Transcript Chapter 3

MARKETING STRATEGY
O.C. FERRELL • MICHAEL D. HARTLINE
3
Situation Analysis
Collecting and Analyzing
Marketing Information
Issues to be Considered
in a Situation Analysis
Exhibit 3.1
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Conducting a Situation Analysis (1 of 2)
• Analysis Alone is Not the Solution
• Data and Information are Not the Same
– Data: A collection of numbers or facts that have
the potential to inform
– Information: Data that has been transformed or
combined with other data in a manner that
makes it useful to decision makers
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Conducting a Situation Analysis (2 of 2)
• The Benefits of Analysis Must Outweigh the
Costs
• Conducting a Situation Analysis is a
Challenging Exercise
– One of the most difficult parts of the marketing
plan
– Should provide a complete picture of three key
environments: (1) Internal, (2) Customer, and
(3) External
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The Relationships Among
Environments in a Situation Analysis
Internal Environment
Exhibit 3.2
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Discussion Question
• Of the three major environments in a
situation analysis (internal, customer,
external), which do you think is the most
important in a general sense? Why? What
are some situations that would make one
environment more important than others?
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The Internal Environment (1 of 2)
• Review of Current Objectives, Strategy and
Performance
– An important input to later stages in the planning
process
– Poor or declining performance must be the result
of:
• (1) Goals or objectives that are inconsistent with
customer or external environments
• (2) Flawed marketing strategy
• (3) Poor implementation
• (4) Changes in the customer or external environment
beyond the control of the firm
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The Internal Environment (2 of 2)
• Availability of Resources
– Includes review of financial, human and experience
resources as well as resources from key relationships
– Financial resources tend to get most attention
– Labor shortages are expected to be a major problem in
the coming years
• Organizational Culture and Structure
– Problems can arise when marketing does not hold a
prominent position in the political hierarchy
– Culture and structure are relatively stable but can be
affected by mergers
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Mergers Affect Corporate Culture
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The Customer Environment
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Who are our Current and Potential Customers?
What do our Customers do with our Products?
Where do Customers Purchase our Products?
When do Customers Purchase our Products?
Why (and How) do Customers Select our
Products?
• Why do Potential Customers not Purchase our
Products?
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The External Environment (1 of 2)
• Competition
– (1) Brand competitors
– (2) Product competitors
– (3) Generic competitors
– (4) Total budget competitors
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Major Types of Competition
Exhibit 3.6
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Discussion Question
• Do you think brand competitors are always
the most important type of competition?
How would economic conditions affect the
importance of brand competitors? In bad
economic times, would total budget
competitors become more important? Why
or why not?
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Stages of Competitive Analysis
• (1) Identify all current and potential competitors.
• (2) Assess each key competitor.
• (3) Assess each key competitor’s strengths and
weaknesses.
• (4) Focus the analysis on each key competitor’s
marketing capabilities.
• (5) Estimate each key competitor’s most likely
strategies and responses under different
environmental situations.
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The External Environment (2 of 2)
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Economic Growth and Stability
Political Trends
Legal and Regulatory Issues
Technological Advancements
Sociocultural Trends
– Demographic Trends
– Lifestyle Trends
– Trends in Cultural Values
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Examples of Trends in the
Sociocultural Environment
• Demographic Trends
– Aging of the American population
– Increasing population diversity
– Population growth in the Sun Belt states
• Lifestyle Trends
– Clothing has become more casual, especially at work
– Growing focus on health and nutrition
– Time spent watching television has declined
• Trends in Cultural Values
– Less focus on “me-oriented” values
– Increasing importance of family and children
– Greater focus on ethics and social responsibility
From Exhibit 3.7
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Marketing Strategy in Action
• This 1977 ad for a Technics
turntable discusses its
advanced technology. In less
than a decade the compact
disc would render devices for
playing vinyl records
obsolete.
• How does this illustrate the
importance of being aware of
the technological
environment? How can
companies like Panasonic
prepare for the possible
obsolescence of products that
are currently state-of-the-art?
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Collecting Environmental Data
and Information (1 of 2)
• Secondary Information Sources
– Internal Data Sources
– Government Sources
– Periodicals/Book Sources
– Commercial (Fee-Based) Sources
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Government Sources of Secondary Data
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Collecting Environmental Data
and Information (2 of 2)
• Primary Data Collection
– Direct Observation
– Focus Groups
– Surveys
– Experiments
• Overcoming Problems in Data Collection
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Discussion Question
• Do you think the Internet has made it easier
or more difficult to collect data and
information? Why? How might the major
data collection issues of today compare to
the issues that occurred in the pre-Internet
era?
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