chapter 2 situation & environmental analysis. copyright © 2002 thomson learning, inc. all...
TRANSCRIPT
Chapter 2
Situation & Environmental Analysis
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Components of a Situation Analysis...
Internal environmentCustomer environmentExternal environment
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
The Internal Environment
Review current objectives, strategy & performanceEvaluate the availability of resourcesUnderstand the strengths & weaknesses of your organizational culture & structure
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
External EnvironmentCompetitive Forces:– Who are our current & future competitors?– Brand competition-what products are similar in
features & benefits to the same customers?– Product competition-who competes in the same
product class (different features, benefits & price)?– Generic competition-what very different products
solve the same problem or needs?– Total budget competition-what competes for limited
financial resources of the same customer
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Other Issues for Consideration in Evaluating the External Environment
Economic growth and stabilityPolitical trendsLegal and regulatory factorsChanges in technologyCultural trends
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Issues in the Customer Environment
Identify current & potential customersUnderstand needs of current & potential customersDetermine basic features of the firm’s & competitor’s products that meet customers needsAnticipate changes in customers needs
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
The 5-W Model for Customer Analysis...
Who are our current & potential customers?What do customers do with our products?Where do customers purchase our products?When do customers purchase our products?Why (& how) do customers select our products?Why do potential customers not purchase our products?
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Key Aspects of the Competitive Analysis
Identify all current & potential brand, product, generic & total budget competitorsAssess key competitors size, growth, profitability, objectives, strategies & target marketsAssess competitors strengths & weaknessesAnalyze each competitor’s market capabilities in terms of products, distribution, promotion & pricingEstimate competitors’ likely strategies & responses under different environmental situations
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
External Environmental Factors-Economic Growth & Stability
InflationEmployment & income levelsInterest ratesTaxesTrade restrictionsTariffsConsumer confidenceBusiness cycles
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
External Environment-Political Trends
Issues mostly beyond a firm’s direct controlSome firms protest or lobby…others hire specialists to do so for them– Tobacco industry– Automotive industry– Drug companies– Health care providers
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Other External Environment Considerations
Legal and regulatory factors– laws & regulations may influence marketing decisions &
activities
Changes in technology– improvements in the way we accomplish tasks & processes
Cultural trends– demographic trends– lifestyle trends– changes in cultural values
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Collecting Environmental Data & Information
Internal data sources-company sales records & research ( for example, intranets)Government sources-census data, small business administration, etc.Periodicals and booksCommercial, fee based sources-
A.C. Nielsen
COPYRIGHT © 2002 Thomson Learning, Inc. All rights reserved.
Problems That Can Occur During Data Collection
Incomplete or inaccurate definition of the marketing problemAmbiguity about the usefulness or relevance of the data collectedSevere information overloadExpensive & time consuming data collectionFinding ways to organize the data collected