Advances in backstage technology usually affect marketing activities by

Case Study Analysis- Marketing

Students should critically analyse the case study. " Gillette: Why Innovation might not be enough" follwoing the framework introduced in the lectures/ Seminars to identify 1-2 key challenges/ problems in the case and to recommend and justify alternative marketing strategies. You must analyse the case based on the information on the case. This means that even if you do your own research (eg. you find some additional data about about market trends) , and you use such information, you will not receive a mark for that.

MAN3106 Marketing Strategy Competitive Market Analysis

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Announcements

Frequently Asked Questions: 1. How will we meet the independent study assessment criteria which states that

there must be evidence of “extensive independent reading using a wide range of carefully selected sources”. How will we meet the knowledge assessment criteria which states there must be evidence of “thorough integration and application of a full range of appropriate principles, theories, evidence and techniques.” However how can we do all these things without referencing theories/principles.

2. For the situational analysis, how can we thoroughly and to a high level analyse without conducting our own research.

3. If we want to use theories and concepts do we reference these even though we will not receive marks for them. Also, should these be referenced using in-text citations along with our reference list, and will these in-text citations be part of the word count?

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Relevance

Market analysis… § is one of the most important tasks

because all decision making and planning depends on how well the analysis is conducted

§ should be an ongoing, systematic effort that is well organised and supported by sufficient resources

§ should provide as complete a picture as possible about the organisation’s current and future situation with respect to the internal and external environment

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Main Topics

1. Introduction 2. Analysis of the External Macro-Environment 3. Analysis of the External Micro-Environment: Customer Analysis 4. Analysis of the External Micro-Environment: Competitor Analysis

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1 Introduction to Competitive Market Analysis

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Unit of Analysis in Market Analysis

Unit of Analysis

External Environment

Macro- Environment

Micro- Environment

Internal Environment

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Conducting a Situation Analysis

Analysis alone is not a solution Data is not the same as information § Data – a collection of numbers or facts that

have the potential to provide information § Information – data that have been

transformed or combined with other data in a manner that makes them useful to decision makers

Conducting a situation analysis is a challenging exercise § Should provide a complete picture of three

key environments: Internal, Customer, and External

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Collecting Marketing Information

Types of Data § Secondary data – data can be collected from a wide array of internal,

government, periodical, book, and commercial sources (secondary research)

§ Primary data – data can be collected through studies in the form of direct observation, focus groups, surveys, or experiments (primary research)

Typical Problems in Data Collection § Incomplete or inaccurate assessment of the situation that the data should address § Severe information overload § Time and expense of collecting data § Data integration

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Primary Data: Marketing Research Methods

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Primary Data: Marketing Research Methods

Qualitative methods: Observation, interview, focus group, etc.

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Primary Data: Marketing Research Methods

Quantitative methods: Experiment, survey, etc.

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Analysis of the internal environment [to be covered next lectures] Review of current marketing objectives, strategy, and performance § What are the current marketing goals and objectives? § How are current marketing strategies performing with respect to anticipated

outcomes? Review of current and anticipated organisational resources § What is the state of current organisational resources? § Are these resources likely to change for the better or worse in the near future? § If the changes are for the better, how can these added resources be used to better

meet customers’ needs? Review of current and anticipated cultural and structural issues § What are the positive and negative aspects of the current and anticipated

organisational culture? § What issues related to internal politics or management struggles

might affect the marketing activities?

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Analysis of the External Macro-Environment

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PESTEL Analysis

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Economic Growth and Stability

Economic change is inevitable and has a profound impact on marketing strategy. General Economic Conditions § Inflation, employment, income, interest rates, taxes, trade restrictions, tariffs,

business cycle Consumer Issues § Willingness to spend, confidence, spending patterns

An Underreported Economy § The U.S. economy is dominated by intangibles such as services and information. § Innovation, creativity, and human assets are not counted in yearly GDP statistics.

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Economic Growth and Stability

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Political, Legal, and Regulatory Issues

The views of elected officials can affect marketing strategy. § Example hot-button issues: tobacco, immigration, taxes, retirement, healthcare § Lobbying is vital to marketing strategy in highly regulated industries.

Firms must abide by the law, but many laws are vague and difficult to enforce. § e.g. court decisions, corporate governance, trade agreements

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Technological Advancements

Technology refers to the processes used to create “things” considered to be new. Frontstage Technology § Advances that are noticeable to customers…what customers

think of when they think of technological advancements § e.g. smartphones, GPS, microwave ovens

Backstage Technology § Advances that are not noticeable to customers…these

advances make marketing activities more efficient and effective

§ e.g. computer technology, RFID, near-field communication

Gartner’s Top 10 Strategic Technology Trends for 2020

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Technological Advancements

Product lifecycle

Industry evolution (lifecycle)

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Sociocultural Trends Social and cultural influences that cause changes in attitudes, beliefs, norms, customs, and lifestyles Sociocultural forces can have a profound effect on the way customers live and buy products. Changes in customer demographics and values have a considerable impact on marketing. Example Trends in the U.S. Sociocultural Environment § Demographic Trends

- Aging of the American population - Population growth in Sun Belt states - Increasing population diversity

§ Lifestyle Trends - Many Americans are postponing retirement - Clothing becoming more casual, especially at work - Time spent watching television and reading newspapers has declined

§ Value Trends - Greater focus on ethics and social responsibility - Shorter attention spans and less tolerance for waiting - Growing skepticism about business

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Sociocultural Trends

Growth in the Number of Older Americans

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Measuring PESTLE Impact

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Measuring PESTLE Impact

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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

What about geographical factors analysis?

