This document provides an overview of several marketing analysis models and tools used to evaluate a company's marketing efforts, including: 1. The marketing process consists of four stages: analysis, planning, implementation, and control. Analysis involves gathering qualitative and quantitative data about products and markets. 2. SWOT analysis and PESTLE analysis are tools used to evaluate a company's internal strengths and weaknesses and external opportunities and threats. The analyses involve identifying factors to prioritize for developing objectives and strategies. 3. Porter's Five Forces model evaluates competitive rivalry, supplier power, buyer power, threat of substitution, and threat of new entry in an industry. 4. Ansoff's Opportunity Matrix outlines four growth strategies

1. MANAGING MARKETING EFFORT
LESSON:1 MARKETING ANALYSIS

2. What is Marketing Analysis
• In today's fast-paced business world, the ability
to effectively manage the marketing process
from beginning to end has become an extremely
important competitive advantage. Successful
companies know how to adapt to a continuously
changing marketplace through market analysis
and planning and careful management of the
marketing process

3. The Marketing Process
Marketing is an ongoing business process that
consists of four distinct stages which are analysis,
planning, implementation, and control
1 Analysis- entails the gathering qualitative and
quantitative data about the company's products and
possible markets
2. Planning-involves constructing strategies that the
company can put into action to attain results in the
target market.

4. The Marketing Process
3. Implementation - the success or failure depends
more or less on the work prepared in the analysis
and planning stages
4. Control-company needs to be responsive of
changing market conditions, competitors and
customers and fine-tune the marketing strategies
for that reason

5. The Market Analysis
The SWOT Analysis is a tool used in strategic planning to identify and
ultimately, prioritize the organization's strengths, weaknesses.
opportunities and strengths. The process involves a brainstorming
session where participants create a list for each of these areas based
on previously gathered data and information. Once the lists are
created, a ranking process is used to prioritize the items so that the
top items in each category can be used to provide basis for the
development of objectives, strategies and tactics. SWOT is an
analytical framework that can help a company face its greatest
challenges and find its most promising now markets.

6. The Market Analysis
1 Strengths represent those specific
characteristics of the business that offer an
advantage over its competitors.
2. Weaknesses are characteristics that limit
performance and could represent an obstacle in
achieving objectives.

7. The Market Analysis
3 . Opportunities include external conditions that
could help improve performance or that can be
capitalized upon or exploited
4 . Threats indicate external conditions and
situations that could hinder performance, so
ways of defending against them can be explored,

8. The Market Analysis
Using SWOT, the company can estimate whether its
objectives are attainable or not, given the internal and
external circumstances.
The first two letters in the acronym. S and W. refer to internal
factors, which mean the resources and experience readily available
to the firm. Examples of areas typically include:

9. The Market Analysis
1 Financial resources-funding sources of
income, and investment opportunities
2. Physical resources-company's location,
facilities and equipment
3. Human resources-employees, volunteers
and target

10. The Market Analysis
4. Access to natural resources,
trademarks, patents and copyrights
5. Current processes-employee
programs, department hierarchies and
software systems

11. The Market Analysis
External forces influence and affect every company,
organization and individual. Whether these factors are
connected directly or indirectly to an opportunity or
threat, it is important to take note of and document
each one. External forces are normally combined in a
mnemonic called PESTLE. It gives bird's eye view of the
whole environment from many different angles that one
wants to check and keep track of while contemplating
on a certain idea/plan,

12. Porter's Five Forces Model
Michael Porter developed his Five Forces Model and
introduced it to the world in 1980 in his first book.
"Competitive Strategy." The model provides a basis
for companies engaged in strategic planning to
consider the critical forces that are impacting it.
1. Supplier Power is represented by their ability to
determine the terms and price of supply and will
increase if there are fewer suppliers than buyers, if
the organization is not a key customer for the
supplier, or if their industry is not attractive for
suppliers.

