Endianness or Byte Order
Bhavana Honnappa, Sravya Karnati, Smita Dutta
Abstract
Computers speak different languages, like people. Some write data "left-to-right" and others "right-to-left". If a machine can read its own data it tends to encounter no problems but when one computer stores data and a different type tries to read it, that is when a problem occurs. This document aims to present how Endianness is willing to be taken into consideration how Endian specific system inter-operate sharing data without misinterpretation of the value. Endianness describes the location of the most significant byte (MSB) and least significant byte (LSB) of an address in memory and is defined by the CPU architecture implementation of the system. Unfortunately, not all computer systems are designed with constant Endian architecture. The difference in Endian architecture is a difficulty when software or data is shared between computer systems. Little and big endian are two ways of storing multibyte data- type (int, float, etc.). In little endian machines, last byte of binary representation of the multi byte data- type is stored first. On the opposite hand, in big endian machines, first byte of binary representation of the multi byte datatype is stored first. Suppose we write float value to a file on a little-endian machine and transfer this file to a big-endian machine. Unless there is correct transformation, big endian machine will read the file in reverse order. This paper targets on showcasing how CPU-based Endianness raises software issues when reading and writing the data from memory. We will try to reinterpret this information at register/system-level.
Keywords: -
endianness, big-endian, little-endian, most significant byte (MSB), least significant byte (LSB).
Definition of Endianness: -
Endianness refers to order of bits or bytes within a binary representation of a number. All computers do not store multi-byte value in the same order. The difference in Endian architecture is an issue when software or data is shared between computer systems. An analysis of the computer system and its interfaces will determine the requirements of the Endian implementation of the software. Based on which value is stored first, Endianness can be either big or small, with the adjectives referring to which value is stored first.
Little Endian and Big Endian: -
Endianness illustrates how a 32-bit pattern is held in the four bytes of memory. There are 32 bits in four bytes and 32 bits in the pattern, but a choice has to be made about which byte of memory gets what part of the pattern. There are two ways that computers commonly do this.
Little endian and Big endian are the two ways of storing multibyte data types. Little Endian and Big Endian are also called host byte order and network byte order respectively. In a multibyte data type, right most byte is called least significant byte (LSB) and left most b ...
TataKelola dan KamSiber Kecerdasan Buatan v022.pdf
Endianness or Byte OrderBhavana Honnappa, Sravya Karnati, Smit.docx
1. Endianness or Byte Order
Bhavana Honnappa, Sravya Karnati, Smita Dutta
Abstract
Computers speak different languages, like people. Some write
data "left-to-right" and others "right-to-left". If a machine can
read its own data it tends to encounter no problems but when
one computer stores data and a different type tries to read it,
that is when a problem occurs. This document aims to present
how Endianness is willing to be taken into consideration how
Endian specific system inter-operate sharing data without
misinterpretation of the value. Endianness describes the
location of the most significant byte (MSB) and least significant
byte (LSB) of an address in memory and is defined by the CPU
architecture implementation of the system. Unfortunately, not
all computer systems are designed with constant Endian
architecture. The difference in Endian architecture is a
difficulty when software or data is shared between computer
systems. Little and big endian are two ways of storing multibyte
data- type (int, float, etc.). In little endian machines, last byte
of binary representation of the multi byte data- type is stored
first. On the opposite hand, in big endian machines, first byte of
binary representation of the multi byte datatype is stored first.
Suppose we write float value to a file on a little-endian machine
and transfer this file to a big-endian machine. Unless there is
correct transformation, big endian machine will read the file in
reverse order. This paper targets on showcasing how CPU-based
Endianness raises software issues when reading and writing the
data from memory. We will try to reinterpret this information at
register/system-level.
2. Keywords: -
endianness, big-endian, little-endian, most significant byte
(MSB), least significant byte (LSB).
Definition of Endianness: -
Endianness refers to order of bits or bytes within a binary
representation of a number. All computers do not store multi-
byte value in the same order. The difference in Endian
architecture is an issue when software or data is shared between
computer systems. An analysis of the computer system and its
interfaces will determine the requirements of the Endian
implementation of the software. Based on which value is stored
first, Endianness can be either big or small, with the adjectives
referring to which value is stored first.
Little Endian and Big Endian: -
Endianness illustrates how a 32-bit pattern is held in the four
bytes of memory. There are 32 bits in four bytes and 32 bits
in the pattern, but a choice has to be made about which byte of
memory gets what part of the pattern. There are two ways that
computers commonly do this.
Little endian and Big endian are the two ways of storing
multibyte data types. Little Endian and Big Endian are also
called host byte order and network byte order respectively. In a
multibyte data type, right most byte is called least significant
byte (LSB) and left most byte is called most significant byte
(MSB). In little endian the least significant byte is stored first,
while in big endian, most significant byte is stored. For
example, if we have store 0x01234567, then big and little
endian will be stored as below:
However, within a byte the order of the bits is the same for all
computers, no matter how the bytes themselves are arranged.
Bi -Endian: -
3. Some architectures such as ARM versions 3 and
above, MIPS, PA-RISC, etc. feature a setting which allows
for switchable endianness in data fetches and stores, instruction
fetches, or both. This feature can improve performance or
simplify the logic of networking devices and software. The
word bi-endian, when said of hardware, denotes the capability
of the machine to compute or pass data in either endian format.
Importance of endianness:
Endianness is the attribute of a system that indicates whether
the data type like integer values are represented from left to
right or vice-versa. Endianness must be chosen every time
hardware or software is designed.
When Endianness affects code:
Endianness doesn’t apply to everything. If you do bitwise or
bit-shift operations on an int, you don’t notice endianness.
However, when data from one computer is used on another you
need to be concerned. For example, you have a file of integer
data that was written by another computer. To read it correctly,
you need to know:
· The number of bits used to represent each integer.
· The representational scheme used to represent integers (two's
complement or other).
· Which byte ordering (little or big endian) was used.
Processors Endianness:
CPU controls the endianness. A CPU is instructed at boot time
to order memory as either big or little endian A few CPUs can
switch between big-endian and little-endian. However,
x86/amd64 architectures don't possess this feature. Computer
processors store data in either large (big) or small (little) endian
format depending on the CPU processor architecture. The
4. Operating System (OS) does not factor into the endianness of
the system, rather the endian model of the CPU architecture
dictates how the operating system is implemented. Big endian
byte ordering is considered the standard or neutral "Network
Byte Order". Big endian byte ordering is in a suitable format for
human interpretation and is also the order most often presented
by hex calculators. As most embedded communication
processors and custom solutions associated with the data plane
are Big-Endian (i.e. PowerPC, SPARC, etc.), the legacy code on
these processors is often written specifically for network byte
order (Big-Endian).
Few of the processors with their respective endianness’s are
listed below: -
Processor
Endianness
Motorola 68000
Big Endian
PowerPC (PPC)
Big Endian
Sun Sparc
Big Endian
IBM S/390
Big Endian
Intel x86 (32 bit)
Little Endian
Intel x86_64 (64 bit)
Little Endian
Dec VAX
Little Endian
Alpha
Bi (Big/Little) Endian
ARM
Bi (Big/Little) Endian
IA-64 (64 bit)
5. Bi (Big/Little) Endian
MIPS
Bi (Big/Little) Endian
Bi-Endian processors can be run in either mode, but only one
mode can be chosen for operation, there is no bi-endian byte
order. Byte order is either big or little endian.
Performance analysis:
Endianness refers to data types that are stored differently in
memory, which means there are considerations when accessing
individual byte locations of a multi-byte data element in
memory.
Little-endian processors have an advantage in cases where the
memory bandwidth is limited, like in some 32-bit ARM
processors with 16-bit memory bus, or the 8088 with 8-bit data
bus. The processor can just load the low half and complete
add/sub/multiplication with it while waiting for the higher half.
With big-endian order when we increase a numeric value, we
add digits to the left (a higher non-exponential number has more
digits). Thus, an addition of two numbers often requires moving
all the digits of a big-endian ordered number in storage, to the
right. However, in a number stored in little-endian fashion, the
least significant bytes can stay where they are, and new digits
can be added to the right at a higher address. Thus, resulting in
some simpler and faster computer operation.
Similarly, when we add or subtract multi-byte numbers, we need
to start with the least significant byte. If we are adding two 16-
bit numbers, there may be a carry from the least significant byte
to the most significant byte, so we must start with the least
significant byte to see if there is a carry. Therefore, we start
with the rightmost digit when doing longhand addition and not
from left. For example, consider an 8-bit system that fetches
bytes sequentially from memory. If it fetches the least
significant byte first, it can start doing the addition while the
most significant byte is being fetched from memory. This
6. parallelism is why performance is better in little endian on such
as system. In case, it had to wait until both bytes were fetched
from memory, or fetch them in the reverse order, it would take
longer.
In "Big-Endian" processor, by having the high-order byte come
first, we can quickly analyze whether a number is positive or
negative just by looking at the byte at offset zero. We don't
have to know how long the number is, nor do you have to skip
over any bytes to find the byte containing the sign information.
The numbers are also stored in the order in which they are
printed out, so binary to decimal routines are highly efficient.
Handling endianness automatically:-
To work automatically, network stacks and communication
protocols must also define their endianness, otherwise, two
nodes of different endianness won't be able to communicate.
Such a concept is termed as “Network Byte Order”. All protocol
layers in TCP/IP are defined to be big endian which is typically
called network byte order and that they send and receive the
most significant byte first.
If the computers at each end are little-endian, multi-byte
integers passed between them must be converted to network
byte order before transmission, across the network and
converted back to little-endian at the receiving end.
If the stack runs on a little-endian processor, it's to reorder, at
run time, the bytes of each multi-byte data field within the
various headers of the layers. If the stack runs on a big-endian
processor, there’s nothing to stress about. For the stack to be
portable, it's to choose to try and do this reordering, typically at
compile time.
