Transcript Lecture 9-Marketing`s role in Business

MGT-519
STRATEGIC MARKETING
AAMER SIDDIQI
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LECTURE 9
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RE-CAP
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Marketing’s role in the business
Cross-functional issues
Customer Satisfaction & feed back
Customer Relationship Management
Strategic Market planning process
Environment and situation research
PESTLEDI analysis; political, economic, socio-cultural,
technological, legal, environmental, demographic technological
trends
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RE-CAP
• BCG Matrix
• GE/McKinsey Matrix
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ANSOFF’S MATRIX
• A business’ attempts to grow depend on whether it markets
new or existing products in new or existing markets
• The output from the Ansoff product/market matrix is a series
of suggested growth strategies that set the direction for the
business strategy
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ANSOFF’S MATRIX
• Market penetration - Growth strategy where the business focuses
on selling existing products into existing markets
• Market penetration seeks to achieve four main objectives:
– Maintain or increase the market share of current products – achieved by a
combination of competitive pricing strategies, advertising, sales promotion
and perhaps more resources dedicated to personal selling
– Secure dominance of growth markets
– Restructure a mature market by driving out competitors; this would require
a much more aggressive promotional campaign, supported by a pricing
strategy designed to make the market unattractive for competitors
– Increase usage by existing customers – for example by introducing loyalty
schemes
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ANSOFF’S MATRIX (CONT’D)
• A market penetration marketing strategy-“business as usual”
• The business is focusing on markets and products it knows
well
• It is likely to have good information on competitors and on
customer needs
• It is unlikely, therefore, that this strategy will require much
investment in new market research
• Market development - a growth strategy where the business
seeks to sell its existing products into new markets.
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ANSOFF’S MATRIX (CONT’D)
• There are many possible ways of approaching this strategy,
including:
– New geographical markets; for example exporting the product to a
new country
– New product dimensions or packaging: for example
– New distribution channels
– Different pricing policies to attract different customers or create new
market segments
• Product development - a strategy where a business aims to
introduce new products into existing markets.
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ANSOFF’S MATRIX (CONT’D)
• This strategy may require the development of new competencies
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• requires the business to develop modified products which can
appeal to existing markets
• Diversification - is the name given to the growth strategy where a
business markets new products in new markets.
• Inherently more risk strategy because the business is moving into
markets in which it has little or no experience. For a business to
adopt a diversification strategy, therefore, it must have a clear
idea about what it expects to gain from the strategy and an
honest assessment of the risks
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THE 5 M’S
• Aligning a firm’s internal sources to those needed by it in
order to successfully implement its strategies for the market/s
it is operating in
1. Men
2. Money
3. Materials
4. Machinery
5. Minutes
• A ‘gap’ analysis
• Highlighting shortfalls in existing resources
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THE 5 M’S (CONT’D)
• Allows management take decisions
• whether the acquisition and
• deployment of the extra required resources is desirable given
the anticipated benefits and returns to the firm.
• Within marketing 5Ms is a core model for linking strategy to
internal organisation and as such also has a role in RBV and
competencies views
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SWOT-ANALYSIS
• SWOT analysis provides an overall overview of the
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strengths,
weaknesses,
opportunities and
threats of the firm and its environment
• Strengths are the internal competencies a company needs to
have
• Weaknesses are the competencies that the company does not
have; from the customer’s perspective
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SWOT-ANALYSIS (CONT’D)
• If the customer doesn’t see something as a strength, then no
matter how proud of it the business is it is meaningless in a
SWOT analysis.
• Marketing opportunity is an attractive area for a in which the
company would enjoy a competitive advantage
• Environmental threat is a challenge posed by an unfavourable
trend or development in the environment that would lead, to
the erosion of the company's position
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SWOT-ANALYSIS (CONT’D)
• After performing SWOT analysis, the company uses findings to
define the main issues to be addressed in the strategic
marketing plan
• Decisions of these issues lead to setting of
– objectives,
– strategies and
– Tactics
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SWOT-ANALYSIS (CONT’D)
• The figure shows an enhanced SWOT that also illustrates the
key questions a SWOT is used to answer
• These answers then need to be converted into an Action or
Project Plan with an overall marketing/business plan context
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SUMMARY
• Ansoff’s Matrix
• The 5 M’s
• SWOT-Analysis
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THANKYOU
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