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Marketing Environment, Deriving Marketing Strategies

The document discusses marketing strategies and the marketing environment. It covers analyzing the external environment, including new entrants, suppliers, buyers, substitutes and industry rivalry. The internal environment and business portfolio are also analyzed. Strategies are then derived based on growth, investment, functional areas and building competitive advantage through assets and competencies.

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subash
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36 views30 pages

Marketing Environment, Deriving Marketing Strategies

The document discusses marketing strategies and the marketing environment. It covers analyzing the external environment, including new entrants, suppliers, buyers, substitutes and industry rivalry. The internal environment and business portfolio are also analyzed. Strategies are then derived based on growth, investment, functional areas and building competitive advantage through assets and competencies.

Uploaded by

subash
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Marketing

Marketing Environment,
Environment, Deriving
Deriving Marketing
Marketing
Strategies
Strategies

Session 2

PowerPoint Presentation
Session-1
Session-1 Revisited
Revisited
 Marketing.
 Marketing Philosophies: Different Marketing
Concepts.
 Holistic Marketing
– Relationship Marketing
– Internal Marketing
– Performance Marketing.
– Integrated Marketing (4Ps)
4P’s
4P’s of
of Marketing
Marketing
 Marketing Mix
Steps
Steps in
in Marketing
Marketing Management
Management
1. Analyzing Marketing Opportunity.
2. Selecting Target Markets, Developing Marketing
Strategies.
3. Developing Marketing Mix (4Ps)
4. Managing the Marketing Effort
Marketing
Marketing Environment
EnvironmentAnalysis
Analysis
Why
Why Environmental
EnvironmentalAnalysis
Analysis
External
External Environment
Environment
External
External Environment
Environment
Threats
Threats of
of New
New Entrants
Entrants
 Barriers to Entry:
 Economies of scale
 Product differentiation
 Capital requirements
 Access to distribution channels
 Cost disadvantages independent of scale
 Government policy
 Expected retaliation
Bargaining
Bargaining Power
Power of
of Suppliers
Suppliers
• Bargaining power of suppliers is high when
 itis dominated by a few large companies
 satisfactory substitute products are not available to
industry firms
 industry firms are not a significant customer for
the supplier group
 suppliers’ goods are critical to buyers’ marketplace
success
 effectiveness of suppliers’ products has created
high switching costs
 suppliers are a credible threat to integrate forward
into the buyers’ industry
Bargaining
Bargaining Power
Power of
of Buyers
Buyers
• Buyers are powerful when
 they purchase a large portion of an
industry’s total output
 the sales of the product being purchased
account for a significant portion of the
seller’s annual revenues
 they could easily switch to another product
 the industry’s products are
undifferentiated or standardized.
 Buyers pose a credible threat of backward
integration
Product
Product Substitutes
Substitutes
• Product Substitute are a great threat when:
 customers face few switching costs
 substitute product’s price is lower
 substitute product’s quality and
performance capabilities are equal to or
greater than those of the competing
product
Intensity
Intensity of
of Rivalry
Rivalry
• Intensity is high when
 are numerous or equally balanced
 experience slow industry growth
 have high fixed costs or high storage costs
 lack differentiation or low switching costs
 experience high strategic stakes
 have high exit barriers
General
General Environment
Environment
 Demographic Environment
– Population Size (China/ India big markets)
– Age Structure (70% of Nepalese population
is below 35 years)
– Geographic Distribution and Population
density.
– Ethnicity mix (India/ US as a market)
– Family Composition (Nuclear families,
Joint Families)
– Birth Rates.
General
General Environment
Environment
 Economic Environment
– What are the interest rates/ Inflation
rates.
– Unemployment level
– Economic growth
– Currency conditions (Exports/
Imports)
General
General Environment
Environment
• Socio-cultural environment
– Social values-Traditions, religion, values
– Workforce diversity- more women in Nepal have joined
workforce.
– Concerns about environment.
– Cultural Shifts.
• Cocooning
• Fantasy adventure (Bungee, Theme parties)
• Pleasure revenge (cigars, tatoos etc.)
• Small Indulgences (rewarding luxuries)
• Down-aging (symbols of youth)
• Being alive (healthy eating, organic products, gym)
General
General Environment
Environment
 Global Environment
– Important Political Events (US presidential
election, Sept 11)
– Newly Industrialized countries.
– Global Economy (Recession, boom)
General
General Environment
Environment
• Technological Environment
– Product Innovations
– Communication Technologies (Mobile, Internet)
• Landline Vs Mobile Phones.
• Cable Television Vs. Satellite.
• Banking Software.
• Laptop Vs. Desktop.
• Digital Cameras
General
General Environment
Environment
 Politico-Legal
– Deregulation.
– Taxation
– Measures towards Piracy
– Security
– Labor Laws
Internal
Internal Environment
Environment
Business
Business Portfolio
PortfolioAnalysis
Analysis
SWOT
SWOT
Deriving
Deriving Marketing
Marketing Strategies
Strategies
Deriving
Deriving Strategies
Strategies

Functional Area
Bases for SCA
Strategies
Product
Product Market
Market Investment
Investment Strategies-
Strategies- Growth
Growth

Existing New
products products

Existing Market Product


Market Product
markets Penetration Development
Penetration Development

New Market
markets Market Diversification
Development Diversification
Development

Integration
Product
Product Market
Market Investment
Investment Strategies-
Strategies- Growth
Growth

Vertical Integration a. Forward b. Backward


Investment
Investment Strategies
Strategies

Hold Build Share

Harvest Divest
Functional
FunctionalArea
Area Strategies
Strategies
Building
Building Sustainable
Sustainable Competitive
CompetitiveAdvantage
Advantage
 Assets
 Competencies

– Sony ( Miniaturization)
– Honda (Engines)
– NEC (Semi conductors)
– Canon (Fine Optics)
– Southwest Airline (Operations)
– McDonalds (standard products, same quality of services)

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