To convert these conversions, sockets provides a collection of
macros to host a network byte order, as shown below:
7. · htons() - Host to network short, reorder the bytes of a 16-bit
unsigned value from processor order to network order.
· htonl() - Host to network long, reorder the bytes of a 32-bit
unsigned value from processor order to network order.
· ntohs() - Network to host short, reorder the bytes of a 16-bit
unsigned value from network order to processor order.
· ntohl() - Network to host long, reorder the bytes of a 32-bit
unsigned value from network order to processor order.
Let’s understand this with a better example:
Suppose there are two machines S1 and S2, S1 and S2 are big-
endian and little-endian relatively. If S1(BE) wants to send
0x44332211 to S2(LE)
· S1 has the quantity 0x44332211, it'll store in memory as
following sequence 44 33 22 11.
· S1 calls htonl () because the program has been written to be
portable. the quantity continues to be represented as 44 33 22
11 and sent over the network.
· S2 receives 44 33 22 11 and calls the ntohl().
· S2 gets the worth represented by 11 22 33 44 from ntohl(),
which then results to 0x44332211 as wanted.
References: -
· https://www.geeksforgeeks.org/little-and-big-endian-mystery/
· http://cs-fundamentals.com/tech-interview/c/c-program-to-
check-little-and-big-endian-architecture.php
· https://developer.ibm.com/articles/au-endianc/
· https://aticleworld.com/little-and-big-endian-importance/
· https://searchnetworking.techtarget.com/definition/big-endian-
and-little-endian
2
8. 09/03/2020
1
MAN3106 Marketing Strategy
Segmentation, Positioning, and
Selecting Target Markets
1
2
09/03/2020
2
Announcements
Frequently Asked Questions:
1. Is it possible to search for information beyond the case
study? (see also Week 4)
2. Case study is outdated, can I search for the company position
and market stats in
2020?
3. What should I do if there is no political issue in the case?
4. Should I analyse historical information (i.e., first 2-3 pages
in the Gillette case)?
5. Completing SWOT before or after situation analysis (see also
Week 4)
6. Is there an ideal number of alternative strategies that is
recommended to include
9. in the assignment to secure a high mark? (see also Week 4)
7. Can I indicate XYZ in a particular analysis? Could you
please check my XYZ
analysis? (see also Week 4)
8. Reference list
3
Structure of Individual Assignment
§ Executive summary – around 200 words-not included in the
word count
§ Table of contents – not included in the word count
§ Situational analysis (20% of the mark) – Macro environment
(PESTLE),
industry, competitors, & customer environment – around 350
words
§ Internal environment & SWOT analysis (20% of the mark) –
around 350
words
§ Evaluation of current strategies and problem statement (30%
of the mark)
– 400 words
§ Alternative strategies proposition, evaluation, & justification
(30% of the
mark) – around 400 words
§ Reference list (if necessary – not included in the word count)
4
10. 09/03/2020
3
Announcements
Important tips:
1. Students can use tables/figures to present situation analysis,
internal
analysis, and SWOT analysis (excluded from word count). For
each
table/figure, a conclusion should be provided as part of the main
text. For
instance, students can provide two key conclusions for 5 forces
analysis: the
level of competitive intensity and the level of attractiveness of
the market.
2. Problem statement is different to the above-noted conclusions
for each
analysis.
3. Problem statement should be based on linking different
elements identified
in the situation analysis, internal analysis, and SWOT analysis.
Thus, problem
statement should be based on information provided in the case
study.
5
Announcements
11. Important tips:
4. Students can consider novel alternative strategies to address
the identified
problem(s). However, the proposed strategies should be
justified using the
information in the case study. For instance, a company can
expand to new
international markets, if it has strong financial resources and
distributions
channels based on evidences in the case study.
5. An alternative strategy could be: Status Quo - with
improvements
6. The introduced frameworks/principles in the slides and core
textbook are
generic, which can be used for different case studies (and
companies in
reality). Case studies are not identical, and each case study may
provide
different facts. As a critical thinker, you should decide which
facts are critical
and should be considered for a particular analysis.
6
09/03/2020
4
Main Topics
1. Introduction
12. 2. Segmentation and Positioning Principles (Chapter 7)
3. Segmentation and Positioning Research (Chapter 8)
4. Selecting Market Targets (Chapter 9)
7
Introduction and Relevance
Positioning is the act of designing the company’s offering and
image so that
they occupy a meaningful and distinctive competitive position
in the target
customer’s minds. (Kotler, 1997)
8
09/03/2020
5
Introduction and Relevance
Positioning risks and errors
9
1
Segmentation and Positioning Principles
Chapter 7
10
13. 09/03/2020
6
Principles of Market Segmentation
Factors that affect the consumer buying process
§ Decision-making complexity (e.g. high risk, no prior
experience, strong
involvement)
§ Individual influences (e.g. age, occupation, personality
characteristics,
socioeconomic status)
§ Social influences (e.g. culture, reference groups, peers)
§ Situational influences (e.g. temporal, spatial, dispositional
factors)
Need
Recognition
Information
Search
Evaluation
of
Alternatives
Purchase
Decision
Post-
Purchase
Evaluation
14. 11
Principles of Market Segmentation
Market Segmentation
… is the process of dividing a market into
relatively homogeneous segments
or groups.
… should create segments where the
members within the segments have similar
attributes; but where the segments
themselves are dissimilar from each other.
… typically allows firms to be more
successful, because they can tailor products
to meet the needs of a particular market
segment.
Defining the
market to be
segmented
Identifying
market
segments
Forming
market
segments
Finer
segmentation
strategies
15. Selecting
segmentation
strategy
12
09/03/2020
7
Segmenting Consumer Markets
Segmenting consumer market – Three main methods:
§ Background customer characterises
§ Customer attitudes
§ Customer behaviour
13
Segmenting Consumer Markets
Background customer characterises:
UK socio-economic classification scheme
Source: The Market
Research Society.
14
09/03/2020
16. 8
Segmenting Consumer Markets
Background customer
characterises:
The Warner index of status
characteristics
15
Segmenting Consumer Markets
Background customer characterises:
Stages of the family life cycle
16
09/03/2020
9
Segmenting Consumer Markets
Three main methods:
§ Background customer characterises
§ Customer attitudes: Attitudinal characteristics attempt to draw
a causal link
between customer characteristics and marketing behaviour
§ Mainly examine benefits/preferences customers are seeking
- e.g. Banking industry: Convenient access, security, interest
17. rate
§ Customer behaviour: The most direct method – Covers
purchase behaviour,
consumption behaviour, and communication behaviour
§ Purchases behaviour: Early adaptor, Brand loyalty, etc.
§ Consumption behaviour: Usage pattern, Usage volume, etc.
§ Communication behaviour: Lead users, Promotions, etc.
17
Implementing Market Segmentation
§ Identify the scope and purpose of segmentation (e.g. new
product launch, market
penetration with existing products)
§ Identify the level of segmentation: Strategic, managerial, and
operation
18
09/03/2020
10
Implementing Market Segmentation
Challenges/problems of implementing market segmentation
§ Organisation structure
§ Internal policies
§ Corporate culture
§ Information and reporting
§ Decision-making process
18. § Resource/capabilities
§ Operation systems
19
2
Segmentation and Positioning Research
Chapter 8
20
09/03/2020
11
Segmentation Research
Two broad approaches
§ Priori segmentation
§ Segmentation is known in advance
§ Easiest way of segmentation based on
demographic or socio-economic stats available
in the public domain (e.g., Target Group Index, ACORN)
§ Post-hoc or cluster-based segmentation
§ Segmentation is not known in advance
§ Data will be collected based pre-defined
criteria using quantitative and/or qualitative
methods
21
19. Segmentation Research
Post-hoc or cluster-based segmentation
22
09/03/2020
12
Positioning Research
Two broad approaches
§ Qualitative research methods
§ Uncover brand, product, company image
§ Semi-structured techniques to gain in-depth understanding of
respondents
perceive the world around them
§ Effective in development of advertising programmes
§ Quantitative approaches - Investigate positioning relative to:
a. Position of major competitors in the market (e.g., market
share, coverage,
product portfolio, etc)
b. Target customers’ desires and needs (e.g., value for money,
reliability, quality,
safety, convenience, etc)
23
21. 27
Introduction
Targeting
… means choosing to focus on one (or more) market segments
based on their
attractiveness.
… determines which customer group(s) the organization will
serve (and which not).
§ Example of different targeting strategies
28
09/03/2020
15
The Process of Selecting Market Targets
The process of selecting market targets
1. Define the market
2. Define how the market is segmented
3. Determine market segment attractiveness
4. Determine current and potential strength
5. Making market/segment choices
29
The Process of Selecting Market Targets
1. Define the market
Product-customer matrix: The underlying
25. The End. Have Fun!
38
09/03/2020
20
Reading Resources
Chapters 7, 8, & 9: Hooley, G., Piercy, N. F., and Nicoulaud, B.
(2017), Marketing Strategy &
Competitive Positioning, Prentice Hall, 6th Edition.
Chapter 5: Ferrell, O. C. and Hartline M. D. (2014), Marketing
Strategy, Cengage, 6th Edition.
Dickson, P. R., & Ginter, J. L. (1987). Market segmentation,
product differentiation, and marketing
strategy. Journal of Marketing, 51(2), 1-10.
Green, P. E., & Krieger, A. M. (1991). Segmenting markets with
conjoint analysis. Journal of
Marketing, 55(4), 20-31.
Hooley, G., Broderick, A., & Möller, K. (1998). Competitive
positioning and the
resource-based view of the firm. Journal of Strategic Marketing,
6(2), 97-116.
Moschis, G. P., Lee, E., & Mathur, A. (1997). Targeting the
mature market: opportunities and
challenges. Journal of Consumer Marketing, 14(4), 282-293.
26. Yankelovich, D., & Meer, D. (2006). Rediscovering market
segmentation. Harvard Business Review,
84(2), 122.
