SlideShare a Scribd company logo
1 of 23
Download to read offline
Marketing audit, SWOT
matrix, TOWS matrix
Customer Orientation
NO YES
Competitor
Orientation
NO Product
orientation
Customer
orientation
YES Competitor
orientation
Market
orientation
Customer and Competitor Orientations
Product
• product management
• new product development
• branding
Price
• pricing
• discount structures
• terms of business
Place/distribution
• channel management
• customer service
• physical distribution
Promotion
• advertising
• sales promotion
• public relations
• personal selling
• merchandising
• sponsorship
People
• employee selection
• employee training
• employee motivation
Physical evidence
• layout
• decor
• ease of access
Process management
• how customers are handled and
managed from the point of very
first contact with the organization
through to the point of very last
contact
7 Ps of Marketing Mix
Stage one
Where are we now?
(beginning)
Stage two
Where do we want to be?
(ends)
Stage three
How might we get there?
(means)
Stage four
Which way is best?
(evaluation)
Stage five
How can we ensure arrival?
(implementation & control)
Analysis phase
Planning phase
Implementation phase
Evaluation phase
SMM PROCESS
OPERATIONS
SMM
MM
SMM vs. MM
Strategic
level
Tactical
level
Operational level
Chapter 03.pptx
The
Management
audit
Finance
audit
HR audit
Production
audit
EXTERNAL (Opportunities and threats)
INTERNAL (Strengths and weaknesses)
Past performance and present activities
Marketing Audit
# Stage Description
1 Pre-audit activities defining the scope of marketing audit
2 The assembly of
information
on the areas which affect the
organization’s marketing performance
– industry, market, firm, and elements
of marketing mix
3 Information analysis
4 The formulation of recommendations
5 The development of an implementation program
5 Stages of Marketing Audit
SWOT: a summary
STRENGTHS : Areas of (distinctive) competence that:
 Must always be looked at relative to the competition
 If managed properly, are the basis for competitive advantage
 Derive from the marketing asset base
WEAKNESSES : Areas of relative disadvantage that:
 Indicate priorities for marketing improvement
 Highlight the areas and strategies that the planner should avoid
THREATS : Trends within the environment with potentially negative impacts that:
 Increase the risks of a strategy
 Hinder the implementation of strategy
 Increase the resources required
 Reduce performance expectations
OPPORTUNITIES : Environmental trends with positive outcomes that offer scope
for higher levels of performance if pursued effectively:
 Highlight new areas for competitive advantage
avail
ignore
evaluate
evaluate
must avoid
monitor
monitor ignore
 In essence, four possibilities exist:
# Business Possibility Opportunities Threats
1 Ideal Many Few
2 Speculative Many Many
3 Mature Few Few
4 Troubled Few Many
1 Organizational advantages
• Economies of scope and /or scale
• Flexibility
• Competitive stance
• Size
• Speed of response
• Past performance
• Financial strengths
• Patterns of ownership
• Reputation
2 Functional advantages
Marketing
• Customer base
• Customer knowledge
• New product skills
• Pricing
• Communication and advertising
• Distribution
• Sales force
• Service support
• Reputation
Research and development
• Product technology
• Patents
Production
• Technology
• Process efficiency
• Economies of scale
• Experience
• Product quality
• Manufacturing flexibility
Personnel
• Good management–worker relations
• Workforce flexibility
3 External relations
• Customer loyalty
• Channel control
• Preferential political and legislative treatment
• Government assistance
• Beneficial tariff and non-tariff trade barriers
• Cartels
• Intra-organizational relationships
• Access to preferential and flexible financial
resources
6 Types of Capabilities
1 Managerial capability
2 Financial capability
3 Operational capability
4 Distribution capability
(geographic coverage and penetration)
5 Human capability
(knowledge, skills, and experience)
6 Intangible capability
(brands, customer loyalty)
SETTING PRIORTIES
Low importance,
high performance
Average importance,
good performance
Average importance,
average performance
High importance,
low performance
SWOT Analysis
Internal Environment
Positive
S W Negative
O T
External Environment
TOWS Analysis
Internal Environment
S W
External
Environment
O
SO WO
T
ST WT
SWOT and TOWS analysis for Daimler-Benz’s Mercedes-Benz car
division 1990
Notes:
Daimler-Chrysler
Daimler-Benz
Daimler AG
Commonly known as Mercedes
Also manufactured series of engines for air crafts, tanks,
and submarines during world war II
EC 1992 = European Commission
(European market project 1992)
S W
1 Cash position
2 Luxury car image
3 New car models
4 Location close to suppliers
5 Engineering and technology
1 High costs
2 Venturing into unrelated businesses
3 Organizational diversity
4 Reliance on past successes and
bureaucracy
5 Long cycle for new model
development
6 Relatively weak position in Japan
1 Demand for luxury cars
2 Eastern Europe, especially East
Germany
3 Prosperity through EC 1992
4 Electronics technology
1 Decrease in defense needs
because of easing of East–West
tensions
2 BMW, Volvo, Jaguar, Lexus, Infinity
in Europe
3 BMW in Japan
4 Diesel emissions
5 Renault/Volvo cooperation
6 Political instability in South Africa
O T
S W
O
S-O strategy
1 Develop new models (using
high-tech) and charge
premium prices
2 Use financial resources to
acquire other companies or
increased production capacity
W-O strategy
1 Reduce costs through
automation and flexible
manufacturing
2 Manufacture parts in Eastern
Europe
3 Reorganizations
4 Daimler-Benz management
holding companies
T
S-T strategy
1 Transform defense sector to
consumer sector
2 Develop new models to
compete especially in Europe
W-T strategy
1 Retrench in South Africa
2 Form strategic alliance with
Mitsubishi to penetrate the
Japanese market
TOWS Matrix
Davidson’s Model of Asset and Competency-based Marketing (ACM)
any business consists only of :
assets competencies
things that the
organization owns, and
typically include brands,
property, databases,
machinery and cash
Skills or capabilities
created by staff both
individually and in groups,
and might include brand
development, database
management, cost
management or
investment strategy
Strengths
Future Opportunities
Competencies
Assets
Chapter 03.pptx

