The Marketing Process This CTR corresponds to Figure 2-5 on p. 45 and to material on pp. 44-45. Teaching Tip: This material previews the focus on later chapters. You may wish to show this CTR as an introduction to the following discussion on target consumers. The lecture information below is provided if you wish to cover the strategic background information prior to coverage of details. The Marketing Process This begins an extended discussion of planning, organization, and specific-actions that includes slide transparencies on the 4 Ps, factors affecting marketing strategy decisions, and a general outline of the contents of a marketing plan. These topics are covered in more detail on subsequent CTRs. Marketing Analysis (and Planning). Marketing must conduct a complete analysis of its situation and all relevant environmental influences. Further, marketing must provide each functional area of the company with the information from this analysis that affects their area-specific tasks. Selecting Target Markets. In evaluating analysis, it should become clear that the company cannot service each market opportunity equally well. Target market selection occurs by matching strengths and weaknesses identified in analysis to particular target markets. Marketing Implementation. Plans must be coordinated and launched with realistic logistical support if they are to succeed. Marketers must be able to translate plans into concrete action. Marketing Control. The need to measure, assess and evaluate performance all relate to control issues. These are discussed in more detail later.
Analyzing Current SBU’s: Boston Consulting Group Approach This CTR corresponds to Figure 2-2 on p. 39 and relates to the discussion on pp. 38-39. Designing the Business Portfolio The business portfolio is the collection of businesses and products that make up the company. In portfolio analysis, management evaluates the businesses for their strategic fit in meeting company objectives. Strategic Business Units (SBUs) consist of separate units of the company that can be planned independently from other company businesses. The BCG Matrix Stars. High growth, high share businesses. Stars often require heavy investment to build/maintain share in rapidly expanding markets. You may wish to discuss the importance of market share to product profitability at this point. Cash Cows . Low growth, high share businesses. Cows generate profits for investment in other businesses. Question Marks. High growth, low share businesses. Strategy must decide between further investment to move question marks to star status or phasing the product out. Dogs . Low growth, low share. Dogs are often targets for divestment, but may still be profitable and/or contribute to other organizational goals.
The GE Planning Grid This CTR corresponds to Figure 2-3 on p. 40 and relates to the material on pp. 39-40. The General Electric Approach This matrix uses two dimensions of three zones each: Industry attractiveness is an index made up of such factors as market size, market growth, industry profit margin, amount of competition, seasonality & cyclicality of demand, and industry cost structure. Business strength is an index of factors like relative market share, price, competitiveness, product quality, customer & market knowledge, sales effectiveness, and geographic advantages. Which elements within these categories are utilized may vary from product to product and market to market. Strategies appropriate for each group of zones: Invest/Grow . This zone consists of the three green cells in the upper left corner and indicate strong SBUs. Selectivity/Earnings . This zone consists of the three yellow diagonal cells from the lower left to the upper right and represent SBUs of medium overall attractiveness. Sell or Reposition . This zone consists of the three red cells in the lower right corner and indicated SBUs with low overall attractiveness.
Project 1 Environmental Analysis Marketing Analysis & Research (MAR3613) By Kanghyun Yoon
To develop effective targeting strategies and to manage the marketing efforts effectively …
measuring current market size and forecasting future demand are required.
Overly optimistic estimates -> costly overcapacity or excess inventories.
Underestimating market demand -> missed sales and profit opportunities.
Five major uses of market demand
1) To answer “what if” questions; 2) to help set budgets; 3) to make resource allocation decisions over the product life cycle; 4) to set objectives and evaluate performance; 5) to make market entry/exit decision.
Three concepts to understand
1) Market potential (e.g., what the company might or could achieve).
2) Market forecast (e.g., what the company probably will achieve).
3) Market minimum (quota) (e.g., what the company should achieve).
A critical part of forecasting
A key assumption: Forecasts depend on a set of conditions.