STRATEGIC BUSINESS ANALYSIS

Strategic business analysis involves outcome focused thinking, simultaneously understanding

business context, business challenges, and the complexities of the internal and external
environment to frame the scope of the transformation, articulate the business need/outcome,
and shape the agenda for transformation.

STRATEGIC BUSINESS ANALYSIS

This requires a focus on all aspects of the organization. It leverages business analysis, change
leadership, and program and project management.

Strategic business analysis focuses on ‘what and why’, not the ‘how’ of solution implementation.

WHAT IS STRATEGY?

A strategy is a plan of actions taken by managers to achieve the company’s overall goal and
other subsidiary goals. It often determines the success of a company.

WHAT IS STRATEGIC ANALYSIS?

Strategic analysis refers to the process of conducting research on a company and its operating
environment to formulate a strategy.

WHEN DOES STRATEGIC ANALYSIS HAPPEN?

 This happens immediately after identifying the strategic initiatives in strategic planning,
and prior to creating the business case, conducting procurement, and implementation for
a business program or project.
 It is about identifying the core business problems that the business needs to address.
 The business change led delivery leads to more successful outcomes. The business
change led delivery begins with strategic analysis.

A company needs a very well-defined understanding of what it is and what it represents.

VISION – what it wants to achieve in the future (5-10 years)

MISSION STATEMENT – what business a company is in and how it rallies people

VALUES – the fundamental beliefs of an organization reflecting its commitments and ethics

STRATEGIC ANALYSIS PROCESS

1. Perform an environmental analysis of current strategies. (Both internal and external) a

company needs to complete an environmental analysis of its current strategies.
2. Determine the effectiveness of existing strategies a key purpose of a strategic analysis is
to determine the effectiveness of the current strategy amid the prevailing business
environment.
 3. Formulate plans if the answer to the questions posed in the assessment stage is “no” or
“unsure,” we undergo a planning stage where the company proposes strategic
alternatives.
4. Recommend and implement the most viable strategy after assessing all possible
strategic alternatives, we choose to implement the most viable and quantitatively
profitable strategy.

LEVELS OF STRATEGY

1. CORPORATE-LEVEL (PORTFOLIO)

At the highest level, corporate strategy involves high-level strategic decisions that will help a
company sustain a competitive advantage and remain profitable in the foreseeable future.

2. BUSINESS-LEVEL

at the median level of strategy are business-level decisions. The business-level strategy
focuses on market position to help the company gain a competitive advantage in its own
industry or other industries.

3. FUNCTIONAL-LEVEL

At the lowest level are functional-level decisions. They focus on activities within and between
different functions, aimed at improving the efficiency of the overall business. These strategies
are focused on particular functions and groups.

HOW IMPORTANT STRATEGIC ANALYSIS IS?

Business analysis involves understanding and determining how organizations work so that their
full potential can be realized. It includes the definition of organizational goals and identifying
strategies an organization needs to follow so it can achieve these goals and objectives.

ADVANTAGES OF STRATEGIC BUSINESS ANALYSIS

a) Monitor and control progress through management accounting controls

b) Makes management think in advance
c) Optimizes the use of scarce resources
d) Ensures consistency in the pursuit of goals and objectives
e) Seamlessly make organization fit into its environment f. Guides the path of the business

DISADVANTAGES OF STRATEGIC BUSINESS ANALYSIS

a. Could be expensive in terms of time and money

b. Not so useful in managing crisis
c. Blindfold management from identifying and taking opportunities as they arise

ROLE OF STRATEGIC BUSINESS ANALYSIS

 Strategic business analysis is critical to achieving improved business results. It helps

businesses shift from strategy to execution by facilitating the development of guiding
strategies.
 It gives the company the ability to articulate and accelerate its change.
  The strategic initiatives can be thought of as a multi streamed program or a series of
projects that work together to achieve the targeted business objective.

ROLES OF STRATEGIC BUSINESS ANALYSIS

 Strategic business analysis is critical to achieving improved business results. It helps

businesses shift from strategy to execution by facilitating the development of guiding
strategies.
 It gives the company the ability to articulate and accelerate its change. The strategic
initiatives can be thought of as a multi streamed program or a series of projects that
work together to achieve the targeted business objective.

