Mkt 100 021 - week 4 - market planning & analysis

Assistant Professor, MarketingPlease ensure all electronic devices are in “silent

mode”, “vibrate mode” or “turned off”

Anthony Francescucci

MKT 100-021WEEK 4 - MARKET ANALYSIS &

PLANNING CONT’D

Welcome to

2

AGENDA FOR TODAY

Discuss WEV Case

Finish Review of Module 2

MODULE 2

Market Planning & AnalysisContinued

4

IMPROVING DECISION & IMPLEMENTATION PROCESSES

Analyzing competition

Analyzing Channels

Environmental Scanning and Analysis

Market Law and Regulation

Marketing Planning Documents and Processes

SWOT Analysis and Strategic Planning

Implementation and Budgeting

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Analyzing Channels






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ANALYZING CHANNELS

Who are the latest entrants in the supply-chain?

What new trading partnerships between suppliers and channels have been formed?

What new technologies (such as wireless UPCs) are being introduced into channel processes such as ordering, buying, payment, warehousing, transportation, and customs clearance processes?

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MKT100

ANALYZING CHANNELS

Researching a Supply-chain Partner

• Is it growing? What are its performance metrics? Its margins? It’s stock-turn?

• Is there a fit between our customer focus and the distributor’s customer focus?

• Is there a fit between our brand reputation and the distributor’s service reputation?

• Is there a fit between our systems and implementation processes?

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How Good is the Fit?

Marketing Mix Fit

Manufacturer’s CapabilitiesQuality-value offering Customer service Push-pull marketing Physical delivery Process improvement

Retailer’s CapabilitiesQuality-value offering Customer service Merchandising Procurement Process improvement

Manufacturer’s Customers Where do they want to shop?

Retailer’s Customers What do they want to buy?

Served Market Fit

ANALYZING CHANNELS

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ANALYZING CHANNELS

How Good Are its Processes?

• Understanding the reasons for a channel member’s change in performance and behaviour requires understanding its added-value chain:

Purchasing Processes

Inbound Operation Processes

Merchandising & Operations

Processes

Marketing & Sales Processes

Delivery & Service

Processes

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ANALYZING CHANNELS

Where along the added-value chain does the distributor have advantages/strengths and disadvantages/weaknesses?

Are the advantages unique, inimitable and sustainable?

How can we help improve the distributor and take advantage of its added-value chain strengths?

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COMPETITIVE & CHANNEL ANALYSIS

So Now What?

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COMPETITIVE ANALYSIS TABLEMy

CompanyCompetitor

1Competitor

2Competitor

3

Product-features, quality, selection, etcPricingPromotionPlace (Distribution)Market ShareBrand Reputation

Process (Value Chain)Resources / Assets- Patents/Proprietary Technology- Secure source of supplyCapabilitiesEtc.

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Analyzing Channels






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MKT100

ENVIRONMENT SCANNING AND ANALYSIS

The Political Environment

The Economic Environment

The Socio-Cultural Environment

The Technology Environment

The Legal Environment

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Identify the major trends.

Treat the trend line as a surface feature.

Describe the dynamic processes driving the trend.

Who will be the big winners and losers?

How is the trend affecting customer preferences?

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Political Legal

• Government policies, structures, and regulations

• Political trends• Taxation issues• Current domestic legislation• Future legislation• Environmental regulations• Employment law• Consumer protection• Industry specific regulations• Competitive regulations• Shareholder/stakeholder

needs/demands

Economic

• Domestic economic trends• Global economic trends• Taxation issues• Market and trade cycles• Market distribution trends• Disposable income• Job growth/unemployment• Inflation• Consumer confidence index• Internal finance• Internal cash flow

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ENVIRONMENT SCANNING AND ANALYSISSocio-cultural

• Consumer values, attitudes and opinions

• Media views• Laws affecting social factors• Brand, company, technology image• Consumer buying patterns• Demographics• Lifecycle changes• Population shifts• Education• Trends / Fads• Living standards

Technological

• Competing technology development• Research funding• Associated/dependent technology• Replacement technology/solutions• Maturity of technology• Manufacturing maturity and capacity• Information and communications• Consumer buying mechanisms/technology• Technology legislation• Technology access/licensing/patents• Intellectual property issues• Rate of obsolescence• Software innovations and changes

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Analyzing Channels






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MARKET LAW AND REGULATIONTrade between buyers and suppliers needs to be protected by a strong and fair legal system.

Trading contracts have to be able to be enforced by courts.

Professional service providers should be licensed to protect consumers from imposters.

Dangerous products and pollutants must be regulated.

Consumer privacy protected.

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Analyzing Channels






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PLANNING DOCUMENTS AND PROCESSES

Four Sets of Documents are Prepared

Situation Analysis

documents

Strategic Planning

(marketing mix) documents

Implementation documents

Budget documents

They are prepared and used in sequence.

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PLANNING DOCUMENTS AND PROCESSES

Sources of Analysis and Expertise

• Internal data are records, information and reports that already exist within organizations, such as sales records and financial reports, and old market research study reports.

• External secondary data is data that resides outside the firm such as in trade publications, government reports and consultants reports.

MKT100

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Analyzing Channels






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SWOT ANALYSIS & STRATEGIC PLANNING

Completing the Situation Analysis what do you do?

