MKT 327 1st Edition Lecture 7 Outline of Last Lecture A. Exam guidelines and overviewII. Theme: are you the one?III. Marketing planIV. KnowledgeV. Knowledge creation continuumVI. Management marketing information systemVII. Marketing research definedOutline of Current Lecture B. Situation analysisVIII.Role of information continuedIX. Marketing planning processX. Components of situation analysisXI. Marketing environmentXII. Steps in environmental scanningXIII. Competitive analysisCurrent LectureSituation analysis1) Role of information continueda) Survival: the ultimate goalb) Adaptability: the key to survivalc) Marketing strategy: guides adaptabilityi) Has 3 core competencies(1) Positioning- on code? Looking behind the behavior of consumer. Code is consistent with those things that are motivating consumers(2) Competitive advantages- can compete? - Unique selling point, outperform the competitorsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.(3) Adaptability – on course? - Everything remains on track and in the right direction2) Marketing planning process a) Situation and competitor analysisb) S.W.O.T analysis (this and situation answer the question to are we on course?) (this and competitor analysis answer can we compete?)c) Target market analysis (answers are we on code?3) Components of situation analysisa) Enables manager to see future first i) Manager must either see opportunities FIRST; or exploit opportunities through PREMPTIVE CAPACITY BUILDINGii) FUTURE found at intersection of environmental changes; and customer UNSPOKEN wantb) Situation analysisi) An analysis process that acquires information on organization’s environment and competitors in order to identify trends that may have a positive or negative impact on the organization in time enough to adjust them(1) 2 separate analyses(a) Environmental scanning(b) Competitor 4) Marketing environmenta) All factor that affect a businessi) Global macro environment- environmental scanning, gaining insightii) Micro environment- competitor analysis- look at distribution channel, supply chain, and our competitorsiii) Customer demand- looks at the customers- target market analysisb) Environmental scanningi) Collecting and analyzing information about the MARKETING ENVIRONMENT(1) In order to detect important changes or trends that can affect a company’s strategy(2) Requires LARGE time commitment: research suggests most spend <3% of time ---should be 20% or more 5) Steps in environmental scanninga) Define industryi) Use similar technologyii) What data and information do you need to complete this step?iii) Address similar needs and wantsiv) Customer uses as substitutes(1) Industry description(a) Size and growth(b) Competitive intensity(c) Demand characteristics(i) Life cycle(ii) Cycle and seasonality(iii) Financial characteristics(iv) Success requirements b) Analyze macro environmenti) Technological environment(1) Banks are too big to fail! Are they?(2) What might be greatest threat to banking profits? ii) Economic environmentiii) Demographic environmentiv) Cultural environmentv) Legal/regulatory environmentvi) Ethical environmentc) Analyze micro environmenti) Stakeholders(1) Owners(2) Employees (3) Suppliers(4) Intermediaries(5) Action groupsii) Competitive intensity (direct correlation with profitability)(1) # Of competitors(2) Rivalry (3) Substitute producers(4) Bargaining power of buyers and suppliersd) Project future trendse) Distinctioni) Competitive analysis(1) Is part of the macro environment portion of an environmental scan. It looks at the overall level of competition in the industry and is typically based on key indices and in part on porter’s five competitive forcesii) Competitor analysis(1) Examines specific strengths and weaknesses and strategies of each relevant competitor. When addition to competitors, the organization examines itself usingthe same criteria it is called a vision analysis.6) Competitive analysisa) Attractiveness- strength grid (relation between market attractiveness and competitive stature)b) Summary measure of the fit of the company resources and capabilities to market