Chance-Risk-Analysis
Chances and Risks with possible development outside the company and their influence on marketing strategy
and business planning
Opportunities Threats
new product development in own company development of a new product by the competitor
own innovations innovations of the competitor
development of new competitors
new target groups and buyer levels development of new competitive suppliers in other countries
opening new markets in other countries development of over-production
increasing demand weakening of the overall economy
recovery of the overall economy limited measures and legislative processes
loosening or changing of relevant laws exchange rate losses on foreign markets through negative changes of the exchange rate
currency exchange revenues on foreign markets through positive change of
exchange rates technological development / change of base technologies
Strength and Weaknesses Analysis
Analysis of internal Company Resources
1 2 3 4
Evaluation Criteria Evaluation Process Rating Evaluation
Identification of companies specific Weighting of evaluation criteria Identification of all participants Discussion about positive
success factors (optional) Evaluation of criteria in relation to and negative outlier values
Derivation of evaluation criteria Determination of evaluation scale competitors Derivation of significant
strength and weaknesses
Creating improvement suggestions
Creating measures catalogue
Strength and Weaknesses Analysis
Analysis of internal Company Resources
Sector Success Factor Relevance Notes
Range of service 12345
Pricing
Marketing and Sales Image
Market share
Market growth
Sales development
Distribution
Sales network
Advertising
Complaint management
Adherence to schedules
Customer structure
Order processing
Sensitivity to economic situations
Customer service
Market cultivation
Sales representatives
Market research
Sales planning
Customer loyalty
Strength and Weaknesses Analysis
Analysis of internal Company Resources
Weighting Evaluation
Success Factors low medium high poor neutral good Notes
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Just move spheres Just move spheres
depending on depending on
characteristics to left/right characteristics to left/right
SWOT Analysis Weaknesses External Analysis
Threats
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Strengths
Opportunities
SWOT Analysis
Aggregation to SWOT-Portfolio
1 Corporate identification? Strengths and weaknesses
2 Corporate external identify opportunities and risks
3 Figure of a combined portfolio
4 Derivation of standard strategies
SWOT Analysis
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SWOT - Internal analysis
Analysis
Strenghts Weaknesses
External analysis Opportunities Strategic Objective for S-O: Strategic Objective for W-O:
Pursuit of new opportunities that Eliminate weaknesses to exploit
fit well the strength the company
new opportunities.
Threats Strategic Objective for S-T: Strategic Objective for W-T:
Strengths are used to ward off threats. Develop defense strategies for existing weaknesses
to avoid that they turn into targets for threats.
SWOT Analysis
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Internal Strengths Weaknesses
Factors
What do you do particularly well? What do you dislike doing?
Do you have gaps in resources, personnel or expertise ?
What is your company’s USP?
What do your customers/clients/patrons ask for you to do over and
over again?
Which tools and resources are available to you?
External Opportunities Threats
Factors
Are there new situations coming down the road that you can take Who is your competition and what do they offer that you can’t do as
advantage of (new programs being offered, new faculty joining the well or at all?
department, new tools available to you)?
Are there external harmful effects?
Are there gaps in the “market” that you can fill?
What other obstacles are being put in your way?
Are there partnerships that might be fruitful?
SWOT Analysis SO Environmental analysis
WT Audience analysis
Possible input sources Competitor analysis
Substitution analysis
ABC-analysis Stakeholder analysis
Life cycle analysis Benchmarking
Experience curve analysis Industry Structure analysis
Cost analysis
Satisfaction analysis
Corporate Culture analysis
Core analysis
7-S model
Value Chain analysis
Market growth / market share portfolio analysis
Industries attractiveness - / Competition strenght –
Portfolio analysis
Other Portfolio analysis
Strengths and weaknesses analysis
Gap Analysis
Revenue targets and their development in the course of time
Target value i.e. revenue Strategic gap
Development limit New business
Core business Potential Operative gap
core business
Present
Planning horizon time
ABC-AnalysisTurnover / Value in %
ABC Analysis is methodology that gives a quick and simple review of assortments of products in retail,
wholesale or manufacturing businesses
100%
80% B C
A60%
40%
20%
Range of Products / Quantity in %
0%
0% 20% 40% 60% 80% 100%
ABC-Analysis
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No. Percent Customer Sales 2010 Cumulated
