Upload
diana-butler
View
218
Download
1
Tags:
Embed Size (px)
Citation preview
Strategic Market Planning
Chapter Chapter ElevenEleven
MMarket-Basedarket-Based Management, 4Management, 4thth editionedition
11-2
Strategic Market PlanningStrategic Market Planning
Chapter Eleven
– Strategic Market Planning Process(for each product-market)
• Business Performance• Market Attractiveness• Competitive Advantage• Portfolio Analysis• Performance Impact
11-3
Product-Market DiversificationProduct-Market Diversification
Why do firms
diversify across product-markets?
ProductDiversification
MarketDiversification
11-4
Strategic Market Planning Strategic Market Planning ProcessProcess
11-5
Business Performance and Business Performance and Market AttractivenessMarket Attractiveness
• Three critical areas of business performance1. Share Position2. Sales Growth3. Profit Performance
• Three dimensions of Market Attractiveness1. Market Forces2. Market Access3. Competitive Intensity
• Market Attractiveness Index
11-6
Competitive AdvantageCompetitive Advantage
• Three dimensions of Competitive Advantage1. Differentiation Advantage2. Cost Advantage3. Marketing Advantage
• Competitive Advantage Index
• Defensive Vs. Offensive Strategic Market Plans and Portfolio Analysis
11-7
Product-Market PortfolioProduct-Market Portfolio
11-8
Strategic Market Plans and Strategic Market Plans and Performance ImpactPerformance Impact
11-9
Tactical Marketing Strategy Tactical Marketing Strategy and Performance Planand Performance Plan
• Strategic Market Plan Vs. Market Mix Strategy
• Developing a Detailed Marketing Mix Strategy
• Performance Objectives
11-10
TakeawaysTakeaways//ReviewReview
• Strategic Market Planning– Competitive Advantage– Market Attractiveness– Business Performance
• Product-Market Portfolio and Strategic Plan• Performance Impact• Performance Metrics
– Competitive Advantage Index– Market Attractiveness Index
11-11
Marketing Performance ToolsMarketing Performance Tools
Market Attractiveness Index
Very Som ew hat Som ew hat Very
Unattractive Unattractive Unattractive Attractive Attractive Attractive
0 20 40 60 80 100
11-12
Marketing Performance ToolsMarketing Performance Tools
Market Attractiveness IndexMarket Market
Market Attractiveness Attractiveness Relative Attractiveness
Factors Rating Importance Score
Market Forces Sum to 100%
Market Size 80 40% 32
Market Grow th 60 30% 18
Buyer Pow er 40 30% 12
Market Forces Total 62
x Relative Importance of Market Forces 30% 18.6
Competitive Intensity Sum to 100%
Price Rivalry 40 40% 16
Ease of Entry 80 30% 24
Substitutes 60 30% 18
Competitive Intensity Total 58 x Relative Importance of Competitive Intensity 40% 23.2
Market Access Sum to 100%
Customer Familiarity 80 40% 32
Channel Access 100 30% 30
Sales Force Capabilities 60 30% 18
Market Access Total 80
x Relative Importance of Market Access 30% 24.0
Market Attractiveness Index 65.8
11-13
Marketing Performance ToolsMarketing Performance Tools
Competitive Advantage Index
Major Definite Slight Slight Definite Major
Disadvantage Disadvantage Disadvantage Advantage Advantage Advantage
0 20 40 60 80 100
11-14
Marketing Performance ToolsMarketing Performance Tools
Competitive Advantage IndexCom petitive Com petitive
Com petitive Advantage Advantage Relative Advantage
Factors Rating Im portance Score
Differentiation Advantage Sum to 100%
Product Benef its 80 40% 32
Service Benef its 60 30% 18
Brand Image/Reputation 80 30% 24
Dif ferentiation Advantage Total 74
x Rel. Importance of Dif ferentiation Advantage 40% 29.6
Cost Advantage Sum to 100%
Cost per Unit 40 70% 28
Transactions Cost 60 20% 12
Marketing Productivity 60 10% 6
Cost Advantage Total 46
x Rel. Importance of Cost Advantage 40% 18.4
M arketing Advantage Sum to 100%
Market Share 40 40% 16
Brand Aw areness 40 30% 12
Channel Control 20 30% 6
Marketing Advantage Total 34
x Rel. Importance of Marketing Advantage 20% 6.8
Com petitive Advantage Index 54.8