1. Market-Based Management
Chapter 11, 12, 13
Portfolio Analysis and Strategic Market Planning

2. Figure 11-1 Product Life Cycles of Two Product Portfolios
Which would you rather have?

3. Figure 11-6 Product Life Cycle/Share Development Portfolio

4. Factors Impacting Mkt 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

5. Competitive Position Influences
Differentiation position
Product quality
Service quality
Brand image
Cost Position
Unit cost
Transaction cost
Marketing expenses
Marketing Position
Market share
Brand awareness
Distribution

6. Portfolio analysis
An evaluation of a business, product, or market with respect to market attractiveness and competitive position as an aid in identifying strategic plans.
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

7. Product Life Cycle and Offensive and Defensive Strategies
Figure 12-2 Market Growth and Offensive and Defensive Strategies

8. Portfolio Analysis and Strategic Market Plans
Figure 12-3 Portfolio Analysis and Strategic Market Plans

9. Core Offensive Strategies
Core Strategy 1
Core Strategy 2
Core Strategy 3
Invest to grow sales
Invest to improve competitive position
Invest to enter new markets
Grow in Existing Markets
Improve Margins
Diversified Growth

10. Offensive Core Strategy 1: Invest to Grow Sales
Sub Strategy A
Sub Strategy B
Grow Market Share
Grow Revenue Per Customer
Sub Strategy C
Sub Strategy D
Enter New Market Segment
Expand Market Demand

11. Offensive Core Strategy 2: Invest to Improve Competitive Position
Sub Strategy A
Sub Strategy B
Improve Customer Loyalty
Improve Differentiation Advantage
Sub Strategy C
Sub Strategy D
Lower Costs/Improve Marketing Productivity
Build Marketing Advantage

12. Offensive Core Strategy 3: Invest to Enter New Markets
Sub Strategy A
Sub Strategy B
Enter Related New Markets
Enter Unrelated New Markets
Sub Strategy C
Sub Strategy D
Enter New Emerging Markets
Develop New Markets

13. Selecting an Offensive Strategy
Why enter new markets?
New source of growth
Smoother performance
Diversification and reduced vulnerability
Why invest to grow sales?
Why improve competitive position?
Achieve price premiums
Customer retention
Improve margins and NMC

14. Figure 13-3 Strategic Market Plans and Performance
Defensive Strategies
Figure 13-3 Strategic Market Plans and Performance

15. Defensive Strategic Market Plans
What are the main objectives of defensive strategies?
When are defensive market plans employed?
Figure 13-5 Portfolio Positions
and Defensive Strategic Market Plans

16. Core Defensive Strategies
Core Strategy 1
Core Strategy 2
Core Strategy 3
Protect Position
Optimize Position
Monetize, Harvest, or Divest
Maintain Sales
Maximize Profits
Cash Flow

17. Defensive Core Strategy 1: Invest to Protect Position
Sub Strategy A
Sub Strategy B
Protect Market Share
Build Customer Retention
Protect position in growth markets
Protect a high-share position
Protect a follower share position
Protect a niche share position

18. Protecting Follower Share Position
Figure 13-8 Market Structure and Share Position

19. Defensive Core Strategy 2: Optimize Position
Sub Strategy A
Sub Strategy B
Maximize Net Marketing Contribution
Selective Market Focus

20. Defensive Core Strategy 2: Optimize Position
Figure Profit Life Cycle and
Components of Marketing Profitability

21. Defensive Core Strategy 3: Monetize, Harvest, or Divest
Sub Strategy A
Sub Strategy B
Manage for Cash Flow
Harvest-Divest for Cash Flow
Harvest Price Strategy
Harvest Marketing Resource Strategy
Divest Market Strategy

22. Defensive Core Strategy 3: Monetize, Harvest, or Divest
Figure Harvest Price Strategy

23. Break Time
Break Time
10 minutes