Strategic Marketing Management Naveed Ilyas Naveed.ilyas@hotmail.


 External


Customer Analysis  Competitor Analysis  Market/submarket Analysis  Environmental Analysis and Strategic Uncertainty

 Setting

priorities for Businesses and Brands


• Trends / future events • Threats / Opportunities • Strategic Uncertainties


• Information – need areas • Scenario analysis

Strategic Decisions

• Where to compete • How to compete

generate another level of strategic uncertainties  It  Each . Strategic uncertainty is a particular useful concept in conducting external analysis focuses on specific unknown elements that will affect the outcome of strategic decisions of these strategic uncertainties can in turn.

Strategic Uncertainties Will a major firm enter? Will a technology be replaced / Will the rupee strengthen against an offshore currency? How sensitive is the market to price? Strategic Decisions Investment in a product market Investment in a technology Commitment to offshore manufacturing A strategy of maintaining price parity .

It can be identified in terms of the product market and in terms of the competition  . narrowly defined (luxury train coaches) or using a scope that may fall in between:    Railways Passenger trains Express trains  The level of analysis will depend on the organizational unit and strategic decisions involved One approach to defining the market is to specify the business scope. The scope of industry external analysis can involve an industry broadly defined (transport industry).

Approach to External analysis Customer analysis Competitor analysis Market analysis .

2. 5. 3. 2. What are the demographic. 4. In what quantities and in what combinations are our products purchased? How do heavy users of our products differ from the light users/ Do purchasers use complimentary products during the consumption of our products? What do the customers do with our products after consumption? Are our customers recycling our products or packaging? . geographic and psychographic characteristics of our customers? Who actually purchase our products? Do these purchasers differ from the users of our products? Who are the major influencers of the purchase decision? Who is financially responsible for making the purchase? What do customers do with our products? 1. 3. 4. 5.Who are our Current and Potential Customers? 1.

From what types of vendors are our products purchased? 2.Where do customers purchase our products? 1. perceptions or the purchase task? . 3. 2. Are our customers increasing their purchasing from non store outlets? When do customers purchase our products? 1. Does e-commerce have an effect on the purchase of our products? 3. Are the purchase and consumption of our products seasonal? To what extent do promotional events affect the purchase and consumption of our products? Do the purchases and consumption of our products vary based on physical surroundings.

What mode of payment do customers use when purchasing our product? 5. What are needs of the customers which are not met by our products? 8. Is the buying behavior discrete or relationship building? 6.Why (and how) do customers select our products? 1. How can we develop. how? 4. What is the potential of converting noncustomers to customers of our products? . Are the needs of our customers expected to change in the future? If so. What are the customer’s needs fulfilled by our products and our competitor’s products? 3. maintain and enhance customer relationship? 7. How do our product’s features compare with competitors? 2.

How the market segments An analysis of customer motivations Exploration of unmet needs .

Can a competitive offering be developed and implemented? Is the competitive offering sustainable? Is the resulting business from the target segment worthwhile? .

CUSTOMER CHARACTERISTICS Geographic Small per-urban communities for discount stores Type of organization Size of the firm Lifestyle Sex Age Computer needs of banks vs retailers Large hospitals were small sized ones for pharmacy purchases Metro sexual men prefer man saloon services Mother of young children Cereals for kids .

calorie conscious versus convenience seekers For Mc donalds: KFC. homeowners Concerts: seasonal ticket holders.home builders. occasional patrons.PRODUCT RELATED APPROACHES User type Usage Benefits sought Competition Price sensitivity Brand loyalty Appliance buyers. nonusers Dessert eaters. Hardees. Burger King Economy driven Q mobile buyers versus prestige driven I Phone users Those who stick to Heinz ketchup versus price buyers .

 After segmentation. you need to answer questions such as:   What is behind the purchase decision? How does that differ by segment? .


Newbie shoppers: need simple interface. and lot of hand holding and assurance  Reluctant shoppers: need information. reassurance and access to live customer support  Frugal shoppers: need to be convinced that price is good and they don’t have to search elsewhere  Strategic shoppers: need access to opinions of peers or experts and choices in configuring the products they buy  Enthusiastic shoppers: need community tools to share their experiences as well as engaging tools  Convenience shoppers: want superior customer service  .