39
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Gillette case study
situation analysis
Week 3 - Competitive market analysis Gillette case study
situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Gillette case study SWOT analysis
Week 5 - Segmentation, positioning, and selecting target
markets
Gillette case study problem identification &
alternative strategies provision
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix Using metaphors in
marketing campaigns
Week 8
- Competing through superior service and customer
27. relationships
Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10
- Ethics and social responsibility in marketing strategy
- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
40
01/03/2020
1
MAN3106 Marketing Strategy
Understanding the Organisational Resource Base
Competing Through Innovation
1
2
01/03/2020
28. 2
Announcements
Frequently Asked Questions:
1. Using perceptual (or positioning) map for competitor analysis
2. PDF vs PPT lecture slides
3. Completing SWOT before or after situation analysis
4. Is there an ideal number of alternative strategies that is
recommended to
include in the assignment to secure a high mark?
5. Individual assignment structure and assessment criteria
6. Where I can find the individual assignment case study?
7. Can I indicate XYZ in a particular analysis? Could you
please check my XYZ
analysis?
3
Main Topics
1. Chapter 6: Understanding the Organisational Resource Bass
a. Resource-based View
b. Marketing resources – Assets
c. Marketing resources – Capabilities
d. Marketing resources – Dynamic capabilities
2. Chapter 12: Competing Through Innovation
a. Why Innovation Matters
b. Engaged to a Robot? The Role of AI in Service
c. Planning for New Products/Services
d. New Product/Service Development Process
29. 4
01/03/2020
3
Chapter 6
Understanding the Organisational Resource Base
5
Unit of Analysis in Market Analysis
Unit of
Analysis
External
Environment
Macro-
Environment
Micro-
Environment
Internal
Environment
6
01/03/2020
30. 4
Analysis of the Internal Environment
Review of current marketing objectives, strategy, and
performance
§ What are the current marketing goals and objectives?
§ How are current marketing strategies performing with respect
to anticipated
outcomes?
Review of current and anticipated organisational resources
§ What is the state of current organisational resources?
§ Are these resources likely to change for the better or worse in
the near future?
§ If the changes are for the better, how can these added
resources be used to better
meet customers’ needs?
Review of current and anticipated cultural and structural issues
§ What are the positive and negative aspects of the current and
anticipated
organisational culture?
§ What issues related to internal politics or management
struggles
might affect the marketing activities?
7
Resource-based View
§ Resource-based view (RBV) is a framework to determine the
strategic resources a
firm can exploit to achieve sustainable competitive advantage
and to explain
31. performance heterogeneity across firms (Barney, 1991).
§ A key insight arising from RBV is that not all resources are of
equal importance
§ VRIO Framework:
§ Valuable – enable a firm to implement its strategies.
§ Rare – not available to other competitors.
§ Imperfectly (or costly to) imitable –
not easily implemented by others.
§ Organized to Capture Value –
resources do not confer any
advantage for a firm if they are not
organized using organisational
structure, processes/capabilities,
and culture.
8
01/03/2020
5
Resource-based View
§ Value-creating disciplines: Only some resources/capabilities
need to be
superior to competition and enable firms to propose
differentiated offering
to customers that are hard for competitors to match.
§ Resource Portfolios
32. 9
Resource-based View
Value-creating disciplines
§ Operational excellence – providing middle-of-market
products at the best price with the least
inconvenience. e.g., McDonald’s, Burger King and KFC.
§ Product leadership – offering products that push the
boundaries of product and service performance. e.g.,
Intel is a product leader in computer chips.
§ Customer intimacy – delivering what specific
customers want in cultivated relationships. The core
requirements are flexibility, a ‘have it your way’
mindset, mastery of ‘mass customisation’, and the
ability to sustain long-term relationships.
10
01/03/2020
6
Marketing Resources: Assets – Capabilities – Dynamic
Capabilities
11
Marketing Resources: Assets
33. 12
01/03/2020
7
Marketing Resources: Capabilities
§ An organisation's ability to manage assets effectively to meet
customer
needs and gain an advantage over competitors.
§ A capability is a coordinated bundle of inter-related routines
that a firm (or a
group of employees) undertakes to perform specific tasks.
Input Output
13
Marketing Resources: Capabilities
Organizational routines (Nelson and Winter, 1982; Feldman and
Pentland, 2003)
§ Regular & predictable
§ Collective, social & tacit - Learned over time
§ Behaviour & performance: The way firms do things
§ Enable tasks to be executed sub-consciously
§ Binding knowledge, including tacit knowledge
34. § Can promote or prohibit innovation
Importantly routines are learned over time and they are highly
firm-specific
§ Each organization has its own particular ways of doing things,
and this can often
be a source of competitive advantage.
14
01/03/2020
8
Marketing Resources: Capabilities
Marketing
CapabilityPricing
Promotion /
Advertising
Market
Research
Distribution Sales
Marketing
Planning
New P/S Launch
Management
36. website, in whole or in part.
What are benefits and drawbacks of
being ambidextrous in the car
industry?
18
01/03/2020
10
Reading Resources
Chapters 6: Hooley, G., Piercy, N. F., and Nicoulaud, B. (2017),
Marketing Strategy & Competitive
Positioning, Prentice Hall, 6th Edition.
Barney, J. B. (2001). Resource-based theories of competitive
advantage: A ten-year retrospective
on the resource-based view. Journal of Management, 27(6), 643-
650.
Heirati, N., O’Cass, A., & Sok, P. (2017). Identifying the
resource conditions that maximize the
relationship between ambidexterity and new product
performance. Journal of Business &
Industrial Marketing, 32(8), 1038-1050.
Morgan, N. A., Vorhies, D. W., & Mason, C. H. (2009). Market
orientation, marketing capabilities,
and firm performance. Strategic Management Journal, 30(8),
909-920.
37. O'Cass, A., Heirati, N., & Ngo, L. V. (2014). Achieving new
product success via the synchronization
of exploration and exploitation across multiple levels and
functional areas. Industrial
Marketing Management, 43(5), 862-872.
Pavlou, P., & El Sawy, O. (2011). Understanding the elusive
black box of dynamic
capabilities. Decision sciences, 42(1), 239-273.
Teece, D. J., Pisano, G., & Shuen, A. (1997). Dynamic
capabilities and strategic management.
Strategic Management Journal, 18(7), 509-533.
19
Chapter 12
Competing Through Innovation
20
01/03/2020
11
Why Innovation Matters
§ Everybody wants to be the next Google, IBM, or Netflix
§ Nobody wants to be Kodak, Blockbuster, or BlackBerry.
§ “Companies achieve competitive advantage through acts of
innovation.
They approach innovation in its broadest sense, including both
new
38. technologies & new ways of doings things” - Michael Porter
21
Why Innovation Matters
§ Achieving success through innovation is not easy and the
failure rate is high
§ What is missing is a clear set of principles for action!
§ This can only be achieved by treating innovation as a process.
22
01/03/2020
12
Source: Adapted from Piercy (2017)
Why Innovation Matters
Innovation as the Driver of Renewal and Reinvention
23
Key Success/Failure Factors
24
01/03/2020
39. 13
Planning for New Products/Services
New product development stages and time lapse
25
Planning for New Products/Services
Innovation types based on the level of Newness
26
01/03/2020
14
Planning for New Products/Services
Innovation types based on
the level of Newness
27
Planning for New Products/Services
Scope of Innovation: 4Ps of Innovation Space
§ Product – Changes in the things (products/services)
§ Process – Changes in the ways in which they are created and
delivered
§ Position – Changes in the context in which the
products/services are introduced
§ Paradigm – Changes in the underlying mental & business
40. models
1’ 40’’: IBM's Process
Innovation for Healthcare
28
https://www.youtube.com/watch%3Fv=IFerjdndiRU
01/03/2020
15
Planning for New Products/Services
29
Planning for New Products/Services
Innovation Lifecycle Management
INTRODUCTION GROWTH MATURITY DECLINE
EXTENSION
SA
LE
S
30
01/03/2020
42. Collaborative Innovation
34
01/03/2020
18
New Product/Service Development Process
Collaborative Innovation
Blut, M., Heirati, N., & Schoefer, K. (2019). The Dark Side of
Customer Participation: When Customer Participation in Service
Co-Development Leads to Role Stress. Journal of Service
Research, 1094670519894643.
Heirati, N., & Siahtiri, V. (2019). Driving service
innovativeness via collaboration with customers and suppliers:
Evidence from
business-to-business services. Industrial Marketing
Management, 78, 6-16.
Heirati, N., O'Cass, A., Schoefer, K., & Siahtiri, V. (2016). Do
professional service firms benefit from customer and supplier
collaborations in competitive, turbulent environments?.
Industrial Marketing Management, 55, 50-58.
35
Reality in Many Organisations
The End. Have Fun!
43. 36
01/03/2020
19
Reading Resources
Chapters 12: Hooley, G., Piercy, N. F., and Nicoulaud, B.
(2017), Marketing Strategy & Competitive
Positioning, Prentice Hall, 6th Edition.
Anthony, S. D., Eyring, M., & Gibson, L. (2006). Mapping your
innovation strategy. Harvard Business Review,
84(5), 104-13.
Blut, M., Heirati, N., & Schoefer, K. (2019). The Dark Side of
Customer Participation: When Customer
Participation in Service Co-Development Leads to Role Stress.
Journal of Service Research,
1094670519894643.
Calantone, R. J., Schmidt, J. B., & Song, X. M. (1996).
Controllable factors of new product success: A cross-
national comparison. Marketing Science, 15(4), 341-358.
Heirati, N., & Siahtiri, V. (2019). Driving service
innovativeness via collaboration with customers and
suppliers: Evidence from business-to-business services.
Industrial Marketing Management, 78, 6-16.
Heirati, N., O'Cass, A., Schoefer, K., & Siahtiri, V. (2016). Do
professional service firms benefit from
customer and supplier collaborations in competitive, turbulent
44. environments?. Industrial Marketing
Management, 55, 50-58.