More Related Content

Similar to Chapter 03.pptx

1- Strategic Cost Management for EDBA.pptx
1- Strategic Cost Management for EDBA.pptx1- Strategic Cost Management for EDBA.pptx
1- Strategic Cost Management for EDBA.pptxMohamadIbrahim86
 
Strategic Management models and diagrams
Strategic Management models and diagramsStrategic Management models and diagrams
Strategic Management models and diagramshttp://www.drawpack.com
 
Best practices in business development
Best practices in business developmentBest practices in business development
Best practices in business developmentDavid Fatlowitz
 
Best practices in business development
Best practices in business developmentBest practices in business development
Best practices in business developmentDavid Fatlowitz
 
Portfolio product management - Trang Nguyen
Portfolio product management - Trang NguyenPortfolio product management - Trang Nguyen
Portfolio product management - Trang NguyenTrang Nguyen
 
The strategy tools used in industry analysis
The strategy tools used in industry analysisThe strategy tools used in industry analysis
The strategy tools used in industry analysisThiago Magalhães
 
Business Strategy Creating and Sustaining Competitive Advantages
Business Strategy Creating and Sustaining Competitive AdvantagesBusiness Strategy Creating and Sustaining Competitive Advantages
Business Strategy Creating and Sustaining Competitive AdvantagesSeta Wicaksana
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategiesBabasab Patil
 
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdf
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdfTET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdf
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdfAmanKumar527652
 
Strategic Planning For Managers
Strategic Planning For Managers   Strategic Planning For Managers
Strategic Planning For Managers Yodhia Antariksa
 
TMAN 680 class project
TMAN 680 class projectTMAN 680 class project
TMAN 680 class projectChan8903
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategiesBabasab Patil
 
Steps in Preparing The Marketing Plan
Steps in Preparing The Marketing PlanSteps in Preparing The Marketing Plan
Steps in Preparing The Marketing PlanMohammad Orakzai
 
marketing strategy overview all ej 7.14.2016
marketing strategy overview all ej 7.14.2016marketing strategy overview all ej 7.14.2016
marketing strategy overview all ej 7.14.2016James E. Brown Jr.
 

