Chapter 2: Analyzing the Current Situation The Marketing Plan Handbook Fourth Edition Marian Burk...

Chapter 2: Analyzing the Current Situation

The Marketing Plan Handbook Fourth Edition

Marian Burk Wood

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Copyright © 2011 Pearson Education, Inc. Publishing as Prentice Hall

Environmental Scanning and Analysis

Involves the analysis of both: Internal Factors, and External Factors.

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The Macro- and Micro-environments To formulate a flexible and practical marketing

plan, one needs to properly track and differentiate between macro-environmental and micro-environmental factors:

Macro-environmental factors are broad forces

that impact overall marketing strategy and

performance.

Micro-environmental factors more directly

influence marketing strategies and activities.

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The Macro- and Micro-environments Macro-environmental factors:

Demographic. Economic. Ecological. Technological. Political-legal. Social-cultural forces.

Micro-environmental factors: Customers. Competitors. Channel members, partners, suppliers and employees.

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SWOT Analysis Strengths

Weaknesses

Opportunities

Threats

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Internal Factors Mission. Resources. Offerings. Previous results. Business relationships. Keys to success and warning signs.

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External Factors

Demographics.

Economic.

Ecological.

Technology-related.

Political-Legal.

Social-Cultural.

Competitors.

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Internal Analysis: Mission

Mission: States the firm’s fundamental purpose. Indicates how the firm will add value.

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Internal Analysis: Resources

Human.

Financial.

Informational.

Supply.

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Internal Analysis: Offerings

Examining what the firm is currently offering in the way of goods and services:

Fit with mission and resources. Affirm role of each line and item.

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Internal Analysis: Previous Results

Includes: Sales (dollars and units). Profitability. Customer acquisition and retention costs. Other financial results.

Helps separate the effective programs from the less-effective programs.

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Internal Analysis: Business RelationshipsIncludes relationships with: Suppliers. Distributors. Other business partners.

Examine: Capacity. Quality. Value provided.

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Internal Analysis: Keys to Success and Warning SignsKeys to Success:

Identify special factors most crucial to success. Maintain focus on key priorities.

Warning Signs Indicate potential problems with the plan.

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External Analysis: Demographic Trends

Examined by target market:

Consumer Demographics

Business Demographics

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External Analysis: Consumer Demographic TrendsKey consumer demographic trends include: Population growth Population composition:

Age Gender Ethnicity Religious makeup Education Occupation Household size Income

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External Analysis: Business Demographic Trends Size and growth of industries

Number of companies. Number of locations or branches. Number of employees. Sales revenues.

Trends in new business formation may signal emerging opportunities.

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External Analysis: Economic Trends Must keep an eye on global, national,

regional, and local economic trends. Some measures typically monitored:

Buying power Income Debt Credit Usage

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External Analysis: Ecological Trends

Potential impacts: Availability of raw materials.

Government regulations.

Social attitudes.

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External Analysis: Technological Trends

Key trends include: Smartphones.

Smaller computers.

Digital media.

Incorporation of electronic capabilities into a wider range

of products.

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External Analysis: Political-Legal TrendsLegal Trends: Laws includes international,

federal, state, and local. Related to: Competitive behavior. Pricing. Taxation. Promotion. Distribution. Product liability. Labeling. Product purity.

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External Analysis: Political-Legal Trends

Political Trends Global, national, or local.

Can signal a change in the legal environment.

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External Analysis: Social-Cultural Trends

Key trend: Increasing diversity in markets.

Keep tabs on popular culture. Tends to be volatile.

Core beliefs and values change more slowly over time.

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External Analysis: Competitors Identify:

Current competitors. Possible future competitors.

Learn about the unique competitive advantages of each competitor.

Track trends in market share.

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Porter’s Five Forces Model

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Three Fundamental Business Strategies

Cost Leadership Strategy

Differentiation Strategy

Focus Strategy

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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written

permission of the publisher. Printed in the United States of America.

Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall

Chapter 2: Analyzing the Current Situation The Marketing Plan Handbook Fourth Edition Marian Burk...

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