Introduction

Module: Strategic Marketing

Instructor: Bilal Ahmad

LECTURE: Markets and

Competitive
Space

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Learning Outcomes

Markets and Strategies

Defining and Analyzing Product-Markets

Describing and Analyzing End-Users

Analyzing Competition

Market Size Estimation

Developing a Strategic Vision about the

Future
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Markets and Strategies
The Challenges
Markets are increasingly complex, turbulent, and interrelated.
Importance of a broad view of the market.
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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OPPORTUNITIES OUTSIDE THE
COMPETITIVE BOX

The Competitive Box

New
New Types of Traditional Business
Competition Competitors Models

New New
Customers Conventional Value
Propositions Customers

Existing
Customer Base

New Customer
Base(s)
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AN ARRAY OF CHALLENGES
Disruptive
Innovation

Fast Commoditization
Changing Drivers of Changes Threats
Markets in Markets

Creating New Market

Space

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Markets and Strategies

Markets and strategies are interlinked

Outside the competitive box

Array of challenges
Disruptive innovation
Commoditization treat
Creating new market space
Fast-changing markets

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DEFINING AND ANALYZING PRODUCT-MARKETS

Product Market Boundaries and Structure

Product Market structure
Generic product market
Product-type product market
Guidelines for definition
Buyers identification
Market size and structure
Brand and product category

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 DEFINING AND ANALYZING
PRODUCT-MARKETS
Determine the Boundaries and
Structure of the Product-
Market

Form the
Product-Market

Describe and

Analyze
Analyze End-Users
Competition
Forecast
Market Size and
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Rate of Change
DEFINING AND ANALYZING PRODUCT-MARKETS

Forming Product market

Purpose of analysis
Changing composition of markets
Extent of market complexity
Customer function
Technologies
Customer segment

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Illustrative Fast-Food
Product-Market Structure

SUPER MICROWAVE
MARKETS OVENS
FAST-FOOD
MARKET

CONVENIENCE TRADITIONAL
STORES RESTAURANTS

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 Illustrative Product Market Structure

Food and beverages Generic Product

for breakfast meal Class

Cereals Product Type

Ready to eat Variant A

Regular
Natural Variant B
Nutritional Pre-sweetened

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Special K Brands
DEFINING AND ANALYZING MARKETS

Identifying and describing buyers

Family size, age, income, geographical location,
gender, and occupation

Buyers choice
Problem recognition
Information search
Alternative evaluation
Purchase decision
Post-purchase behavior
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DEFINING AND ANALYZING MARKETS

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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DEFINING AND ANALYZING
MARKETS
Building Customer Profiles
Start with generic product market
Move next to product- type and variant profiles
Customer profiles guide decision making (e.g.
targeting, positioning, market segmentation etc.)

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ANALYZING COMPETITION

Defining the competitive arena

For generic, specific and variant product market
Identify key competitors
Evaluate key competitors
Anticipate action by competitors
Identify and evaluate potential competitors

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Examples of level of competition
Baseball
cards
Bottle Video
Fast water Games
Food
Regular Diet lemon
Ice
colas limes
Beer Cream
Diet-Rite
Cola
Fruit
flavored Diet
Coke Diet Pepsi
colas Wine
Product from
competition: Lemon
diet colas limes
Product category
Juices
competition:
soft drinks Coffee
Generic competition:
Budget competition: beverages
food & entertainment
ANALYZING COMPETITION

Industry analysis
Competitive analysis
Descriptive company profile
Analysis of value chain (distribution channel)
Industry analysis
Industry characteristics
Operating practices

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Industry analysis

Industry size, growth, and composition

Typical marketing practices

Industry changes that are anticipated

Industry strengths and weaknesses

Strategic alliances among competitors

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ANALYZING COMPETITION

Analysis of value added chain

Value chain analysis
Trends and patterns
New market opportunities
Forecasting end user sales

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Competitive forces

Rivalry among existing firms.

Threat of new entrants.

Threat of substitute products.

Bargaining power of suppliers.

Bargaining power of buyers.

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 Key competitor analysis

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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Anticipating competitors actions

Describing and evaluation the competitors

Same market
Example : Samsung vs. apple
Source of information
Example : annual reports, industry studies and media
reports

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 Anticipating competitors actions

Estimating competitors future strategies

Assumption on existing strategy
Strategy drift

Identifying new competitors

Product market
Related technologies
Similar Target market
Similar product with different geography

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Market size estimation

Market potential
Total opportunity for sales
Upper limit sales

Sales forecast

Market share

Evaluating market opportunity

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Phase 3
Market share
Profits
Phase 2
Controlling industry standards
Product concept, technology choice and building Phase 1
competencies
Experimentation with ideas
Example:
Phase of competition
Strategic vision about future
Strategic vision about future

Anticipating the future

Boundaries and composition of Product market
End-user customer base
Market and industry transformation
Potential threats
Value chain composition and structure
Product life cycle phase?

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