Chapter 2

Marketing Strategy & Situational Analysis

© 2014 McGraw-Hill Ryerson Ltd. All rights reserved

 Chapter 2 Learning Objectives
• To understand what an organization is
• Overview of marketing strategies and frameworks
• To understand what objectives are
• Brief overview of environmental scans / situational analyses
(more in the next chapter)
• Briefly review the Strategic Marketing Process and what a
Marketing Plan is

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 What is an organization?
What is an organization?
A legal entity of people who share a common mission

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 Organizational Strategy: Components
It is important for an organization to understand the why, what and
how.
WHY: Why does it exist?
WHAT: What business is it in, and what does it want to achieve?
HOW: The strategies and functions to achieve its goals

(Crane, Kerin, Hartley, & Rudelius, 2014, p. 33)

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 Mission vs. Vision | Bain & Company Def’ns
• A Mission Statement defines the company's business, its objectives
and its approach to reach those objectives.
• A Vision Statement describes the desired future position of the
company.

WHY ARE VISION & MISSION IMPORTANT?

Helps define direction; guide decision making; inspires employees;
informs strategies
(Bain & Company, 2015)

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 WHAT | Organizational Direction
• Defining “What Business You’re In”
• SMART Objectives/Goals

(Crane et al., 2014, p. 33)

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 What are some common goal types?
Goals related to…
• Profit Is this…..
• Market share S Specific
• Satisfaction M Measurable
A Actionable / Attainable
• Triple bottom line (TBL) or 3Ps
R Realistic / Relevant
(People, Planet, Profits) T Time-based
Example: By 2017Q4, Company ABC will have
sold 1000 units of Product X in British Columbia.

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Organizational Strategy
• Up next: models and frameworks to help understand and analyze the
current state of an organization
• This is also called a situational analysis
• Aka: what is the “situation”

© 2014 McGraw-Hill Ryerson Ltd. All rights reserved

 Framework | 3Cs
Competencies Customers Competitors

E.g., What do we do best?; What E.g., Who are our customers? E.g., Who are our competitors?
are our competitive advantages Target audience, customer What are their strengths, products,
(unique strengths) profiles, personas, etc. strategies, etc?

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 Framework | SWOT
Favourable Unfavourable

Strengths Weaknesses

Internal BUILD CORRECT/IMPROVE

Opportunities Threats

External
EXPLOIT / JUMP ON AVOID / CONTAIN

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 Model | BCG Portfolio Analysis

FIGURE 2-3
Boston Consulting Group portfolio analysis
(Crane et al., 2014, p. 33)

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 Framework | SECTR
Uncontrollable environmental factors

Social Economic Competitive

Technological Regulatory

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 Framework | SECTR
SOCIAL ECONOMIC COMPETITIVE TECHNOLOGICAL REGULATORY

E.g., Economic health, E.g., Current &

E.g., Demographic E.g., new technology,
recession, income incoming competitors, E.g., Laws, regulations,
shifts, cultural changes impact
levels competition nature

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 Framework | Market-Product Analysis
Shows the growth strategy the firm wants to pursue

Current Product New Product

Market Penetration Product Development

Current Increase sales of current products Sell a new product to

Market in the current market an existing market

Market Development Diversification

New
Market
Sell an existing product to a new Sell a new product
market to a new market

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 Positioning Maps

(“Positioning Map”, 2016)

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 Developing Strategies with Frameworks
A way to organize your thoughts and analyses
You can use however many you need
There will be overlap

Question Framework / Model options

Where are we now? 3Cs, SWOT, SECTR (Ch 3)

Where do we want to go? BCG Portfolio Analysis, Product-Market

Analysis, Positioning Maps (Ch 9)

… and many more!

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 Review
Wait, what did we just learn?
• Organizational Strategy (Mission, vision, core values)
• Environmental Scanning (SECTR) -- more next chapter
• Situational Analysis (SWOT, CCC)
• Marketing/Product Strategy Models (what to do next) (Ansoff,
BCG, Positioning)

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The Strategic Marketing Process

(Crane et al., 2014, p. 44) © 2014 McGraw-Hill Ryerson Ltd. All rights reserved
 Marketing Plan Executive Summary

Company Description
Check out Pages 58-74;
this is just one example. Strategic Focus (Values, Mission etc), Competencies

Situational / Environmental Analysis (Industry review,

environment review, customer review, competition reports,
etc)

Objectives & Strategies

Implementation Plan

Evaluation / Measurement

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 Questions?

Educational Content from this presentation is from:

Crane, F. G., Kerin, R.A., Hartley, S.W., & Rudelius, W. (2014). Marketing (Ninth Canadian Edition). Canada: McGraw Hill-Ryerson.’

References
Bain & Company. (2015). Mission and Vision Statements. Retrieved January 15, 2016 from:
http://www.bain.com/publications/articles/management-tools-mission-and-vision-statements.aspx

Crane, F. G., Kerin, R.A., Hartley, S.W., & Rudelius, W. (2014). Marketing (Ninth Canadian Edition). Canada: McGraw Hill-Ryerson.’

Positioning Map [Image]. (2016). Retrieved August 26, 2016, from:

http://3.bp.blogspot.com/-gAxRKSIf6Qk/Ue2yo_PG0AI/AAAAAAAAMsQ/E_EJO5yJZ9U/s1600/perceptual-map.jpg

Starbucks Logo [Logo]. (2016). Retrieved August 26, 2016, from: www.starbucks.com.
© 2014 McGraw-Hill Ryerson Ltd. All rights reserved