Marketing Environment, Deriving Marketing Strategies

1
Marketing Environment, Deriving Marketing
Strategies

• Session 2

2
Session-1 Revisited

• Marketing.
• Marketing Philosophies Different Marketing
  Concepts.
• Holistic Marketing
• Relationship Marketing
• Internal Marketing
• Performance Marketing.
• Integrated Marketing (4Ps)

3
4Ps of Marketing

• Marketing Mix

4
Steps in Marketing Management

• Analyzing Marketing Opportunity.
• Selecting Target Markets, Developing Marketing
  Strategies.
• Developing Marketing Mix (4Ps)
• Managing the Marketing Effort

5
Marketing Environment Analysis
6
Why Environmental Analysis
7
External Environment
8
External Environment
9
Threats of New Entrants

• Barriers to Entry
• Economies of scale
• Product differentiation
• Capital requirements
• Access to distribution channels
• Cost disadvantages independent of scale
• Government policy
• Expected retaliation

10
Bargaining Power of Suppliers

• Bargaining power of suppliers is high when
• it is 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

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Bargaining Power of Buyers

• Buyers are powerful when
• they purchase a large portion of an industrys
  total output
• the sales of the product being purchased account
  for a significant portion of the sellers annual
  revenues
• they could easily switch to another product
• the industrys products are undifferentiated or
  standardized.
• Buyers pose a credible threat of backward
  integration

12
Product Substitutes

• Product Substitute are a great threat when
• customers face few switching costs
• substitute products price is lower
• substitute products quality and performance
  capabilities are equal to or greater than those
  of the competing product

13
Intensity of 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

14
General 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 (DINK, Nuclear families, Joint
  Families)
• Birth Rates.

15
General Environment

• Economic Environment
• What are the interest rates/ Inflation rates.
• Unemployment level
• Economic growth
• Currency conditions (Exports/ Imports)

16
General 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)
• 99 lives

17
General Environment

• Global Environment
• Important Political Events (US presidential
  election, Sept 11)
• Newly Industrialized countries.
• Global Economy (Recession, boom)

18
General Environment

• Technological Environment
• Product Innovations
• Communication Technologies (Mobile, Internet)
• Landline Vs Mobile Phones.
• Cable Television Vs. Satellite.
• Banking Software.
• Laptop Vs. Desktop.
• Digital Cameras

19
General Environment

• Politico-Legal
• Deregulation.
• Taxation
• Measures towards Piracy
• Security
• Labor Laws

20
Internal Environment
21
Business Portfolio Analysis
22
SWOT
23
Deriving Marketing Strategies
24
Deriving Strategies
Functional Area Strategies
Bases for SCA
25
Product Market Investment Strategies- Growth
Existing products
New products
Market Penetration
Product Development
Existing markets
Diversification
Market Development
New markets
Integration
26
Product Market Investment Strategies- Growth
Vertical Integration a. Forward b. Backward
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Investment Strategies
Build Share
Hold
Harvest
Divest
28
Functional Area Strategies
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Building Sustainable Competitive 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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THANK YOU