Customer (in Dollar) Sales
1 5% Placeholder 100,000 16,4%
95,000 31,9%
2 10% Placeholder 90,000 46,7%
85,000 60,6%
3 15% Placeholder 30,000 82,3%
300 100%
4 20% Placeholder
610,400
5 50% Placeholder
6 100% Placeholder
Quality and Price Positioning
Relative positioning of different product categories
Relative quality high No-names Trademarks Brand article
low low Relative price high
Seller / Buyer's Market - Features
Comparison and limits of the characteristics of the seller and buyer's market
Features Activities of supplier Activities of demander
Economic Seller‘s Market Buyer‘s Market
development stage
Austerity economy Affluent societies
Ratio of supply
and demand Demand> Supply Supply> Demand
Bottleneck area (Excess demand) (Surplus)
of company Demand exceeds suppliers Providers more active than buyers
Primary efforts Procurement and / or production Turnover
of company
Rational extension of procurement and production Call for demand and creation of own preferences
capacity
Market Attractiveness - Competitive Advantage Portfolio 1/3
Analysis of portfolio categories according to the criteria lists
Evaluation of market attractiveness
Criteria Weigh. Coefficients Index Criteria Weigh. Coefficients Index
0 0,1 0,2…0,8 0,9 1 0 0,1 0,2…0,8 0,9 1
1. Market growth 3. Energy / Supply
2. Market quality - Susceptible to faults 1,0
- Profitability of the branch - Impairment of econcomy
- Tolerance for price policy - Existence of alternatives
- Technological level
- Protectability of know how 4. Environment situation
- Intensity of investments
- Intensity / structure of competition - Economic dependency
- Number / structure of potential consumer - Inflation effects
- Entry barriers - Dependency on legislation
- Distribution requirements - Dependency on public
- Variability of competition conditions - Risk of public interference
- Substitution possibilities - Environmental pollution
TOTAL
Market Attractiveness - Competitive Advantage Portfolio 2/3
Analysis of portfolio categories according to the criteria lists
Evaluation of market attractiveness
Criteria Weigh. Coefficients Index Criteria Weigh. Coefficients Index
0 0,1 0,2…0,8 0,9 1 0 0,1 0,2…0,8 0,9 1
1. Rel. market position - Pot. increase of productivity 1,0
- Environmental friendly production
- Market share -Delivery conditions
- Size and financial power - Sustain market share with given supply conditions
- Growth rate - Cost situation with energy and raw material supply
- Profitability
- Risk 3. Relative R&D potential
- Market potential
- Status of research
2. Rel. product potential - Development compared to market position
- Innovation potential
- Process efficiency
- Cost advantage 4. Rel. employee qualification
- Innovation ability
- License relations - Professionalism and culture
- Adaptability - Innovation climate
Total
Market Attractiveness - Competition Advantage Portfolio 3/3
Display of portfolio graphic according to results of prior criteria lists
low medium highMarket attractiveness Investment and
growths strategies
A low medium high
Selective strategies
B
Strategies of disinvestment
C and off-siphoning
Relative competition advantage
Market Segmentation
Different types and levels of market segmentation
Undifferentiated marketing Differentiated marketing Segmentation Micro marketing
Concentrates marketing Individual marketing
Mass Product variety Segment Niche It’s the highest degree of
marketing marketing marketing marketing segmentation and external opposite
to mass marketing.
Products, distribution and Prices, distribution and High degree of market coverage High specialization and concentration
advertisements are designed the advertisement measures are serves multiple or many different sub on special sub markets or clearly Segmentation of market down to the
same for all customers. developed for different target markets. defined customer groups. individual customer by increasing
groups. individualization tendency and
Difference between separate Further sub divisions: Niche providers are highly specialized technical progress.
segments are being ignored and the Orientation according to target and pursuit a secure market position
market is served with one offer. groups creates better approaches for 1. Concentration on one segment in procurement. Customized mass production
the determination of market only (Mass customization /
chances. 2. Selective specialization One-to-One-marketing)
3. Product specification
4. Market specialization
5. Complete segment coverage
Broad target group approach Narrow target group approach
Segmenting-Targeting-Positioning (STP-Model)
Three steps to target group oriented marketing
Market segmentation Target market determination Positioning
1 Determination of segmentation Development of assesment guidelines for the Development of a lasting competition position
variables / segmentation of market determination of attractiveness. Finally the and determination of tasks and performance
2 Development of resulted selection and concentration on one or more
segment profile program for selected target segments.
segments.