STRATEGIC BUSINESS ANALYSIS TOOLS AND TECHNIQUE

Strategic Analysis

the process of conducting research on the business environment within which an organization
operates and on the organization itself, in order to formulate strategy.

Examples of analytical methods used in strategic analysis include:

 SWOT analysis
 PEST analysis
 Porter’s five forces analysis
 Four corner’s analysis
 Value chain analysis
 Early warning scans
 War gaming.

SWOT ANALYSIS

A SWOT analysis is a simple but widely used tool that helps in understanding the strengths,
weaknesses, opportunities and threats involved in a project or business activity. The use of this
is to define the objectives of the project or the business activity and identifies the internal and
external factor that is necessary to achieve that objective.

PEST ANALYSIS

 PEST analysis is a scan of the external macro-environment in which an organization

exists.
 It is a useful tool for understanding the political, economic, socio-cultural and
technological environment that an organization operates in.
 It can be used for evaluating market growth or decline, and as such the position,
potential and direction for a business.

POLITICAL FACTORS - These include government regulations such as employment laws,

environmental regulations and tax policy. Other political factors are trade restrictions and
political stability

ECONOMIC FACTORS - These affect the cost of capital and purchasing power of an
organization. Economic factors include economic growth, interest rates, inflation and currency
exchange rates.
SOCIAL FACTORS - this impact on the consumer’s need and the potential market size for an
organization’s goods and services. Social factors include population growth, age demographics
and attitudes towards health.

TECHNOLOGICAL FACTORS - These influence barriers to entry, make or buy decisions and
investment in innovation, such as automation, investment incentives and the rate of
technological change.

PORTER’S FIVE FORCES

 Porter's five forces of competitive position analysis was developed in 1979 by Michael E.
Porter of Harvard Business School as a simple framework for assessing and evaluating
the competitive strength and position of a business organization.
 This theory is based on the concept that there are five forces which determine the
competitive intensity and attractiveness of a market. Porter’s five forces helps to identify
where power lies in a business situation.

THE FIVE FORCES

 Supplier power
 Buyer power
 Competitive rivalry
 Threat of substitution
 Threat of new entry

VALUE CHAIN ANALYSIS

Value chain analysis is based on the principle that organizations exist to create value for their
customers. In the analysis, the organization’s activities are divided into separate sets of
activities that add value. The organization can more effectively evaluate its internal capabilities
by identifying and examining each of these activities. Each value adding activity is considered to
be a source of competitive advantage.

The three steps for conducting a value chain analysis are:

1. Separate the organization’s operations into primary and support activities

2. Allocate cost to each activity
3. Identify the activities that are critical to customer’s satisfaction and market success
a. Company mission
b. Industry type
c. Value system

EARLY WARNING SYSTEMS

The purpose of strategic early warning systems is to detect or predict strategically important
events as early as possible. They are often used to identify the first scene of attack from a
competitor or to assess the likelihood of a given scenario becoming reality.

WAR GAMING

 War games are a useful technique for identifying competitive vulnerabilities and
misguided internal assumptions about competitors’ strategies.
 They also encourage new ways of thinking about the competitive context. War games
are often particularly useful for organizations facing critical strategic decisions.
GOOD MARKETING & PROMOTION TECHNIQUES MARKETING STRATEGY &
STRUCTURE

PRODUCT - One of the most important marketing techniques is creating a product that people
want by identifying a benefit consumers want and creating a unique selling point based on that
consumer demand.

PRICE - Pricing your product is a function of marketing, not accounting.

PLACE - Another important marketing technique is to choose the right places to sell your
product or service.

PROMOTION - Once you know exactly what you’re going to sell, what your unique benefit is,
what price you’re setting and where you’re going to sell, it’s time to promote your product or
service.