Pisano, G. P. (2015). You need an innovation strategy. Harvard
Business Review, 93(6), 44-54.
Szymanski, D. M., Kroff, M. W., & Troy, L. C. (2007).
Innovativeness and new product success: Insights from
the cumulative evidence. Journal of the Academy of Marketing
Science, 35(1), 35-52.
37
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Gillette case study
situation analysis
Week 3 - Competitive market analysis Gillette case study
situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Gillette case study SWOT analysis
Week 5 - Segmentation, positioning, and selecting target
markets
Gillette case study problem identification &
alternative strategies provision
Week 6 - Creating competitive advantage Individual assignment
45. Q&A
Week 7 - Competing through marketing mix Using metaphors in
marketing campaigns
Week 8
- Competing through superior service and customer
relationships
Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10
- Ethics and social responsibility in marketing strategy
- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
38
24/02/2020
1
MAN3106 Marketing Strategy
Competitive Market Analysis
1
46. 2
24/02/2020
2
Announcements
Frequently Asked Questions:
1. How will we meet the independent study assessment criteria
which states that
there must be evidence of “extensive independent reading using
a wide range of
carefully selected sources”. How will we meet the knowledge
assessment criteria
which states there must be evidence of “thorough integration
and application of a
full range of appropriate principles, theories, evidence and
techniques.” However
how can we do all these things without referencing
theories/principles.
2. For the situational analysis, how can we thoroughly and to a
high level analyse
without conducting our own research.
3. If we want to use theories and concepts do we reference these
even though we
will not receive marks for them. Also, should these be
referenced using in-text
citations along with our reference list, and will these in-text
citations be part of the
word count?
47. 3
Relevance
Market analysis…
§ is one of the most important tasks
because all decision making and
planning depends on how well the
analysis is conducted
§ should be an ongoing, systematic
effort that is well organised and
supported by sufficient resources
§ should provide as complete a
picture as possible about the
organisation’s current and future
situation with respect to the
internal and external environment
4
24/02/2020
3
Main Topics
1. Introduction
2. Analysis of the External Macro-Environment
3. Analysis of the External Micro-Environment: Customer
Analysis
48. 4. Analysis of the External Micro-Environment: Competitor
Analysis
5
1
Introduction to Competitive Market Analysis
6
24/02/2020
4
Unit of Analysis in Market Analysis
Unit of
Analysis
External
Environment
Macro-
Environment
Micro-
Environment
Internal
Environment
7
Conducting a Situation Analysis
49. Analysis alone is not a solution
Data is not the same as information
§ Data – a collection of numbers or facts that
have the potential to provide information
§ Information – data that have been
transformed or combined with other data in
a manner that makes them useful to decision
makers
Conducting a situation analysis is a
challenging exercise
§ Should provide a complete picture of three
key environments: Internal, Customer, and
External
8
24/02/2020
5
Collecting Marketing Information
Types of Data
§ Secondary data – data can be collected from a wide array of
internal,
government, periodical, book, and commercial sources
(secondary
research)
50. § Primary data – data can be collected through studies in the
form of direct
observation, focus groups, surveys, or experiments (primary
research)
Typical Problems in Data Collection
§ Incomplete or inaccurate assessment of the situation that the
data should address
§ Severe information overload
§ Time and expense of collecting data
§ Data integration
9
Primary Data: Marketing Research Methods
10
24/02/2020
6
Primary Data: Marketing Research Methods
Qualitative methods: Observation, interview, focus group, etc.
11
Primary Data: Marketing Research Methods
Quantitative methods: Experiment, survey, etc.
12
51. 24/02/2020
7
Analysis of the internal environment [to be covered next
lectures]
Review of current marketing objectives, strategy, and
performance
§ What are the current marketing goals and objectives?
§ How are current marketing strategies performing with respect
to anticipated
outcomes?
Review of current and anticipated organisational resources
§ What is the state of current organisational resources?
§ Are these resources likely to change for the better or worse in
the near future?
§ If the changes are for the better, how can these added
resources be used to better
meet customers’ needs?
Review of current and anticipated cultural and structural issues
§ What are the positive and negative aspects of the current and
anticipated
organisational culture?
§ What issues related to internal politics or management
struggles
might affect the marketing activities?
13
52. Analysis of the External Macro-Environment
2
14
24/02/2020
8
PESTEL Analysis
15
Economic Growth and Stability
Economic change is inevitable and has a profound impact on
marketing
strategy.
General Economic Conditions
§ Inflation, employment, income, interest rates, taxes, trade
restrictions, tariffs,
business cycle
Consumer Issues
§ Willingness to spend, confidence, spending patterns
An Underreported Economy
§ The U.S. economy is dominated by intangibles such as
services and information.
§ Innovation, creativity, and human assets are not counted in
yearly GDP statistics.
16
53. 24/02/2020
9
Economic Growth and Stability
17
Political, Legal, and Regulatory Issues
The views of elected officials can affect marketing strategy.
§ Example hot-button issues: tobacco, immigration, taxes,
retirement, healthcare
§ Lobbying is vital to marketing strategy in highly regulated
industries.
Firms must abide by the law, but many laws are vague and
difficult to enforce.
§ e.g. court decisions, corporate governance, trade agreements
18
24/02/2020
10
Technological Advancements
Technology refers to the processes used to create “things”
considered to be new.
Frontstage Technology
§ Advances that are noticeable to customers…what customers
54. think of when they think of technological advancements
§ e.g. smartphones, GPS, microwave ovens
Backstage Technology
§ Advances that are not noticeable to customers…these
advances make marketing activities more efficient and
effective
§ e.g. computer technology, RFID, near-field communication
Gartner’s Top 10 Strategic
Technology Trends for 2020
19
Technological Advancements
Product lifecycle
Industry evolution
(lifecycle)
20
24/02/2020
11
Sociocultural Trends
Social and cultural influences that cause changes in attitudes,
beliefs, norms, customs, and lifestyles
Sociocultural forces can have a profound effect on the way
55. customers live and buy products.
Changes in customer demographics and values have a
considerable impact on marketing.
Example Trends in the U.S. Sociocultural Environment
§ Demographic Trends
- Aging of the American population
- Population growth in Sun Belt states
- Increasing population diversity
§ Lifestyle Trends
- Many Americans are postponing retirement
- Clothing becoming more casual, especially at work
- Time spent watching television and reading newspapers has
declined
§ Value Trends
- Greater focus on ethics and social responsibility
- Shorter attention spans and less tolerance for waiting
- Growing skepticism about business
21
Sociocultural Trends
Growth in the Number of Older Americans
22
24/02/2020
12
Measuring PESTLE Impact
57. 14
Analysis of the External Micro-Environment
Customer analysis
§Discussed in Seminar Week 2
§More discussions in Week 5
§Consumer, purchaser, and
decider are not always the
same person
§e.g. Nappies!
27
Three Tiers of Noncustomers
28
24/02/2020
15
Analysis of the External Micro-Environment:
Competitor Analysis
4
29
Analysis of the External Micro-Environment
Competitor analysis
58. § Industrial organisation
(IO) economics
perspective
§ Porter’s Five Forces
Model: Five forces
determine the
competitive intensity
(and attractiveness) of
an industry in terms of
profitability
30
24/02/2020
16
Porter’s 5 Forces Analysis
Five Forces Analysis assumes that there are five important
forces that
determine competitive power in a business situation.
§ Supplier Power
- Here you assess how easy it is for suppliers to drive up prices
- The fewer the supplier choices you have, and the more you
need suppliers' help,
the more powerful your suppliers are
§ Buyer Power
- Here you ask yourself how easy it is for buyers to drive prices
59. down – How much is
the customer’s switching cost
- If you deal with few, powerful buyers, then they are often able
to dictate terms to
you
31
Porter’s 5 Forces Analysis
§ Threat of Substitution
- This is affected by the ability of your customers to find a
different way of doing what you
do – for example, if you supply a unique software product that
automates an important
process, people may substitute by doing the process manually or
by outsourcing it
§ Threat of New Entry
- If it costs little in time or money to enter your market and
compete effectively
- If there are few economies of scale in place, or if you have
little protection for your key
technologies, then new competitors can quickly enter your
market and weaken your
position
§ Competitive Rivalry
- What is important here is the number and capability of your
competitors
- If you have many competitors that offer equally attractive
products/services, then you'll
60. most likely have little power, because buyers will go elsewhere
if they don't get a good deal
from you
32
24/02/2020
17
Porter’s 5 Forces Analysis
33
Porter’s 5 Forces Analysis
34
24/02/2020
18
The components of competitor analysis
35
The components of competitor analysis
Competitor Objectives
§ Brand Competitors – Market products with similar features
and benefits to the same
61. customers at similar prices
§ Product Competitors – Compete in the same product class, but
with products that are
different in features, benefits, and price
§ Generic Competitors – Market different products that satisfy
the same basic customer need
§ Budget Competitors – Compete for the limited financial
resources of the same customers
36
24/02/2020
19
Major Types of Competition
37
The components of competitor analysis
Competitor Strategies
38
24/02/2020
20
The components of competitor analysis
63. 24/02/2020
22
Reading Resources
Chapters 2, 3, & 4: Hooley, G., Piercy, N. F., and Nicoulaud, B.
(2017), Marketing Strategy &
Competitive Positioning, Prentice Hall, 6th Edition.
Chapter 3: Ferrell, O. C. and Hartline M. D. (2014), Marketing
Strategy, Cengage, 6th Edition.
Chen, M. J. (1996). Competitor analysis and interfirm rivalry:
Toward a theoretical integration.
Academy of Management Review, 21(1), 100-134.
Grundy, T. (2006). Rethinking and reinventing Michael Porter's
five forces model. Strategic
Change, 15(5), 213-229.
Kim, W. C., & Mauborgne, R. (2014). Blue ocean strategy,
expanded edition: How to create
uncontested market space and make the competition irrelevant.
Harvard Business Review
Press.
