Measuring Strengths and Weaknesses

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Measuring Strengths and Weaknesses

• Chapter 7

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Topics Chapter 7

• Measuring Strengths and Weaknesses
• Product
• Current Strategy Posture
• Past Performance
• Marketing Environment
• Opportunity Analysis

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Strengths

• Competitive advantages
• Distinctive competencies
• What firm does well

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Weaknesses

• Constraints
• Hindrances to movements in certain directions

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Measurement of Product Strengths and Weaknesses
Competition
Product/Market Review Current Strategic Posture
Product/Market Review Past Performance
Strengths and Weaknesses
Marketing Effectiveness
Marketing Environment
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Current Strategic Posture

• Underlying reasons for firms success
• Characteristics and traits

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Current Strategic Posture

• Critical factors affecting strategy
• Extent and direction of likely changes in
  critical factors

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Measuring Strategic Posture

• Current scope of firms activities
• Pattern of past and existing resource deployment

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Measuring Strategic Posture

• Basis on which firm competes
• Performance criteria, emphasis, and priorities

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Current Strategy of Product/Market

• What markets do we have?
• How is each market served?

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What Market Do We Have?

• Market segments
• Demographic profile of each segment
• Important customers
• Customers doing business with competitors
• Reasons customers buy

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What Market Do We Have?

• Strategic perspective of important customers as
  it concerns the products purchase
• Anticipated changes in customers perspectives

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How Is Each Market Served?

• Means used to serve different customers
• Analyze information such as
• Definitions of markets
• Buyer behavior
• Product reputation

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How Is Each Market Served?

• Resource base
• Channel relationships
• Pricing strategies
• Promotional strategies

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Measuring Past Performance

• Identify trends of
• Consumer volume of segments
• Product brand preferences
• Shipment total units and by brand
• Spending per unit marketing costs

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Measuring Past Performance

• Identify trends of
• Profit price, margin, profit
• Market Share scope, brand, distribution channel
• Total market
• Competitive brand

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Performance Measures

• Growth rate
• Profitability Market Share
• Cash flow

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Performance Standards

• Company performance
• Competitor performance
• Management expectations
• Performance in terms of resources committed

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Marketing Environment Constituents

• Social and cultural effects
• Political influences
• Legal requirements
• Competition

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Marketing Environment Constituents

• Technological changes
• Institutional evolution
• Consumerism
• Population

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Marketing Environment Constituents

• Location of consumers
• Income
• Expenditure patterns
• Education

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Areas of Strength Examples

• Excellent product design
• Leader in product innovation
• Efficient customer service
• Effective sales promotion

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Areas of Strength Examples

• Merchandising efficiency
• Customer loyalty
• Dominant market share
• Advertising effectiveness

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Opportunities Analysis

• Matching strengths or competencies to
  opportunities
• Input to corporate economic mission
• Individual product objectives

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Opportunities Analysis

• Analyze impact of environment
• Opportunities develop in environment

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Format for Opportunities Analysis
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Marketing Weaknesses

• Inadequate definition of customer for
  product/market development
• Ambiguous service policies
• Too many levels of reporting in firms structure

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Marketing Weaknesses

• Overlapping channels
• Lack of top-management involvement in new product
  development
• Lack of quantitative goals