Similar to Chapter 03.pptx (20)

1- Strategic Cost Management for EDBA.pptx
1- Strategic Cost Management for EDBA.pptx1- Strategic Cost Management for EDBA.pptx
1- Strategic Cost Management for EDBA.pptx
 
Strategic Management models and diagrams
Strategic Management models and diagramsStrategic Management models and diagrams
Strategic Management models and diagrams
 
Best practices in business development
Best practices in business developmentBest practices in business development
Best practices in business development
 
Best practices in business development
Best practices in business developmentBest practices in business development
Best practices in business development
 
book_selection.pptx
book_selection.pptxbook_selection.pptx
book_selection.pptx
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Portfolio product management - Trang Nguyen
Portfolio product management - Trang NguyenPortfolio product management - Trang Nguyen
Portfolio product management - Trang Nguyen
 
The strategy tools used in industry analysis
The strategy tools used in industry analysisThe strategy tools used in industry analysis
The strategy tools used in industry analysis
 
Accelerated growth in_channel_revenue
Accelerated growth in_channel_revenueAccelerated growth in_channel_revenue
Accelerated growth in_channel_revenue
 
Product Development
Product DevelopmentProduct Development
Product Development
 
Business Strategy Creating and Sustaining Competitive Advantages
Business Strategy Creating and Sustaining Competitive AdvantagesBusiness Strategy Creating and Sustaining Competitive Advantages
Business Strategy Creating and Sustaining Competitive Advantages
 
Ch02
Ch02Ch02
Ch02
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategies
 
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdf
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdfTET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdf
TET_Material_1_ BPlan_TechnoEconomicFeasibility_25.08.2015 - Copy.pdf
 
Strategic Planning For Managers
Strategic Planning For Managers   Strategic Planning For Managers
Strategic Planning For Managers
 
TMAN 680 class project
TMAN 680 class projectTMAN 680 class project
TMAN 680 class project
 
Ppt10
Ppt10Ppt10
Ppt10
 
New product development and product life-cycle strategies
New product development and product life-cycle strategiesNew product development and product life-cycle strategies
New product development and product life-cycle strategies
 
Steps in Preparing The Marketing Plan
Steps in Preparing The Marketing PlanSteps in Preparing The Marketing Plan
Steps in Preparing The Marketing Plan
 
marketing strategy overview all ej 7.14.2016
marketing strategy overview all ej 7.14.2016marketing strategy overview all ej 7.14.2016
marketing strategy overview all ej 7.14.2016
 

More from HaroonYousaf17

More from HaroonYousaf17 (7)

Pitch Book.pptx
Pitch Book.pptxPitch Book.pptx
Pitch Book.pptx
 
gnu_2022.pdf
gnu_2022.pdfgnu_2022.pdf
gnu_2022.pdf
 
Ejaz Manzoor.pptx
Ejaz Manzoor.pptxEjaz Manzoor.pptx
Ejaz Manzoor.pptx
 
Chapter One
Chapter OneChapter One
Chapter One
 
International trade financing.pptx
International trade financing.pptxInternational trade financing.pptx
International trade financing.pptx
 
Watershed-PP.pptx
Watershed-PP.pptxWatershed-PP.pptx
Watershed-PP.pptx
 
Advance Proforma.pdf
Advance Proforma.pdfAdvance Proforma.pdf
Advance Proforma.pdf
 

Recently uploaded

Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarSEO Optimizers
 
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...Sophie Logan
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldD Cloud Solutions
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing courstegveersingh09
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfVWO
 
Converting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROConverting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROVWO
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfSocial Samosa
 
Friends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxFriends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxNavah Hopkins
 
The Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadThe Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadFabio Bin
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxWill Haire
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Studystuwilson.co.uk
 
Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesVWO
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfVWO
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Nedko Nedkov
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxivanrazine1
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfEastern Online-iSURVEY
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growthabinashdm2014
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxGregory Edwards
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain VisibilitySearch Engine Journal
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedMumbai Pixels
 

Recently uploaded (20)

Increase Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads WebinarIncrease Your Website Sales & Leads Webinar
Increase Your Website Sales & Leads Webinar
 
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
What's Happening with Your Microsoft Advertising's Search Campaigns? - Sophie...
 
