Chapter 4

Question 1

Key to understanding market opportunities

Answer 1

–Understand the difference between market and industry
•Markets—comprised of individuals/organizations—willing to buy a good or service to obtain benefits (the buyers)
•Industry—comprised of a group of firms that offer a product or class of products that are similar are close substitutes for one another (the sellers)

Question 2

4 C’s

Answer 2

• Company—internal resources, capabilities, and strategies
• Context—environmental—social, economic and technology trends—in which the firm will compete
• Competitors—relative strengths and weaknesses of competitors and trends in the competitive environment
• Customers—needs, wants and characteristics of current and potential customers

Question 3

Management starts the assessment on market opportunity analysis, based on (3) critical questions:

Answer 3

–How attractive is the market we serve or propose to serve?
–How attractive is the industry in which we would compete?
–Are the right resources—in terms of people and their capabilities and connections—in place to effectively pursue the opportunity at hand?

Question 4

Macro-level Analysis

Answer 4

–Assessments must be made on both market and industry, based on environmental conditions
•These external and largely uncontrollable forces or conditions must be reckoned with in assessing and shaping any opportunity and developing a marketing strategy

Question 5

•Micro-level Analysis

Answer 5

–We look at individuals that comprise the market or industry
•Specific target customers and companies
•We address the frameworks for the macro-level analyses first; then we address the micro-level analyses