Menon, A., Bharadwaj, S. G., Adidam, P. T., & Edison, S. W.
(1999). Antecedents and
consequences of marketing strategy making: a model and a test.
Journal of Marketing, 63(2),
18-40.
Porter, M. E. (2008). The five competitive forces that shape
strategy. Harvard Business Review,
64. 86(1), 25-40.
43
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Gillette case study
situation analysis
Week 3 - Competitive market analysis Gillette case study
situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Gillette case study SWOT analysis
Week 5 - Segmentation, positioning, and selecting target
markets
Gillette case study problem identification &
alternative strategies provision
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix Using metaphors in
marketing campaigns
Week 8
- Competing through superior service and customer
relationships
Costs of customer loyalty
65. Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10
- Ethics and social responsibility in marketing strategy
- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
44
10/02/2020
1
MAN3106 Marketing Strategy
Module Objectives & Structure
Introduction to Marketing Strategy
1
Hello!
Nima Heirati
Associate Professor in Marketing
Research: Innovation Strategy, Service Marketing,
Business Relationships, and Customer Experience
e.g., Organizational ambidexterity, Innovation
66. strategy in emerging economies, Dark side of
business relationships, Servitization
Anastasios Siampos
Senior Teaching Fellow in Marketing
Research areas: Marketing strategy,
Entrepreneurship
2
10/02/2020
2
Aims/Objectives
By the end of this session, you will be able to:
§ Identify the module learning objective
§ Why does this module matter?
§ Reading resources
§ Comprehend the teaching style, students’ responsibilities, and
assessment criteria
3
What is this module about?
Founded in 2008
191+ countries
100k+ cities
67. 500m guest arrivals
approx. $30 billion value
4
10/02/2020
3
What is this module about?
Founded in 1706
115 countries
198 blends of teas
approx. 7 billion cups/year
5
What is this module about?
Marketing strategy
… is a market-driven process of strategy development and
considers a constantly
changing business environment and the need to deliver superior
customer value. It
is focused on increasing organisational performance, links the
organisation with the
environment, and conceives marketing as a responsibility of the
entire business
68. rather than a specialised function (Cravens & Piercy 2013).
… has the fundamental goal of increasing sales and achieving a
sustainable
competitive advantage (Ferrell & Hartline 2014).
6
10/02/2020
4
Why does it matter?
§ It is interesting
Strategic marketing builds on insights from various disciplines
including psychology, sociology, economics, etc.
§ It is challenging
Strategic marketing requires consideration of a wide range of
factors. These factors interact and they are subject to change.
§ It is important
Strategic marketing is concerned with how organisations
create, communicate, deliver, and capture value and, as such,
has important performance implications.
7
Knowledge & Learning Outcomes
By the end of this module, students should:
§ Synthesise knowledge of marketing strategy and apply
69. concepts to case
studies.
§ Accurately identify and apply relevant theory within different
contexts
§ Critically evaluate various marketing approaches and
application of
strategy within a specific context
§ Identify and analyse marketing problems through the use of
case studies
§ Understand the use of a Strategic Marketing Plan
§ Organise and communicate ideas clearly
8
10/02/2020
5
Teaching Pattern
11 weeks of two-hour lectures
§ The basic concepts and theories of the textbook will be
introduced, in addition to
the materials that go beyond the textbook and are relevant for
the exam.
11 weeks of one-hour seminars
§ Students will be assigned to a seminar group via timetable
automatically.
§ Seminars intend to ensure a comprehensive understanding of
the topic area and
70. to make sure that students are be able to detect and transfer
learned concepts to
practice.
Students are in control of their learning in this module
§ To take most advantages of each class, you must be prepared
§ Students are expected to participate actively and positively in
the
teaching/learning environment
9
Learning Resources
Essential Reading
§ Hooley, G., Piercy, N., and Nicoulaud, B. (2017), Marketing
Strategy & Competitive
Positioning, Prentice Hall, 6th Edition.
§ Hooley, G., Nicoulaud, B., Rudd, J., and Lee, N. (2020),
Marketing Strategy &
Competitive Positioning, Prentice Hall, 7th Edition.
Complementary learning resources
§ Ferrell, O., and Hartline M. D. (2014), Marketing Strategy,
Cengage, 6th Edition.
§ Lynch, R. (2018) Strategic Management, Pearson, 8th Edition.
§ McDonald, M., and Wilson, H. (2016). Marketing Plans: How
to prepare them, how
to profit from them. John Wiley & Sons, 8th Edition.
§ Apart from textbooks, students will find it valuable to get into
the practice of
71. reading relevant articles from academic journals, magazines,
and websites.
Surrey Learn
§ The lecture notes, PowerPoint slides, details of assessments
and other information,
together with important announcements, will be available on
Surrey Learn.
10
10/02/2020
6
Assessment
Coursework 50%. Each student should analyse a case study
following the framework and
guidelines provided through lectures and seminars (MAXIMUM
1500 words).
§ This case study analysis report will allow students to go
beyond what was learned in
class and learn how to develop marketing strategies for a real-
world case study.
Exam 50%. Closed book exam (duration 120 minutes) based on
a case study provided in
advance of the examination. Students will be given a case study
in Week 10 via
SurreyLearn. At the end of the case study, FOUR essay
questions will be provided.
§ You cannot bring your own case study in the exam. During the
72. exam, you will be given
a new but identical copy of the case study along with FOUR
questions. Out of the FOUR
questions, you will have to answer TWO questions (50% each).
You must answer the
questions based on the information on the case study (i.e., not
further search or
market stats is required).
Type Weighting Details Due Date
Coursework 50% 1500 words individual assignment 23rd March
2020
Exam 50% 2-hour closed book exam Examination period
11
Plan for Seminars Week 1-7
Seminars intend to ensure a comprehensive understanding of the
topic area
and to make sure that students are able to apply learned
concepts to
practice. Preparation and active participation in seminars will
be expected.
§ Student will have the opportunity to practice analysing an
example case
study during Weeks 1 to 7.
§ Please print and review “CASE STUDY 10.3: Global ice
cream wars” from
Lynch, R. (2018) Strategic Management, Pearson, 8th Edition –
pp. 351-355.
§ Students have online access to this textbook via the university
73. library website
§ Students will be given a different case study for the individual
assignment
in Week 3 via SurreyLearn.
§ Students will be given a different case study for the exam in
Week 9 via
SurreyLearn.
12
10/02/2020
7
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Example case study –
Situation analysis
Week 3 - Competitive market analysis Example case study –
Situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Example case study – SWOT analysis &
problem identification
74. Week 5 - Segmentation, positioning, and selecting target
markets Example case study – Alternative strategies
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix
Example case study – Implementation &
control
Week 8 - Competing through superior service and customer
relationships Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10 - Ethics and social responsibility in marketing
strategy- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
13
Introduction to Marketing Strategy
14
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8
Main Topics
75. 1. Basic concepts and framework
§ Markets and exchange
§ The strategic triangle and competitive advantage
2. Marketing in today’s economy
3. Component and context of market orientation
4. The role of marketing in the organisation
15
Market, exchange, and product
What is a market?
§ Collection of buyers (e.g. consumers, private households) and
sellers (e.g. firms,
institutions)
§ A space where supply meets demand
Considers physical marketplaces (e.g. traditional farmer’s
market)
Considers virtual marketspaces (e.g. online retail platforms)
16
10/02/2020
9
Market, exchange, and product
What is exchange?
§ The process of obtaining something of value from someone by
offering something
77. 19
Marketing in Today’s Economy
All organisations require effective planning and a sound
marketing strategy to
achieve their goals and objectives
Today’s Economy:
§ Most of industries are becoming mature, where slowing
innovation, extensive
product assortment, excess supply, and frugal consumers force
margins to the
floor
§ Today’s economy is characterised by rapid technological
change, economic
anxiety, and increasing consumer scepticism
Is there any key
technological difference?
20
10/02/2020
11
Major Challenges vs Opportunities
Power shift to customers – e.g. Amazon empowers searching for
the best deal
Massive increase in product selection – e.g. Car Industry
78. Audience and media fragmentation – e.g. Customer can find
next offer in one click – Social
media influences consumer behaviour
Changing value propositions & demand pattern – e.g. digital vs
printed books
Privacy, security, and ethical concerns
Globalisation
Change in Daily Media Usage by
U.S. Adults, 2008-2011
21
Components and context of market orientation
§ Market Orientation is a philosophy of decision making
focused on customer
needs
§ Market Orientation represents the set of organisational-wide
behaviour that
enables a firm to generate and disseminate market intelligence
among its
employees and to utilise market intelligence to respond to
customer needs
§ Decisions grounded in analysis of the target customers
§ Result:
§ Developing new products/service that
customers are looking for
§ Increased creativity
§ Improved new product performance
22
79. 10/02/2020
12
Components and context of market orientation
Customers do not want a 1/4“ drill, they want to hang a picture
on the wall!
§ Value Matters: Innovation Has Direction
5’ 12’’: Value Matters: Innovation Has Direction
Customer/Value DrivenProduct Driven
23
Components and context of market orientation
Marketing and performance outcomes
24
https://www.youtube.com/watch%3Fv=-se_wEJ_KM4
10/02/2020
13
Different Market Orientation Approaches
Responsive vs. Proactive Market Orientation
80. Customers
Focus
Proactive
MO
Responsive
MO
Expressed
customer needs
Current
competitive threats
Latent and future
customer needs
Anticipated
competitive threats
Competitors
Focus
25
Assessing a Firm’s Market Orientation
¨ Responsive Market Intelligence Generation (Rank 1 to 7)
§ This firm continuously works to better understand of our
customers’ needs.
§ This firm pays close attention to after-sales service.
§ This firm measures customer satisfaction systematically and
frequently.
§ This firm wants customers to think of us as allies.
§ Employees throughout the organisation share information
concerning competitors’ activities.
82. scanned, copied or duplicated, or posted to a publicly accessible
website, in whole or in part.