13. Porter's Five Forces Model
2. Buyer Power refers to the pressure that
customers exert on companies to obtain high
quality products and services at lower prices
Buyer power increases when there are few
buyers and many sellers in the field, or when
products are not significantly differentiated and
can be easily substituted.
3. Profitable markets are more likely to attract
new entrants, especially if there is considerable
profit to be earned and barriers to entry are low.

14. Porter's Five Forces Model
4. Substitute Products are viable, alternative
choices of products or services that the
customer can make which meet the same needs
as the original product.
5. Intensity of competitive rivalry is the major
determinant of competitiveness of the industry
for most companies. If an industry is easily
accessible to new entrants or if it is easy for
customers to choose substitute products, it can
be said that competitive rivalry is likely to be
high.

15. Ansoff's Opportunity Matrix
The Ansoff Opportunity Matrix was
created by Igor Ansoff as a way to
create growth strategies for
corporations based on markets and
products. According to Ansoff, there
are four possible combination:

16. Ansoff's Opportunity Matrix
1. Marketing Penetration-this growth
strategy uses current products and
current markets with the goal to
increase market share.
2. Market Development-this growth
strategy uses existing products to gain
new markets.

17. Ansoff's Opportunity Matrix
3. Product Development-this growth
strategy uses new products in the
existing market
4. Diversification- this strategy makes
totally new opportunities for the
company by creating new products and
new markets.

18. The Boston Consulting Group Model
Back in 1968, a witty
gentleman from Boston
Consulting Group. Bruce
Henderson, created this chart
to help organizations with the
task of analyzing their product
line or portfolio. The matrix
assesses products on two
dimensions.

19. The Boston Consulting Group Model
1 Relative Market Share-higher corporate market share
results in higher cash returns.
2. Market Growth Rate-high market growth rate reflects
higher earnings and sometimes profits but it also consumes
lots of cash, which is used as investment to stimulate
further growth.
Analyzing products in this way provides useful insight into
the likely opportunities and problems with a particular
product. Products are classified into four distinct groups:

20. The Boston Consulting Group Model
1. Stars-function in high growth industries and
maintain high market share. Stars are both cash
generators and cash users. They are the primary
units in which the company should invest its money,
because stars are projected to become cash cows.
Strategies that could be applied: vertical
integration, horizontal integration, market
penetration, market development. product
development.

21. The Boston Consulting Group Model
2: Cash Cows - are the most money making
brands and should be "milked" to provide
as much as cash as possible. The cash
gained from"cows" must be invested into
stars to sustain their further growth
Strategies that could be applied product
development, diversification, divestiture,
retrenchment.

22. The Boston Consulting Group Model
3: Question Marks-are the brands that need
much closer consideration. They hold low
market share in fast growing markets spending
large amount of cash and acquiring losses. It
has potential to get market share and become
a star, which would soon after become cash
Strategies that could be applied market
penetration, market development, product
development, divestiture.

23. The Boston Consulting Group Model
4. Dogs-hold low market share in
contrast to competitors and function in
a slowly growing market. Generally,
they do not merit investing
in because they produce small or
negative cash returns. Although this is
not all the time the fact.
Strategies that could be applied
retrenchment, divestiture, liquidation

24. The Boston Consulting Group Model
Four strategies can be pursued:
1. Build-the objective here is to increase market share,
even forgoing short-term earnings to achieve this
objective if necessary. Building is appropriate for question
marks whose market shares must grow if they are to
become stars.
2. Hold-the objective in a hold strategy is to preserve
market share, an appropriate strategy for strong cash cows
if they are to continue yielding a large positive cash flow.

25. The Boston Consulting Group Model
Four strategies can be pursued:
3. Harvest-the objective here is to increase short-term
cash flow regardless of long-term effect. Harvesting
involves decision to withdraw from a business by
implementing a program of continuous cost retrenchment.
The hope is to reduce costs faster than any potential drop
in sales, this boosting cash flow. This strategy is
appropriate for weak cash cows whose future is dim and
from which more cash flow is needed. Harvesting can also
be used with question marks and dogs.
4. Divest - the objective is to sell or liquidate the business
because the resources can be better used elsewhere. This
is appropriate for dogs and question marks that are
dragging down company profits.

