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Market-Based Management Chapter 11, 12, 13 Portfolio Analysis and Strategic Market Planning 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 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 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 Product Life Cycle and Offensive and Defensive Strategies Portfolio Analysis and Strategic Market Plans Core Offensive Strategies Offensive Core Strategy 1:  Invest to Grow Sales Offensive Core Strategy 2: Invest to Improve Competitive Position Offensive Core Strategy 3: Invest to Enter New Markets 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 Defensive Strategies Defensive Strategic Market Plans What are the main objectives of defensive strategies? When are defensive market plans employed? Core Defensive Strategies Defensive Core Strategy 1: Invest to Protect Position Protecting Follower Share Position Defensive Core Strategy 2: Optimize Position Defensive Core Strategy 2: Optimize Position Defensive Core Strategy 3: Monetize, Harvest, or Divest Defensive Core Strategy 3: Monetize, Harvest, or Divest Figure 11-1 Product Life Cycles of T