Situation Analysis & Segmentation, Targeting and Positioning (STP)

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• Topics of discussion – Market Research

– Competitive analysis

– The macro-environment

• Activities – Market Uluru: tourism consultancy delivering value

– Case study discussion – Why Starbucks fails in Australia

• Assignments – Situation analysis sample

• Are you in a group for the online simulation?

• Have you had a look at the simulation?

• Completed the MMX survey: https://forms.office.com/Pages/ResponsePage.aspx?id=1zTEjNCX00e1xRT-

DjPjS0HN8MJf15JAirXPfHl2prdUQ0swSFI0OEZOVjZTQVgyOTRENDFOQVkzQS4u

https://forms.office.com/Pages/ResponsePage.aspx?id=1zTEjNCX00e1xRT-DjPjS0HN8MJf15JAirXPfHl2prdUQ0swSFI0OEZOVjZTQVgyOTRENDFOQVkzQS4u

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Week Topic/Chapter(s) Activity

2 Understanding the environment - Ch. 3 & 12

• Online simulation group work • Marketing Uluru

3 Marketing objectives & strategy - Ch. 2

• Elevator pitch • Quiz 1 (based on ch. 1, 3, 4) • Simulation Q1 – closes 21/3/21

4 Segmentation, targeting & positioning Ch. 6 & 9

• Consumer journey maps (drawing/LEGO)

• Quiz 2 (ch. 6 & 9) • Simulation Q2 – closes 28/3/21

5 Building brands Ch. 10 & 5

• Brand positioning, Personal branding

• Quiz 3 (ch. 5 & 10) • Simulation Q3 – closes 11/4/21

Mid-Semester Break (1-7 April) * week 5 Friday class is on 9.3.21

6 Marketing mix: Product Ch. 13

• Assignment 2 DUE (Sunday 18 April) Quiz 4 (ch. 13)

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Week Topic/Chapter(s) Activity

7 Marketing mix: Pricing Ch. 16

• Assessment discussion • Quiz 5 (ch. 16) • Simulation Q4 – closes 25/4/21

8 Promotion P1 – Managing IMC - Ch. 19 & 21

• Quiz 6 (ch. 19 & 21) • Guest speaker

9 Promotion P2 – Managing Digital/Personal Communication - Ch. 20 & 22

• Quiz 7 (based on ch. 20 & 22) • Simulation Q5 – closes 9/5/21

10 Marketing channels & services Ch. 14, 17 & 18

• Quiz 8 (ch. 14, 17 & 18) • Simulation Q6 – closes 16/5/21 • Guest speaker

11 Globalisation & responsible marketing Ch. 8 & 11

• Brand positioning, Personal branding

• Simulation Q7 – closes 19/5/21 • Simulation Q8 – closes 23/5/21

12 A holistic marketing organisation approach Ch. 23

• Assignment 3 DUE (w/c 24 May)

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Strategy

development

Implementation

Evaluation and

control

Strategic

analysis Situation analysis

Marketing

objectives

Budget

Evaluation

& control

Problems &

opportunities

Marketing

strategies

Marketing program

3 4

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• Developing market strategies and plans

• Capturing marketing insights

• Connecting with customers

• Building strong brands

• Creating value

• Delivering value

• Communicating value

• Creating successful long-term growth

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• It all starts with a problem that needs to be solved.

• Which means you need to find out what your customer thinks now?

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Discuss in groups and come up with a recommendation (remember the

marketing concept).

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• American Marketing Association (AMA)

– Marketing research is the function that links the consumer, customer, and

public to the marketer through information—

• information used to identify and define marketing opportunities and

problems; generate, refine, and evaluate marketing actions; monitor

marketing performance; and improve understanding of marketing as a

process.

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• How can you find the answers to the following

questions? 1. How will your targeted customer respond to a price of $7.99

compared to $9.99?

2. Should you add a new feature that costs $4.00?

3. Which is a more effective slogan: “We love to see you smile” or

“Have it your way”?

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• Marketing decisions should be fact-based

• Smart marketers are continually gathering

market information

• Marketers also conduct specific research

projects – They may use Marketing Intelligence Systems (MIS),

which includes internal company records, paid for

research reports etc.

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• Define the problem

• Define the decision alternatives

• Define the research objectives

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• Needs and Trends

– Fad

– Trend

– Megatrend

• What’s an example of a megatrend?

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Remote

Near

The

firm

environment

The

firm

environment

Near

THE

FIRM

• Macro/environm.

analysis (PEST)

• Industry analysis

• Competitor analysis

• Consumer analysis

4. Internal analysis

• SWOT/TOWS

3. Critical

success

factors

External analysis

Assignment 2: Part 1

2. External analysis

1. Business scope

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• Six major forces in the broad environment = Their interactions will lead to new

opportunities and threats.