26. The General Electric Model
The General Electric (GE) Model
was developed by GE with the help
of McKinsey & Company, a
consulting firm. The model
identifies the market position and
profitability of different businesses
based on their market
attractiveness and business
strengths. This is a more advanced
version of BCG Matrix.

27. The General Electric Model
The attractiveness of a market is
demonstrated by how advantageous
it is for a company to enter and
compete within this market. It is
based on various factors like the size
of the market and the rate at which it
is growing, the possibility of profit,
the number of competitors within the
industry and their weaknesses. There
are several factors which can help
conclude attractiveness, namely:

28. The General Electric Model
1. Market Size
2. Market Growth
3. Market Profitability
4. Pricing Trends
5. Competitive Intensity/Rivalry Overall Risk of
Returns in the Industry
6. Opportunity to Differentiate Products and Services
7. Segmentation
8. Distribution Structure (like retail, direct, wholesale)

29. The General Electric Model
Business strengths help decide whether a
company is capable enough to compete in the
given market(s). Here are the factors to reflect on
in business strengths which include:
1. Strength if Assets and Competencies
2. Relative Brand Strength
3. Market Share
5. Relative Cost Position (cost structure compared with
competitors)
4. Customer Loyalty
6 Distribution Strength
7. Record of Technological or Other Innovation
8.Access to Financial and Other Investments

30. MANAGING MARKETING EFFORT
LESSON 2: Marketing Implementation and Control

31. Implementation and control
• A clear strategy and well-thought-out supporting
programs may be useless if the firm fails to
implement them carefully. However, prior to
implementation, the target market must be clearly
identified and positioning has to be determined. This
will set the stage to crafting a strategically balanced
combination of the four Ps to ensure success of a
marketing plan.

32. TARGET MARKET AND POSITIONING
• Positioning is a marketing concept that outlines what a business should do to
market its product or service to its customers. In positioning, the marketing
department creates an image for the product based on its intended audience.
•
• The best start for any positioning analysis is gaining a thorough knowledge of a
product or service's target market. This is the group of people or business that
will best benefit from the use of the product or service.
•

33. TARGET MARKET AND POSITIONING
• Positioning in Advertisements
•
• Advertisements usually the initial places businesses position themselves. A
cosmetics marketing department, for example, must determine who they are
targeting and what consumer need is being met. If the intended target is
teenagers, the person in the ad might be one of a celebrity teenager who teaches
girls how to battle acne with the use of these cosmetics.

34. TARGET MARKET AND POSITIONING
• Positioning in Sales Locations
•
• Reaching the customer is not merely a matter of advertising. It is also an issue of
selecting the exact channels for distribution. If a majority of the target market lives
in an urban area with only public transportation accessible to them, having the
product in rural areas where a private automobile is required for transportation
would not equal sales success

35. TARGET MARKET AND POSITIONING
• Positioning through Price
• There is usually a large amount of research in the psychology of pricing in
marketing. Basically, the price of an item informs the buyer more concerning the
item than most understand. Many link a higher price with higher quality and the
contrary with a lower price.

36. THE MARKETING MIX
The four P's are a tried-and-true
formula for an effective marketing
plan. The reason the 4 p's were
developed decades ago was to
determine a specific recipe or
"marketing mis" that will satisfy both
the needs of the customer and the
retailer's needs.