Top 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern WorldTop 15 Emerging Technologies for the Modern World
Top 15 Emerging Technologies for the Modern World
 
Ppt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing coursPpt regarding of Digital Marketing cours
Ppt regarding of Digital Marketing cours
 
Unifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdfUnifying feature management with experiments - Server Side Webinar (1).pdf
Unifying feature management with experiments - Server Side Webinar (1).pdf
 
Converting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CROConverting with Comedy: Research Parallels for CRO
Converting with Comedy: Research Parallels for CRO
 
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdfTAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
TAM AdEx-A Pixelated view into Digital Advertising Trends for Y 2023.pdf
 
Friends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptxFriends of Search Future Proof Accounts.pptx
Friends of Search Future Proof Accounts.pptx
 
The Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoadThe Creative Marketing campaigns of WeRoad
The Creative Marketing campaigns of WeRoad
 
Amazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptxAmazon Seller New Product Launch Guide - 2024.pptx
Amazon Seller New Product Launch Guide - 2024.pptx
 
A navigation of two creative processes Study
A navigation of two creative processes StudyA navigation of two creative processes Study
A navigation of two creative processes Study
 
Crafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing PagesCrafting High-Converting eCommerce Landing Pages
Crafting High-Converting eCommerce Landing Pages
 
A_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdfA_B Testing Personalized Meditation Recommendations.pdf
A_B Testing Personalized Meditation Recommendations.pdf
 
Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024Podvertise.fm - Founder.University - Pitch Deck 2024
Podvertise.fm - Founder.University - Pitch Deck 2024
 
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptxToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
ToShare_UG 13_03_24_Full_BelgianTrailblazerCommunity.pptx
 
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdfSnapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
Snapshot of Consumer Behaviors of February 2024-EOLiSurvey (EN).pdf
 
Harnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing GrowthHarnessing Social Media for Marketing Growth
Harnessing Social Media for Marketing Growth
 
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptxFriends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
Friends of Search '24 - Scaling SEO_ Lessons for All Types of Sites.pptx
 
2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility2024 Google SERP Features: New Strategies To Gain Visibility
2024 Google SERP Features: New Strategies To Gain Visibility
 
SEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to SucceedSEO Trends in 2024: What You Need to Know to Succeed
SEO Trends in 2024: What You Need to Know to Succeed
 

