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Introduction

Module: Strategic Marketing
Instructor: Bilal Ahmad

LECTURE: Markets and
Competitive
Space

Powerpoint Templates

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
Powerpoint Templates

and interrelated. – Essential to develop a vision about how the market is likely to change in the future. turbulent.Markets and Strategies • The Challenges ― – Markets are increasingly complex. • Continuous Monitoring is Necessary to: – Find promising opportunities – Identify shifts in value requirements – Understand competitors’ positioning – Guide targeting and positioning decisions Powerpoint Templates . – Importance of a broad view of the market.

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) Powerpoint Templates .

AN ARRAY OF CHALLENGES Disruptive Innovation Fast Commoditization Changing Drivers of Changes Threats Markets in Markets Creating New Market Space Powerpoint Templates .

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 Powerpoint Templates .

DEFINING AND ANALYZING PRODUCT-MARKETS • 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 Powerpoint Templates .

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 Powerpoint Templates 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 Powerpoint Templates .

Illustrative Fast-Food Product-Market Structure SUPER MICROWAVE MARKETS OVENS FAST-FOOD MARKET CONVENIENCE TRADITIONAL STORES RESTAURANTS Powerpoint Templates .

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 Life Product 19 Powerpoint Templates Special K • Brands .

geographical location. income.DEFINING AND ANALYZING MARKETS • Identifying and describing buyers – Family size. gender. age. and occupation • Buyer’s choice – Problem recognition – Information search – Alternative evaluation – Purchase decision – Post-purchase behavior Powerpoint Templates .

technology etc.DEFINING AND ANALYZING MARKETS • External factors influencing buyers’ needs and wants: – Government. • These factors are often non-controllable but can have a major impact on purchasing decisions Powerpoint Templates . economic shifts. social change.

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

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 Powerpoint Templates .

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 Powerpoint Templates .

Industry analysis • Industry size. growth. and composition • Typical marketing practices • Industry changes that are anticipated • Industry strengths and weaknesses • Strategic alliances among competitors Powerpoint Templates .

ANALYZING COMPETITION • Analysis of value added chain – Value chain analysis • Trends and patterns • New market opportunities • Forecasting end user sales Powerpoint Templates .

• Threat of new entrants. • Bargaining power of suppliers. • Bargaining power of buyers. Powerpoint Templates .Competitive forces • Rivalry among existing firms. • Threat of substitute products.

Key competitor analysis Business scope and objectives Management experience. technical.. capabilities. and operating capabilities Key competitive advantages (e.g. access to resources. patents) Powerpoint Templates . and weaknesses Market position and trends Market target(s) and customer base Marketing program positioning strategy Financial.

industry studies and media reports Powerpoint Templates .Anticipating competitors actions • Describing and evaluation the competitors – Same market • Example : Samsung vs. apple – Source of information • Example : annual 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 Powerpoint Templates .

Market size estimation • Market potential – Total opportunity for sales – Upper limit sales • Sales forecast • Market share • Evaluating market opportunity Powerpoint Templates .

Powerpoint Templates • 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? Powerpoint Templates .