Zoning of market in clear
defined target groups / Customer groups with 3 Estimation of attractiveness
of each Segment
own products and marketing-mix. 4 Selection of target segments
5 Development of possible
positioning concepts
6 Selection and communication
of positioning concept
Time
Segmenting-Targeting-Positioning (STP-Model)
Three steps in the process of market segmentation
Segmentation Targeting Positionierung
Determination of segment variables Analysis and estimation of Designing of a possible
Definition and segmentation of the market attractiveness of each segment positioning concept
Development and description of resulting
Selection of target segments Selection and communication of
segment profiles positioning concept
Customer Segmentation Feature A
Differentiation and description of target groups Feature B
Customer segment X Individual
Characteristics:
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Core motive:
Customer segment Y
Characteristics :
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Core motive:
Customer segment Z
Characteristics :
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Core motive:
Sinus- Milieus (Example in Germany 2010)
Grouping of people who are similar in terms of lifestyle, views and conception of life
upper-class/ upper established liberal performer Expeditiv
middle class conservatives intellectual 7% 6%
middle class 10 % 7% adaptive
pragmatically
lower middle class traditional socioenvironmental
/ lower class 15 % 7% 9%
bourgeois middle hedonistic
class 15 %
14 %
Traditional values, fullfilment of duty, New orientation, multiple options,
order precarious experimentation, living in paradoxes
9%
Modernization, individualization,
self-realization, pleasure
Target Groups according to EuroSocioStyles
Characterization according to GfK
No: Type Characteristics
1 Go-Ahead-Fellows ambitious, young, tolerant, crazy, success oriented
2 Free-Thinkers in the 40’s, disappointed intellectuals, skeptics, family oriented
3 Reformers active families, pro-European, optimistic, progressive
4 Stabilizers in their 50s, longing back for traditional norms
5 Pilots dynamic 40’s, economically and socially engaged
6 Censors career disappointed, question the materialism
7 Eldest conservative notabilities, criticize too much individualism
8 Isolated older, isolated city-dweller, puritan and passive
9 Guardians country-folks without hope, conformist, prejudice
10 Preservers reserved traditionalists, abstentious, anti- European
11 Gamblers young, single originated from common people, material hedonists
12 Bonvivants modern young, boastful, hedonistic, materialistic
13 Easy-Going young people, searching for money and success
14 Safety-Oriented disappointed, from common people, suspicious, uninvolved
15 Unapproachables hardened cocooner´s, conservative till reactionary
Market Entry Barriers
Institutional and behavior dependent market entry barriers
Market entry barriers
Institutional market entry barriers Behavior-dependent market
entry barriers
Tariff barriers Non-tariff barriers Market side barriers Company side barriers
Tolls Import quotes Demand behavior Information availability
Capital flows limitations Language / culture Psychological distance
of management
Minimum /maximum prices Distribution systems
Local content regulations Administrative
constraints
Norms / standards
Self limitations
Values and Lifestyles (VALS)
System of consumer lifestyle-typology
VALS Typology
Values and Lifestyles (VALS)
Extroverts Notleidende Introverts
Achievers Sustainers Socially-Conscious
Emulators Survivors Experimentals
Belongers I-am-me´s
Competitive Advantage
Representation of the thre influencial factors customers, organization and competition
Expectation on the
product and benefit
Competitive
advantage
Market Research - Process Scheme
Separation of market research process in five phases
Definition Phase Data Collection Phase DockumentationsP-hase
Pprhesaesnetation of results
Problem definition and
development of survey RPreässeeanrtcahtiroenpodretrdEisrgtreibbuntisesre
targets Topic of research Forschungsbericht Verteiler
D1 D2 D3 D4 D5
Designphase Data analysis phase Marketing
Fixation of target groups Evaluation of data decision
Selection of research methods Interpretation
and instruments Prognosis Recommendations
Organization (time/cost) that influence
Sources for data decisions
Sales Orientation vs. Marketing Orientation
Comparison
The sales orientation Main focus on Measure Target
Initial point profit through
high revenue
existing existing advertisement,
production products sales promotions Target
The marketing orientation Main focus on Measure long term profit expectation
through sustainable satisfaction
Initial point actual customer integrated
requirements marketing approach of customers
the markets
Competition Strategies
Differentiation between cost leadership, time leadership and quality leadership
Cost leadership Time leadership Quality leadership
Causing lower costs than competitor i.e. Choice of time of market entry. Previous Determination and implementation of
through production of large amounts and development time, handling time and technical improvements and product
low-price procurements. Often requires a production time are important here. improvements with the target to always
large market share. provide the best quality on the market.
Competitive Advantage - 5 Principles
A competitive advantage over the competition is a superior performance or property
A distinction is made between five principles:
Principle Opportunity Perceptual Concentration Consistency
of survival principle principle principle principle
At least one strategic Creating competitive advantages Only competitive advantages At least one strategic Focus on strategic competitive
competition advantage must through important competitive that the customer subjectively competitive advantage must benefits which are most
perceives count (not technical
be present (long term). parameters. be present (long term). important for the customer.
advantages).
