Marketing Theoretical Frameworks. [image] photo of 2 men drawing a graph. 

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20XX. Contoso business plan. 2. Marketing Theoretical Frameworks Macro/ Micro Environmental Forces Porter’s Model Ansoff’s Matrix. 

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Marketing Theoretical Frameworks

 Macro/ Micro Environmental Forces

 Porter’s Model

 Ansoff’s Matrix

Micro-Environment. Environment that exists within a company organization and can influence daily operations. It is connected to a small area where the company operates. The Micro-Environment is made up of all the forces that surround the company. These factors are specific to the company in the issue. Due to this, a company's performance can be affected in the short term.. 

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Environment that exists within a company organization and can influence daily operations. It is connected to a small area where the company operates. The  Micro-Environment is made up of all the forces that surround the company. These factors are specific to the company in the issue. Due to this, a company's performance can be affected in the short term.

Macro Environment. The major uncontrollable, external forces like economic, demographic, technological, natural, social and cultural, legal and political which influence a firm's decision making and have an impact upon its performance. These Macro Environmental factors are called “PESTEL” factors.. 

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The major uncontrollable, external forces like economic, demographic, technological, natural, social and cultural, legal and political which influence a firm's decision making and have an impact upon its performance. These Macro Environmental factors are called “PESTEL” factors.

DuPont. DuPont, a global science and innovation company, has been shaped by various macro and micro environmental factors that have created both challenges and opportunities. Now let’s see how Micro and Macro Environmental factors have influenced Dupont's business opportunities.. 

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DuPont, a global science and innovation company, has been shaped by various macro and micro environmental factors that have created both challenges and opportunities.  Now let’s see how Micro and Macro Environmental factors have influenced Dupont's business opportunities.

How Micro Environmental factors have influenced Dupont’s business opportunities. 

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How Micro Environmental factors have influenced Dupont’s business opportunities

Competitive Landscape - DuPont operates in highly competitive markets characterized by constant innovation and technological advancements. Competitors range from multinational corporations to small startups, each vying for market share and customer loyalty.  Customer Needs and Preferences - Dupont conducts market research and collaborates closely with customers to identify emerging trends and develop tailored solutions to meet their specific requirements. By anticipating and addressing customer needs, DuPont can create value-added products and services that differentiate it from competitors and drive business growth. Supplier Relationships - DuPont works closely with suppliers to source high-quality raw materials, optimize supply chain logistics, and manage production costs effectively. By fostering long-term partnerships with suppliers, DuPont can mitigate supply chain risks, enhance operational efficiency, and maintain a competitive advantage in the marketplace. Internal Capabilities and Resources: DuPont's internal capabilities and resources, including its talented workforce, research facilities, and intellectual property portfolio, play a crucial role in driving innovation and business success. By investing in employee training and development, fostering a culture of collaboration and creativity, and protecting its intellectual property assets, DuPont can leverage its internal strengths to capitalize on market opportunities, drive product innovation, and maintain a competitive edge in the industry.

How Macro Environmental factors have influenced Dupont’s business opportunities. 

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How Macro Environmental factors have influenced Dupont’s business opportunities

Regulatory Environment - Dupont has leveraged its expertise in materials science to develop environmentally friendly alternatives, such as bio-based materials and renewable energy solutions, to meet regulatory requirements and address growing environmental concerns. Economic Trends - Economic fluctuations and global market dynamics impact demand for DuPont's products across various industries. During economic downturns, there may be reduced demand for specialty chemicals and industrial materials. Conversely, periods of economic growth can lead to increased demand for products like construction materials, electronics, and automotive components, presenting opportunities for DuPont to expand its market share and revenue. Technological Advancements - DuPont has invested in research and development to harness emerging technologies such as nanotechnology, biotechnology, and advanced materials. By staying at the forefront of technological innovation, DuPont has been able to develop cutting-edge products with superior performance characteristics, giving it a competitive edge in the marketplace. Social and Cultural Trends - Changing consumer preferences and societal trends influence demand for DuPont's products. For example, growing awareness of environmental issues and health concerns has fuelled demand for sustainable and eco-friendly products. Dupont has capitalized on these trends by developing bio-based materials, renewable energy solutions, and environmentally friendly alternatives to traditional chemicals, catering to the evolving needs and preferences of consumers.