It is argued that marketing possesses
very few rules for choosing the
appropriate marketing activities.
Can you describe any universal
rules of marketing that might be
applied to most products, markets,
customers, and situations?
28
10/02/2020
15
The Challenges of Marketing Strategy
§ Unending Change
§ People-Driven Nature of Marketing
§ Lack of Rules for Choosing Marketing Activities
§ Increasing Customer Expectations
§ Declining Customer Satisfaction and Brand Loyalty
§ Competing in Mature Markets
§ Increasing commoditisation
§ Little real differentiation among product offerings
§ Aggressive Cost-Cutting Measures
29
83. Reality in Many Organisations
The End. Have Fun!
30
10/02/2020
16
Reading Resources
Chapter 1: Hooley, G., Piercy, N. F., and Nicoulaud, B. (2017),
Marketing Strategy &
Competitive Positioning, Prentice Hall, 6th Edition.
Chapter 1: Ferrell, O. C. and Hartline M. D. (2014), Marketing
Strategy, Cengage, 6th
Edition.
Kotler, P. (2011). Reinventing marketing to manage the
environmental imperative. Journal
of Marketing, 75(4), 132-135.
Morgan, N. A. (2012). Marketing and business performance.
Journal of the Academy of
Marketing Science, 40(1), 102-119.
Varadarajan, R. (2010). Strategic marketing and marketing
strategy: Domain, definition,
fundamental issues and foundational premises. Journal of the
Academy of Marketing
Science, 38(2), 119-140.
84. 31
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Example case study –
Situation analysis
Week 3 - Competitive market analysis Example case study –
Situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Example case study – SWOT analysis &
problem identification
Week 5 - Segmentation, positioning, and selecting target
markets Example case study – Alternative strategies
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix
Example case study – Implementation &
control
Week 8 - Competing through superior service and customer
relationships Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
85. Week 10 - Ethics and social responsibility in marketing
strategy- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
32
Individual Assignment Brief
MAN3106 Marketing Strategy – Semester 2 2019-20
Submission Due: 23/03/2020 – Word limit: 1500 words
Students should critically analyse the case study “Gillette: Why
Innovation Might not
be Enough” following the framework introduced in the
lectures/seminars to identify 1-
2 key challenges/problems in the case and to recommend and
justify alternative
marketing strategies. You must analyse the case study based on
the information on
the case. This means that even if you do your own research (e.g.
you find some
additional data about market trends), and you use such
information, you will not
receive a mark for that. The school’s assessment criteria are
provided in Appendix I
at the end of Module Handbook. All five assessment criteria in
the Module Handbook
86. are relevant to this individual assignment.
Structure of the Individual Assignment
§ Executive summary – around 200 words-not included in the
word count
§ Table of contents – not included in the word count
§ Situational analysis (20% of the mark) – Macro environment,
industry,
competitors, & customer environment – around 350 words
§ Internal environment & SWOT analysis (20% of the mark) –
around 350 words
§ Evaluation of current strategies and problem statement (30%
of the mark) –
400 words
§ Alternative strategies proposition, evaluation, & justification
(30% of the mark)
– around 400 words
§ Reference list (if necessary – not included in the word count)
NOTE. Word limit excludes executive summary, table of
contents, references, tables,
figures, and appendices. All coursework should be submitted
electronically in Word
format only. Penalties: Any work submitted over the word limit
will be marked in full,
but the assignment will be penalised by 10 marks.
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MAN3106 Marketing Strategy
Case Study Analysis Framework
1
Assessment
Coursework 50%. Each student should analyse a case study
following the framework and
guidelines provided through lectures and seminars (MAXIMUM
1500 words).
§ This case study analysis report will allow students to go
beyond what was learned in
88. class and learn how to develop marketing strategies for a real-
world case study.
Exam 50%. Closed book exam (duration 120 minutes) based on
a case study provided in
advance of the examination. Students will be given a case study
in Week 9 via
SurreyLearn.
§ You cannot bring your own case study in the exam. During the
exam, you will be given
a new but identical copy of the case study along with FOUR
questions. Out of the FOUR
questions, you will have to answer TWO questions (50% each).
You must answer the
questions based on the information on the case study (i.e., not
further search or
market stats is required).
Type Weighting Details Due Date
Coursework 50% 1500 words individual assignment 23rd March
2020
Exam 50% 2-hour closed book exam Examination period
2
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2
Plan for Seminars Week 1-7
Seminars intend to ensure a comprehensive understanding of the
89. topic area
and to make sure that students are able to apply learned
concepts to
practice. Preparation and active participation in seminars will
be expected.
§ Student will have the opportunity to practice analysing an
example case
study during Weeks 1 to 7.
§ Please print and review “CASE STUDY 10.3: Global ice
cream wars” from
Lynch, R. (2018) Strategic Management, Pearson, 8th Edition –
pp. 351-355.
§ Students have online access to this textbook via the university
library website
§ Students will be given a different case study for the individual
assignment
in Week 3 via SurreyLearn.
§ Students will be given a different case study for the exam in
Week 9 via
SurreyLearn.
3
Structure of Individual Assignment
§ Executive summary – around 200 words-not included in the
word count
§ Table of contents – not included in the word count
§ Situational analysis (20% of the mark) – Macro environment,
industry,
competitors, & customer environment – around 350 words
90. § Internal environment & SWOT analysis (20% of the mark) –
around 350
words
§ Evaluation of current strategies and problem statement (30%
of the mark)
– 400 words
§ Alternative strategies proposition, evaluation, & justification
(30% of the
mark) – around 400 words
§ Reference list (if necessary – not included in the word count)
4
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Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Example case study –
Situation analysis
Week 3 - Competitive market analysis Example case study –
Situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
91. Example case study – SWOT analysis &
problem identification
Week 5 - Segmentation, positioning, and selecting target
markets Example case study – Alternative strategies
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix
Example case study – Implementation &
control
Week 8
- Competing through superior service and customer
relationships
Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10
- Ethics and social responsibility in marketing strategy
- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
Week 11 - Module Revision Exam preparation Q&A
5
What is the Case Study
Case studies (or case reports) are written by academics and
professional
92. focusing on actual problems and decisions companies face.
§ Most articles about companies in magazines and newspapers
such as The Wall
Street Journal, Business Week, Fortune, Harvard Business
Review, and Forbes are
mini-cases.
§ This is not a substitute for real world experience in a job with
an organisation, but
it is an effective and practical type of learning.
6
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4
The Analysis Framework
§ Case studies offer stories, including facts, opinions,
projections, results,
expectations, plans, policies, and programs.
§ A systematic approach (or framework) is required to structure
and analyse
presented information within a case study.
§ Benefits of having a framework to analyse:
§ Comprehensive coverage
§ Ease of communication
§ Consistency of analysis
7
93. Tips Before Analysis!
§ No one can analyse a case study after reading it only one
time, or even
worse, doing the analysis during the first reading of the case.
§ Do not get trapped into thinking the “answer” to the case
study is hidden
somewhere in the case text.
§ Make an effort to put yourself in the shoes of the decision
maker in the case
study.
8
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5
5 Step Case Analysis Framework
Step 1: Situation Analysis (Macro environment - Industry,
Competitors, & Customer
environment)
Step 2: Internal Environment Analysis
Step 3: Problem(s) Statements and Setting Objectives
Step 4: Alternative Strategies Proposition, Evaluation, &
Justification
94. Step 5: Implementation Plan/Actions and Control Mechanisms
9
Step 1: Situation Analysis
Organising the pieces of information into more useful topic
blocks:
§ PESTLE analysis
§ Industry and competitors analysis (Porter’s 5 forces –
Competitors’
weaknesses & strength)
§ Customer analysis (Market potential – Market segmentation
demographics and preferences – Main target customers)
10
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6
Step 1: Situation Analysis – Measuring PEST Impact
11
Step 1: Situation Analysis – Industry & Competitors
Industry and competitors analysis
§ Porter’s 5 forces
§ Competitors’ weaknesses & strengths
12
95. 15/02/2020
7
Porter’s 5 Forces Analysis – Industry & Competitors
13
Step 1: Situation Analysis – Customers
Customer analysis
§ Market potential
§ Market segmentation demographics and preferences
§ Main target customers
- Who are our Current and Potential Customers?
- What do Customers do with our Products/Services?
- Where/When do Customers Purchase our Products/ Services?
- Why (and How) do Customers Select our Products/ Services?
- Why do Potential Customers not Purchase our Products/
Services?
14
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8
Step 1: Situation Analysis – Customers
Three Tiers of Noncustomers
96. 15
Step 2: Internal Analysis
Identify the Company’s Generic Competitive Strategy Type
Overall Low-Cost
Leadership Strategy
Broad Differentiation
Strategy
Focused Differentiation
Strategy
Focused Low-Cost
Strategy
Hybrid Strategy
A Broad Cross-
section of
Buyers
Market Niche
M
ar
ke
t T
ar
ge
97. t
Type of Competitive Advantage Being
Pursued
Lower Cost Differentiation
16
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9
Step 2: Internal Analysis
SWOT Analysis
17
Step 2: Internal Analysis
A four-cell array used to make a conclusion of SWOT analysis
§ Should be based on customer perceptions, not the perceptions
of the manager or
firm
§ Elements with the highest total ratings should have the
greatest influence in
developing the strategy.
§ Focus on competitive advantages by matching strengths with
opportunities
18
98. 15/02/2020
10
Step 3: Problem(s) Statements and Setting Objectives
Only a problem properly defined can be addressed
The proper definition of the problem(s) facing the company is
the most critical
part of the analysis
§ Define the problem too narrowly, or miss the key problem,
and all subsequent
framework steps will be off the mark
§ Getting a clear picture of the problem is one major benefit
derived from PEST,
industry environment, customer environment, and SWOT
analyses
19
Step 3: Problem(s) Statements and Setting Objectives
Problem Identification Process
§ The process of identifying problems is similar to the one
people go through with
their doctors
- A nurse or assistant comes in to conduct a strength and
weakness assessment on a
patient
99. - The patient’s vital signs are taken and the patient is asked
about any symptoms
§ Symptoms are observable indications
- Symptoms are not the problem themselves
20
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11
Input Question
The problem is that sales have declined. → Why have sales
declined?
