MT631
LECTURE # 4
OUTLINE

Review of Homework Assignment

Matrix multiplication calculations of weighted relative worth for each segment
by brand

Assuming:
  1. All members of the segment behave in identical fashion
  2. Consumers desire to maximize their weighted average benefits
  3. The choice amongst products is perceived as being important enough to warrant
    extended decision making

Then:
  • Segment D chooses brand X
  • Segments C & E choose brand Y
  • Segments A & B choose brand Z

Reviews of the relative paths gives insight into why a specific segment chose a given brand

Projections of Market Shares
  • Using market profiles via market size
    • WRONG
  • Using market profiles via market power.....Thanks to Trey McClendon
    • Brand X = 13%
    • Brand Y = 37%
    • Brand Z = 50%

Assault strategies
  • From without (someone not currently in the market - Product Positioning)
  • From within (a current player's attempt to move his/her brand - Product Repositioning)

Competitive Positioning via Perceptual Maps

Mechanics and interpretations of brands within a perceptual space
  • Simplifying assumptions of a Euclidean metric
  • Regions of brand dominance and brand shares under uniform distribution
    of demand
  • The effect of demand clusters (segments) within the perceptual space
  • The effect of repositioning strategies - marginal gains & marginal losses
  • The effect of a new brand entry

The Strategic Marketing Process and its Relationship to Marketing Management

Feedback loops within the analysis, planning and control sequence

Market Analysis
  • Business definition - each brand's target and unique features
    • Portfolio models
    • Lists of critical factors
    • Segment profiles
  • Situation analysis - where are we now relative to competition on salient consumer dimensions?
    • STOW's analysis
      • Internal vs. external factors
      • Potential sources of strength & the Relative Strengths Analysis
      • Typical marketing weaknessess & the Relative Weakness Analysis
      • Environmental monitoring
      • Threats & opportunities - magnitude of influence
      • Matching strengths with opportunities
    • Segment by brand assignments
    • Perceptual mapping

Market Planning
  • Establish objectives - measurable end results that are desired for each brand
    • $ sales (to include BEP)
    • Market share
    • Profits, ROI, etc.
  • Formulate strategy - unifying principles that connect objectives to tactics
    • Product/Market Opportunity Analysis
    • Competitive Advantage Matrix

The listings above are to provide structural assistance to your study.
They are not attended to be inclusive of every item/topic that was presented
in the lecture period.