Week 2 - Marketing Information Flashcards
Define corporate strategy
- Specifying the organisation’ mission.
- Allocation of resources across the whole organisation.
- Portfolio of activities for the organisation.
- Defining organisational objectives.
Define marketing strategy in relation to corporate strategy
- Competing in a product market
- Selecting market segments.
- Defining a mix
How does corporate strategy influence marketing strategy?
- Guides
- Directs
- Controls
- Co-ordinates
How does marketing strategy influence corporate strategy?
- Informs
- Achieves
- Operationalises
What is the micro environment?
- Company
- Public
- Suppliers
- Customers
- Intermediaries
- Competitors
What is the macro environment?
- Cultural
- Political
- Technological
- Economic
- Natural
- Demographic
What is PESTLE?
A framework that assists in analysing the external (remote)
environment and identifying the existing opportunities & threats.
What are the factors of PESTLE?
➔ Political Factors
➔ Economic Factors
➔ Socio-cultural Factors
➔ Technological Factors
➔ Legal Factors
➔ Environment Factors
Political Analysis
- Current political issues
- Position of Political Parties and key influences
- Local and international analysis
- General industry and own sector
- Opportunities to influence change
Economic Analysis
- Inflation
- Exchange rates
- Interest rates
- Growth rates
- Stage of economic cycle
- Forecast economic environment
- International factors
Sociocultural analysis
- Income distribution
- Demographics
- Labour & Social mobility
- Consumerism
- Purchasing habits
- Lifestyle changes
- Attitudes to work and leisure
- Education
- Changes in culture and fashion
- Health & Welfare
Technological Analysis
- Areas of current and forecast change
- Potential for cost and value-added
innovation - Economics of technology
- Research, development, scale
- Whole supply chains
- Changes in physical sciences
- Internet
- Energy use and costs
- Rates of technological obsolescence
- New discoveries
Environmental Analysis
- Emissions controls, packaging materials
- Energy costs, transport costs
- “Eco”- aware spending young people
- Lean burn engines, recycling
- Laws, impending and suggested
Legal Analysis
- Possible legislation
- Compliance
- Enforcement
- Competition law
- Health and safety law
- Employment law
- Liberalisation of trade law
Porters Five Forces for Competitive Analysis
- Bargaining Power of Suppliers
- Bargaining power of buyers
- Threats of new entrants
- Threats from substitute products
- Competitive rivalry
Types of Analysis of the Internal Environment
- Resource audit
- SWOT Matrix
- GE Model
Types of Resource Audits
- Financial Resources,
- Human Resources,
- Physical Resources,
- Intangible Resources (e.g., corporate image, brand names, reputation…)
What is a SWOT Analysis?
Integrates the internal and external environment by identifying strengths, weaknesses, threats and opportunities.
Generic Strategy Model Components
- Cost leadership: ALDI
- Differentiation: Waitrose
- Cost focus : Iceland
- Differentiation focus: Whole foods
What is cost leadership and what are its drivers?
Cost-leadership strategy involves becoming the lowest-cost organisation in a domain of activity.
Drivers:
- Lower input costs
*Economies of scale
*Experience
*Product/process design
Differentiation strategy and its two key issues.
- Differentiation involves uniqueness along some dimension that is sufficiently valued by customers to allow a price premium.
……………
Two key issues: - The strategic customer on whose needs the differentiation is based
- Key competitors – who are the rivals and who may become a rival.
Focus Strategies and what are the types?
- A focus strategy targets a narrow segment or domain of activity and tailors its products or services to the needs of that specific segment to the exclusion of others.
Two types of focus strategy:
- Cost-focus strategy (e.g. Iceland Foods)
- Differentiation focus strategy (e.g. ARM
Holdings for mobile phone chips). - Is focus strategy valid anymore? It is a necessity rather than an option.
Primary vs Secondary Data Collection
Primary data:
- Primary research involves collecting new data information to answer a question
- Can be exploratory, descriptive or causal
Secondary data:
- Secondary research is based on published information
- Can originate within or outside the organisation.
- Most problems can be solved with secondary data…which is cheaper to get!
Types of Secondary Data Collection
- Published materials
- Computerised databases
- Syndicated services
