution”signal=HoldBACRedband=“Stop”signal=DivestDesigningtheBusinessPortfolioFitcompanystrengthsandweaknessestotheopportunitiesintheenvironment–AnalyzecurrentSBU’s–WhichSBU’sshouldreceivemore,less,ornoinvestment?–DevelopgrowthstrategiesAnsoffProduct-MarketExpansionGridMarketPenetrationMarketDevelopmentProductDevelopmentDiversificationExistingMarketsNewMarketsExistingProductsNewProductsSourcesofNewSalesIncreasetheMarketSize(primarydemand)StealfromCompetitors(selectivedemand)IncreaseUsageofCurrentCustomersPorter’s4GenericBusinessStrategiesSourceofCompetitiveAdvantageBroadTargetNarrowTargetLowerCostDifferentiationDifferentiationFocusCostLeadershipDifferentiationCostFocusGlobalMarketEntryStrategiesExportingLicensingJointVentureDirectInvestmentCompetitiveAnalysisMarketstructure–Leader–Follower–NicherDefiningcompetition–IndustryBasedDefinition(e.g.SIC)–MarketBasedDefinitionSubstitutesDefinitionofMarketShareProductLifeCycle:ImplicationsforBusinessStrategyStageoftheproductlifecycleSalesrevenueorprofitIntroductionGrowthMaturityDeclineTotalindustrysalesrevenueTotalindustryprofit+0–Porter’sFiveForcesBargainingPowerofSuppliersBargainingPowerofBuyersIntensityofCompetitiveRivalry&BarrierstoExitBarrierstoPotentialEntrantsSubstitutesinOtherIndustriesButwhat’smissing?Externalenvironment(PRESTO)Politicaltrends--“politicallycorrect,”partisanRegulatorytrends–what’s(il)legal–FTC,FDA,Fed,state,locallawsEconomictrends:macro,microSocialandCulturaltrends–Changingfamily,womeninworkforce,immigrationTechnologicaltrendsO