Challenges in Marketing Products

 Build a Better Mousetrap - Making a superior product relies on more than high-quality
materials or lots of bells and whistles.
 The Price is Right - Another key challenge you’ll face when trying to sell a product is
finding the optimal price.
 Place Your Bet - The locations you use to sell your wares can make or break or your
product, with each distribution channel choice providing a variety of challenges.
 Strut Your Stuff - Once you know your target customer, your unique benefit and where
you’ll be selling, create a promotion plan that focuses on communicating a message that
creates a consistent image, or brand, for your product.

HOW TO IDENTIFY CHARACTERISTICS OF A GOOD MARKETING PLAN

 Research - An effective marketing plan provides you with objective information to

confidently make decisions.
 Financial Information - Another characteristic of a complete marketing plan is detailed
financial information that helps you determine at what price you should sell your product
or service.
 Distribution Overview - You might not have the financial resources to sell your
products using all the methods available to you, such as through wholesalers,
distributors, retailers, sales reps, online through your website or using direct-response
methods.
 Communications - Once you’ve finished your research and planning, it’s time to
develop the communications portion of your marketing plan.

KEY INGREDIENTS TO MOTIVATE PEOPLE TO BUY

 Understand Your Customers - A key to increasing sales is understanding your

customers.
 Refine Your Product - Once you know what the marketplace wants, examine your
product to determine if it delivers precisely what your buyers want.
 Consider Pricing Strategies - People are motivated to buy products based on both
high and low price points.
 Sell the Benefits - Don’t talk about your company, your product features or your latest
promotion as the main message of your advertising.
 Create a Brand - Motivate consumers to want your product by positioning it in the
marketplace to appeal to a single desire certain customers have. 
PRODUCTION MANAGEMENT

Is the process of effectively managing the resources required to turn raw materials into finished
products, focusing on the entire product lifecycle. Of course, these resources vary, including
everything from people and materials to the various types of equipment used across facilities.

WHY IS PRODUCTION MANAGEMENT IMPORTANT?

Because production management hones in on factory-level activities, it is an essential aspect for

manufacturers to embrace. Therefore, it’s vital for a manufacturing business to pay close
attention to all activities involved in associated processes.

Some of the key elements of why production management is important are as follows:

 To reduce manufacturing costs

 To ensure proper and optimal use of resources
 To improve competitiveness in the market
 To meet set business targets and objectives

Benefits of a production management system

 Intuitive user interface

 Detailed customization
 Comprehensive analytics
 Shared access

MANAGERIAL ACCOUNTING

Managerial accounting (also known as cost accounting or management accounting) is a branch

of accounting that is concerned with the identification, measurement, analysis, and
interpretation of accounting information so that it can be used to help managers make informed
operational decisions.

TECHNIQUES IN MANAGERIAL ACCOUNTING

1. Margin analysis - Margin analysis is primarily concerned with the incremental

benefits of optimizing production. 
2. Constraint analysis - The analysis of the production lines of a business identifies
principal bottlenecks, the inefficiencies created by these bottlenecks, and their
impact on the company’s ability to generate revenues and profits.
3. Capital budgeting - Capital budgeting is concerned with the analysis of information
required to make the necessary decisions related to capital expenditures.
4. Inventory valuation and product costing - Inventory valuation involves the
identification and analysis of the actual costs associated with the company’s
products and inventory.
5. Trend analysis and forecasting - Trend analysis and forecasting are primarily
concerned with the identification of patterns and trends of product costs, as well as
with the recognition of unusual variances from the forecasted values and the reasons
for such variances.
CORPORATE OBJECTIVES, STRATEGY AND STRUCTURE

CORPORATE OBJECTIVES

Corporate objectives are defined as the goals of the organization that are created to
provide a sense of direction and steer the actions of the organization.

CRITERIA FOR A GOOD CORPORATE OBJECTIVE:

Good corporate objectives meet the SMART criteria: specific, measurable, achievable, realistic,
time-specific.

 Specific – what aspects or operational variables do you have to achieve?

 Measurable – you can quantify the objective. 
 Achievable – the objectives you set are within the limits of your company’s internal
capabilities, neither too easy nor impossible to achieve. 
 Realistic – the objective is according to the conditions under which it is to be achieved.
To set an objective, it requires you to consider aspects such as market conditions and
competition, capabilities, and company resources to set the percentage above. 
 Time-specific – you decide when to achieve the above objectives.

