Beruflich Dokumente
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McGraw-Hill/Irwin 2006 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Chapter Three
Markets and Competitive Space
McGraw-Hill/Irwin
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Essential to develop a vision about how the market is likely to change in the future. Continuous Monitoring is Necessary to: Find promising opportunities Identify shifts in value requirements Understand competitors positioning Guide targeting and positioning decisions
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changes often require altering strategies Forces of change create both market opportunities and threats Inherent danger in faulty market sensing
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Value Migrations
Customers
shift purchasing to new business designs with enhanced value offering Beware of disruptive technologies Market sensing and organizational learning are essential
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product market matches people with needs to the product benefits that satisfy those needs
A product market is the set of products judged to be substitutes within those usage situations in which similar patterns of benefits are sought by groups of customers.*
*Srivastava, et al. (1984) Journal of Marketing, Spring, 32.
INNOVATION FEATURE
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In the period 1994 to 2004, Progressive Insurance increased sales from $1.3 billion to $9.5 billion, and ranks high in the Business Week Top 50 U.S. companies for shareholder value creation. The company invents new ways of providing services to save customers time, money and irritation, while often lowering costs at the same time. Loss adjusters are sent to the road accidents rather than working at head office, and they have the power to write checks on the spot. Progressive reduced the time needed to see a damaged automobile from seven days to nine hours. Policy holders cars are repaired quicker, and the focus on this central customer need has won much automobile insurance business for Progressive. These initiatives also enable Progressive to reduce its own costs the cost of storing a damaged automobile for a day is $28, about the same as the profit from a six-month policy.
Source: Adapted from Mitchell, Adrian (2004)Heart of the Matter, The Marketer, June 12, 14.
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1. Start with the generic need satisfied by the product category of interest to management 2. Identify the product categories (types) that can satisfy the generic need 3. Form the specific product markets within the generic product market
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FAST-FOOD MARKET
CONVENIENCE STORES
TRADITIONAL RESTAURANTS
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due to new technologies and emerging competition Consider existing and emerging markets Identify alternative ways to meet needs Extend product-market analysis beyond industry boundaries (e.g. Fast-foods)
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Cereals
Product Type
Ready to eat
Regular
Variant A
Natural
Nutritional Pre-sweetened
Variant B
Life
Product 19
Special K
Brands
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Environmental Influences
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Environmental Influences
External factors influencing buyers needs and wants: Government, social change, economic shifts, technology etc. These factors are often non-controllable but can have a major impact on purchasing decisions
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Start with generic product market Move next to producttype and variant profiles >> increasingly more specific Customer profiles guide decision making (e.g. targeting, positioning, market segmentation etc.)
ANALYZING COMPETITION
1. Define Industry Structure and Characteristics
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Fast Food
Regular colas Beer Diet lemon limes Diet-Rite Cola Fruit flavored colas Diet Coke Diet Pepsi Ice Cream
Wine
Lemon limes
Product category competition: soft drinks Generic competition: beverages Budget competition: food & entertainment
Coffee
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Industry Analysis
Industry size, growth, and composition Typical marketing practices Industry changes that are anticipated (e.g. consolidation trends) Industry strengths and weaknesses Strategic alliances among competitors
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DISTRIBUTORS
RETAILERS/ DEALERS Value Added Chain
Competitive Forces
1. Rivalry among existing firms.
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Business scope and objectives Management experience, capabilities, and weaknesses Market position and trends Market target(s) and customer base Marketing program positioning strategy Financial, technical, and operating capabilities Key competitive advantages (e.g., access to resources, patents)
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Current Capabilities
Competitor Evaluation
Customer Satisfaction
Past Performance
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Unrealized Potential
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2007 2008