Lecture 2 â Market Profiling And Strategic Marketing Analysis
Lecture 2 – Market Profiling And Strategic Marketing Analysis Recap of Lecture and Class Slides •
Positioning school of strategy o Generic strategies: economic + competitive marketplace o Early military writings, consulting, analysing • Marketing warfare strategies o Market leader wants to increase PIE, protect and increase his share of PIE o Market challenger only wants to increase his share of PIE to be leader • Consultancy models o Match firms capabilities with environmental opportunities for optimum resource allocation Firm’s competitiveness Market’s potential BCG Product Portfolio Matrix Relative market share Market growth rate GE Business Screen Business strength Industry attractiveness Shell Directional Policy Matrix Competitive capabilities Sector profitability Ansoff’s Growth Matrix Product Market • Use cash cow to invest in ? to become a * • Wind and Mahajan (1981) – two different businesses with different factors could find themselves on same position merely because of summed-up scores – don’t rely on this! • Kralgic’s Supplier Portfolio Management: (i.e. how a firm should purchase) o Exploit: if buyer dominant o Diversify: if suppliers dominant o Balance: if neither dominant • Porter’s Model of Competitive Analysis – not for small, fragmented markets or retailers Chandler “structure follows strategy”, therefore: I. Analyse and choose industry to compete in II. Analyse and choose firm’s strategy III. Implement strategy by managing activities • 5-forces, generic strategies, value chain analysis • Mintzberg’s generic strategies (LISQDU) Low price Image Support Quality Design Undifferentiation Ryanair Gucci Dell M&S Pharma Petrol stations
Brassington and Petit • • • •
o o o •
•
o o o o o
Corporate strategy – to control and coordinate all operations toward firm strategy Competitive strategy – how to create and maintain a SCA in face of competition Marketing strategy – defines target markets and what to do within them Influences on marketing strategy Organisational resources and objectives – strive towards a common goal Attitudes to change and risk – tolerance or risk and innovation for marketing Market structure and opportunities – stable, aggressive or complacent markets? Innovation and the entrance of foreign firms may make a market dynamic Competitor strategies Strategic marketing analysis – need to view holistic product portfolio The Boston Box Market attractiveness model: the GE matrix Shell’s directional policy matrix Growth strategies for marketing Intensive growth
Positioning school of strategy o Generic strategies: economic + competitive marketplace o Early military writings, consulting, analysing • Marketing warfare strategies o Market leader wants to increase PIE, protect and increase his share of PIE o Market challenger only wants to increase his share of PIE to be leader • Consultancy models o Match firms capabilities with environmental opportunities for optimum resource allocation Firm’s competitiveness Market’s potential BCG Product Portfolio Matrix Relative market share Market growth rate GE Business Screen Business strength Industry attractiveness Shell Directional Policy Matrix Competitive capabilities Sector profitability Ansoff’s Growth Matrix Product Market • Use cash cow to invest in ? to become a * • Wind and Mahajan (1981) – two different businesses with different factors could find themselves on same position merely because of summed-up scores – don’t rely on this! • Kralgic’s Supplier Portfolio Management: (i.e. how a firm should purchase) o Exploit: if buyer dominant o Diversify: if suppliers dominant o Balance: if neither dominant • Porter’s Model of Competitive Analysis – not for small, fragmented markets or retailers Chandler “structure follows strategy”, therefore: I. Analyse and choose industry to compete in II. Analyse and choose firm’s strategy III. Implement strategy by managing activities • 5-forces, generic strategies, value chain analysis • Mintzberg’s generic strategies (LISQDU) Low price Image Support Quality Design Undifferentiation Ryanair Gucci Dell M&S Pharma Petrol stations
Brassington and Petit • • • •
o o o •
•
o o o o o
Corporate strategy – to control and coordinate all operations toward firm strategy Competitive strategy – how to create and maintain a SCA in face of competition Marketing strategy – defines target markets and what to do within them Influences on marketing strategy Organisational resources and objectives – strive towards a common goal Attitudes to change and risk – tolerance or risk and innovation for marketing Market structure and opportunities – stable, aggressive or complacent markets? Innovation and the entrance of foreign firms may make a market dynamic Competitor strategies Strategic marketing analysis – need to view holistic product portfolio The Boston Box Market attractiveness model: the GE matrix Shell’s directional policy matrix Growth strategies for marketing Intensive growth