Sales have declined because there are too many sales
territories that are not assigned to a salesperson.
→ Why are so many sales territories
unassigned?
Sales territories are unassigned because sales force turnover
has doubled in the past year. → Why has sales force turnover
doubled?
Turnover began to increase over a year ago when the sales
force compensation plan was altered to reduce variable
expenses.
→ Why….
* When a student can no longer devise a meaningful response to
the Why question, the problem is
probably revealed. In this instance, the problem statement might
100. read:
Conclusion: The current sales force compensation plan at XYZ
Company is inadequate to retain an
acceptable percentage of the firm’s salespeople, resulting in lost
customers and decreased sales.
Step 3: Problem(s) Statements and Setting Objectives
21
Step 4: Alternative Strategies Proposition, Evaluation, &
Justification
Strategy formulation involves the identification of alternative
strategies, a
review of the merits of each of these options and then selecting
the strategy
that has the best fit with a company’s trading environment, its
internal
resources and capabilities.
§ Strategies are agreed to be most effective when they support
specific business
objectives – e.g. increasing the online contribution to revenue,
or increasing the
number of online sales enquiries.
§ A useful technique to help align strategies and objectives is to
present them
together in a table, along with the insight developed from
situation analysis
which may have informed the strategy.
22
101. 15/02/2020
12
Step 5: Implementation Plan/Actions and Control Mechanisms
Implementation plan/actions
§ Implementation includes actions to be taken, the sequencing
of marketing
activities, and a time frame for their completion
- First, students should explain the actions should be taken to
implement alternative
strategies. In doing so, describe any necessary internal
marketing activities such as:
– Employee training, employee buy-in and motivation to
implement the
marketing strategy, etc
- Second, a timeline (e.g., Gantt chart, schedule planning table)
should be provided
in directing the implementation actions
§ Tip: Review literature related to Balanced Scorecards
23
Step 6: Implementation Plan/Actions and Control Mechanisms
Control Mechanisms & KPIs
§ Specify the types of input controls/objectives that must be in
place before the
102. marketing plan can be implemented
- e.g., financial resources, additional R&D, additional HR
§ Specify the types of process controls/objectives that will be
needed during the
execution of the marketing plan
- e.g., management training, management commitment to the
plan, revised
employee evaluation/compensation systems, internal
communication activities
§ Specify overall performance standards/objectives
- e.g., sales volume, market share, profitability, customer
satisfaction, customer
retention
24
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13
Conclusion
5 Step Framework
§ Step 1: Situation Analysis (Macro environment - Industry,
Competitors, & Customer
environment)
§ Step 2: Internal Environment Analysis
§ Step 3: Problem(s) Statements and Setting Objectives
103. § Step 4: Alternative Strategies Proposition, Evaluation, &
Justification
§ Step 5: Implementation Plan/Actions and Control Mechanisms
25
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1
MAN3016: Marketing Strategy
Lecture 2: Strategic Planning Process
Dr Anastasios Siampos
1
Like us on Facebook: www.facebook.com/sbsmrm/
Visit us: www.surrey.ac.uk/department-marketing-retail-
management
1
Purpose of marketing strategy
To set the direction of the organisation and decide what
product/s & in which
markets the firm should invest its resources
To define how it is to create value to customers
To describe how it is to perform marketing activities (4/7Ps)
104. better than
competition
2
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2
Strategic Fit
3
3
Mission & Vision
4
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3
Mission & Vision
Mission Statement
– Answers… “What business are we in?”
– Clear and concise
– Explains the organisation’s reason for existence
• Who are we? Who are our customers? What is our operating
philosophy?
105. What are our core competencies or competitive advantages?
What are our
responsibilities with respect to being a good steward of our
human, financial,
and environmental resources?
Vision Statement
– Answers… “What do we want to become?”
– Tends to be future oriented
– Represents where the organization is headed
5
5
The interrelationship between marketing and corporate strategy
Corporate Strategy
•Specifying the organisation’ mission
•Allocation of resources across the
whole organisation
•Portfolio of activities for the
organisation
•Defining organisational objectives
Marketing Strategy
•Competing in a product market
•Selecting market segments
•Designing the mix
•Guides
•Directs
•Controls
•Co-ordinates
108. 15/02/2020
8
Strategic Focus
15
15
Routes to competitive advantage
16
16
15/02/2020
9
Marketing Strategy – Two Perspectives
Marketing strategy at the functional level
Ø Planning and controlling the marketing activities
Ø Planning and implementing the 4Ps/7Ps
Ø Management customer relationship
Marketing as a philosophy/orientation
Ø Guiding the organisation’s overall activities
Ø Playing a key role in the strategic management process
(SMM)
109. 17
Marketing Plan
A written document that provides the blueprint or outline of the
organization’s
marketing activities, including the implementation, evaluation,
and control of
those activities
ü How the organization will achieve its goals and objectives
ü Serves as a “road map” for implementing the marketing
strategy
ü Instructs employees as to their roles and functions
ü Provides specifics regarding the allocation of resources,
specific marketing
tasks, responsibilities of individuals, and the timing of
marketing activities
18
18
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10
Thinking First
Cognitively analysing a
strategic marketing
problem & developing
110. the solution (the
strategy) through a
carefully thought-out
process
It can help to see the big
picture occasionally
throughout the process.
It can involve some
inspiration & insight, but
largely the process is one
of painstakingly doing
your homework
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
19
Seeing First
Importance of seeing the overall decision is sometimes greater
than thinking
about it
Insight often only comes after a period of preparation,
incubation, illumination &
verification in the cold light of day.
The 'eureka' moment
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
20
111. 15/02/2020
11
Doing First
(1) do something, (2) make sense of it
(3) repeat the successful parts & discard the rest.
Many companies have successfully diversified their businesses
by a process of figuring out what worked & what did not
Instead of marketing strategy –
the reality is often that ‘doing’ drives
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
21
Simple Rules
How-to rules keeping managers organised to be able to seize
opportunities
Boundary rules help managers to pick the best opportunities
based geography, customers or technology
Priority rules are about allocating resources amongst competing
opportunities
Timing rules relate to the rhythm of key strategic processes
112. Exit rules are about pulling out from past opportunities
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
22
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12
Process and Temporality and the 4 Main Approaches to
Competitive
Marketing Strategy
SIMPLE RULES SEEING FIRST
DOING FIRST THINKING FIRST
Long-Term
Short-Term
Experiential Cognitive
TE
M
P
O
R
113. A
LI
TY
PROCESS
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
23
What to Choose?
ü Thinking First/Market Orientation works best when the issues
are clear, the data are
reliable, the context is structured, thoughts can be pinned down
& discipline can be
applied
ü Seeing First works best when many elements have to be
creatively applied,
commitment to solutions is key & communications across
boundaries are needed (e.g.
in NPD)
ü Doing First or simple rules work best when the situation is
novel & confusing,
complicated specifications would get in the way & a few simple
relationship rules can
help move the process forward
West, D. C., et al. (2015). Strategic marketing: creating
competitive advantage. Oxford, United Kingdom, Oxford
University Press.
114. 24
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13
Reading Resources
Chapter 2: Hooley, G., Piercy, N. F., and Nicoulaud, B. (2017),
Marketing Strategy &
Competitive Positioning, Prentice Hall, 6th Edition.
Chapter 2: Ferrell, O. C. and Hartline M. D. (2014), Marketing
Strategy, Cengage, 6th
Edition.
Additional reference: West, D. C., et al. (2015). Strategic
marketing: creating competitive
advantage. Oxford, United Kingdom, Oxford University Press.
Dobni, C., and Luffman, G. (2000) Implementing marketing
strategy through a market
orientation. Journal of Marketing Management, 16(8), 895-916.
25
Teaching Schedule
Week Lectures Seminars
Week 1 - Introduction to the Module Case study analysis
framework
Week 2 - Strategic marketing planning Example case study –
Situation analysis
115. Week 3 - Competitive market analysis Example case study –
Situation analysis
Week 4
- Understanding the organisational resource base
- Competing through innovation
Example case study – SWOT analysis &
problem identification
Week 5 - Segmentation, positioning, and selecting target
markets Example case study – Alternative strategies
Week 6 - Creating competitive advantage Individual assignment
Q&A
Week 7 - Competing through marketing mix
Example case study – Implementation &
control
Week 8
- Competing through superior service and customer
relationships
Costs of customer loyalty
Week 9 - Strategy implementation and control Soft and hard
control measures
Week 10
- Ethics and social responsibility in marketing strategy
- Evolving topics in marketing strategy
Group discussion on CSR and crisis
management
116. Week 11 - Module Revision Exam preparation Q&A
26
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14
Thank you! Any Questions?
27
1
Generic Example of a Case Study Analysis Report
Executive Summary
This document outlines the structure of the case study analysis
report and the examples of basic
tables/figures that could be considered for different analyses.
The structure of these tables is
simple and easy to produce in WORD. Students are encouraged
to search for and use more
advanced frameworks, tables, and/or figures for each analysis.
This document also provides
generic guidelines and examples based on information provided
in the “Global ice cream wars”
case study.
117. In the executive summary, students can provide information
about the Unilever in the ice cream
market and a brief overview of the challenges discussed in the
case study. Brief information
about the industry emerging trends or the company’s
vision/mission can be indicated in the
executive summary. Executive summary should be no more than
200 words (not included in
the word count). Please use font size 12 for the main body of
the report and font size 10 for the
text in the tables and figures (i.e., similar to this example
report). Please do not use small fonts
in the main text and tables/figures.
