Basic Elements Environmental Analysis –Customer Analysis –Competitor Analysis –Channel...
-
date post
22-Dec-2015 -
Category
Documents
-
view
237 -
download
5
Transcript of Basic Elements Environmental Analysis –Customer Analysis –Competitor Analysis –Channel...
Strategic Management Model
Goals/Objectives
Environme ntalAnalysis
StrategyDesign
Imp lementationPlanning
Imp lementation
Monitoring
AnalyzePerforman ce
Adjustments
CustomersCom peti torsChannelsCom panyPubl ic Policy
Basic Elements
• Environmental Analysis– Customer Analysis– Competitor Analysis– Channel Analysis– Company Internal Analysis– Public Policy Analysis
Basic Elements, continued
• Strategy– Pick targets– Do something to targeted segments– Do it with an integrated set of programs
• Marketing Programs -- the “4Ps”– Product– Promotion– Place– Price
Know the Customers
• Micro View– What motivates them? What are their needs?– How do they go through the decision process?
• Macro View– How big is the market?– How fast is it growing?– What segments exist (size and growth?)?
Know the Competitors
• Direct competitors– Future: how will they act? react?– Elements: goals, strategies, capabilities,
assumptions
• Four other forces– Upstream; Downstream (that’s two)– New entrants– Substitutes
Know the Channels
• Who they are
• What value do they provide
• What they expect to get from you
• What the power structure is and where it’s going
Know Your Company
• Mission
• Culture
• Goals / objectives
• Strengths and Weaknesses– value for customers is the criterion
Know the Public Policy Environment
• What can you do / what can’t you do?– e.g. antitrust, Robinson-Patman, consumer
protection, environmental laws– state and local laws / regulations
• What’s on the horizon?
• Is government assistance available?
Strategy and 4 Ps
• Recall that Marketing Strategy is:– Selection of target segments
– Determination of desired change in segments
– Creation of “architecture” of programs to effect desired change
• Elements of marketing programs -- 4 Ps•Product
•Price
•Promotion
•Place (Distribution)
•Plus Partnerships
Product
• Bundle of attributes that meets needs
• Includes service -- sometimes minor aspect; sometimes it differentiates
• Includes packaging
• Should have a strategy for developing new products
Life Cycle
Intro
Growth
Maturity
Decline
AnnualSales
Time
Product Management
• Positioning– differentiate from competitors on meeting
important needs– Communicate differentiation to prospects– Deliver on promises
• Manage other Ps -- implement positioning
• Management of product changes over life
• Maybe brand building
Promotion -- Communications
• Personal selling -- direct, person-to-person• Advertising -- through paid-for medium• Publicity -- third party reporting• Sales Promotion -- short term incentives for
action• Direct Marketing – direct communication
with individual customers• Interactive/Internet Marketing
Communication Model
Sender ReceiverEn-code
De-codemedium
Feedback
NOISE
Implications for Communication Effectiveness
• Must get through the noise and clutter
• Right message -- people respond to content and meaning
• Right media (communications methods) -- reaches audience and enhances message
• Easy to decode
• Get feedback other than sales -- too much information lost if marketer isn’t proactive
Some Key Promotion Points
• Message should be consistent with positioning
• Personal selling can use immediate feedback
• Advertising is good for awareness, building beliefs, building emotion
• Publicity is good for credibility
• Sales promotion gets action, but also sends a message
More Key Promotion Points
• Advertising is relatively cheap per contact• Match ad media to message and audience• Publicity is not cost-less• Sales promotion is addictive, both for customers
and for vendors• Direct marketing gets immediate response, but
also can create animosity• Interactive/Internet marketing can include
elements of all the other forms
Managing Channels
• Choose and manage channels to get consistent positioning to targeted end buyer
• Decide on right saturation level– exclusivity vs. ubiquity: consistent with positioning
• Clear roles, rewards, penalties minimize conflict if channels feel agreements are equitable
• Logistics can minimize costs; enhance value
Pricing Basics
• Max price = most that target customers will pay to receive offered value
• Min price = lowest price you can charge and still break even
• Set price level between max and min, consistent with positioning
• Consider price elasticity -- particularly when making price changes
ElasticityP
Q
Supply
Demand
E=%dif D / %dif P
Other Pricing Ideas
• Price points -- buyers have expected price levels
• Psychological aspects of price– perceived relationship between price & quality
• Penetration price vs. price skimming for new products
• Although Price is usually a factor, it is not always paramount