Scanning the Marketing Environment 0 Who are the primary competitors? 0 How to ascertain their strategies, objectives, strengths and weaknesses, and reaction patterns? CLC What are the key methods for tracking and Identifying opportunities in the macro-environment? 0 What are the key demographic, economic, natural, technological, political, and cultural developments? The Marketing plan Market survey Segmentation Identifying needs and wants Targeting Choosing a target market(s) Developing a market offering Positioning Product Place Price Measuring outcomes Promotion
The Marketing environment: key terms The Marketing Environment The actors and forces that affect a company’s capability to operate effectively in providing products and services to its customers. 2. Macro environment micromanagement. The analysis of the five forces – political/legal, economic, ecological/physical, social/cultural and technological – is known as PEST analysis. 3. Micro environment The actors in the company’s immediate environment that affects its capability to operate effectively in its chosen markets. Micromanagement Economic Micromanagement
Political/ legal Customers Suppliers Company Distributors Social/ cultural Competitors Technological Ecological/ Physical External marketing audit checklist The Macro environment Political and Legal Forces European Union-wide laws. – collusion. – abuse of market dominance. – state aid. National Laws – laws governing marketing practice – e. G. Advertising. – national bodies set up to investigate anticompetitive practice. Economic Forces 0 Economic Growth and Unemployment. 0 Interest and Exchange Rates. 0 Central and Eastern Europe. 0 China and India. 0 Russia and India
Netherlands Italy Organic Systematic Organization Source: Mole,J. (1990) Mind Your Manners Technological Forces 0 Technological Breakthroughs. 0 Marketing-based Technological Innovation. 0 Technological Exploitation. Copyright 2003 Prentice-Hall, Inc. 0 Customers 0 Competition 0 Distributors 0 Suppliers The Porter model of competitive Industry structure Potential entrants Threat from new entrants Industry Bargaining competitors Bargaining Power Threat of substitute products Rivalry among existing firms Substitutes Buyers Competitor analysis 1 . Who are our competitors? 2.
What are their strengths and weaknesses? Competitor 3. What are their strategic objectives and thrust? Analysis seeks to answer five 4. What are their strategies? 5. What are their response patterns? Identify competitors ; Product form ; Product substitutes ; Generics ; New entries ; Audit competitor 2. What are their strengths and capabilities ; Financial ; Technical ; Managerial ; Marketing assets ; Strengths and weaknesses 2. What are their strengths and Infer competitor objectives and strategic thrust ; Build ; Hold ; Harvest ; Growth directions
Deduce competitor strategies ; Target segments ; Differential advantages ; Competitive scope ; Cost leadership Estimate competitor response patterns ; Complacent ; Hemmed-in ; Selective ; Unpredictable Competitor identification The competitive arena Product from competitors ; Technically similar products Product substitutes ; Technically dissimilar products Generic competitors ; Products that solve the problem or eliminate it in a dissimilar way Potential new entrants ; With technically similar products ; With technically dissimilar
Company capability profiles The Customer Value Analysis Identify the major attributes customers value Assess the quantitative importance of the different attributes Assess the company’s and competitors’ performances on the different customers values against their rate importance 4. Company’s performance against a specific major competitor on an attribute-by-attribute basis 5. Monitor customer values over time Customer’s ratings of competitors on key Customer Product Awareness Quality Availability Technical Assistance Selling Staff Competitor A Competitor B Competitor C