Natural/ Environmental

Technological

Political-legalSocio-cultural

Economic

Demographic

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Remote

Near

The

firm environment

environment

The

firm environment

Near

The

firm

Two steps:

1. Analysis (identifying

relevant trends – current

situation and likely

scenarios in the future)

2. Implications for the firm

• opportunities and

threats;

• rate each on a scale

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• Worldwide population growth

• Population age mix

• Ethnic and other markets

• Educational groups

• Household patterns

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CONSUMER PSYCHOLOGY

INCOME DISTRIBUTION

INCOME, SAVINGS, DEBT, CREDIT

Impact of the economy on the

business unit and the lives of the

target market

• Economic growth rates

• Interest rates, consumer and

business confidence

• Employment and unemployment

• Savings rates

• Exchange rates

• Etc.

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Views of ourselves

Views of society

Views of nature

Views of the universe

Views of organizations

Views of others

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• Core cultural values – Values are passed from parents to children

and reinforced by social institutions

• Subcultures – Groups with shared values, beliefs,

preferences, and behaviors emerging from

their special life experiences or

circumstances

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What are the key environmental factors?

• Availability/quality of raw materials and natural resources

• Environmental costs

• Weather conditions (can influence production or demand)

• Government policies (green issues such as pollution, recycling

and genetically modified food products, etc.)

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Accelerating pace of change

Unlimited opportunities for innovation

Varying R&D budgets

Increased regulation of technological change

What are the Most important Tech Factors to look out for?

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LAWS

GOVERNMENT AGENCIES

PRESSURE GROUPS

Any proposed

legislation or other

regulatory processes

that are likely to

impact the industry?

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Remote

Near

The

firm

environment

The

firm

environment

Near

The

firm

• Macro/environmental analysis

(PEST)

• Industry analysis (5Fs,

PLC)

• Competitor analysis

• Consumer analysis

(6Qs)

4. Internal analysis

3. CSFs

2. External analysis

1. Business scope

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Suppliers (bargaining power)

Buyers (bargaining position)

Industry Competitors

Substitutes (threat)

New Entrants (threat)

VALUE CHAIN

Porter, M. E. (1980). Competitive strategy: Techniques for industries and competitors. New York: Free Press.

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• Understanding the market can help identify greater

marketing opportunities.

• Market demand can be broken down into: – Potential market

– Available market

– Target market

– Penetrated market

NOT ENOUGH TO DEFINE A MARKET

ELGIBILITY/ACCESSIBILITY MIGHT BE ADULTS

QUALIFIED – SPECIFIC PRODUCTS LIKE LUXURY

BRANDS THAT CAN AFFORD YOUR PRODUCT

ALREADY BUYERS

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• Building your market share

• Developing committed customers and stakeholders

• Building a powerful brand

• Innovating new products, services, and experiences

• International expansion

• Acquisitions, mergers, and alliances

• Building an outstanding reputation for social responsibility

• Partnering with government and NGOs

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• Expanding total market demand

• Protecting market share

• Increasing market share

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• Industries, similar to products, companies, brands and

people, change constantly – they evolve over time

• Industry structure is never rigid: the Five Forces analysis

needs to be conducted dynamically – looking into the

future

• Another useful tool is the Product Life Cycle concept

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Product Life-Cycle (PLC) Marketing Strategies

• A company’s positioning and

differentiation strategy must

change as its product, market, and

competitors change over the PLC

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Shaking out

weaker

competitors

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Figure 12.7

Style, Fashion, And Fad Life Cycles

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1. Simulation

– Q1 Analysis & Objectives:

• Strategic decisions

– Company profile

– Market analysis

– Customer analysis

– Competitor analysis

– Mission statement

– Key performance indicators

– Explain/justify your answers

2. Situation analysis

• Macro-environmental and competitor analysis

• Strengths and Opportunities

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1. Executive summary

2. Environmental analysis a. The marketing environment:

❖ Competitive forces

❖ Economic forces

❖ Political forces

❖ Legal and regulatory forces

❖ Technological forces

❖ Sociocultural forces

b. Current Target Markets

c. Current marketing objectives and performance

3. SWOT Analysis/TOWS 1. T,O,W,S

2. Matching Strengths to opportunities/Converting weaknesses and threats

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4. Marketing Objectives

5. Strategic Marketing Decisions

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• The remote/macro environment – How to make strategic analyses

– The importance of defining your business scope

– The key concepts and tools for external analysis (remote environment)

– The remote, macro environment can have a significant impact on your business – you need to scan it because it is in constant change

• The near/micro-environment – How to conduct an industry analysis

– How to analyse competition

– The easiest way to summarise consumer information

• How to conduct an industry analysis by using the 5 forces framework, Product Life Cycle (PLC)

• How to analyse the competition by looking at objectives, strategies, and resources predicting future strategies

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