marketing analysis
DESCRIPTION
TRANSCRIPT
András Bauer Marketing 1
The Big Picture
• Marketing does not work in a vacuum and it is important to know, what is going on elswhere.
• Historically, Industrial Organization looked at industry performance
András Bauer Marketing 2
STRUCTURE
CONDUCT
PERFORMANCE
NATURE: SUPPLY AND DEMAND
András Bauer Marketing 3
Structure-Conduct-Performance
• In this logic the market structure (plus add culture to international) defines how firms « behave », i.e. compete extremely in an oligopoly.
• This behavior will have an impact on company performance, i.e. profits are usually higher in a monopoly or marketing is more intensive in an oligopoly.
András Bauer Marketing 4
Value Chain Analysis
• As an extension to aggregate industry analysis, one can look inside the firm and determine, what is a contribution of different activities.
• The Value Chain Model is usually still aggregate
András Bauer Marketing 5
PRIMARY ACTIVITIES
MARGIN
OPERATIONS
IN- LOGISTICS
OUT-LOG ISTI CS
MAR KET ING/ SALES
SER VICE
FIRM INFRASTRUCTURE
HUMAN RESOURCES MANAGEMENT
TECHNOLOGY DEVELOPMENT
PROCUREMENT
SUPPORT ACTIVITIES
THE MODEL OF A VALUE CHAIN
András Bauer Marketing 6
The Value Chain
• Is a good construct, but is clearly based on the old economy with more emphasis on physical creation of products and services
• « Supporting functions » may become the core of the value chain
András Bauer Marketing 7
An extended version of SCP: The Five Forces Model
• Based on empirical research on firm and industry cases several researcers worked on this concept. (e.g. Bain)
• Michael Porter (Harvard) made an industry competitive framework famous:
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Rivalry within the industry
New entrants
Firms exiting
Bargaining power of buyers
Bargaining power of suppliers
FIVE FORCES
András Bauer Marketing 9
The Five Forces Model
• Helps you to think strategically
• Looks at power, as moving force of economic competition
• Does not tell you, why firms provide more value to their owners
András Bauer Marketing 10
SWOT Analysis
• SWOT analysis is based on logic. Looks at the firm and its environment from the inside
Strenghs and Weaknesses
• and from outside:Opportunities and Threats
András Bauer Marketing 11
SWOT Analysis
• What is important in the SWOT analysis is not the analysis only by itself, but the action plan as a consequence.
• Example: Higher prices than competitors, as a weakness. What can you do about it? What action is required? Or: A growing market, as an opportunity. What should be done to capture it?
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Benchmarking
• Benchmarking helps to establish our comparative position and study the best practice.
• Benchmarking is an important exercise, since it will clarify, where we are. It can be used as an input to a SWOT analysis
András Bauer Marketing 13
Putting it together: The Balanced Scorecard
• The Balanced Scorecard is an ambitious tool or ,method of organizing, to link performance to strategy and firm activities.
• Though it is very analytical, the journey could be more important than the destination, i.e. the firm experiences learning and synergy
András Bauer Marketing 14
Vision and Strategy
Customer
Financial
Internal Business Processes
Learning and Growth
THE BALANCED SCORECARD
András Bauer Marketing 15
The Balanced Scorecard Philosophy
• It is more than a combination of financial and non-financial measures, it includes outcomes and outcome drivers.
• For all firms or business units the BC is unique and can be created from its own variables.
András Bauer Marketing 16
FINANCIAL MEASURES
Revenue Growth and Mix Cost Reduction/Productivity Asset Utilization/Investment
CUSTOMER MEASURES
Product/Service Attributes Customer Relationship Image and Reputation
INTERNAL MEASURES
Quality and time-based metrics of performance
LEARNING AND GROWTH MEASURES
People, systems and organizational processes
András Bauer Marketing 17
Customer satisfaction
Customer retention
Customer profitability
Customer acquisition
Market share
Account share
Core outcome drivers and Internal Business Process Measures
Financial Objectives
Customer Outcomes
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Customer Acquisition
Customer Satisfaction
Customer Retention
Product Service Attributes
Image RelationshipValue = + +
CUSTOMER OUTCOMES AND DRIVERS
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András Bauer Marketing 20
THE ANSOFF MATRIX
DEVELOP NEW SEGMENTS
FOCUS ON COMPETITORS ’ CUSTOMERS
FOCUS ON EXISTING CUSTOMERS
FOCUS ON NEW CUSTOMERS IN EXISTING SEGMENTS
András Bauer Marketing 21
CUSTOMER TARGET
CORE STRATEGY
MARKETING MIX
THE LOGIC OF SEGMENT FOCUSED STRATEGY
András Bauer Marketing 22
Specific to marketing analysis
• Market segmentation, the capability to identify, describe and analyze segments
• Product positioning, the understanding of how the value proposition works on customers
• Consumer behaviour analysis
• Customer analysis
András Bauer Marketing 23
LOOK AT THE BIG PICTURE
FIND OUT HOW VALUE IS CREATED
LOOK AT THE FIRM
ANALYZE THE MARKET
ANALYZE COMPETI TORS
FIGURE OUT THE BEST VALUE PRO POSITION
DEFINE THE SPECIFIC MARKETING MIX
IMPLEMENT: TIME AND BUDGET
EVALUATE FUTURE ACTIONS
A ROAD-MAP FOR ANALYSIS