Course summary Flashcards
(61 cards)
What are the five key questions for identifying consumer? B-2-C and B-2-B
Who is important?
How do they buy?
Where do they buy?
When do they buy?
What are their choice criteria?
What are the buy phases? The orginazational decision making process
Recognition of problem
Determination of specification and quantity
Search for and qualification of potential sources
Acquisition and analysis of proposals
Evaluation of proposals and selection of suppliers
Selection of an order routine
Performance feedback and evaluation
Situational analysis has three layers. From outside in they are:
Macro
Micro
The company
6 factors of the pestle analysis
Political
Economical
Enviromental
Legal
Social and cultural
Technological
Microenviroment consists of four analysis
Industry
Market
Customer
Competitor
Customer analysis
To understand current and prospective customers’ behavior
What is competitor analysis?
To evaluate and learn to understand competitors’ strengths,
weaknesses and reaction patterns
Five key questions for competitor analysis:
- Who are our competitors?
- What are their strengths and weaknesses?
- What are their strategic objectives and thrust?
- What are their strategies?
- What are their response patterns?
Industry analysis
To evaluate and learn to understand the “rules” and structure of the
industry where you are active
* Porter’s Five Forces
* Critical Success Factors
Market analysis
To understand market size, growth rates and trends
* Size
* Market growth
* Market profitability
* Cost structures in the industry
* Distribution systems
* Trends and developments
* Key Success Factors
Porter’s Five Forces
Threat of new entrants
Bargening power of suppliers
Bargening power of buyers
Threat of substitute products or services
Dergree of rivalry in the indestry
To do a company analysis you can use the ___ method
SWOT
SWOT is:
Strengths (Internal – Controllable)
Weaknesses (Internal – Controllable)
Opportunities (External – Uncontrollable)
Threats (External – Uncontrollable)
Strategic thrust
Defines the future direction and areas of potential growth for a business
* Market penetration/expansion
* Market development
* Product development
* Diversification/Enter new markets
The four competitive strategies are
Differentiation - stand out from competitors, meet one critera used by many buyers (nissan)
Cost leadership - lower cost than competitors, many customers -> lower prices (walmart)
Differatiation focus - specialise to meet the needs of a small market segment (chemical companies)
Cost focus - dedicate to one segement and avoid overperforming when meeting need (ryanair)
Competitive advantage can be achived through
Superior skills
Superior resources
Core competences
How do we locate superior skills and resources?
Examine your value chain
How to create a differential advantage
Superior skills and resources are translated into a differential advantage only when the
customer perceives the the firm is providing value above that of the competition.
Differential advantages are created when skills and resources are liked to the key attributes (choice criteria) that customers are looking for in a market offering
Differential advantages can be created with any aspect of the market offer (marketing mix).
Sustaining differential advantage
The key to achieve a long-term advantage is to focus on areas that competition finds impossible or very difficult to copy. Like:
- Patents
- Relationships
- Innovative products
Eroding differential advantage
Tech and environment change
Competitors lean to imitate sources of diff adv
Complacency lead to lack of protection
Segmentation is
Dividing market in to segements and targeting those specifically
Segmentation can be made in one or more of the following categories
Behavioural - Benefits sought, purchase occation, perchase behavoiur, usage
Psychographic - Lifestyle, personality
Profile - Demographic, Socioeconomic, geografic
A succesfull segmentation needs
Substantiality
Measurability
Accessibility
Actionability
Positioning
The objective is to create and maintain a distinctive position in the market for a company and its products
