Marketing

Management

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 SIGNIFICANT CONCEPTS

COMPETITOR COMPETITIVE
ANALYSIS ADVANTAGE

CONCEPT SWOT AND

OF VALUE PEST

MARKETING DIGITAL
MYOPIA MARKETING

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 COMPETITIVE ANALYSIS
Competitor Analysis is identifying your competitors and evaluating their strategies
to determine their strengths and weaknesses relative to those of your own product or
service
It has several important roles in strategic planning:
1.To help management understand advantages/disadvantages relative to
competitors
2.To generate understanding of competitors past, present and future strategies

3.Toprovide an informed basis to develop strategies to achieve competitive

advantage in the future
4.Tohelp forecast the returns that may be made from future investments
how will competitors respond to a new product or pricing strategy?

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 COMPETITIVE ADVANTAGE

It is said that marketing is a race without a finishing line and having a competitive
advantage is like having an pair of power boosters in the race.

But advantages are temporary. Most advantages dont stay relevant and few are sustainable.
A company wins not with a single advantage but by layering one advantage on top of
another over time.

Companies can build a competitive advantage from many sources, such as superiority
in quality, speed, safety, service, design, and reliability, together with lower cost, lower
price, and so on.
It is more often some unique combination of these, rather than a single silver bullet, that
delivers the advantage.

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 A great company will have incorporated a set of advantages that all
reinforce each other around a basic idea.

A competitor that copies only a few of these practices will not succeed in
gaining an advantage.

Competitive advantages are relative, not absolute. So if the competition is

improving on a faster rate than you, you are bound to lose.

Eg: Wal-Mart, IKEA, Indigo have a set of practices that have made them
leaders in their field.

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 CORE COMPETENCIES

In the 1990s managers will be judged on their ability to identify, cultivate, and exploit the core
competencies that make growth possible - indeed, they'll have to rethink the concept of the
corporation it self.C K Prahalad and G Hamel 1990

Core competencies are those capabilities that are critical to a business achieving competitive
advantage. In case of a conglomerate it would mean to identify the business that they are bestit.

For example, for a manufacturer of electronic equipment, key areas of expertise could be in
the design of the electronic components and circuits. For a ceramics manufacturer, they could
be the routines and processes at the heart of the production process. For a software company the
key skills may be in the overall simplicity and utility of the program for users or
alternatively in the high quality of software code writing they haveachieved.

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 SWOT Analysis
SWOT analysis is a method for analysing a business, its resources, and its environment.
SWOT is commonly used as part of strategic planning and looks at:
Internal strengths
Internal weaknesses
Opportunities in the external environment
Threats in the external environment

SWOT can help management in a business discover:

What the business does better than the competition
What competitors do better than the business
Whether the business is making the most of the opportunities
available
How a business should respond to changes in its external environment

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 The result of the analysisis a matrix of positive and negative factors for
management to address:

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 PEST Analysis
PEST analysisis concerned with the key external environmental influences ona business.

The acronym stands for the Political, Economic, Social and Technological issues

Political / Legal Economic Social Technological

that couldaffe ctEconomicgrowth(overall;
the strategic
Environmentalregulation and
develop
by
mentof a business.
Income distribution (changein Government spending on
protection industrysector) distribution of disposable research
income;
Taxation(corporate; Monetarypolicy(interest rates) Demographics (age structure of Government and industry focus
consumer) the population; gender; family on technologicaleffort
size and composition;changing
nature ofoccupations)
Internationaltrade regulation Government spending (overall Labour / socialmobility Newdiscoveriesand
level; specificspending priorities) development
Consumerprotection Policy towardsunemployment Lifestylechanges (e.g.Home Speedof technology transfer
(minimumwage, unemployment working, singlehouseholds)
benefits, grants)

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 WHAT IS VALUE TO A CUSTOMER?

In simple terms Value is the benefit derived from a product after the cost is removed.
Higher the cost of a product, lower the value. But there are few exceptions to this, eg:
Luxury products.

BENEFIT COST VALUE

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 The Value DeliveryApproach

PROVIDE

CHOOSE COMMUNICATE

VALUE

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 Successful marketers focus on delivering value to customers. This is accomplished by:

Choosing the value Here marketers do their homework to segment the market,
select the appropriate target, and develop the offerings value proposition.

Providing the value Entails selecting specific product features, prices, and
distribution.

Communicate the value The third phase, communicating the value, is

accomplished through the use of the sales force, the Internet, advertising, and
other communication methods to announce and promote the product.

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 MARKETING MYOPIA
Myopia or shortsightedness is a clinical condition when people failed to see distant object
clearly.
Marketing Myopia is an inward looking approach to marketing that focuses on the needs of
the company instead of defining the company and its product in terms of customers needs
and wants.

Customer oriented

Product oriented

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 Hollywoods close escape-
Marketing Myopia

Hollywood defined itself as being in Movie business rather than the much
bigger Entertainment Business. Movies implied a basic narrow product. So TVs
entry was seen as an instant rival rather than an opportunity to expand the
entertainment business

If Hollywood was more Customer oriented(providing entertainment) than being

Product oriented(making movies) it would not have lost on fiscal opportunity.

What ultimately saved Hollywood and accounted for its resurgence was the wave of
new young writers, producers, and directors whose previous successes in television
had decimated the old movie companies and toppled the big movie moguls.

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 DIGITAL MARKETING
When the tools of marketing change, strategies change too
The definition of market is changing in the past few years. There has been a mammoth
shift of business from off line to online. This shift is attributed to the fact that most of
the customers spend most of the time online and what to satisfy their needs in
the quickest and most convenient way.
The rise in e-commerce such as Flipkart, Big Basket and Amazon is a testament to this
fact.
Hence there is a requirement of reaching out to this chunk of customers who may be
immune to traditional way of marketing.
Digital Marketing is the promotion of products or brands via one or more forms
of electronic media. For example, promotional efforts made via the Internet, social
media, mobile phones and electronic billboards, as well as via digital and television
and radio channels.

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 The strategies used in Digital marketing would be very different from those
of traditional marketing.

For example Speed, innovativeness, responsiveness, attention grabbing

Case to be read:Dominos

Many company now choose to launch their productsonline

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