CORPORATE STRATEGY

A corporate strategy refers to a companywide strategy aligned with the company’s vision
and objectives, aiming to create value and increase profit. It considers an organization’s overall
nature, ecosystem, and ambition. It aligns with the optimum utilization and allocation of
resources.

TYPES OF CORPORATE STRATEGY

The primary aim of formulating a corporate strategy is to distribute its resources in the best way
to derive maximum returns and achieve the company's goals. Here are the different types of
corporate strategies:

STABILITY STRATEGY

A stability strategy is often preferred by many companies that are currently satisfied with
its market position. They continue to delve into the same market and sell the same product but
may incorporate research and development and innovation to the existing products. This type of
strategy ensures a continuous flow of revenue. The company may try to engage their target
market by presenting offers and trials to them.

EXPANSION STRATEGY

The expansion strategy is suitable for a firm that has already established its foothold
within a certain market and aspires to grow in other markets or expand its product offerings.
They may want to develop and sell new products, increase their market share or internationalise
a business that has already saturated the domestic market. Expansion may involve the
diversification of the business functions and thus a larger allocation of resources. This strategy
results in greater returns as compared to the previous performance of the company. It can also
mean more growth opportunities for the employees.

RETRENCHMENT STRATEGY

 A retrenchment strategy is a means of cutting down all the products and services that are
not profitable for your business to attain financial stability. This could often lead to asset sales or
minimize employees’ strength. 
COMBINATION STRATEGY

This type of strategy is a combination of the previous three types: stability, expansion
and retrenchment. A company may adopt a combination strategy after they have weighed the
pros and cons of each of their products or business units. 

IMPORTANCE OF CORPORATE STRATEGY

A corporate strategy is important, as it can help indicate the future success and health of the
company. Here are some reasons why a corporate strategy is important

 Larger company overview: Instead of considering each business unit, this strategy
focuses on the entire company.
 Organisational rearrangement: It can help re-engineer an organisation radically if
required.
 Problem identification: A corporate strategy helps identify existing or potential
problems in an organisation that could impede its ability to achieve its goals.
 Prevent counterproductive measures: It can help prevent the implementation of any
other plan or strategy that can be counterproductive or not viable for the company's
healthy growth.
 Guidance for business strategies: A corporate strategy gives a starting point to build
individual business unit strategies.
 Contingency plans: It can help the company create appropriate contingency plans to
implement when the need arises.

CORPORATE STRUCTURE

Corporate structure refers to the organization of different departments or business units

within a company. Depending on a company’s goals and the industry in which it operates,
corporate structure can differ significantly between companies. Each of the departments usually
performs a specialized function while constantly collaborating with each other to achieve
corporate goals and values.

TYPES OF CORPORATE STRUCTURE

FUNCTIONAL STRUCTURE

Under this structure, employees are grouped into the same departments based on
similarity in their skill sets, tasks, and accountabilities. 

DIVISIONAL STRUCTURE

This structure organizes business activities into specific market, product, service, or
customer groups. The purpose of the divisional structure is to create work teams that can
produce similar products matching the needs of individual groups

MATRIX STRUCTURE

Matrix Structure is a combination of functional and divisional structures. This structure allows
decentralized decision making, greater autonomy, more inter-departmental interactions, and
thus greater productivity and innovation. Despite all the advantages, this structure incurs higher
costs and may lead to conflicts between the vertical functions and horizontal product lines.

HYBRID STRUCTURE

Like the Matrix Structure, the Hybrid Structure combines both functional and divisional structure.
Instead of grid organization, Hybrid Structure divides its activities into departments that can be
either functional or divisional. This structure allows the utilization of resources and knowledge in
each function, while maintaining product specialization in different divisions. 
IMPORTANCE OF CORPORATE STRUCTURE

 More effective communication

 Clear reporting relationships
 Goal achievement and growth

Strategic Planning in Modern Business Enterprises

 WHAT IS STRATEGIC PLANNING?

