Some Additional Models

Syed Ferhat Anwar

Professor, IBA

PEST (1 of 4)
An

organizations operating environment can be

analyzed by looking at:

External forces (those factors that an organization has

no control over),
Internal forces (factors that an organization has direct
control over)

The

external environment of an organization can

be analyzed by conducting a P.E.S.T analysis.
This is a simple analysis of an organization
Political, Economical Social and Technological
environment.

PEST (2 of 4)
Political
Political

factors can have a direct impact

on the way business operates. Decisions
made by government affect our every
day lives and can come in the form of
policy or legislation. The governments
introduction of a statutory minimum wage
affects all businesses, as do consumer
and health and safety laws and so on.

PEST
Economical
All

businesses are affected by economical

factors nationally and globally. Interest
rate policy and fiscal policy will have to be
set accordingly. Whether an economy is in
a boom, recession or recovery will also
effect consumer confidence and behavior.

PEST (3 of 4)
Social
Within

society forces such as family,

friends, media affect our attitude, interest
and opinions. These forces shape who we
are as people and the way we behave and
what we ultimately purchase.

PEST (4 of 4)
Technological
Changes

in technology is changing the way

business operates. The Internet is having a
profound impact on the marketing mix strategy
of organizations. The challenge these
organization faces is to ensure that they can
deliver on their promise. Those businesses,
which are slow to react, will fall at the first few
hurdles.

3C's model of Kenichi Ohmae (1 of 4)

The

Strategic triangle
Only by integrating the three C's
(Customer, Corporate, and Competitor)
in a strategic triangle, a sustained
competitive advantage can exist.

3C's model of Kenichi Ohmae (2 of 4)

Corporate-based

strategies

These

strategies aim to maximize the

corporation's strengths relative to the
competition in the functional areas that are
critical to achieve success in the industry
Selectivity

and sequencing
Make or buy
Improving cost-effectiveness

3C's model of Kenichi Ohmae (3 of 4)

Customer-based

strategies

In

the long run, the corporation that is genuinely

interested in its customers will be interesting for
its investors.
Segmenting

by objectives.
Segmenting by customer coverage.
Segmenting the market once more.

3C's model of Kenichi Ohmae (4 of 4)

Competitor-based
These

strategies

strategies can be constructed by looking

at possible sources of differentiation in functions
such as: purchasing, design, engineering, sales
and servicing.

Brand Personality Dimensions

(Aaker)

ADL Matrix

The ADL Matrix from Arthur D. Little is a portfolio management

method.

Bass Diffusion Model (1 of 2)

The

Bass Diffusion Model on the adoption

and diffusion of new products and
technologies by Frank M. Bass (A New
Product Growth Model for Consumer
Durables

Bass Diffusion Model (2 of 2)

The three parameters of the Bass Diffusion Model to predict Nt (Number of

adopters at time t) are:
m = the market potential; the total number of people who will eventually
use the product
p= the coefficient of innovation (external influence); the likelihood that
somebody who is not yet using the product will start using it because of
mass media coverage or other external factors
q= the coefficient of imitation (internal influence); the likelihood that
somebody who is not yet using the product will start using it because of
"word-of-mouth" or other influence from those already using the product.

Brand Asset Valuator (1 of 5)

Measuring Brand
Value. Explanation of
Brand Asset Valuator
of Young & Rubicam.

measures brand
value by applying
four broad factors.

Brand Asset Valuator (2 of 5)

Differentiation. Differentiation is the

ability for a brand to be distinguished
from its competitors. A brand should be
as unique as possible. Brand health is
built, and maintained, by offering a set of
differentiating promises to consumers.
And by delivering those promises to
leverage value.

Brand Asset Valuator (3 of 5)

Relevance. Relevance is the actual and

perceived importance of the brand to a
large consumer market segment. This
gauges the personal appropriateness of
a brand to consumers and is strongly
tied to household penetration (the
percentage of households that purchase
the brand).

Brand Asset Valuator (4 of 5)

Esteem. Esteem is the perceived quality

and consumer perceptions about the
growing or declining popularity of a
brand. Does the brand keep its
promises? The consumer's response to
a marketer's brand-building activity is
driven by his perception of two factors:
quality and popularity. Both vary by
country and culture.

Brand Asset Valuator (5 of 5)

Knowledge. Knowledge is the extent of

the consumer's awareness of the brand
and understanding of its identity. The
awareness levels about the brand, and
what it means, shows the intimacy that
consumers share with the brand. True
knowledge of the brand comes through
building of the brand.

Brand Identity Prism

(Kapferer)

According to JeanNol Kapferer, brand

personality should
be just one key facet
of brand identity.