Analysis Tools & Techniques

• Key analytical models

– SWOT Analysis
– Porter’s Generic Strategy model
– Product Life Cycle
– Diffusion of Innovation
– Product Portfolio – Profile Analysis
– Boston Matrix/BCG
– Directional Policy Matrix/DPM
– ANSOFF Framework
 The Marketing Mix

• The 4 P’s or 7 P’s

Product
Marketing Price
Mix Place
Promotion or Communication
People
Physical Evidence
Processes
 SWOT Analysis

Strengths & Weaknesses

•Market shares •Product range
•Profit margins/costs •Market perception
•Company resources •R&D investment

Opportunities & Threats

•Economy/environment •Technology
•Market conditions •Consumers
•Competition
 Prioritising Opportunities & Threats

High

LIKELIHOOD
of
HAPPENING Medium

Low

Low Medium High

IMPACT
 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
 Niche v Mass Marketing
Cost Leadership

Stuck in
the middle

Focus Differentiation

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

Cliff Bowman &

David Faulkner
(1966)
 Product Life Cycle
Level of
Sales

Introduction Growth Maturity Decline

Time
 Diffusion of Innovation

Introduction Growth Maturity Decline Introduction Growth Maturity Decline

Hawkins et al.(1989) in Fill: Marketing Communications, 4th Edition, ©Pearson Education Ltd 2006
Product Portfolio (Profile Analysis)
Level of Profitable growth
Sales

Product 3

Product 2
Product 1

Time

Taken from Executive User Manual, Version 8.3, © April Training Ltd. 1991-2009
 Boston Matrix/BCG
Hi Low
Star Question Mark

Hi
Market
growth
Cash Cow Dog

Low

Relative market share

Taken from Executive User Manual, Version 8.3, © April Training Ltd. 1991-2009
 Boston Matrix/BCG
Hi Low
Star Question Mark

Cash generated +++ Cash generated +

Hi Cash used --- Cash used ---
Market 0 --
growth
Cash Cow Dog

Low Cash generated +++ Cash generated +

Cash used -_ Cash used _-_
++ 0

Relative market share

Boston Consulting Group in Drummond, Ensor and Ashford: Strategic Marketing, 3th Edition, ©Elsevier 2008
 Directional Policy Matrix/DPM
Hi Low

Hi

Market
attractiveness

Low

Business strengths
Taken from Executive User Manual, Version 8.3, © April Training Ltd. 1991-2009
 Directional Policy Matrix/DPM
Market attractiveness Business strengths
Market Size Patent Protection
Market Growth Distribution Efficiency
Profitability Low Cost of Funds
Lack of Competition Market Knowledge
Low Cost of Entry Technology
Geography Image
Demographics
Subsidies

Score 1-10 Factor A Factor B Factor C Total Weighted

(Weighted Weighting : 6 Weighting : 3 Weighting : 1 Score (1-100)
score)
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
 ANSOFF Framework
Products
Current New
Market Product
penetration development

Increasing cost & risk

Current

Markets
Market extensionDiversification

New

Increasing cost & risk

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