Strategic planning is the art of creating specific business strategies, implementing them,
and evaluating the results of executing the plan, in regard to a company’s overall long-term
goals or desires. It is a concept that focuses on integrating various departments (such as
accounting and finance, marketing, and human resources) within a company to accomplish its
strategic goals. The term strategic planning is essentially synonymous with strategic
management.

 STRATEGIC PLANNING PROCESS

 Understand Your Business

 Analyze Your Strengths, Weaknesses, and Threats
 Define Objectives and Set Goals
 Put the Plan into Action

THE IMPORTANCE OF STRATEGIC PLANNING

 Focus and direction

 Operational efficiency
 Competitive environment
 Employee morale
 Stability and longevity

WHAT IS BIG DATA?

The technology known as Big Data is one of the most impactful innovations of the digital age.
Patterns and correlations hidden in massive collections of data, revealed by powerful analytics,
are informing planning and decision making across nearly every industry. In fact, within just the
last decade, Big Data usage has grown to the point where it touches nearly every aspect of our
lifestyles, shopping habits, and routine consumer choices.

THE USE OF BIG DATA IN STRATEGIC PLANNING. 

 Big data and marketing go hand-in-hand, as businesses harness consumer information

to forecast market trends, buyer habits and other company behaviors. All of this helps
businesses determine what products and services to prioritize.
 By learning how to collect and analyze big data, and finding a way to incorporate it into
your strategic business plan, you’ll be enabling your company to market more effectively,
explore new revenue opportunities, provide better customer service, improve operational
efficiency, or leverage new advantages over competitors.

HOW BIG DATA INFLUENCE STRATEGIC PLANNING

The analysis of large data sets has the potential to transform long-standing traditional
organizational practices, as well as business planning. Big data strategies are becoming
essential to compete in the contemporary marketplace, and for this reason organizations should
consider the following to enhance their data culture: 

1. Understand what it means to be a data-driven organization and give the right people
access to data.
 2. Adopt modern technologies with insights enabled by artificial intelligence (AI), data
lakes, collaboration tools, logical data warehouses, and augmented analytics.
3. Disrupt company culture by incentivizing innovation, addressing issues directly, and
facilitating collaboration between decision makers and technical staff.
4. Make your organization’s data findable, accessible, interoperable, and reusable.
5. Develop data literacy so all employees can communicate precisely around key
concepts.
6. Make data a core part of your business and approach business problems from an
analytical perspective.

STRATEGIC MARKETING ANALYSIS

WHAT IS MARKETING

MARKETING AUTHOR PHILIP KOTLER DEFINES MARKETING AS “THE SCIENCE

AND ART OF EXPLORING, CREATING, AND DELIVERING VALUE TO SATISFY THE
NEEDS OF A TARGET MARKET AT A PROFIT” (KOTLER 2016)

MARKETING MYOPIA

MEANS FOCUSING TOO MUCH ON THE DETAILS OF A PRODUCT AND THINKING ABOUT
ONLY THE CUSTOMER WANTS, INSTEAD OF FOCUSING ON HOW THE CUSTOMER
BENEFITS FROM IT AND WHY HE OR SHE NEEDS THE PRODUCT.

SERVICE MARKETING

FOUR FEATURES SEPARATE A SERVICE BUSINESS FROM COMPANIES OFFERING

ONLY PRODUCTS

1. INTANGIBILITY- cannot be seen, felt, heard, tasted or smelled before making the
purchase.
2. INSEPARABILITY- impossibility of separating the service from its provider.
3. VARIABILITY- diversity in the service outcome.
4. PERISHABILITY- the service is not possible to be stored for a later time like products
are.

