analysis models

8/8/2019 Analysis Models

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Analysis Tools & Techniques

Key analytical models SWOT Analysis

Porters Generic Strategy model

Product Life Cycle

Diffusion of Innovation

Product Portfolio Profile Analysis

Boston Matrix/BCG

Directional Policy Matrix/DPM

ANSOFF Framework


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The Marketing Mix

The 4 Ps or 7 Ps

Product

Price

Place

Promotion or CommunicationPeople

Physical Evidence

Processes

Marketing

Mix


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SWOT Analysis

Market sharesProfit margins/costsCompany resources

Product rangeMarket perceptionR&D investment

Economy/environmentMarket conditionsCompetition

TechnologyConsumers

Strengths & Weaknesses

Opportunities & Threats


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Prioritising Opportunities & Threats

High

Medium

Low

Low Medium High

LIKELIHOOD

of

HAPPENING

IMPACT


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Brand Image Creating this is a long term strategy

Built up over a number of years

Large amounts invested

Once established it is rarely altered and

difficult to change

The most important asset for many companies

Payback is the brand premium

Differentiation from competition

Higher pricing or better margins

Assumption of quality by customers


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Niche v Mass MarketingCost Leadership

Focus Differentiation

Stuck in

the middle

Adapted from Porter(1980) in Drummond, Ensor and Ashford: Strategic Marketing, 3th Edition, Elsevier 2008


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Niche v Mass Marketing

Cliff Bowman &

David Faulkner(1966)


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Product Life Cycle

Level of

Sales

Time

Introduction Growth Maturity Decline


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Diffusion of Innovation

Hawkins et al.(1989) in Fill: Marketing Communications, 4th Edition, Pearson Education Ltd 2006

Introduction Growth Maturity Decline Introduction Growth Maturity Decline


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Product Portfolio (Profile Analysis)

Level of

Sales

Time

Profitable growth

Product 1

Product 2

Product 3

Taken from Executive User Manual, Version 8.3, April Training Ltd. 1991-2009


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Boston Matrix/BCG

Star Question Mark

Cash Cow Dog

Hi Low

Hi

Low

Market

growth

Relative market shareTaken from Executive User Manual, Version 8.3, April Training Ltd. 1991-2009


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Boston Matrix/BCG

Star

Cash generated +++

Cash used - - -0

Question Mark

Cash generated +

Cash used - - -- -

Cash Cow

Cash generated +++

Cash used -_

++

Dog

Cash generated +

Cash used _-_

0

Hi Low

Hi

Low

Market

growth

Relative market shareBoston Consulting Group in Drummond, Ensor and Ashford: Strategic Marketing, 3th Edition, Elsevier 2008


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Directional Policy Matrix/DPMHi

Hi

Low

Low

Market

attractiveness

Business strengthsTaken from Executive User Manual, Version 8.3, April Training Ltd. 1991-2009


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Directional Policy Matrix/DPM

Market attractiveness Business strengthsMarket Size

Market Growth

Profitability

Lack of Competition

Low Cost of Entry

Geography

Demographics

Subsidies

Patent Protection

Distribution Efficiency

Low Cost of Funds

Market Knowledge

Technology

Image

Score 1-10

(Weighted

score)

Factor A

Weighting : 6

Factor B

Weighting : 3

Factor C

Weighting : 1

Total Weighted

Score (1-100)

Product X 10 (60) 3 (9) 8 (8) 77

Product Y 1 (6) 5 (15) 10 (10) 31

Product Z 7 (42) 2 (6) 10 (10) 58


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ANSOFF Framework

Marketpenetration

Productdevelopment

Market extensionDiversification

Products

Markets

Current

Current

New

New

Increasing cost & risk

Increasin

g

cost&

ris

k

Adapted from Ansoff, I. (1975) in Drummond, Ensor and Ashford: Strategic Marketing, 3th Edition, Elsevier 2008


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Pricing Strategy

Aim is to maximise profitability

Depends on many factors including: Cost

Competitors prices

Target return on product investment

How quickly the investment is to be recouped

Price of other products in the portfolio

Value to the customer

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