Internal analysis Identify our strengths and weaknesses What are our strategies

Internal analysis identify our strengths and

This preview shows page 34 - 37 out of 37 pages.

Internal analysis: Identify our strengths and weaknesses What are our strategies, performance, costs, points of differentiation, strategic problems and culture (marketing audit)? What is our existing portfolio (SBU or product market level) and is it appropriate Key success factors: Identification of the key strategic factors necessary for competitive advantage in the market o E.g. a strong brand, superior channel support, constant innovation in the offer, high level of promotion activity
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MKF1120 Notes o Closing the gap: To improve profit, either look at: Sales growth: o Market penetration o Market development o Product development Productivity improvement: o Increase price o Improve product sales mix o Product development Models that guide strategy and evaluate performance o BCG Product Portfolio Model: Managing resource allocations to various SBUs and product lines o GE/McKinsey Market Attractiveness Matrix: Multifactor model examining investment into SBUs and product lines o Ansoff’s Gap Analysis and Matrix: Model examining ways to close gap between desired and current performance of an SBU or company SWOT is done after analysis o Internal: Strengths + Weaknesses o External: Opportunities + Threats From analysis to planning: o Organisations should develop a formal statement of the goals and objectives to be achieved over the planning cycle Financial Profits, cash flow, ROI, ROS Marketing Unit sales volume increase, market share increase, increase in distribution penetration, number of new products to launch, increase price SMART objectives: Specific, measurable, actionable, reasonable and timely To achieve organisational objectives: o Target customers Which segment(s) in which market
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MKF1120 Notes o Market Positioning Arranging for a product to occupy a clear, distinctive and desirable place relative to competing products in the minds of target consumers; formulating a competitive positioning for a product and creating a detailed marketing mix Implement Marketing Control: o Regular, systematic monitoring and controlling of the marketing effort Development of action plans Revolve around the marketing mix Objective, Strategy, Tactic, How, When, Where, Who, $ Use of MIS to monitor progress Contingency planning o Making implementation happen: Poor Implementation Isolated planning Short term – Long term trade-offs Resistance to change Lack of financial and marketing integration Overemphasis on the document Factors for Success Detailed action plan Organisational structure Decision and reward systems HRM – market orientation Fit between company culture and marketing strategies o The control process: Summary: o To effectively provide value to customers, organisations must Understand the environment Understand the segments that exist in the market and their particular needs, wants and buying behaviour of the segment(s) they choose to target Develop a marketing mix that satisfies these needs Manage the process to ensure that the organisational (and marketing) goals are achieved.
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MKF1120 Notes
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