Chapter Eleven Portfolio Analysis and Strategic Market Planning

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-2 Portfolio Analysis and Strategic Market Planning Strategic market planning Market attractiveness Competitive position Portfolio analysis and strategic market plans

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-3 Product Life Cycle of Two Portfolios How do they differ? Which is stronger? Figure 11-1 Product Life Cycles of Two Product Portfolios

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-4 Strategic Market Planning Process Figure 11-2 Portfolio Analysis and Strategic Market Planning

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-5 Product Life Cycle/Share Development Portfolio Figure 11-6 Product Life Cycle/Share Development Portfolio

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-6 Product Portfolio Plan Figure 11-7 Product Portfolio Plan

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-7 Factors Shaping Market Attractiveness Market Forces –Market size –Growth rate –Buyer power Competitive Environment –Number of competitors –Price rivalry –Ease of entry Market Access –Customer familiarity –Channel access –Sales requirements

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-8 Factors that Influence Competitive Position Differentiation position –Product quality –Service quality –Brand image Cost Position –Unit cost –Transaction cost –Marketing expenses Marketing Position –Market share –Brand awareness –Distribution

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-9 Portfolio Analysis Offensive portfolio strategy –Invest to grow –Improve position –New market entry Defensive portfolio strategy –Hold/protect share position –Optimize/monetize position –Harvest/divest share position A PORTFOLIO ANAYSIS is an evaluation of a business, product, or market with respect to market attractiveness and competitive position as an aid in identifying strategic plans.

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-10 Review Strategic market planning Market attractiveness Competitive position Portfolio analysis and strategic market plans

Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11-11 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall