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Strategic Marketing, 3 Edition: Chapter 3: Environmental and Internal Analysis: Market Information and Intelligence

This chapter discusses strategic analysis as the first step in strategic marketing management. It outlines frameworks for analyzing the external environment like PESTLE and Porter's 5 forces. It also discusses analyzing the internal environment using resource audits and the value chain. The chapter emphasizes integrating external and internal analysis using SWOT to identify strategic fit.

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Qadeer Sarwar
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233 views

Strategic Marketing, 3 Edition: Chapter 3: Environmental and Internal Analysis: Market Information and Intelligence

This chapter discusses strategic analysis as the first step in strategic marketing management. It outlines frameworks for analyzing the external environment like PESTLE and Porter's 5 forces. It also discusses analyzing the internal environment using resource audits and the value chain. The chapter emphasizes integrating external and internal analysis using SWOT to identify strategic fit.

Uploaded by

Qadeer Sarwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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West, Ford, & Ibrahim

Strategic Marketing, 3rd edition

Chapter 3: Environmental and


internal analysis: market
information and intelligence

© Douglas West, John Ford, and Essam Ibrahim, 2015. All rights reserved.
Structure
A. INTRODUCTION

1. Overview and Strategy Blueprint


2. Marketing Strategy: Analysis &
Perspectives

C. WHERE DO WE WANT TO BE?

4. Strategic Marketing Decisions,


B. WHERE ARE WE NOW?
Choices & Mistakes
5. Segmentation, Targeting
3. Environmental & Internal Analysis:
& Positioning Strategies
Market Information & Intelligence
6. Branding Strategies
7. Relational & Sustainability
Strategies
D. HOW WILL WE GET THERE?

8. Product Innovation & Development


E. DID WE GET THERE? Strategies
9. Service Marketing Strategies
14. Strategy Implementation, Control 10. Pricing & Distribution Strategies
& Metrics 11. Marketing Communications Strategies
12. International Marketing Strategies
13. Social and Ethical Strategies

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Learning Objectives

 To review the three areas of the Strategic Marketing


Management Process (SMM)

 To define the marketing environment and its components

 To review the analytical models/frameworks that can be


used in the external strategic analysis stage

 To outline the purpose of internal analysis and review


tools/frameworks to use in organisational analysis

 To outline the outcome of the strategic marketing analysis

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Strategic analysis is concerned with understanding
the strategic position of the organisation in
terms of its external environment, internal
resources and competencies, and the
expectations and influence of stakeholders

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Strategic marketing management

The marketing strategy development process


aims to answer a complete set of questions:

 Where are we now?


 Where we want to be?
 How will we get there?
 Did we get there?

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Where are we now?
Environmental and Internal Analysis

 What are the major trends and probable changes in the


marketing environment?

 Who are the main competitors, and how we can differentiate our
offerings from competition?

 Who are the target customers, and what are their needs?

 What competitive advantages and core competences do the


organisation have? Can we sustain it?

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


The marketing environment
Macroenvironment

Economic Political/Legal
Microenvironment

Suppliers Customers
Company

Distributors Competitors

Social
Environment

Technological

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Macro (remote) environment: PESTLE
model
PESTLE:
Political Factors
Economic Factors
Socio-cultural Factors
Technological Factors
Legal Factors
Environment Factors

A framework that assists in analyzing the external (remote)


environment and identifying the existing opportunities & threats

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Micro (competitive) environment: 5 forces model

The purpose:

 Identify and analyse the key external forces that


affect the organisation ability in achieving its goals
and objectives

 Assess the power of each factor and the likely


response

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Porter’s five forces for competitive analysis

POTENTIAL ENTRANTS
Threat of
entrants

SUPPLIERS Competitive BUYERS


Bargaining power Bargaining power
Rivalry

Threat of substitutes
SUBSTITUTES

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Analysis of internal environment

The Purpose:

• Appraise/audit the organisation resources and


capabilities,
• Assess the organisation competitive advantages
• Identify the organisation major strengths and weakness

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Analysis of internal environment

Two models to use:


1. Resource audit
 financial resources,
 human resources,
 physical resources,
 intangible resources

2. Porter’s Value Chain Model:


Help analysing Firm’s Competitive Advantage and Core
Competencies

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Value chain analysis:
Identifying Competitive Advantage

Competitive advantage will arise through:


– Providing buyer value comparable to competitors but
performing value chain activities more efficiently – cost
based advantage

and / or
– Performing value chain activities in unique ways that create
greater buyer value than competitors and hence command a
premium price – differentiation based advantage

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Strategic fit

‘Strategic Fit’ is the effective match and


management of the environmental opportunities
and threats while taking into account the
organisation strengths and weaknesses

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


SWOT analysis

Integrates the internal and external environmental analysis


 Not just a list of SWOT variables!

 SWOT/TOWS Matrix can be helpful

 SWOT/TOWS analysis is the alternative ways in which an


organisation can use its specific strengths to capitalise on
opportunities or to minimise threats and invest in available
opportunities to overcome its weaknesses

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


SWOT (TOWS) matrix

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition


Conclusion
• Strategic marketing management (SMM) process covers 3 areas; strategic
analysis, strategic choice and strategy implementation

• Strategic analysis involves the collection and analysis of relevant types of


information about the environmental forces and trends, and organisational
resources and capabilities

• External (macro) environment can be analysed using PESTLE model, while


the micro environment could be examined using Porter Five forces model.
The internal environment can be assessed using various models, most
notably is the ‘value chain’ approach

• The effectiveness of any marketing intelligence system is dependent on the


frequency of collecting, interpreting, and disseminating the information
required about the marketing environment & competition

• SWOT analysis is an important foundation for producing realistic and


meaningful strategic recommendations for the firm’s future directions

West, Ford, & Ibrahim: Strategic Marketing, 3rd edition

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