Potter’s Model. Potter's five forces are used to identify and analyse an industry's competitive forces. Potter’s five forces are shown here.. 

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Potter's five forces are used to identify and analyse an industry's competitive forces. Potter’s five forces are shown here.

Competitive Rivals. 20XX. Contoso business plan. 9. 

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The number of competitors - The more competitors in an industry, the more fierce the rivalry, each fighting for scraps of market share. 
 Industry growth: In an expanding industry, competition is usually less dramatic because the market is growing so fast that competitors have little need to fight for customers
 Similarities in what's offered: When the products or services in a market are awfully similar, competition tends to be intense because customers can easily switch. 
 Exit barriers: When it's difficult or costly for companies to leave the industry due to specialized assets, contractual obligations, or emotional attachment, they may choose to stay and compete, even if the market's prospects grow dimmer by the day. 
 Fixed costs: Porter notes that if an industry has high fixed costs, companies have a "strong temptation" to cut prices rather than slow production when demand slackens.

2. Potential for New Entrants in an Industry. 20XX. 

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2. Potential for New Entrants in an Industry

Economies of scale: Industries where large-scale production leads to lower costs face less of a threat from new entrants. New firms would need to achieve a similar size to compete on price, which might be difficult or costly.   Product differentiation: When existing firms have strong brand identities or customer loyalty, it's harder for new entrants to gain market share, reducing the threat of entry. 
 Capital requirements: High startup costs for equipment, facilities can deter new entrants. 
 Access to distribution channels: If existing firms control the distribution channels like retail stores, online platforms, cable infrastructure, then new entrants would need to find a way to replicate that structure while competing with the established firms on price, a tricky proposition. 
 Regulations: Licenses, safety standards, and other regulatory standards can create barriers, making it too ungainly or costly for new firms to enter the market. 
 Switching costs: If it's costly or difficult for customers to switch from existing firms to new entrants, the threat of entry is lower.

3. Supplier Power. 20XX. Contoso business plan. 11. 

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The number of suppliers - When few firms can give a company something it needs to stay in business, each has greater negotiating power. They can raise prices or reduce quality without fear of losing business.
 Uniqueness: If a supplier provides a unique product or it's not easy to find a substitute, it is more dominant. Businesses can't easily switch to another supplier.
 Switching costs: If it's costly or time-consuming to switch suppliers, then they have more power. 
 Forward integration: If suppliers can move into the buyer's industry, they have more power. 
 Industry importance: Some sectors are tightly intertwined, such as automotive suppliers and the major auto companies or the semiconductor and tech industries, which can balance the power between the suppliers and those in the sector.

4. Customer Power. 20XX. Contoso business plan. 12. 

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The number of buyers - The fewer the buyers, the more they have power.  Purchase size: Just like you head off to the big box stores to buy in bulk for a cheaper per-unit cost on whatever now fills up your garage, major retail chains like Walmart Inc. When buy in large volumes and can negotiate better terms and discounts. Switching costs: In industries like telecommunications, where it's easy for consumers to switch providers, companies such as Verizon Communications. Price sensitivity: In the fast-fashion industry, where customers are highly price-sensitive, brands must keep their prices low to attract cost-conscious consumers. Informed buyers: In many sectors, the customers are savvy, know the competitive terrain well, and thus can negotiate better prices.