(the more the greater
the chance)
Competitive Advantage - Advantage Matrix
Representation of the relationship of competitive advantages and quantities
Volume has no /or Volume has great advantages
small advantages
Many competitive Niche business Special business
advantages (Restaurants, consultants) (Journals, instruments)
Only a few Patt-business Volume business
competitive (Basic materials chemistry, standard paper) (PC's, IC's)
advantages possible
Competition Strategies
Representation of coherences between competitive advantages and amounts
+ Benefit leader
Cost leader
Profitability
- ? +
-
Cost leader and benefit leader require USP’S, otherwise they lose their leading positions.
MARKETING MODELS
Established models
Competition - Driving Forces
The five driving forces of sector competition (according to Porter)
Bargaining power of Potential new
suppliers competitors
Suppliers Threat of new Buyer
competitors
Bargaining power of
Competitors in the industry buyers
Rivalry among existing
companies
Threat of substitution products
or services
Substitution products
Marketing - 4P-Model PRODUCT PLACE
PROMOTION
Product, Price, Place, Promotion
PRICE
Marketing - 4P-Model
Product, Price, Place, Promotion
5P-Model PLACE
Expansion of the 4P model with the aspect of “Personnel”
PRODUCT
PRICE
PROMOTION PERSONNEL
5P-Model
Expansion of the 4P model with the aspect of “Personnel”
Marketing Mix
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Product
Promotion Target Price
Market
Place
Marketing 4P‘s 4Ps
Enter your subheadline here Price Promotion Place
Product Conditions Advertisement Strategic distribution/ sales
Rebate Sales Physical
Main usage Discount
Side usage Leasing Sponsoring distribution/logistics
Additional usage Sales promotion Location
Brand Event
Content PPR
Quality
Packaging
Marketing Mix - 7P Product policy Classical instruments
„product“ New instruments
Classical and new instruments
Price policy
Process policy „price“
„process“
Equipment policy
Distribution policy „physical facilities“
„place“
Communication policy
Personnel policy „promotion“
„personnel“
Marketing Mix
Example with individual factors
Brand name
Slogan Logo Product design /
packaging
ad campaign
Brochure /
Sales Training Corporate design
Press conference Brochures / Product
presentation
Reseller discount
Businesspaper
Give-Aways Website
Marketing Mix (4P‘s)
Components of the marketing mix
Product policy Price policy Communication policy Distribution policy
Product innovations Price Media advertisement Distribution systems
Product improvements Price deductions Sales promotion Sales channels
Product differentiation Rebates and discounts Direct marketing Logistic systems
Marking Delivery conditions Public relations
Naming Payment conditions Sponsoring
Service performance Personal communication
Assortment planning Fairs and exhibitions
Packaging Multi-media communication
Employee communication
Marketing mix
Sub-markets and customer groups
Service marketing (from 4P’s to 7P’s) 7 P‘s of
service marketing
Comparison of 4P´s and 7P´s
advertisement product
4 P‘s of the classical
consumption goods marketing positioning employees
product price physical
advertisement price facilities
positioning
process
management
AIDA- Model D A
Step model in 4 phases that could overlap eacht other
AI
Attention Interest Desire Action
Attract the customer‘s The customer is interested in The desire for the product The customer probably
attention purchases
the product is awakened
AIDA - Action Principle
Four stages of a customer’s purchasing decision
Physical reaction Action The customer buys the product
(economical) Desire The desire for the product
is awakened (demand)
Psychological reaction Interest
The customer is interested in
(pre- economical) the product
Attention Attention of the customer
for the product is excited
Marketing 3C’s Triangle
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Customer
Clients Distributors Competitors
Suppliers
Diamond-Model - National Competitive Advantages
Thesis to assess the competitive abilities of states in terms of individual industries (according to Porter)
Coincidence Strategy, structure and competition
Factual conditions Demand conditions
Related and supporting industries Government
Porter‘s Five Forces Analysis
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New Competitors
Threat of new competition
Bargaining power Competition on relevant market = Bargaining prower
of supplier Rivalry among competitors of customer
Substitution products
= Threat of substitution
Five Forces
Five (+1) competitive forces according to Porter (supplement through stakeholder)
Potentially new competitors Potential further stakeholder
threat through new competitors Potential bargaining power and the ability to
intervene in the industry events
Competitors/
rivalry between
industry suppliers
Suppliers Customer
bargaining strength of bargaining power of customers
suppliers
Substitute products
threat through substitute products or services