Meeting 2: Strategy, SWOT and consumer behavior

Where are we now? Where do we want to

go? How do we get there? What do we do if

something happens? How do we measure

succes? How long will it take?

Situation analyse Strategic aims and

objectives Action plan Contingency plans Monitoring and

evaluation Timeframe for

achieving objects

Micro, (Meso) Macro environment◦ Micro-environment: Everything within your

organisation, what you are able to influence.

◦ Meso-environment: your direct environment, customers, suppliers etc.

Very little influence possible

◦ Macro-environment “the world”: no influence:

DEPEST: Demografics, Economics, Politics, Ecology, Social/juridical, Technology

What are the most important trends in:◦ Demografics◦ Economics◦ Politics◦ Ecology◦ Social/Juridical◦ Technologics

How does this influence your situation? Where do you find information about your

environment?

Different levels of competition◦ Need competition◦ Product competition◦ Brand competition

What kind of market are you in? What do you consider as competition for

your product? How do you deal with it? Why bother about the competiton?

Market position Organisation Procedures Finance Systems

Market share

target group

Marketing policy

Price

Promotion

Personnel-management

Organisation-structure

Culture

Production policy

Assortment

Stock

Distribution

Financial policies

Balance

Index numbers

ICT

What About Musical Environment ?

? ? ? ? ?

What makes a musician succesfull? Benchmarking Best Practice Long Tail Theory

◦ Lower search and lower sales costs mean more business in niche-sellings (long tail)

Superstar Theory◦ More income means choice for better products◦ Layered Siefe, influenced by non musical factors◦ Famous artists are better because it’s easier to

talk about: frame of reference.

Strengths: What are the things in which you excel

Weaknesses: What are the things that you could do better

Opportunities: What happens around you that could be of interest for you

Threats: What happens around you that could be hurtfull for you

Development

Quantify (what is the form of the trend, quantify, and what will happen coming 3 years)

Impact (what is the influence in cost/turnover/profit)

Action (yes or no, is yes who and how)

New subsidy system

Grey wave (more old people)

More inhabitants

Economic crisis

How does Mr Dutch Average spend his time?www.cbs.nlSpare timehttp://statline.cbs.nl/StatWeb/publication/?VW=T&DM=SLNL&PA=37881&D1=29-39&D2=a&D3=a&D4=(l-0)-l&HD=080910-0950&HDR=T&STB=G3,G2,G1

Who is your audience?

What criteria do you use to divide into target groups?

Which target groups do you choose?◦ Demographics◦ Geografic◦ Needs/behavioral◦ New Users?

Fysiological needs

Safety needs

Social needs

Esteem needs

Self-actualisation needs

Self-fulfillment

Status, prestige, position

Companionship. family

Warmth, safety, security

Food, water, shelter

Classical 5 (6) phase model◦ Identify a need, problem recognition, (2)want◦ Gather information◦ Asses options and alternatives◦ Decide and act, purchase◦ Use, review overall satisfaction

How do you buy toiletpaper? How do you buy a new pair of trousers? How do you buy new sheetmusic? How do you buy a set of strings?

Extensive problem solving behaviour◦ Specialty goods (car)

Limited problem solving behaviour◦ Shopping goods (clothing)

Routine problem solving behaviour◦ Convenience goods (food, toilet paper)

Unsought goodsThings you don’t know or don’t want!

attention interest desire action (evaluation)

How much can you influence somebody with communication?◦ Depends on:

Sort of product How new is the product How much info is around already

◦ Can you make someone who hates classical music buy a Beethoven CD?

◦ Can you make someone who doesn’t know Beethoven buy this record?

◦ Can you make someone who loves Mozart buy this record?

◦ Can you make someone who loves Beethoven buy this record?

◦ Imagine going to a concert: how much of this decision is influenced by others?

◦ Do you go alone to a concert?◦ What about buying a CD?◦ What about music lessons?

Think a moment about this when you want to sell your tickets/lessons/music!

Selective attention◦ You notice the things you are familiar with easier.

Selective distortion: ◦ you see the things the way you want them to see

Selective retention◦ You remember stuff that fits with your believes

and other knowledge much easier Cognitive Dissonance

◦ You try to avoid or solve conflicting idea’s and believes by transforming the truth

Conventional,Non complex

Conventional,complex

Unconventional,complex

Unconventional, non-complex

complexity

con

ven

tion

ality

Classical music

Modern dancepopmusic

James Last