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19 Cards in this Set
- Front
- Back
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The Planning Process |
-Market Planning Assess the environment Develop Objectives and Market Strategy Select Target Segments and Position Develop Marketing Programme Measure Results Evaluate Progress |
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External Environment |
All things beyond the direct control of the organisation > PESTE (disease) |
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Internal Environment |
All things that the firm has some level of control over > Industry > Competitors > Market > Customers > Firm > Product/Services offered |
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Relationship between environmental analysis & marketing strategy |
Environmental analysis sits at the top with these connected: Company strategy: the overarching goal Product/Service Strategy: ways you offer those products and services Segmentation, Targeting, Positioning |
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1. Outcome of an Environmental Assessment |
> SWOT - strengths, weaknesses, opportunities, threats. It is not an analysis. You take the stuff you already know and categorise it |
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2. Outcome of an Environmental Assessment |
> Identification of potential opportunities and likely threats facing you-recognition of the good, bad and the ugly-an understanding of your sustainable competitive advantage relative to the competition-understanding the key strategic issues that need to be dealt with |
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PESTE Analysis |
Focuses on environmental factors OUTSIDE a firm's industry that could positively/negatively impact the firm > Political/Legal Factors > Economical Factors > Socio-Cultural Factors > Technological Factors > Environmental Factors |
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1. Porter's 5 Forces |
> A tool designed to assess the competitive environment WITHIN the direct industry or industries that the firm competes in > There are likely to be many factors that are affecting the firm at this level |
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2. Porter's 5 Forces |
Threat of Substitutes Buyer Power Barriers to Entry Supplier Power Industry Competition |
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Porter's 5 Forces example |
Making basketballs: Threat of Substitutes - people that want to take away the best players - everyone is fighting for the best resources Buyer Power - people who are coming to the basketball games - results in a lot of competition Barriers to entry - how hard it is to get into the industry |
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Characteristics of Intense Competition |
> there are many competitors > competitors have similar strategies > when there is not much differentiation between competitor's product, resulting in much price competition > low market growth rates > barriers to exit are high |
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Internal Environmental Assessment - Looking at yourself |
> Assesses your organisation's 'health' -financial resources -human resources -physical resources -soft resources (software, systems, knowledge) -your market offer -plus, resource changes |
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SWOT - Strengths |
What you do well or have access to Should be maintained or enhanced |
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SWOT - Weaknesses |
What you are lacking or doing poorly Could lead to failure, minimise risk here |
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SWOT - Opportunities |
Suggest a new basis for competitive advantage Possibly for improved performance |
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SWOT - Threats |
May impeded strategy implementation May change the rules or resources required May hurt performance |
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Other Analytic Tools |
Cost Analysis -Using rolling spreadsheets to conduct a 'what if' assessment Market Growth/Market Share Matrix -Both matrices used to analyse the firms offer or portfolio in terms of costs, contribution, performance and fit. |
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Once you've assessed the situation... |
You need to determine the strategic market direction your firm will take e.g.,
>Growth -expansion (market penetration, market development) -diversification >Retrenching >Maintenance/Holding pattern |
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Finally |
Understanding the market and planning your marketing activities go hand in hand - look for key drivers of your business - understand your environment - develop a strategy to suit your needs and the customer's needs |