5. Threat of Substitutes. 20XX. Contoso business plan. 

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Relative price performance - If the cost of a substitute is lower and its performance is comparable or better, customers are likely to switch to the substitute. 
 Customer willingness to go elsewhere - The threat is high if buyers find it easy to switch to a substitute. 
 The sense that products are similar - If buyers perceive that there are few differences between your product and a substitute, even if there are, they may be more likely to switch.
 Availability of close substitutes - There are genuinely similar products in the market and the threat of substitutes is high, such as between brand-name and generic medications.

Competitive strategy of Aerie by considering the scope of target market against Victoria secret. 

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Competitive strategy of Aerie by considering the scope of target market  against Victoria secret

Aerie's target market has a broad scope, encompassing a diverse range of individuals, particularly young women, who appreciate authenticity, inclusivity, and empowerment. Aerie has differentiated itself by featuring models of various body types, ethnicities, and backgrounds in its marketing campaigns, challenging traditional beauty standards. By embracing realness and promoting body positivity, Aerie appeals to a wide audience of consumers who value authenticity and self-expression.
 Victoria's Secret has targeted a narrower segment of the market, primarily focusing on young, thin, and conventionally attractive women. However, Victoria's Secret has faced criticism for promoting unrealistic beauty standards and lacking inclusivity.
 Aerie's competitive strategy focuses on differentiation through authenticity, inclusivity, and empowerment, with a broad target market. Victoria's Secret has faced challenges in adapting to changing consumer preferences and societal trends, particularly regarding inclusivity and authenticity. As a result, Aerie has emerged as a formidable competitor, appealing to a diverse audience of consumers who value real beauty and empowerment.

Ansoff’s matrix. Ansoff's matrix suggests that a business’s attempts to grow depend on whether it markets new or existing products in new or existing markets. The output from the Ansoff’s matrix is a series of suggested growth strategies which set the direction for the business strategy.. 

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Ansoff's matrix suggests that a business’s attempts to grow depend on whether it markets new or existing products in new or existing markets.  The output from the Ansoff’s matrix is a series of suggested growth strategies which set the direction for the business strategy.

Ansoff’s matrix. 20XX. Contoso business plan. 16. 

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Market Penetration – The concept of increasing sales of existing products into an existing market Market Development – Focuses on selling existing products into new markets Product Development – Focuses on introducing new products to an existing market Diversification – The concept of entering a new market with altogether new products

[image] A diagram of a product development Description automatically generated

growth strategies utilized by Lululemon in achieving their target. 

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growth strategies utilized by Lululemon in achieving their target

Expansion of Retail Footprint - Lululemon continues to invest in expanding its physical retail presence by opening new stores in strategic locations. Lululemon aims to reach new customers and strengthen its brand presence in key markets. Digital Innovation and Omnichannel Experience - Recognizes the importance of digital innovation and providing a seamless omnichannel experience for customers. Lululemon aims to improve customer engagement, drive sales, and enhance brand loyalty. Product Innovation and Category Expansion - Lululemon continues to focus on product innovation and expanding its product offerings across various categories. By continuously innovating and diversifying its product range, Lululemon aims to maintain its competitive edge and appeal to a broad audience. Brand Partnerships and Collaborations - Lululemon leverages strategic partnerships and collaborations to enhance its brand image and reach new audiences. By aligning with influential figures and brands, Lululemon seeks to leverage their social influence and expand its reach to new customer segments. Focus on Sustainability and Corporate Social Responsibility - Lululemon remains committed to sustainability and corporate social responsibility initiatives as part of its growth strategy. Lululemon aims to strengthen its brand reputation, attract socially conscious consumers, and contribute to positive social and environmental outcomes.

[image] Close up of a wall clock. Some other Marketing Theoretical Frameworks. 

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Some other Marketing Theoretical Frameworks

Balanced Scorecard  The Marketing Mix  The Communications Mix  SWOT Analysis  Stakeholder Mapping  Mendelow's Matrix  The consumer decision making process  The GE Matrix  The Marketing Environment  Segmenting consumer markets  Maslow's hierarchy of needs  Boston Consulting Group Matrix  The PESO model

Marketing Theoretical Frameworks

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