MKT 327 Introduction to Marketing 1st Edition Lecture 8 Marketing Planning Process- Informational Foundation for a PlanOutline of Last LectureA. Situation analysisII. Role of information continuedIII. Marketing planning processIV. Components of situation analysisV. Marketing environmentVI. Steps in environmental scanningVII. Competitive analysis Outline of Current Lecture B. Situation analysis continued VIII.Steps in environmental scanningIX. Measure elements of micro-environmentX. Attractiveness-strengthXI. Market attractiveness componentsXII. Competitor analysisXIII. Summary of competitor analysis components XIV. Porter’s five forces continuedXV. Business (competitive) strength componentsXVI. Battle of the centuryXVII.Steps in S.W.O.T. analysis Current Lecture1) Situation analysisa) Situation and competitor analysisi) (Situation analysis and S.W.O.T- are we on course?) (Competitor analysis w/ S.W.O.T- can we compete?)b) S.W.O.T analysisc) Target Market analysis These 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.i) Are we on code?2) Steps in environmental scanninga) Define industryb) Analyze macro-environmentc) Analyze micro-environmentd) Project future trends3) Measure elements of the micro-environmenta) Stakeholdersi) Ownersii) Employeesiii) Suppliersiv) Intermediariesv) Action groupsb) Competitive intensityi) Competitors ii) Rivalryiii) Substitute producersiv) Bargaining power of buyers and suppliers 4) Attractiveness – strengtha) Attractiveness strength grid (on last lecture)b) Its harder to be profitable in a more competitive industry as in opposition to a monopolyc) Summary measure of the fit of company resources and capabilities to market environment5) Market attractiveness componentsa) Sizei) Breakeven= small shareb) Growthi) 10% and abovec) Competitive pressuresi) Impact on price and costsd) Price marginsi) Pay for marketing/ R&De) Regulatory environmenti) Minimalf) Stability of trendsi) >Planning horizon6) Competitor analysisa) An assessment of the strengths and weaknesses of current and potential competitors that provides both an offensive and defensive strategic context and direction.i) Objectives(1) To identify opportunities to penetrate market or secure position (2) To determine likely response to strategic actionsii) Rationale(1) Firms having advanced systems to monitor competitors’ activities exhibit greater profitabilityb) Components of competitor analysisi) Competitive analysis- general assessment of the overall level of competition in the marketii) Porter’s five forces of competition(1) Identify 5 most important factors that impact profitability in the industryiii) Competitive profile(1) On each competitor(2) Competitors objectives- their mission statement(3) Net income (by product)- how successful are they(4) Positioning strategy- their unique selling points(5) Sales by product(6) New product by development capability- how easy can they adapt(7) Acquisition plans- can we buy them out? Are they trying to buy other companies? Or us?(8) Marketing/advertising strategy (by product)(9) Production costs(10) Global scope- national, regional, local?iv) Business model- how do they generate a profit?7) Summary of competitor analysis componentsa) Competitive analysisi) How many are they?ii) Who are they?iii) Concentration ratio?b) Porters five forcesi) What are pressures on profitability?ii) How intense/rational is competition?c) Competitors profilei) Competitors likely strategic directionii) Competitors execution capabilityd) Business modeli) Operational openings8) Porters five forces continueda) Rivalry among existing firms i) Potential entrants(1) Threat of new competitorsii) Substitutes(1) Threat of replacementsiii) Suppliers(1) Bargaining poweriv) Distributers(1) Bargaining power9) Business (competitive) strength componentsa) Market sharei) Relative 1 or aboveb) Market knowledgei) Experience/ networkc) Customer satisfactioni) 90% or aboved) Production efficiencyi) Cost advantagee) Technology expertisei) Relative # of patentsf) Product qualityi) Top 3 in objective studiesg) Financial strengthi) Credit rating/ cash10) Battle of the centurya) Between Google and Facebook b) & Between Apple and Microsoft c) & Then between all four of themd) For control of our communication platform11) Steps in S.W.O.T analysisa) S.W.O.T. analysis definitioni) An analysis of organization’s strengths, weaknesses (scanned from competitors analysis), opportunities, and threats (scanned from environment) to determine how well the company’s skills and resources match the predicted market opportunities b) Stepsi) Strengths and weaknesses(a) (Strengths)(2) Detail core competencies(3) Summarize items from vision analysis worksheet assessed as 4 or 5 (a) (Weaknesses)(4) Detail non-core competencies(5) Summarize items for vision analysis worksheet assesses as 1 or 2 ii) Opportunities(1) Summarize all environmental scanning and competitive analysis worksheet items assessed as 4 or 5 and expected to significant change for better over planning horizon. (2) Assess extent items listed above parallel or are exploitable by organization’s strengths(3) Prioritize