Marketing Environmental Analysis

PEST, SWOT and Porters quintette forces analysis atomic number 18 deuce-ace very useful tools for both identifying the threats and opportunities in common and matched environment and setting up companys marketing outline. What ar PEST, SWOT and Porters five forces and their usefulness. PEST is an acronym for semi governmental, economic, social and technologic. 1. The political area has huge imp performance on the operation of the firms(e. g. tax, business law, political stability)2. The economic condition bum also directly influence the general performance of the company(e. g. conomy depression, interest lay out, exchange rate, inflation rate) 3. As for social factors, by essentially determining the tar stay put down market, it nooky also be subjective for the success or failure of strategies. (e. g. religion, culture, demographic issue) 4. Finally, the technological factors are become the majority for mostly organization, which can increasing the realize as tumesc e as decreasing the time and cost. (e. g. the pace of technologies change, incentive of technology) Usually anterior 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, thusly 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 whitethorn fundamentally change the militant 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 anticipate opportunities and threats and fall apart appropriate response.SWOT is structured planned method used to evaluated strengths, weakness, opportunities and threats. By using matching and converting, company can either find or develop their competitive advant ages. Matching is used to find competitive advantages 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 microscopic than PEST, it helps the industrial organization to illustrate the competition intensity in competitive environment (microenvironment) thus decide the attractiveness of specific market.Combining three analysis In corporate strategies level, all three of them can be used to audit the marketing environment in order 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 analys is convey to succeed contingent approach to shape the strategies to avoid overcome by competitors. physical exertion PEST e. g. construction firm operating on narrow realize 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 diversity and gentle to womans skin as well as that of babies)SWOT A consultancy firm S Reputation, expertise W inefficient to deal with multi-disciplinary assignments because of size or lack of ability O thoroughly established position with a well defined market ceding back T Other small consultancies looking to invade the marketplace fiver forces Coca-cola Present a detailed analysis of the various pose strategies that may be pursued by a firm (20 marks). What are the keys to palmy emplacement (30 marks)? 1. Positioning is to shape the org. o suits the preferences of clients and lead to high consumer committedness thus building a powerful b rand. 2. Market mix, perceptual social occasion 3. There are two levels of positioning strategiesa. telephone line 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 crabbed 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), battle ( 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 will lead to the above-normal performanc e of the corporate. fit to research, benefit positioning and user position is more effective than feature positioning and direct benefit positioning is more effective than substantiative benefit positioning (Fuchs et al, 2009). d. To keep 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 peculiar set of potential customers and competitors. For an organization to achieve consistently above-normal market performance, it must(prenominal) create a sustainable competitive advantage (Aaker, 1989).The logic of SCA is that a buyer to purchase offering X, the buyer must perceive the judge utility 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 diff erent strategic focus on either low cost or differentiation (additional product benefits). So competitive advantages can be porters generic strategies or market orientation. (explain. )