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Flashcards in Environmental Analysis Deck (15)
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1

Macro Environment - PEST

Political, Economic, Socail, Technological factors

2

Political and Regulatory Issues Include

Politics and policies
employee welfare
intellectual property
anti-trust
tariffs

Regulations
Impact on costs
pollution control
Red tape
Constraint on marketing activities
consumer privacy
food label, FDA

3

Economic Factors

Most influential factors on company profits
Economic conditions
Government spending e.g. ,China
Interest rate, taxes
Unemployment rate
Consumer spending
Consumer confidence
Wage growth
Assets appreciation
Australian consumption driven by property boom

4

Sociocultural Factors

Sociocultural factors are those social and cultural influences that cause changes in attitudes, beliefs, norms, customs, and lifestyles
Affect what, where, how, when consumers buy
Sociocultural trends
Aging population
Online shopping
Social media addiction
Health consciousness
Experiential consumption

5

Stages of Competitor Analysis

Identification, Characteristics, Assessment, Capabilities, Response

6

Issues to Be Considered in a Situation Analysis

The internal environment
Review of current objectives, strategy, and performance
Availability of resources
Organizational culture and structure

The customer environment
Who are our current and potential customers?
What do customers do with our products?
When do customers select our products?
Why (and how) do customers select our products?
Why do potential customers not purchase our products?

The external environment
Competition
Economic growth and stability
Political trends
Legal and regulatory issues
Technological advancements

7

Data and Information

Data is not the same as information
Data - Collection of numbers or facts that have the potential to provide information
Information - Data transformed or combined with other data in a manner that makes them useful to decision makers

8

Analyzing the Internal Environment

Involves a review of:
Current marketing objectives, strategy, and performance
Consistency of marketing goals with corporate goals
Reasons behind improving or declining performance
Current and anticipated organizational resources
Current state of organizational resources
Measures required to use resources more effectively


Current and anticipated cultural and structural issues
Positive and negative aspects of current and anticipated organizational structure
Internal politics or management challenges that may affect marketing activities

9

Analyzing the Customer Environment

Involves examining:
Firm's current and potential customers
Prevailing needs of current and potential customers
Basic features of the firm’s and competitor’s products that meets customers’ needs
Anticipated changes in customer-needs
Analysis method
5W model - Who, what, where, when, and why

10

Analyzing the External Environment

Involves examining:
Competitors
Economic growth and stability
Political trends
Legal and regulatory issues
Technological advancements

11

Basic Types of Competition

Brand competitors
Market products with similar features and benefits to the same customers at similar prices

Product competitors
Compete in the same product class, but with products that are different in features, benefits, and price

Generic competitors
Market very different products that solve the same problem or satisfy the same basic customer need

Total budget competitors
Compete for the limited financial resources of the same customers

12

Benefits of SWOT Analysis

Simplicity, Lower costs, Flexibility, Integration and synthesis, collaboration

13

Sources of Competitive Advantage

Relational advantages
Legal advantages
Organizational advantages
Human resource advantages
Product advantages
Pricing advantages
Promotion advantages
Distribution advantages

14

Core Competencies Necessary for Competitive Advantage Strategies

Operational excellence - Walmart and Dell
Core competencies
Low cost operations and totally dependable product supply


Common attributes
Target a broad, heterogeneous market of price-sensitive buyers
Maintain a system to avoid waste and highly reward efficiency improvement


Product leadership - 3M and Pfizer
Core competencies
Basic research or rapid research interpretation
Excellent marketing skills


Common attributes
Target narrow, homogeneous market segments
Maintain organizational cultures characterized by decentralization, adaptability, entrepreneurship, creativity, and the expectation of learning from failure


Customer intimacy - Nordstrom and Amazon
Core competencies
Exceptional skills in discovering customer needs
Problem solving proficiency

15

trategy Canvas

Horizontal axis
Identifies factors that the industry currently competes with and what customers receive from existing product offerings


Vertical axis
Identifies offering level received by buyers for each factor


Value curve
Identifies the firm’s relative performance across its industry’s factors of competition