Marketing Environmental Analysis

fella, SWOT and ushers five forces compendium are 3 very useful tools for both identifying the threats and opportunities in general and agonistical surround and setting up conjunctions grocery storeing strategy. What are swearing, SWOT and Porters five forces and their usefulness. PEST is an acronym for governmental, economic, brotherly and technologic. 1. The political area has huge impact on the operation of the impregnables(e. g. tax, argumentation law, political stability)2. The economic condition stool also directly influence the general performance of the club(e. g. conomy depression, evoke rate, exchange rate, inflation rate) 3. As for social factors, by fundamentally determining the target market, it so-and-so also be essential for the success or failure of strategies. (e. g. religion, culture, demographic issue) 4. Finally, the technological factors are becoming the majority for mostly organization, which can increasing the earn as well as decreasing the ti me and cost. (e. g. the pace of technologies change, incentive of technology) Usually prior to competing SWOT, PEST helps to spot the four elements for better understanding the macroenvironment faced by firms.After analyzing the four factors, it is important for company to identify the key drivers for change, thus focus on that to shape its strategies. Meanwhile, by scanning the general environment, co. can therefore also detect weak signals that make the discontinuity of the environment, which may fundamentally change the belligerent environment (Johnson et al, 2011). Ginter and Duncan (1990) argue that macro-environment analysis can act as an early-warning system by giving org. time to confront opportunities and threats and develop appropriate response.SWOT is structured planned method used to evaluated strengths, weakness, opportunities and threats. By using interconnected and converting, company can either go out or develop their competitive values. Matching is used to fin d competitive vantages by matching the strengths to opportunities. Converting is to apply conversion strategies to convert weaknesses or threats into strengths or opportunities. Porters five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter at 1979. More precise than PEST, it helps the industrial organization to illustrate the competition intensity in competitive environment (microenvironment) thus decide the attractiveness of specific market.Combining triplet analysis In unified strategies level, all three of them can be used to audit the marketing environment in frame to get a systematic, critical and unbiased appraisal of its operation. (where is the co. now, where does the co. want to go and how should the co. rganize its resources to get there) In business strategy level, it also important that because of the increasingly rate of change in market environment, three of the analysis need to achieve contingent app roach to shape the strategies to avoid overcome by competitors. Example PEST e. g. construction firm operating on narrow profit margin, react to change I interest rate. Johnson &Johnson baby-care product, react to change in birth rate, thus change the target market to adult female(being material body and gentle to womans skin as well as that of babies)SWOT A consultancy firm S Reputation, expertise W Unable to deal with multi-disciplinary assignments because of size or lack of ability O Well established position with a well defined market niche T other small consultancies looking to invade the marketplace Five forces Coca-cola Present a detailed analysis of the respective(a) locating strategies that may be pursued by a firm (20 marks). What are the keys to successful status (30 marks)? 1. Positioning is to shape the org. o suits the preferences of customers and lead to high consumer loyalty thus building a coercive brand. 2. Market mix, perceptual map 3. There are two levels of positioning strategiesa. avocation level strategies (Brand positioning) Business level strategies are positioning the org. among other org. It is market oriented and can be either market-wide or directed at a particular market (niche approach). b. Generic business strategies (Porter) (competitive advantages) 4. Key to successful market positioning a. A well-positioned brand should appeal to the particular needs of a customer segment because a differential advantage proposition is created. b. There are four key dimensions for a successful positioning Clarity, Consistency (Favorability), Competitiveness (differentiation), Credibility (Explain.. ) c. In order to evaluate the effectiveness of brand-positioning strategies, there are three components we need to consider intended position, actually position and perceived position. Perceived position is the most important, which volition lead to the above-normal performance of the corporate.According to research, benefit positioning and user position is more effective than bear positioning and direct benefit positioning is more effective than indirect benefit positioning (Fuchs et al, 2009). d. To go forward the brand equity, repositioning is very important. We need to realize that positioning is a ongoing process. Competitive advantage is positioning of a single offering in relation to a unique set of potence customers and competitors. For an organization to achieve consistently above-normal market performance, it must create a sustainable competitive advantage (Aaker, 1989).The logic of SCA is that a buyer to purchase offering X, the buyer must perceive the expected returns to him of that offering exceeds the value to him of any alternative solution, that is it must create superior value for its customers. The basis of competitive advantage is increasing the benefit receive by the customers or decreasing the cost. Which lead to different strategic focus on either low cost or differentiation (additional product benefits). So competitive advantages can be porters generic strategies or market orientation. (explain. )