Role of Qualitative Research  Qualitative research is a powerful tool in understanding customer motivation’  It can involve:     Focus group sessions In-depth interviews Customer case studies .

retail food products hot buttons include:      Freshness Healthy eating Gourmet eating Meal solutions Low carb foods . e.g. Buyer Hot Buttons  Hot buttons are motivations whose salience and impact on markets are significant and growing.

 An unmet need is a customer need that is not being met by the existing product offering  Unmet needs represent opportunities to increase market share of firms. break into a market or create and own new markets  They can also be a threat for established firms since they can be a lever enabling competitor entry  The key is to stretch the technology or apply new technology in order to expose unmet needs .


 Who are the competitors?  Against whom do we usually compete/ Who are our most intense competitors ? Less intense but still serious competition?  Can these competitors be grouped into strategic groups?  Who are the potential competitive entrants? What are the entry barriers .

    Public Trade Government Investors .

 Evaluating   the competitors   What are their objectives and strategies? Their level of commitment? What is their cost structure? What is their image and positioning strategy? What are the strengths and weaknesses of each competitor? .

Product Category Brand Competitors Product Competitors Generic Competitors Total Budget Competitors Luxury cars (transportation) Toyota Honda Trucks Passenger cars Minivans Tea Orange juice Bottled water Rental cars Motor cycles Bicycles Tap water Vacation Home remodeling Candy Potato chips Gum Soft drinks (refreshments) Coca cola Pepsi cola Movies (entertainment) Harry potter The Matrix Cable TV Video rentals Athletic events Concerts Shopping Reading Vacations .

logistics. A strategic group is a group of firms that:    Over time pursue similar competitive strategies (e. the same type of communication strategies. global presence and development) . use of same distribution channel. or the same price / quality position) Have similar characteristics (e.g. capability. size. aggressiveness) Have similar assets and competencies (such as brand associations.g.

profitability. objectives. 2. 5. products. generics. Identification: Identify all current and potential brands.Competitive analysis should progress through the following stages: 1. and total budget competitors Characteristics: Focus on key competitors by assessing the size. growth. 3. strategies and target market for each one Assessment: Assess each competitor’s strengths and weaknesses Capabilities: Focus the analysis on each key competitor’s marketing capabilities Response: Estimate each competitor’s most likely strategies and responses under different environment situations as well as its reactions to firm’s own marketing effort . 4.

a fast food chain should observe chains in other regions e. The export of assets or competencies: e. A weak competitor acquired by a big market player or strategic mergers . Product expansions: Khaadi going into formal wear by introducing Khaadi Khas 3.g. Backward integration: Fruit orchids acquired by Mitchells 4.It is also important to consider potential market entrants such as firms that might engage in: 1.g.g. Hardees outlet opening in Karachi 2. Market expansion: e. Forward integration: Apple opening its own outlets in Karachi 5.


opportunities and strategic uncertainties . trends. Market analysis builds on the customer and competitor analysis to make some strategic judgments about the market and submarket and its dynamics  One if the primary objectives of market analysis is to determine the attractiveness of a market to current and potential participants  The need is to identify emerging submarkets. key success factors. threats.

 Emerging submarkets  Actual and potential market size  Market growth  Market profitability  Cost structure  Distribution system  Key success factors .

 Important  questions to be answered:      Are submarkets emerging defined by lower price points. assets and competencies needed in this submarket? . a customer trend or new technology? What is the size and growth of the submarket? Can we make money in this submarket? What is the cost structure for operations? What are the dynamics of distribution system? What are the key success factors. emergence of niches. new applications.

Threat of potential entrants Competition among existing firms Threat of substitute product Bargaining power of suppliers Industry profitability Bargaining power of customers .

marketing and services becomes important in maturity phase .g. for industrial firms technological innovation is important in introduction and growth phase but role of system’s capability. but their absence would create a substantial weakness Strategic strengths: firm’s assets and competencies which provide a base of advantage   Also it is critical to determine new and emerging KSFs of the industry e. marketing and distribution is important in intro and growth phase while manufacturing and operations become crucial in maturity phase. For consumer goods. KSFs are the assets and competencies that provide the basis for competing successfully They are of two types:   Strategic necessities: do not necessarily provide and advantage because others have them. .


 Technology   trends Technologies changing ? Maturing ?  Consumer trends Emerging consumer trends ? Life styles ? Fashion? Demographics and its impact on market size and submarkets  Government  / economic trends Regulation. political risks of operating in a government jurisdiction  General   Questions Significant trends and future event s Uncertainty in the environment .

Thank You .

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