Marketing_Management_14th_Edition-min

DEVELOPING MARKETING STRATEGIES AND PLANS | CHAPTER 2 49
(a) Opportunity Matrix
|Fig. 2.4|
Attractiveness
High
Low
Success Probability
High Low
1
3
2
4
1.
2.
3.
4.
Company develops more powerful
lighting system
Company develops device to
measure energy efficiency
of any lighting system
Company develops device to
measure illumination level
Company develops software program
to teach lighting fundamentals to
TV studio personnel
Opportunity and
Threat Matrices
(b) Threat Matrix
Seriousness
Probability of Occurrence
High Low
High 1 2
Low 3 4
1.
2.
3.
4.
Competitor develops superior
lighting system
Major prolonged economic
depression
Higher costs
Legislation to reduce number
of TV studio licenses
To evaluate opportunities, companies can use market opportunity analysis (MOA) to ask
questions like:
1. Can we articulate the benefits convincingly to a defined target market(s)?
2. Can we locate the target market(s) and reach them with cost-effective media and trade channels?
3. Does our company possess or have access to the critical capabilities and resources we need to
deliver the customer benefits?
4. Can we deliver the benefits better than any actual or potential competitors?
5. Will the financial rate of return meet or exceed our required threshold for investment?
In the opportunity matrix in Figure 2.4 (a), the best marketing opportunities facing
the TV-lighting-equipment company appear in the upper-left cell (#1). The opportunities in
the lower-right cell (#4) are too minor to consider. The opportunities in the upper-right cell (#2)
and the lower-left cell (#3) are worth monitoring in the event that any improve in attractiveness
and potential.
An environmental threat is a challenge posed by an unfavorable trend or development that, in
the absence of defensive marketing action, would lead to lower sales or profit. Figure 2.4 (b) illustrates
the threat matrix facing the TV-lighting-equipment company. The threats in the upper-left cell
are major, because they have a high probability of occurrence and can seriously hurt the company.
To deal with them, the company needs contingency plans. The threats in the lower-right cell are
minor and can be ignored. The firm will want to carefully monitor threats in the upper-right and
lower-left cells in the event they grow more serious.
INTERNAL ENVIRONMENT (STRENGTHS AND WEAKNESSES) ANALYSIS It’s one
thing to find attractive opportunities, and another to be able to take advantage of them. Each business
needs to evaluate its internal strengths and weaknesses.
Loan Bright At the Web site of Loan Bright, an online mortgage company,
potential homebuyers can get a personalized list of lenders and available terms. At first, Loan
Bright made its money by selling the homebuyer data to high-end mortgage lenders, including
Wells Fargo Home Mortgage, Bank of America Mortgage, and Chase Home Mortgage. These
firms turned the data into leads for their sales teams. But worrisome internal issues arose. For