strategic marketing lectures 2

Powerpoint Templates

Module: Strategic MarketingInstructor: Bilal Ahmad

LECTURE: Markets and CompetitiveSpace

Introduction

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• 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

Learning Outcomes



• 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

Markets and Strategies



OPPORTUNITIES OUTSIDE THE COMPETITIVE BOX

The Competitive Box

Traditional Competitors

New Types of Competition

New Business Models

New Customers

New Customers

Conventional Value Propositions

Existing Customer Base

New Customer Base(s)



AN ARRAY OF CHALLENGESDisruptive Innovation

Creating New Market Space

Fast Changing Markets

Commoditization ThreatsDrivers of Changes

in Markets



• Markets and strategies are interlinked

– Outside the competitive box

• Array of challenges– Disruptive innovation

– Commoditization treat

– Creating new market space

– Fast-changing markets

Markets and Strategies



• Product – Market Boundaries and Structure

– Product Market structure• Generic product market

• Product-type product market

– Guidelines for definition• Buyer’s identification

• Market size and structure

• Brand and product category

DEFINING AND ANALYZING PRODUCT-MARKETS




Determine the Boundaries and Structure of the Product-Market

Form the Product-Market

Describe and Analyze End-UsersAnalyze

Competition

Forecast Market Size and Rate of Change



• Forming Product market– Purpose of analysis

– Changing composition of markets

– Extent of market complexity• Customer function

• Technologies

• Customer segment




SUPER MARKETS

MICROWAVEOVENS

CONVENIENCESTORES

TRADITIONAL RESTAURANTS

Illustrative Fast-Food Product-Market Structure

FAST-FOOD MARKET



Illustrative Product – Market Structure

• Generic Product Class

• Product Type

• Variant ARegular

• Variant B

• Brands

Food and beveragesfor breakfast meal

Cereals

Ready to eat

NaturalPre-sweetened

Life

Nutritional

Special KProduct 19



• Identifying and describing buyers– Family size, age, income, geographical location,

gender, and occupation

• Buyer’s choice– Problem recognition– Information search– Alternative evaluation– Purchase decision– Post-purchase behavior

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




• 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.)




• 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

ANALYZING COMPETITION


Examples of level of competition

Diet-RiteCola

Diet PepsiDiet Coke

Product from competition:diet colas

Regular colas

Diet lemonlimes

Lemon limes

Fruitflavoredcolas

Product categorycompetition:soft drinks

Bottlewater

Wine

Beer

Coffee

Juices

Generic competition:beverages

Baseball cards

FastFood

Video Games

Ice Cream

Budget competition:food & entertainment


• Industry analysis– Competitive analysis

• Descriptive company profile

• Analysis of value chain (distribution channel)

– Industry analysis• Industry characteristics

• Operating practices




• Industry size, growth, and composition

• Typical marketing practices

• Industry changes that are anticipated

• Industry strengths and weaknesses

• Strategic alliances among competitors

Industry analysis



• Analysis of value added chain– Value chain analysis

• Trends and patterns

• New market opportunities

• Forecasting end user sales




• Rivalry among existing firms.

• Threat of new entrants.

• Threat of substitute products.

• Bargaining power of suppliers.

• Bargaining power of buyers.

Competitive forces



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)



• Describing and evaluation the competitors– Same market

• Example : Samsung vs. apple

– Source of information• Example : annual reports, industry studies and media

reports

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

Anticipating competitors actions



• Market potential– Total opportunity for sales

– Upper limit sales

• Sales forecast

• Market share

• Evaluating market opportunity

Market size estimation



• Phase of competition – Example:

Strategic vision about future

Phase 1 •Product concept, technology choice and building competencies

•Experimentation with ideas

Phase 2 •Controlling industry standards

Phase 3 •Market share•Profits



• 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?

Strategic vision about future


strategic marketing lectures 2

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