37. THE MARKETING MIX
The marketing mix is the set of controlable, tactical marketing tools that a
company uses to create a preferred reaction from its target market. It consists
of everything that a company can do to persuade demand for its product.
Each of the four Ps has its own tools to share to the marketing mix:
1. Product- quality, design, features, brand name, packaging, services
2. Price-list price, discounts, allowance, payment period, credit terms
3. Place-channels, coverage assortments, locations, inventory, transportation,
logistics
4. Promotion-advertising, selling, sales promotion, public relations

38. THE MARKETING MIX
An effective marketing strategy joins the 4 Ps of the marketing mix. It is
planned to meet the company's marketing objectives by giving its
customers with value. The 4 Ps of the marketing mix are related, and
blended to ascertain the product's position within its target markets.
Part of marketing is communicating to customers what the company
has to offer and why it is special and superior to alternatives.The
product element is most obvious in the offering, since the product is
what customers pay for. When companies promote, they also have to
strategize about who to target with their messages. The main customer
group becomes the target customers of the marketing campaign.
Definitely, the promotion deals with the real process of creating and
distributing messages about the brand and products. Under the
promotion umbrella, companies have to decide what messages and
formats to use to persuade their target customers to buy. Generally
speaking, the marketing mix permits to understand how to build and
sell value to the customers. Eventually, customers buy what they
recognize is the best value for their money in a buying situation.

39. MARKETING IMPLEMENTATION
Implementation is vital to effective management
of the marketing process. Marketing
implementation is the process that turn marketing
plans into action assignments and ensures that
such assignments are executed in a manner that
accomplishes the plan's stated objectives. Where
strategy addresses the why of marketing activities,
implementation addresses the who, where, when
and how. Strategy and implementation are closely
related in that one layer of strategy simples
certain tactical implementation assignments at a
lower level The plan must be adapted to market
conditions and propose a budget for marketing
activities. In order to be effective, a marketing

40. MARKETING IMPLEMENTATION
plan has to be consistent with the overall strategy of
the company.
Katler considers that implementation of marketing is
"the process that turns marketing plans into action
plans and provides support for these plans to be
executed in such a way as to achieve the objectives of
the marketing plan". Implementation of marketing
plans by the marketing manager calls for the
development of certain actions such as:

41. MARKETING IMPLEMENTATION
1. Communication with subordinates to guarantee
operational action plans.
2. Giving guidance and action guidelines
3. Supplying operational resources
4. Close watch of persons in-charge for implementation

42. MARKETING IMPLEMENTATION
There are four identified set if skills for
implementing marketing programs:
1. Diagnostic Skills - there are times when marketing
programs do not fulfill expectations. For instance,
marketers should know whether the low sales rate
was the result of poor strategy or poor
implementation. If the cause is due to
implementation, the marketer has to dig deeper
what went wrong.

43. MARKETING IMPLEMENTATION
2. identification of Company Level-implementation
problems can occur at three levels. These levels are
the marketing function, the marketing program, and
the marketing policy level.
3. Implementation skills-in order to implement
programs successfully, marketers require other skills
which are apportioning skills for budgeting resources,
organizing skills to grow an effective organization, and
interaction skills to encourage to get things
completed

44. MARKETING IMPLEMENTATION
4. Evaluation Skills-marketers also need
monitoring skills to appraise the results of
marketing actions.
The skills required to implement a marketing
plan for nonprofit organizations are similar as
those considered necessary for profitable
organizations.

45. MARKETING CONTROL
Monitoring and evaluation are activities intended for
the assessment of marketing activities to recognize the
efficiency of the marketing plan. There are four types
of marketing control needed by companies:
Annual-Plan Control
The purpose of annual-plan control is to make certain
that the company gets the sales, profits, and other
goals creates in its annual plan. The heart of annual-
plan control is the four-step management by objectives
(MBD) process in which management:

46. MARKETING CONTROL
1. Sets monthly or quarterly goals
2. Monitors the company's marketplace
performance 3. Determines the causes of serious
performance deviations and
4. Takes corrective action to close the gaps between
goals and performance

47. MARKETING CONTROL
This control model relates to all levels of the
organization. Each period, top management
reviews and interprets performance results at
all levels, using these five tools:
1. Sales Analysis-consists of measuring and evaluating actual
sales in relation to goals, using two specific tools
a. Sale-variance analysis-measures the relative involvement
of different factors to a gap in sales performance
b. Micro-sales analysis-looks at specific products, territories,
and other elements that failed to generate expected sales.