Table of Contents
Contents Page(s)
Executive Summary 1
Table of Contents 1
Situation Analysis – Analysis of Macro Environment 2
Situation Analysis – Analysis of Industry Competition and
Competitors 3
Situation Analysis – Analysis of Customers 5
Internal Environment & SWOT Analysis 6
Evaluation of Current Strategies and Problem Statement 8
Alternative Strategies 9
References (optional) 10
2
Situation Analysis – Analysis of Macro Environment
118. Students should discuss key macro-environmental factors
identified in Table 1 that influence
the industry and the studied company in the case study. The
conclusion of this section should
be no more than 100 words. Identified factors can be presented
as bullet points. If there is no
information in the case study concerning a macro environment
factor (i.e., political), students
can leave the related row in the table blank. For instance,
students can discuss the importance
of ice cream global market growth and related opportunities for
Unilever.
Table 1. PESTLE Analysis
Macro-Level Factors Importance of key factors to the market or
the company
Political Macro-level information related to the government
actions that may affect the business environment,
such as tax policies, Fiscal policy, and trade tariffs.
XYZ
Economic Macro-level information related to inflation,
employment, income, interest rates, taxes, trade
restrictions, tariffs, business cycle, Willingness to
spend, confidence, and spending patterns.
e.g., Economic growth in many
countries results growing the
global market for ice cream
around 3 per cent annually.
Market growth represent an
opportunity for companies in this
119. industry.
Socio-cultural Macro-level information related to cultural
trends,
demographics, and population analytics.
XYZ
Technological Macro-level information related to innovations in
technology that may affect the operations of the
industry and the market favourably or unfavourably.
XYZ
Legal Macro-level information related to consumer laws,
safety standards, and labour laws. In some cases,
political and legal issues can be grouped in one
category.
XYZ
Environmental Macro-level information related to climate,
weather,
geographical location, global changes in climate,
environmental offsets.
XYZ
3
Situation Analysis – Analysis of Industry Competition and
Competitors
120. Students should discuss key micro-environmental factors that
affect the industry competitive
intensity and market attractiveness. Students should also
identify and assess the competitors in
the market. The conclusion of this section should be no more
than 200 words. This section
includes two analyses:
First, the degree of industry competitive intensity and market
attractiveness can be
assessed using Porter’s Five Forces framework. This framework
assesses the competitive
intensity and, therefore, the attractiveness (or lack of it) of an
industry in terms of its
profitability. An "unattractive" industry is one in which the
effect of these five forces reduces
overall profitability. For instance, the global ice cream market
is highly competitive due to
high intensity of rivalry and bargaining power of customers, but
it is attractive for existing
companies -Unilever- given the high barriers for entry, low
bargaining power of suppliers,
moderate threat of substitute products, and growing the market
size. This market is unattractive
for new and small companies because of the high intensity of
rivalry, bargaining power of
customers, and barriers to entry. Students can adopt different
templates (i.e., figures, tables) to
present this framework and provide the conclusion of the
analysis.
Table 2. Five Forces Analysis
Force Related Factors Assessment
121. Intensity of
rivalry
§ Number of competitors
§ Sustainable competitive advantage through innovation
§ Competition between online and offline organizations
§ Powerful competitors and level of advertising expense
High,
Moderate, or
Low
Threat of new
entrants
§ Patents & rights
§ Government policy such as sanctioned monopolies
§ Capital requirements
§ Economies of scale
§ Product differentiation
§ Brand equity & customer loyalty
§ Access to distribution channels
High,
Moderate, or
Low
Threat of
substitutes
§ Relative price performance of substitute
§ Buyer switching costs and ease of substitution
§ Perceived level of product differentiation
§ Number of substitute products in the market
122. § Availability of close substitute
High,
Moderate, or
Low
Bargaining
power of
customers
§ Degree of dependency upon existing channels of distribution
§ Buyer switching costs
§ Buyer information availability
§ Availability of existing substitute products
§ Buyer price sensitivity
§ Differential advantage (uniqueness) of industry products
High,
Moderate, or
Low
Bargaining
power of
suppliers
§ Supplier switching costs relative to focal company switching
costs
§ Degree of differentiation of inputs
§ Impact of inputs on cost and differentiation
§ Presence of substitute inputs
§ Strength of distribution channel
§ Supplier competition
High,
123. Moderate, or
Low
4
Second, students should identify key competitors, analyse
competitors’ current and future
objectives (i.e., investment priorities), analyse competitors’
current strategies (i.e., current
target markets and marketing mix strategies), and competitors’
current resource profile (i.e.,
tangible and intangible assets, competitive advantage). Students
can adopt different templates
(i.e., figures, tables) to outline competitors and provide the
conclusion of the analysis. For
instance, Tables 3 outlined key competitors indicated in the
“Global ice cream wars” case
study. The conclusion of this table should discuss the position
of studied company (i.e.,
Unilever) in the market compared to its competitors, identify
main current competitors (i.e.,
largest, strongest), and predict emerging competitors or
emerging strategies of current
competitors.
Table 3. Competitor Analysis
Competitor Overview
Key success factors
Acquisition
125. ++ +++ +++ +++ ++
Häagen Dazs –
rest of world
§ XYZ
§ XYZ n/a
* + + n/a -
Mars § XYZ
§ XYZ n/a ++ ++ n/a -
Baskin Robbins § XYZ
§ XYZ n/a + + n/a -
Other (i.e.,
Supermarket
brands)
§ XYZ
§ XYZ --- --- --- n/a -
Optional: Comparison with studied
company – Unilever +++ +++ +++ +++ +++
* n/a: No applicable – Not indicated in the case study.
5
Situation Analysis – Analysis of Customers
126. This section is the conclusion of multiple principles/frameworks
introduced in Chapter 4
(customer analysis), Chapters 7, 8, and 9
(Segmentation/Positioning/Selecting Target
Markets). For instance, please review Figure 4.2, Table 7.4,
Figure 9.3 across Chapters 4, 7,
and 9 in the core textbook (Holley et al. 2017, 6th Edition) in
order to define the segment’s
profile/characteristics. Please bear in mind that students may
need to use insights from the
company’s resource portfolio (as part of internal environment
analysis) before analysing and
completing Table 9.5 in Chapter 9. The conclusion of this
section should be no more than 100
words. In this section, students should:
§ define the customer segmentation criteria (e.g., see Table 4);
§ identify primary target markets, secondary target markets,
possibilities, and avoid target
markets; and,
§ evaluate the current studied company’s current segmentation,
positioning, and targeting
strategies for identified market segments.
Table 4. Customer segmentation by price and quality
Segments Segment Profile/Characteristics
*
(Who? What? Where?)
Segment Preferences
(What? Why? How? When? Where?)
Primary target:
127. Premium branded
§ Lower-upper and upper-middle
social classes
§ Mainly customers from developed
economies (e.g., US and UK)
§ Relatively customers from
developing economies (e.g., South
Africa, China)
§ Good quality ingredients with individual, well-
known branded names, such as Mars, Magnum
and Extrême
§ Prices set above regular and economy categories
but not as high as above: high value added
Secondary target
1: Super-premium
§ Upper-upper and lower-upper social
classes
§ Customers from developed
economies (e.g., US and UK)
§ High quality, exotic flavours, e.g. Häagen-Dazs
Mint Chocolate Chip, Ben & Jerry’s Fudge
§ Very high unit prices: very high value added
Secondary target
1: Regular
128. § Lower-middle and upper-lower
social classes
§ Customers from developed
economies (e.g., US and UK) and
emerging economies (e.g., South
Africa, China)
§ Standard-quality ingredients with branding
relying on manufacturer’s name rather than
individual product, e.g. Wall’s, Scholler
§ Standard prices: adequate value added but large-
volume market
Possibilities: Ice
cream for cold
weather
§ Upper-upper, lower-upper, and
upper-middle social classes
§ Customers from developed
economies (e.g., US and UK)
§ Good quality ingredients with individual, well-
known branded names
§ Prices set above regular and economy categories
but not as high as above: high value added
Avoid targets:
Economy
§ Lower-lower social class
§ Mainly customers from developing
129. economies (e.g., South Africa,
China)
§ Relatively customers from
developed economies (e.g., US and
UK)
§ Manufactured by smaller manufacturers with
standard-quality ingredients, possibly for
supermarkets’ own brands
§ Lower price, highly price competitive: low
value added but large market – perhaps high-
quality ingredients
* Based on the information from the “Global ice cream wars”
case study, this column is mainly based on logical
assumptions. For instance, only upper-upper and lower-upper
social classes afford to purchase super-premium
products with high price tags.
6
Internal Environment & SWOT Analysis
Students should also identify and assess the competitors in the
market. This section includes
two analyses: First, identification of the company’s strategic
type based on Porter’s generic
strategy types. Second, SWOT analysis. This section should be
no more than 350 words.
Identification of the company’s current strategic type helps to
130. better understand its position
in the market (linked to competitor analysis) and its positioning
and targeting strategies (linked
customer analysis). It also helps to assess the company’s value
propositions and strategic
decisions. For instance, companies with “focused differentiation
strategy” are more likely to
heavily invest in R&D and develop premium products. It also
plays a critical role in defining
the company’s problems and proposing relevant alternative
strategies. For instance, proposing
focused low-cost strategies is not appropriate with for leading
brand, such as Porsche and
Apple. It is recommended to suggest minimum two alternative
strategies for companies with
hybrid strategy type (i.e., one differentiation strategy and one
low-cost strategy – please review
papers on organisational ambidexterity). No table or figure is
required for this section.
SWOT analysis is a technique to identify a company’s strengths
and weaknesses and its
opportunities and threats in the market. Students can use
multiple techniques/frameworks
introduced in Chapters 6 (i.e., resource portfolio) to identify a
company’s strengths and
weaknesses. Students also can use the findings in the previous
analyses (i.e., PESTLE,
competitive environment, competitor analysis, customer
analysis) to identify opportunities and
threats in the market. SWOT analysis is designed for use in the
preliminary stages of decision-
making and can be used as a tool for evaluation of a company’s
current strategies, performance,
and position in the market.