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SMM HO 3.pdf

  1. Marketing audit, SWOT matrix, TOWS matrix
  2. Customer Orientation NO YES Competitor Orientation NO Product orientation Customer orientatio n YES Competitor orientation Market orientatio n Customer and Competitor Orientations
  3. Product • product management • new product development • branding Price • pricing • discount structures • terms of business Place/distribution • channel management • customer service • physical distribution Promotion • advertising • sales promotion • public relations • personal selling • merchandising • sponsorship People • employee selection • employee training • employee motivation Physical evidence • layout • decor • ease of access Process management • how customers are handled and managed from the point of very first contact with the organization through to the point of very last contact 7 Ps of Marketing Mix
  4. Stage one Where are we now? (beginning) Stage two Where do we want to be? (ends) Stage three How might we get there? (means) Stage four Which way is best? (evaluation) Stage five How can we ensure arrival? (implementation & control) Analysis phase Planning phase Implementation phase Evaluation phase SMM PROCESS
  5. OPERATIONS SMM MM SMM vs. MM Strategic level Tactical level Operational level
  6. The Managemen t audit Finance audit HR audit Production audit EXTERNAL (Opportunities and threats) INTERNAL (Strengths and weaknesses) Past performance and present activities Marketing Audit
  7. # Stage Description 1 Pre-audit activities defining the scope of marketing audit 2 The assembly of information on the areas which affect the organization’s marketing performance – industry, market, firm, and elements of marketing mix 3 Information analysis 4 The formulation of recommendations 5 The development of an implementation program 5 Stages of Marketing Audit
  8. SWOT: a summary STRENGTHS : Areas of (distinctive) competence that: Must always be looked at relative to the competition If managed properly, are the basis for competitive advantage Derive from the marketing asset base WEAKNESSES : Areas of relative disadvantage that: Indicate priorities for marketing improvement Highlight the areas and strategies that the planner should avoid THREATS : Trends within the environment with potentially negative impacts that: Increase the risks of a strategy Hinder the implementation of strategy Increase the resources required Reduce performance expectations OPPORTUNITIES : Environmental trends with positive outcomes that offer scope for higher levels of performance if pursued effectively: Highlight new areas for competitive advantage
  9. avail ignore evaluat e evaluat e
  10. must avoid monitor monitor ignore
  11. In essence, four possibilities exist: # Business Possibility Opportunities Threats 1 Ideal Many Few 2 Speculative Many Many 3 Mature Few Few 4 Troubled Few Many
  12. 1 Organizational advantages • Economies of scope and /or scale • Flexibility • Competitive stance • Size • Speed of response • Past performance • Financial strengths • Patterns of ownership • Reputation 2 Functional advantages Marketing • Customer base • Customer knowledge • New product skills • Pricing • Communication and advertising • Distribution • Sales force • Service support • Reputation Research and development • Product technology • Patents Production • Technology • Process efficiency • Economies of scale • Experience • Product quality • Manufacturing flexibility Personnel • Good management–worker relations • Workforce flexibility 3 External relations • Customer loyalty • Channel control • Preferential political and legislative treatment • Government assistance • Beneficial tariff and non-tariff trade barriers • Cartels • Intra-organizational relationships • Access to preferential and flexible financial resources
  13. 6 Types of Capabilities 1 Managerial capability 2 Financial capability 3 Operational capability 4 Distribution capability (geographic coverage and penetration) 5 Human capability (knowledge, skills, and experience) 6 Intangible capability (brands, customer loyalty)
  15. Low importance, high performance Average importance, good performance Average importance, average performance High importance, low performance
  16. SWOT Analysis Internal Environment Positive S W Negative O T External Environment
  17. TOWS Analysis Internal Environment S W External Environment O SO WO T ST WT
  18. SWOT and TOWS analysis for Daimler-Benz’s Mercedes-Benz car division 1990 Notes: Daimler-Chrysler Daimler-Benz Daimler AG Commonly known as Mercedes Also manufactured series of engines for air crafts, tanks, and submarines during world war II EC 1992 = European Commission (European market project 1992)
  19. S W 1 Cash position 2 Luxury car image 3 New car models 4 Location close to suppliers 5 Engineering and technology 1 High costs 2 Venturing into unrelated businesses 3 Organizational diversity 4 Reliance on past successes and bureaucracy 5 Long cycle for new model development 6 Relatively weak position in Japan 1 Demand for luxury cars 2 Eastern Europe, especially East Germany 3 Prosperity through EC 1992 4 Electronics technology 1 Decrease in defense needs because of easing of East–West tensions 2 BMW, Volvo, Jaguar, Lexus, Infinity in Europe 3 BMW in Japan 4 Diesel emissions 5 Renault/Volvo cooperation 6 Political instability in South Africa O T
  20. S W O S-O strategy 1 Develop new models (using high-tech) and charge premium prices 2 Use financial resources to acquire other companies or increased production capacity W-O strategy 1 Reduce costs through automation and flexible manufacturing 2 Manufacture parts in Eastern Europe 3 Reorganizations 4 Daimler-Benz management holding companies T S-T strategy 1 Transform defense sector to consumer sector 2 Develop new models to compete especially in Europe W-T strategy 1 Retrench in South Africa 2 Form strategic alliance with Mitsubishi to penetrate the Japanese market TOWS Matrix
  21. Davidson’s Model of Asset and Competency-based Marketing (ACM) any business consists only of : assets competencies things that the organization owns, and typically include brands, property, databases, machinery and cash Skills or capabilities created by staff both individually and in groups, and might include brand development, database management, cost management or investment strategy Strengths Future Opportunities Competencies Assets