Gillette Tag Weather – 2’ 21’’: www.youtube.com/watch?v=8HoA6IhBhyw

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Analysis of the External Micro-Environment: Customer Analysis

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http://www.youtube.com/watch%3Fv=8HoA6IhBhyw
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Analysis of the External Micro-Environment

Customer analysis §Discussed in Seminar Week 2 §More discussions in Week 5 §Consumer, purchaser, and

decider are not always the same person

§e.g. Nappies!

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Three Tiers of Noncustomers

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Analysis of the External Micro-Environment: Competitor Analysis

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Analysis of the External Micro-Environment

Competitor analysis § Industrial organisation

(IO) economics perspective

§ Porter’s Five Forces Model: Five forces determine the competitive intensity (and attractiveness) of an industry in terms of profitability

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Porter’s 5 Forces Analysis

Five Forces Analysis assumes that there are five important forces that determine competitive power in a business situation. § Supplier Power

- Here you assess how easy it is for suppliers to drive up prices - The fewer the supplier choices you have, and the more you need suppliers' help,

the more powerful your suppliers are

§ Buyer Power - Here you ask yourself how easy it is for buyers to drive prices down – How much is

the customer’s switching cost - If you deal with few, powerful buyers, then they are often able to dictate terms to

you

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Porter’s 5 Forces Analysis

§ Threat of Substitution - This is affected by the ability of your customers to find a different way of doing what you

do – for example, if you supply a unique software product that automates an important process, people may substitute by doing the process manually or by outsourcing it

§ Threat of New Entry - If it costs little in time or money to enter your market and compete effectively - If there are few economies of scale in place, or if you have little protection for your key

technologies, then new competitors can quickly enter your market and weaken your position

§ Competitive Rivalry - What is important here is the number and capability of your competitors - If you have many competitors that offer equally attractive products/services, then you'll

most likely have little power, because buyers will go elsewhere if they don't get a good deal from you

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Porter’s 5 Forces Analysis

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Porter’s 5 Forces Analysis

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The components of competitor analysis

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The components of competitor analysis

Competitor Objectives § Brand Competitors – Market products with similar features and benefits to the same

customers at similar prices § Product Competitors – Compete in the same product class, but with products that are

different in features, benefits, and price § Generic Competitors – Market different products that satisfy the same basic customer need § Budget Competitors – Compete for the limited financial resources of the same customers

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Major Types of Competition

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The components of competitor analysis

Competitor Strategies

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The components of competitor analysis

Competitor Resources/Capabilities

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Learning from Competitors

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© 2014 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

Of the three major environments in a situation analysis (internal, customer, external), which do

you think is the most important in a general sense? Why? What are some situations that would make one environment more important than the

others?

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Reality in Many Organisations

The End. Have Fun!

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Reading Resources Chapters 2, 3, & 4: Hooley, G., Piercy, N. F., and Nicoulaud, B. (2017), Marketing Strategy & Competitive Positioning, Prentice Hall, 6th Edition.

Chapter 3: Ferrell, O. C. and Hartline M. D. (2014), Marketing Strategy, Cengage, 6th Edition.

Chen, M. J. (1996). Competitor analysis and interfirm rivalry: Toward a theoretical integration. Academy of Management Review, 21(1), 100-134.

Grundy, T. (2006). Rethinking and reinventing Michael Porter's five forces model. Strategic Change, 15(5), 213-229.

Kim, W. C., & Mauborgne, R. (2014). Blue ocean strategy, expanded edition: How to create uncontested market space and make the competition irrelevant. Harvard Business Review Press.

Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W. (1999). Antecedents and consequences of marketing strategy making: a model and a test. Journal of Marketing, 63(2), 18-40.

Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86(1), 25-40.

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Teaching Schedule

Week Lectures Seminars

Week 1 - Introduction to the Module Case study analysis framework Week 2 - Strategic marketing planning Gillette case study situation analysis Week 3 - Competitive market analysis Gillette case study situation analysis

Week 4 - Understanding the organisational resource base - Competing through innovation

Gillette case study SWOT analysis

Week 5 - Segmentation, positioning, and selecting target markets Gillette case study problem identification & alternative strategies provision

Week 6 - Creating competitive advantage Individual assignment Q&A Week 7 - Competing through marketing mix Using metaphors in marketing campaigns

Week 8 - Competing through superior service and customer relationships

Costs of customer loyalty

Week 9 - Strategy implementation and control Soft and hard control measures

Week 10 - Ethics and social responsibility in marketing strategy - Evolving topics in marketing strategy

Group discussion on CSR and crisis management

Week 11 - Module Revision Exam preparation Q&A