Chapter 03.pptx

  • 2. Customer Orientation NO YES Competitor Orientation NO Product orientation Customer orientation YES Competitor orientation Market orientation Customer and Competitor Orientations
  • 3. Product • product management • new product development • branding Price • pricing • discount structures • terms of business Place/distribution • channel management • customer service • physical distribution Promotion • advertising • sales promotion • public relations • personal selling • merchandising • sponsorship People • employee selection • employee training • employee motivation Physical evidence • layout • decor • ease of access Process management • how customers are handled and managed from the point of very first contact with the organization through to the point of very last contact 7 Ps of Marketing Mix
  • 4. Stage one Where are we now? (beginning) Stage two Where do we want to be? (ends) Stage three How might we get there? (means) Stage four Which way is best? (evaluation) Stage five How can we ensure arrival? (implementation & control) Analysis phase Planning phase Implementation phase Evaluation phase SMM PROCESS
  • 7. The Management audit Finance audit HR audit Production audit EXTERNAL (Opportunities and threats) INTERNAL (Strengths and weaknesses) Past performance and present activities Marketing Audit
  • 8. # Stage Description 1 Pre-audit activities defining the scope of marketing audit 2 The assembly of information on the areas which affect the organization’s marketing performance – industry, market, firm, and elements of marketing mix 3 Information analysis 4 The formulation of recommendations 5 The development of an implementation program 5 Stages of Marketing Audit
  • 9. SWOT: a summary STRENGTHS : Areas of (distinctive) competence that:  Must always be looked at relative to the competition  If managed properly, are the basis for competitive advantage  Derive from the marketing asset base WEAKNESSES : Areas of relative disadvantage that:  Indicate priorities for marketing improvement  Highlight the areas and strategies that the planner should avoid THREATS : Trends within the environment with potentially negative impacts that:  Increase the risks of a strategy  Hinder the implementation of strategy  Increase the resources required  Reduce performance expectations OPPORTUNITIES : Environmental trends with positive outcomes that offer scope for higher levels of performance if pursued effectively:  Highlight new areas for competitive advantage
  • 12.  In essence, four possibilities exist: # Business Possibility Opportunities Threats 1 Ideal Many Few 2 Speculative Many Many 3 Mature Few Few 4 Troubled Few Many
  • 13. 1 Organizational advantages • Economies of scope and /or scale • Flexibility • Competitive stance • Size • Speed of response • Past performance • Financial strengths • Patterns of ownership • Reputation 2 Functional advantages Marketing • Customer base • Customer knowledge • New product skills • Pricing • Communication and advertising • Distribution • Sales force • Service support • Reputation Research and development • Product technology • Patents Production • Technology • Process efficiency • Economies of scale • Experience • Product quality • Manufacturing flexibility Personnel • Good management–worker relations • Workforce flexibility 3 External relations • Customer loyalty • Channel control • Preferential political and legislative treatment • Government assistance • Beneficial tariff and non-tariff trade barriers • Cartels • Intra-organizational relationships • Access to preferential and flexible financial resources
  • 14. 6 Types of Capabilities 1 Managerial capability 2 Financial capability 3 Operational capability 4 Distribution capability (geographic coverage and penetration) 5 Human capability (knowledge, skills, and experience) 6 Intangible capability (brands, customer loyalty)
  • 16. Low importance, high performance Average importance, good performance Average importance, average performance High importance, low performance
  • 17. SWOT Analysis Internal Environment Positive S W Negative O T External Environment
  • 18. TOWS Analysis Internal Environment S W External Environment O SO WO T ST WT
  • 19. SWOT and TOWS analysis for Daimler-Benz’s Mercedes-Benz car division 1990 Notes: Daimler-Chrysler Daimler-Benz Daimler AG Commonly known as Mercedes Also manufactured series of engines for air crafts, tanks, and submarines during world war II EC 1992 = European Commission (European market project 1992)
  • 20. S W 1 Cash position 2 Luxury car image 3 New car models 4 Location close to suppliers 5 Engineering and technology 1 High costs 2 Venturing into unrelated businesses 3 Organizational diversity 4 Reliance on past successes and bureaucracy 5 Long cycle for new model development 6 Relatively weak position in Japan 1 Demand for luxury cars 2 Eastern Europe, especially East Germany 3 Prosperity through EC 1992 4 Electronics technology 1 Decrease in defense needs because of easing of East–West tensions 2 BMW, Volvo, Jaguar, Lexus, Infinity in Europe 3 BMW in Japan 4 Diesel emissions 5 Renault/Volvo cooperation 6 Political instability in South Africa O T
  • 21. S W O S-O strategy 1 Develop new models (using high-tech) and charge premium prices 2 Use financial resources to acquire other companies or increased production capacity W-O strategy 1 Reduce costs through automation and flexible manufacturing 2 Manufacture parts in Eastern Europe 3 Reorganizations 4 Daimler-Benz management holding companies T S-T strategy 1 Transform defense sector to consumer sector 2 Develop new models to compete especially in Europe W-T strategy 1 Retrench in South Africa 2 Form strategic alliance with Mitsubishi to penetrate the Japanese market TOWS Matrix
  • 22. Davidson’s Model of Asset and Competency-based Marketing (ACM) any business consists only of : assets competencies things that the organization owns, and typically include brands, property, databases, machinery and cash Skills or capabilities created by staff both individually and in groups, and might include brand development, database management, cost management or investment strategy Strengths Future Opportunities Competencies Assets