• You look for and address the threats to your current profitable business.

• You identify new profitable business development opportunities and assess their prospects.

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SWOT ANALYSIS

Strategy Planning Methodology (Stanford U)

Helps to organize your thoughts to develop your company goals and strategies

Start with;

What is your objective? What are you trying to decide?

What are you attempting to solve for?

E.g. Competitive analysis, product analysis, process analysis

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Uncontrollable

Controllable

SWOT PROFILE

SWOT

Internalto the company

Strengths

Weakness

Externalto the company

Opportunities

Threats

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IN DEVELOPING SWOT ANALYSIS

Internal

Evidence (information) to support claim

Customers (feedback,

surveys, mkt research)

Employees 3rd party data

Types

Capabilities Resources (Money, brand,

assets)

Processes(Value Chain,

or Value delivery process)

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Strengths (examples to consider)

• Process competitive advantages • Strong partners• Strong brand reputation• Resources, patents, assets, people • Experience, knowledge • Deep pockets • Excellent distribution reach • Processes, systems, IT, communications • Team based culture (open to change)• Company politics and values

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Weaknesses (examples to consider)

• Process competitive disadvantages • Weak partners• Weak brand reputation• No resources, patents, assets, people • Inexperience, lack of knowledge • No pockets • Poor distribution reach• Processes, systems, IT, communications • Bureaucratic cultural, attitudinal (resists change)• Company politics and values

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IN DEVELOPING SWOT ANALYSIS

External

Evidence from secondary data

Environmental Scan (PESTL)

Industry data

(TRADE ASSOCIATIONS)

Competitive Analysis

Channel Analysis

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Opportunities (examples to consider)

• Industry or lifestyle trends• Technology development and innovation • New global supply chains • New market segments • Business and product development? • Information and research? • Decrease in input costs such as labor costs• New partnerships and distribution channels

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Threats (examples to consider)

• Political, Regulatory, Economic, Nature • Competitor innovations • Falling market demand • Changing consumer preferences• New competitive entries, new substitutes• Increase in input costs such as oil• Loss of key staff

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SWOT CONTINUED

• How do you capitalize / leverage that strengths• How do you address those weaknesses• How to you take advantage of the opportunities• How do you mitigate /minimize the threats

As you identify each of the S.W.O.T., you also need to state the implication for your decision.

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SWOT EXAMPLEDeveloping a new product that will be introduced to an existing target segment that we already market to, and

We identify that we have strong brand recognition within this segment, the implication for our product introduction is?

We can leverage the existing brand recognition in the building awareness to stimulate sales of the new product

If you cannot state the implication for your decision/objective/ business, then it probably is not relevant in your analysis

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BEN AND JERRY’S CANADIAN SWOT

NOW WHAT?

Now that we have identified our S.W.O.T.

what do we do?

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PRIORITIZE FOR GOAL & STRATEGY DEVELOPMENT

Contingency Plans

Focus of the Plan Goals

& Strategy

Ignore Watch List

Low Impact

High Impact

Low Probability

HighProbability

Determine

Impact to business / plan

if it occurs

Probability of it occurring during

plan period

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WORLD ELECTRIC VEHICLECASE

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WEV CASE - AS THE CASE INDICATES

“The opportunity exists for a North American not-for-profit entrepreneurial venture to make the world market

for a small two person vehicle by creating a global partnership between an Indian car manufacturer such as Tata, a Chinese car manufacturer such as BYD and Fiat”

• Assume you will head this entrepreneurial venture• You will be randomly assigned to groups• Discuss & identify either S. W. O. T. of entering the

Canadian market, as assigned

WORLD ELECTRIC VEHICLEStrengths Weaknesses

WORLD ELECTRIC VEHICLEOpportunities Threats

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WIRELESS ARTICLES

Special Office HoursMonday February 7th, 2011

12:30pm – 2:30pm

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REVIEW OF SWOT FOR WIRELESS ARTICLES

• Holding special office hours – Monday Feb 7th from 12:30pm – 2:30pm.

• To review your SWOT points from wireless industry articles– You must come prepared with your own points to

review/discuss.

– I will give you feedback

• You must email me letting me know if you are coming and at what time during the office hours

• If I don’t receive any emails in advance, I won’t wait around.

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ASSIGNMENT # 1

Due TuesdayMarch 1st, 2011 by 11:59pm

Completed Assignment must be posted to blackboard&

Peer group evaluation completed onlineSee course outline for late penalties

Posted to blackboard last week

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PRELIMINARY DETAILS• Must work in groups of 4 to 5 people (you

select your own groups)– Use discussion board if you are searching for a

group or need people to join your group.• Topic is on the internet-based video streaming

industry• SWOT analysis and recommendation on

whether Bell should enter this market?• More discussion next week.

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REMINDERS FOR NEXT WEEK

• Read Modules 3 materials• Read and come prepared to ask

questions about assignment #1

Module 3

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BEFORE YOU LEAVE TODAY

name cards

Front of the Class

Hand In:

SEE YOU NEXT WEEK

Mkt 100 021 - week 4 - market planning & analysis

Documents

Transcript of Mkt 100 021 - week 4 - market planning & analysis