Arias, Aiza G.

BSA 301
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MODULE 3 - STRATEGIC MARKETING ANALYSIS-

CONTENTS
1. Strategic Marketing Analysis

2. Essential Marketing Concepts (covered in subtopics below)

3. Product Life Cycle

4. Product Lifecycle Management

5. Product Portfolio Matrix (BCG Matrix)

1. STRATEGIC MARKETING ANALYSIS

What is it?
◦ No formal dictionary definition; refers to any market analysis related to individual business-
strategy or overall business strategy

◦ Goal: Help businesses make informed decisions by evaluating factors that impact strategic-
planning

◦ "Strategy" can mean either a specific plan for a goal or an organization’s overarching growth-
approach

KEY ANALYSIS METHODS

• Evaluates Strengths (internal positive), Weaknesses (internal negative), Opportunities (-

• Applicable to both overall strategy and individual ventures

2. PEST Analysis

• Examines Political, Economic, Social, and Technological factors affecting markets/industries

• Best for shaping overall strategy; effective for projecting growth and profitability

3. Porter’s Five Forces Analysis

• Assesses profitability of new products/services by evaluating:

◦ Supplier power

◦ Buyer power

◦ Competitive rivalry

◦ Threat of substitution

◦ Threat of new entry

• Works for macro and micro scales

4. Four Corner’s Analysis

• Focuses on competitors by analyzing their future goals, current strategy, assumptions, and-
capabilities

• Helps predict competitor actions

5. Value-Chain Analysis

• Breaks down company activities into primary and support categories to quantify value-
creation

• Identifies cost drivers and competitive advantages

6. Early Warning Scans

• Detects/predicts important events to prepare for competitor threats or market changes

7. War Gaming

• Uses simulations to test scenarios, identify blind spots, and develop strategies to-
outmaneuver competition
PROS AND CONS

Pros Cons

Uncovers opportunities to increase profits Takes significant time to complete

Identifies and helps overcome competition May lead to false conclusions and missed-
opportunities

Avoids poor business decisions

HOW TO CONDUCT IT
1. Choose appropriate tools (start with PEST, SWOT, and Porter’s Five Forces)

2. Gather data from industry reports and reliable sources

3. Perform analysis and draw conclusions to guide strategy

IMPORTANCE AND RELATED TYPES

◦ Strategic Cost Analysis: Compares costs to assess competitiveness

◦ Strategic Fit Analysis: Evaluates alignment of internal capabilities with external market factors

◦ Technology advances now enable automation of analysis processes

2. PRODUCT LIFE CYCLE

What is it?
◦ The period from a product’s market introduction to its removal from shelves

◦ Used to guide decisions on advertising, pricing, expansion, and packaging

FOUR STAGES
1. Introduction Stage

• First launch to consumers; requires heavy advertising to build awareness

• Focus on explaining product benefits

2. Growth Stage

• Characterized by increasing demand, production, and availability

• Marketing shifts to differentiation from competitors

• Sales rise but margins may decrease due to competition

3. Maturity Stage

• Most profitable phase; production/marketing costs decline

• Market is saturated; competition is highest

• Sales volume peaks; focus on retaining market share

4. Decline Stage

• Sales drop due to saturation and alternatives

• Marketing efforts decrease; company may retire, revamp, or reintroduce the product

ADVANTAGES AND LIMITATIONS

◦ Limitations: Does not apply to all products/industries; may encourage planned obsolescence

3. PRODUCT LIFECYCLE MANAGEMENT (PLM)

What is it?
◦ The handling of a product through all stages of its life, including manufacturing and marketing

◦ Goal: Streamline activities across teams to create high-performing, profitable products

PLM STAGES
1. Concept Stage: Idea generation, market research, feasibility testing

2. Design Stage: Prototyping, refinement, regulatory compliance testing

3. Production Stage: Manufacturing, sourcing materials, quality control

4. Sales Stage: Promotion, pricing, distribution

5. Support Stage: Customer service, warranties, training

6. Retirement Stage: Disposal, recycling, or replacement with new iterations

BENEFITS
◦ Faster time to market

◦ Higher product quality and safety

◦ Increased sales opportunities

◦ Reduced errors and waste

◦ Better resource planning

MEASURING PRODUCT LIFECYCLES

1. Sales Data: Tracks trends over time

2. Customer Feedback: Identifies strengths, weaknesses, and unmet needs

3. Competitor Analysis: Monitors market changes and rival offerings

4. Quality Metrics: Evaluates production efficiency and product reliability

5. Warranty/Return Data: Indicates product performance issues

4. PRODUCT PORTFOLIO MATRIX (BCG MATRIX)

What is it?
◦ A strategic planning tool by Boston Consulting Group to evaluate a firm’s product portfolio
◦ Classifies products into four quadrants based on relative market share (horizontal axis) and-
market growth rate (vertical axis)

FOUR QUADRANTS
1. Question Marks

• High market growth, low market share

• Require heavy investment to potentially become stars

• Funded by cash cows; may become dogs if unsuccessful

2. Stars

• High market growth, high market share

• Market-leading products; require significant investment to maintain position

• Generate large cash flows and become cash cows as markets mature

3. Cash Cows

• Low market growth, high market share

• Established leaders; require minimal new investment

• Generate steady cash flows to fund stars and question marks

4. Dogs (Pets)

• Low market growth, low market share

• Typically phased out unless complementary to other products or used competitively

• May sustain themselves but offer limited growth potential

Note: This document is marked "For Internal use Only" and created by BALINA.

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