MARKETING CONCEPTS

1. TARGET MARKET Consists of the consumers whose needs and wants the company
has the most potential to satisfy.
2. CUSTOMER NEEDS, WANTS AND DEMANDS The target market has to be
understood. This requires a broad knowledge of the customer needs, wants, and
demands.
3. SEGMENTATION Divided into customer segments, each segment including customers
with similar features, needs and desires. The segmentation can be based on
demographic, geographic, psychographic or behavioural features.
4. POSITIONING originally defined as “ what the product stands for, and who it is for ” , by
David Ogilvy in 1983. This definition includes a reason for selling the product and takes
the target group into consideration.
5. DIFFERENTIATION means developing unique beneficial 25 features to the product or
service, that the competitors are lacking, in order to satisfy the target customers in a
more effective way than the competitors.
6. VALUE PROPOSITION It communicates the benefits that the customer gains from
choosing the brand over its competitors.
 7. MARKETING COMMUNICATION MIX consists of components the company uses for
communicating with the target customers, building customer relationships and delivering
value to the customers.

COMPONENTS OF MARKETING COMMUNICATION MIX

1. ADVERTISING process of promoting the company ’ s offerings to the target market in

exchange for a payment, on different channels, such as newspapers, TV, magazines,
internet and social media.
2. SALES PROMOTION include different types of discounts, contests and free samples.
3. PUBLIC RELATIONS are used for communicating the brand image, increasing the
brand awareness and gaining a good reputation.
4. PERSONAL SELLING way of attracting customers to purchase the company ’ s
offerings and improving the customer relationships by personally interacting with the
customers, analyzing their needs and aiming to offer a suitable product to solve the
customers ’ problems effectively

COMPETITIVE ADVANATGE

A COMPETITIVE ADVANTAGE IS A FEATURE OF A COMPANY THAT MAKES THE

CONSUMERS CHOOSE THEIR OFFERINGS OVER THOSE OF THE COMPETITORS. THIS
FEATURE BRINGS MORE VALUE TO THE CUSTOMERS THAN THE COMPETITORS’
FEATURES. IT CAN BE FOR EXAMPLE A MORE AFFORDABLE PRICE OR A BETTER
SOLUTION TO THE CUSTOMER’S PROBLEM, WHICH GIVES THE OPPORTUNITY TO
HAVE HIGHER PRICES THAN THE COMPETITORS.

STRATEGIC MARKETING

STRATEGIC MARKETING IS MARKETING THAT AIMS FOR DIFFERENTIATION AND

BRINGING VALUE TO THE CUSTOMERS AS EFFECTIVELY AS POSSIBLE BY
ANSWERING THE THREE FOLLOWING QUESTIONS:

 WHICH MARKETS TO COMPETE IN

 HOW TO UTILIZE THE COMPANY’S COMPETITIVE ADVANTAGES
 WHEN AND HOW TO ENTER EACH MARKET

MARKETING STRATEGY

IS A STRATEGY THAT CONSISTS OF ALL MARKETINGRELATED GOALS AND

PLANS. IT IS A PROCESS THAT AIMS FOR BRINGING VALUE TO EVERY STAKEHOLDER
IN THE COMPANY, INCLUDING THE CUSTOMERS, THE SHAREHOLDERS AND THE
SUPPLIERS. A MARKETING STRATEGY AIMS FOR INCREASING THE CUSTOMERS’
INTEREST OF THE COMPANY’S OFFERINGS, AND ENCOURAGING THEM TO CHOOSE
THEIR COMPANY INSTEAD OF THEIR COMPETITORS.

DEVELOPING A NEW MARKETING STRATEGY

 BUDGETING
 UPDATING THE TARGET CUSTOMERS
 GATHERING DATA OF THE CUSTOMER
 UPDATING DIFFERENTIATIONS
 EXAMINING MARKETING MATERIALS
 EXAMINING WEBSITE AND SOCIAL MEDIA CHANNELS
 DOCUMENTING ISSUES
 PLANNING HOW TO OVERCOME THE ISSUES
FORMS OR MARKETING