48. MARKETING CONTROL
2. Market Share Analysis-company sales do not expose
how well the company is performing relative to
competitors. To do this. management needs to track its
market share. Overall market share is the company's
sales expressed as a percentage of total market sales.
Relative market share can be stated is market share in
relation to the largest competitor.
3. Marketing Expense-to-Sales Analysis-this is a way
ratio because it permits management to be confident
that the company is not spending excessively to realize
sales goals.

49. MARKETING CONTROL
4. Financial Analysis - Management utilizes
financial analysis to spot the factors that have an
effect on the company's rate of return on net
worth. In order to park up its return on net
worth, the company must enlarge its ratio of net
profits to its assets or increase the ratio of its
asset to its net worth
5. Market-based Scorecard Analysis-companies
must also get ready with two market-based
scorecards that reveal performance and give
likely early warning signals of problems.

50. MARKETING CONTROL
a. A customer-performance scorecard-records how well the
company is performing on such customer based measures
as new customers, dissatisfied customers, lost customers,
target market awareness, target market preference, relative
product quality, and relative service quality
b. A stakeholder-performance scorecard tracks the
satisfaction of constituencies who have a serious interest in
and influence on the company's performance such as
employees, suppliers, banks, distributors, retailers and
stockholders.

51. MARKETING CONTROL
Profitability Control
Successful companies also evaluate the
profitability of their products territories,
customer groups segments trade channels,
and order sizes
This information aids management to
establish whether any products or marketing
activities must be prolonged, condensed, or
removed.

52. MARKETING CONTROL
Efficiency Control
Presume a profitability analysis discloses meager profits for
some products, or markets. This is when management must
inquire whether there are more efficient ways to manage
the sales force, advertising sales promotion, and distribution
in connection with these marketing entities.
Strategic Control
From time to time, companies need to undertake a critical
review of overall marketing goals and effectiveness. Each
company should periodically reassess its strategic approach
to the marketplace with the following reviews:

53. MARKETING CONTROL
1. The Marketing-Effectiveness Review-marketing effectiveness is
seen in the extent to which a company or division shows the five key
attributes of marketing orientation:
a. Customer philosophy-providing customers' needs and wants
b. Integrated marketing organization-combining marketing with
other important departments Adequate marketing information-
performing timely, fitting marketing research
d. Strategic orientation-creating formal marketing plans and
strategies and e. Operational efficiency utilizing marketing resources
effectively and flexibly Regrettably, most companies and divisions
achieve in the fair-to-good range only on measures of marketing
effectiveness.

54. MARKETING CONTROL
2 The Marketing Audit-companies that find out marketing
weakness must assume a marketing audit. A marketing
audit is a comprehensive, systematic, independent, and
periodic examination of a company's or business units in
terms of marketing environment, objectives, strategies
and activities with a view to determining problem areas
and opportunities and recommending a plan of action to
improve the company's marketing performance.
The marketing audit checks six major components of the
company's marketing situation, which are
a. The macroenvironment and task environment
b.Marketing strategy
c. Marketing organization
d. Marketing systems
e. Marketing productivity and
Marketing function (the 4Ps)

55. MARKETING CONTROL
The marketing audit has the following four characteristics:
a Comprehensive-the marketing audit covers all the most
important marketing activities of a business, not just a few
trouble spots
b. Systematic-the marketing audit is an orderly assessment of
the organization's macro and micromarketing environment,
marketing objectives and strategies, marketing systems, and
specific activities
c. Independent - a marketing audit can be performed in six
means: self-audit, audit from across, audit from above,
company auditing office, company task force audit, and
outsider audit.

56. MARKETING CONTROL
d. Periodic-on average, marketing
audits are started only after sales
have curved down, sales force
confidence has dropped.

57. TARGET MARKET AND POSITIONING
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