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Markets and Competitive Space: Mcgraw-Hill/Irwin
Markets and Competitive Space: Mcgraw-Hill/Irwin
Markets and
Competitive
Space
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
*
* 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.
1-2
*
* OPPORTUNITIES OUTSIDE THE
* COMPETITIVE BOX
New New
Customers Conventional Value Customers
Propositions
Existing
Customer Base
New
Customer
Base(s)
1-3
*
* Markets Impact Strategies
*
* Market changes often require altering
strategies
* Forces of change create both market
opportunities and threats
* Inherent danger in faulty market sensing
1-4
*
* 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
Rate of Change
1-5
*
* Matching Needs with Product Benefits
*
* A product – market matches people with
needs to the product benefits that satisfy
those needs
Source: Adapted from Mitchell, Adrian (2004)”Heart of the Matter,” The Marketer, June 12, 14.
1-7
*
* Product – Market Boundaries and Structure
*
* Determining Product-Market Structure
SUPER MICROWAVE
MARKETS OVENS
FAST-FOOD
MARKET
CONVENIENCE TRADITIONAL
STORES RESTAURANTS
1-9
*
* Extent of Market Complexity
*
* Three characteristics of markets:
1-10
*
* Illustrative Product – Market Structure
*
Food and beverages •Generic Product
for breakfast meal Class
1. Problem recognition
2. Information search
3. Alternative evaluation
4. Purchase decision
5. Post-purchase behavior
1-13
* Environmental
* Influences
*
1-14
*
* Building Customer Profiles
*
* Start with generic product – market
1-15
*
* ANALYZING COMPETITION
*
1. Define the Competitive
Arena for the Generic,
Specific, and Variant
Product Markets
PRODUCT- 2. Identify
4. Identify MARKET
and and
STRUCTURE Describe
Evaluate
AND Key
Potential
MARKET Competitors
Competitors
SEGMENTS
3. Evaluate
Key
Competitors
1-16
*
* Examples of Levels of Competition
* Baseball
cards
Bottle Video
Fast water Games
Food Regular
colas Diet lemon Ice
Beer limes Cream
Diet-Rite
Cola
Fruit
flavored Diet
Diet Pepsi
colas Coke Wine
Product from
competition: Lemon
Product category
diet colas limes
Juices competition:
soft drinks
Coffee
Generic competition:
beverages
Budget competition:
food & entertainment
1-17
*
* 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)
1-18
*
*
*
Extent of
Market Coverage
Competitor
Current Customer
Capabilities Evaluation Satisfaction
Past
Performance
1-19
*
* MARKET SIZE ESTIMATION
*
Product-Market Forecast Market Potential
Relationships Estimate
(area denotes sales in $’s)
Unrealized
Potential
Company Industry
Sales Sales
Forecast Forecast
1-20
*
* Product-Market Forecast Relationships for
* Industrial Painting Units
500
400
300
200 Company XYZ
Sales Forecast
100
0
2003 2004 2005 2006 2007 2008 2009 2010
1-21
*
* DEVELOPING A STRATEGIC VISION ABOUT
* THE FUTURE