1. RELATIONSHIP MARKETING Relationship marketing means increasing the sales by

building long-term relationships with the customers. Good customer relationships make
the customers more likely to become loyal to the brand that the company represents,
increasing the volume of purchases in the future.
2. TRANSACTIONAL MARKETING Transactional marketing focuses on increasing the
sales instead of building long-term relationships. This can be done by setting discounts,
using coupons or organizing promotional events. Transactional marketing is especially
suitable for large companies with large customer bases, because it might be difficult to
focus on maintaining good relationships with each customer
3. WORD-OF-MOUTH MARKETING Word-of-mouth marketing is usually a result of a
satisfied customer. It means that the customer spreads positive messages about the
company or its products or services to others by oral communication, after experiencing
it to be satisfying. Word-ofmouth marketing can be seen as one of the most important 36
marketing techniques because consumers typically trust the opinions of their friends and
family, and are therefore more likely to buy the company ’ s products or services when
recommended by them than because of any other type of marketing.
4. SOCIAL MEDIA MARKETING Social media marketing is marketing taking place on
social media platforms. Social media marketing is becoming more important as the use
of social media increases. One of the main advantages of social media marketing is that
the consumers are reached easily regardless of their location. It also gives an
opportunity for the consumers to participate in the processes, and to communicate their
needs and wants more clearly.

PRODUCT LIFE CYCLE

A PRODUCT LIFE CYCLE IS THE LENGTH OF TIME FROM A PRODUCT FIRST

BEING INTRODUCED TO CONSUMERS UNTIL IT IS REMOVED FROM THE MARKET. A
PRODUCT'S LIFE CYCLE IS USUALLY BROKEN DOWN INTO FOUR STAGES;

1. INTRODUCTION THIS PRODUCT LIFE CYCLE STAGE INVOLVES DEVELOPING A

MARKET STRATEGY, USUALLY THROUGH AN INVESTMENT IN ADVERTISING
AND MARKETING TO MAKE CONSUMERS AWARE OF THE PRODUCT AND ITS
BENEFITS.
2. GROWTH THIS SHOULD SEE GROWING DEMAND PROMOTE AN INCREASE IN
PRODUCTION AND THE PRODUCT BECOMING MORE WIDELY AVAILABLE.
3. MATURITY AS THE PRODUCT LIFE CYCLE REACHES THIS MATURE STAGE
THERE ARE THE BEGINNINGS OF MARKET SATURATION. MANY CONSUMERS
WILL NOW HAVE BOUGHT THE PRODUCT AND COMPETITORS WILL BE
ESTABLISHED, MEANING THAT BRANDING, PRICE AND PRODUCT
DIFFERENTIATION BECOMES EVEN MORE IMPORTANT TO MAINTAIN A MARKET
SHARE.
4. DECLINE EVENTUALLY, AS COMPETITION CONTINUES TO RISE, WITH OTHER
COMPANIES SEEKING TO EMULATE YOUR SUCCESS WITH ADDITIONAL
PRODUCT FEATURES OR LOWER PRICES, SO THE LIFE CYCLE WILL GO INTO
DECLINE.

PRODUCT PORTFOLIO MATRIX

Product life cycle also known as Boston Consulting Group (BCG) growth-share matrix is
a planning tool that uses graphical representations of a company ’ s products and services in an
effort to help the company decide what it should keep, sell, or invest more in. The matrix
categorises products as question marks, stars, cash cows, and pets (also known as dogs). The
picture below shows the grid with its four quadrants and product types; cash cows are
represented by the dollar sign and pets by a cross.
QUESTIONS MARK - They typically grow fast but consume large amounts of company
resources.

STAR - Stars show high growth and deliver the desired benefits.

CASH COWS - Cash cows are products characterized by low growth, but they offer plenty of
business benefits.

PETS - finally, exhibit low growth and offer few benefits. company ’ s product has a low market
share and is at a low rate of growth.

COMPREHENSIVE STRATEGIC MARKETING BUDGET

WHAT IS MARKETING BUDGET?

A MARKETING BUDGET IS THE TOTAL AMOUNT OF MONEY YOU HAVE TO

SPEND ON YOUR MARKETING STRATEGY. A MARKETING BUDGET PLAN IS A DETAILED
DOCUMENT THAT OUTLINES WHERE YOU WILL INVEST YOUR MARKETING FUNDS,
ALONG WITH THE WHO, WHAT, WHY, AND HOW OF EACH EXPECTED EXPENSE.

WHAT IS A DECENT MARKETING BUDGET?

