Internal and External Analysis (Marketing Audit) Flashcards
External Analysis Methods
Macroenvironment - PEST
Market environment - Porter’s 5 Forces, Competitive Analysis
Internal Analysis Methods
Skills, resources, competences
RBV and the value chain
Why conduct internal and external analysis? (Hooley at al, 2017)
Crucial to marketing strategy is an awareness of how the environment in which marketing takes place is changing
Types of Environmental Uncertainty (Milliken, 1987)
State - A lack of information about the environment
Effect - Decision maker’s inability to understand and predict the organisational impact of environmental changes
Response - Lack of knowledge of how to respond to changes in the environment
Degree of environmental uncertainty moderated by
Dynamic environment: Rapid technological change, high level of global competition
Complex environment: Drivers of change are difficult to understand
PEST Analysis Factors
Political/Legal, Economic, Environmental, Socio-Cultural, Technological
Porter’s 5 Forces
Rivalry among existing firms in industry Threat of new entrants Threat of substitutes Bargaining power of buyers Bargaining power of suppliers
Competitor Analysis Stages
- Competitive benchmarking
- Dimension of competitor analysis
- Choice of “good” competitors
- Origins, sources and dissemination of competitive info
Why assess the internal environment
The attractiveness of opportunities open to the firm depends on the resources available to exploit them
RBV - Assets and Capabilities
Assets: Resources the form has accumulated
Capabilities: Bundles of resources that give rise to productivity
Marketing Assets (RBV)
The resource endowments the firm has built or acquired over time
Customer-based, supply chain, internal support, alliance-based
Marketing Capabilities (RBV)
The processes that deploy the assets to create competitive advantage
Outside-in, inside-out, organisation-spanning, networking
Dynamic Marketing Capabilities (RBV)
The processes that create new assets/capabilities to help sustain competitive advantage
Absorptive, adaptive, innovative
Why use SWOT
A tool for strategic audit and to generate strategic insights
Key Success Factors
Dictate what distinctive competences an organisation needs in order to develop a sustainable competitive advantage - important to be from the customer’s POV
