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Analysis Tools & Techniques

• Key analytical models
– – – – – – – – SWOT Analysis Porter’s Generic Strategy model Product Life Cycle Diffusion of Innovation Product Portfolio – Profile Analysis Boston Matrix/BCG Directional Policy Matrix/DPM ANSOFF Framework

The Marketing Mix • The 4 P’s or 7 P’s Marketing Mix Product Price Place Promotion or Communication People Physical Evidence Processes .

SWOT Analysis Strengths & Weaknesses •Product range •Market shares •Market perception •Profit margins/costs •R&D investment •Company resources Opportunities & Threats •Economy/environment •Market conditions •Competition •Technology •Consumers .

Prioritising Opportunities & Threats High LIKELIHOOD of HAPPENING Medium Low Low Medium IMPACT High .

Brand Image • Creating this is a long term strategy •Built up over a number of years •Large amounts invested • Once established it is rarely altered and difficult to change •The most important asset for many companies • Payback is the brand premium • Differentiation from competition • Higher pricing or better margins • Assumption of quality by customers .

3th Edition.Niche v Mass Marketing Cost Leadership Stuck in the middle Focus Differentiation Adapted from Porter (1980) in Drummond. ©Elsevier 2008 . Ensor and Ashford: Strategic Marketing.

Niche v Mass Marketing Cliff Bowman & David Faulkner (1966) .

Product Life Cycle Level of Sales Introduction Growth Maturity Decline Time .

4th Edition.(1989) in Fill: Marketing Communications.Diffusion of Innovation Introduction Growth Maturity Decline Introduction Growth Maturity Decline Hawkins et al. ©Pearson Education Ltd 2006 .

3. Version 8.Product Portfolio (Profile Analysis) Level of Sales Profitable growth Product 3 Product 2 Product 1 Time Taken from Executive User Manual. 1991-2009 . © April Training Ltd.

© April Training Ltd. Version 8.Boston Matrix/BCG Hi Star Hi Market growth Cash Cow Low Dog Low Question Mark Relative market share Taken from Executive User Manual. 1991-2009 .3.

3th Edition. Ensor and Ashford: Strategic Marketing.Boston Matrix/BCG Hi Star Hi Market growth Cash generated +++ Cash used --0 Low Question Mark Cash generated + Cash used ---- Cash Cow Low Cash generated +++ Cash used -_ ++ Dog Cash generated + Cash used _-_ 0 Relative market share Boston Consulting Group in Drummond. ©Elsevier 2008 .

© April Training Ltd.Directional Policy Matrix/DPM Hi Hi Low Market attractiveness Low Business strengths Taken from Executive User Manual.3. Version 8. 1991-2009 .

Directional Policy Matrix/DPM Market attractiveness Market Size Market Growth Profitability Lack of Competition Low Cost of Entry Geography Demographics Subsidies Business strengths Patent Protection Distribution Efficiency Low Cost of Funds Market Knowledge Technology Image Score 1-10 (Weighted score) Product X Product Y Product Z Factor A Factor B Factor C Total Weighted Weighting : 6 Weighting : 3 Weighting : 1 Score (1-100) 10 (60) 1 (6) 7 (42) 3 (9) 5 (15) 2 (6) 8 (8) 10 (10) 10 (10) 77 31 58 .

I. 3th Edition. Ensor and Ashford: Strategic Marketing.ANSOFF Framework Current Market penetration Current Products New Product development Increasing cost & risk Markets New Market extensionDiversification Increasing cost & risk Adapted from Ansoff. (1975) in Drummond. ©Elsevier 2008 .

Pricing Strategy Aim is to maximise profitability Depends on many factors including: • Cost • Competitors prices • Target return on product investment • How quickly the investment is to be recouped • Price of other products in the portfolio • Value to the customer .