ACCORDING TO THE U.S. SMALL BUSINESS ADMINISTRATION, YOU SHOULD AIM

TO SPEND 7-8% OF YOUR TOTAL (GROSS) REVENUE ON MARKETING. THIS AMOUNT
INCLUDES THE COST OF ADVERTISING, PRODUCING CONTENT, AND RUNNING THE
MARKETING DEPARTMENT

PRODUCT PORTFOLIO MANAGEMENT

Product portfolio management refers to the practice of managing an organization’s entire

product portfolio, which consists of all the products the organization has. A product portfolio
manager may be responsible for allocating resources for optimal ROI, identifying areas of
improvement, and keeping the products aligned with the organization’s broader strategy.

OBJECTIVES OF PRODUCT PORTFOLIO MANAGEMENT

 The main objective of product portfolio management for existing product lines is to help
balance risk and growth for an organization. A thorough portfolio management strategy
will evaluate existing product successes, risks, and further growth opportunities.
 Another important objective of managing product portfolios is to ensure that staff and
financial resources are effectively and efficiently allocated to existing product lines.

TOOLS AND TECHNIQUES FOR PRODUCT/SERVICE MANAGEMENT

Here are some of the most commonly used tools and techniques:

1. MARKET RESEARCH: Market research is used to understand customer needs,

preferences, and behaviors. It can be conducted through surveys, focus groups, and
other research methods to inform product development decisions.
2. PRODUCT ROADMAPS: A product roadmap is a high-level visual summary that
outlines a company's product development plans and strategies. It helps stakeholders
understand the direction and timeline of the product/service offerings.
 3. PROTOTYPING: Prototyping is the process of creating a preliminary version of a
product or service to test its functionality, usability, and desirability. Prototyping can help
identify design flaws and make improvements before launching the product/service.
4. PRODUCT LIFECYCLE MANAGEMENT: Product lifecycle management (PLM) is the
process of managing a product/service from idea to retirement. PLM includes activities
such as design, development, testing, launch, and maintenance.
5. AGILE DEVELOPMENT: Agile development is an iterative and collaborative approach
to product development that emphasizes flexibility and responsiveness to customer
feedback. Agile teams work in sprints, typically two-week periods, to complete small,
incremental improvements to the product.
6. CUSTOMER SEGMENTATION: Customer segmentation is the process of dividing
customers into groups based on similar characteristics, such as demographics or
behavior. This helps companies create targeted product/service offerings and marketing
strategies.
7. PROJECT MANAGEMENT TOOLS: Project management tools, such as Gantt charts
and project management software, can be used to manage the development and launch
of new products/services. These tools help teams track progress, identify bottlenecks,
and ensure that projects are completed on time and within budget.
8. PRODUCT TESTING: Product testing is the process of evaluating a product/service's
performance, reliability, and usability before launch. This can involve user testing,
quality assurance testing, and other methods to ensure that the product/service meets
customer expectations and functions as intended.

TECHNOLOGICAL INNOVATION IN THE DIGITAL AGE OF PRODUCT/SERVICE

MANAGEMENT

Some examples of these technological innovations include:

1. DIGITAL PLATFORMS AND MARKETPLACES: Online marketplaces like Shopee,

Lazada, and TikTok Shop have disrupted traditional retail models and provided
consumers with easy access to a wide range of products and services. Digital platforms
and marketplaces also provide companies with opportunities to reach new customers
and expand their offerings.
2. BIG DATA ANALYTICS: With the proliferation of data from various sources, companies
can use big data analytics to gain insights into customer behavior and preferences, as
well as to identify trends and patterns that can inform product development and
marketing strategies.
3. ARTIFICIAL INTELLIGENCE (AI) and machine learning: AI and machine learning
technologies can help companies automate and streamline various processes, such as
customer service, supply chain management, and product recommendations. These
technologies can also be used to personalize products and services for individual
customers.
4. INTERNET OF THINGS (IOT): IoT technologies enable the connection of devices and
objects to the internet, allowing for real-time monitoring and control of products and
services.
5. VIRTUAL AND AUGMENTED REALITY (VR/AR): VR/AR technologies enable
immersive experiences for customers, allowing them to interact with products and
services in new and innovative ways.