Marketing strategy (2) The Process of strategy development Flashcards
Strategic Analysis
Key models and methods for analyzing initial strategic situation
Central Questions for the analysis of the macroenvironment - KEy models
Early warning systems: Aim at timely detection of significant changes in the company environment and help companies to account for such changes as early as possible.
PEST analysis: Takes into account political, economic, social and technological factors
Forecasting methods: Generate estimates concerning he future devlopments based on the knowledge of experts and are well-suited if no sufficient historical data is available for a formal mathematical forecast.
Scenario techniques: Outline several potential future developments (scenarios) and consider the probability of the occurence of particular scenarios.
Scenario analysis process
- Scenario preparation: Understand the organizational context, establish the planning horizon and define the scope of analysis.
- Environmental scenario analysis: Identify stakeholders & key factors of influence,
- Scenario mapping: Analyze drivers of change and predict alternative developments for each and every factor
- Scenario definition: combine factors of influence to define scenarios,
- Scenario selection: identifiy sufficiently realistic and relevant scenarios
- Scenario transfer: Indentify simpluications for strategies and decisions (“rehearsing the future”)
Market (microenvironment)
Market: Describes the structuring of a market, and defines the relevant market area at which the marketing strategy and activities should be aimed at.
Segmentating, targeting and positioning process:
- ->Refers to a sequence of three steps:
1. Identify and profile distince groups of buyers who differin their needs and preferences (market segmentation)
2. Select one or more market segments to address (marget targeting)
3. for eac target segment, establish and communicate the distinctive benefit(s) of the company´s market offering (market positioning)
Defining the relevant market
the relevant market is the set of actual and potential buyers of a product or service and defines the different areas in which companies compete with each other.
Criteria for defining the relevant market:
- Companies
- Products
- Buyers
- Needs
Segmentation, targeting and positioning (STP)
Segmentation:
- Identify the basis of segmentation
- Segment the market accordingly
- Develop profiles of resulting segments
Targeting:
- Evaluate attractiveness of each segment
- Choose a segment (single-segment strategy) or choose multiple segments (multiple segment strategy)
Positioning:
- Identify possible possitioning concepts for each target segment
- Communicate chosen positioning concept
Segmentation (STP)
Basis: Identifier variables
- Attributes that help to destinguish segments
- Question: Who is the customer ?
Response variables:
Attributes that help to reach and describe segments
Question: what does the customer want?
Suitability of segment solutions
- Behavioral relevance
- Measurability
- Responsiveness
- stability over time
- Economic feasibility
Targeting strategies (S,Targeting,P)
undifferentiated marketiingm
differetiated marketing
concentrated marketing
Key steps in formulating a positioning strategy (ST,Positioning)
- Determine category membership (= set of competing products)
- Define point-of-parity (=brand is good enough on relevant dimensions)
- Define point-of-difference (=strong, favorable, and unique brand associations)
1) relevant
2) distinctive
3) believable
4) feasible
5) Communicable
6) sustainability
Positioning statement: States the product´s membership in a category and then showes its point-of-differnce from other members in the group. The product´s membership in the category suggest the point-of-parity that it might have with other products in the category, but the case for the product rests on its point-of-difference.
Market (Microenvironment) - Competitors - Key models
Key Models:
Competitive structure model (five forces):
Levels of competition: Acknowledges that competition is a matter of degree and occurs at the levels of product form, product category, generic and budget.
Strategic groups model: Classifies competitors in strategic groups with each group consisting of firms that are very similar in their corporate strategy.
Levels of competiton
Levels of competition defines product form, product categories, generic and budget competition and identifies the competitive area guiding marketing strategy.
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Strategic groups analysis
Def: tool for systematic market analysis to classify competitors into groups with each group consisting of rirm that are very similar in their corporate strategy.
Key assumptions: firms within an industry differ in the strategic choices they make which explains differences in profiatability.
–> knowing which strategic group can obtain the highest profitabiity in an industry is key to the design of both the marketing strategy and the corporate strategy as a whole.
Differentiation can be made within the competition within one strategic group (intragroup competition) and
the competition between companies affiliated with different strategic groups (intergroup competition)
Competitive characteristics:
Key factors with strategic significance, i.e. they reflect the strategic choices of firms
Examples:
Price/quality range ( high–>low)+
geographic coverage (local, regional, national, global)
Degree of vertical integration (none, partial, full)
Product-line breadth (wide, narrow)
Use of distribution channels (one, some, all)
degree of service offered (no-frills, limited, full)
Market (Microenvironment) –>Company situation - Key models
Value Chain Analysis: Represents a systematic aproach for the identification of cactua or potential sources of competitive advantage.
Benchmarking: Aims at evaluating various aspects of a company´s business by means of standardized benchmarks, such as comparisons with “best practice” companies.
Value Chain Analysis
Analysing the outputs of the strategic Analysis
Consolidating internal and external analyses to SWOT
Blue ocean strategy
Identifiction of strategic alternatives - Key Models
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