External Analysis Flashcards
7 Ws
who are our existing and potential customers
What do our customers do with our products/services
where do customers buy our products
when do customers buy our products
why do existing customers choose our products
why do potential customers not choose our products
wallet: how much money can they spend
customer segmentation
dividing a market into smaller segments with distinct needs, characteristics or behaviour that might require separate marketing strategies or mixes
different segmentation criteria
geographic segmentation
demographic segmentation
psychographic segmentation
behavioural segmentation
Five requirements for effective segmentation
Measurable
Accessible
Substantial
Differentiable
Actionable
Measurable requirement
the size purchasing power and profiles of the segments can be measured
accessible requirement
the market segments can be effectively reached and served
substantial requirement
the market segments are large or profitable enough to serve
differentiable requirement
the segments are conceptually distinguishable and respond differently to different marketing mix elements and programs. If met and women respond similarly to marketing efforts for soft drinks they do not constitute separate segments
actionable requirement
Effective programs can be designed by for attracting and serving the segments. ( the firm needs to be able to implement a distinctive marketing mix for each market segment, the range of segments identified generally need to be defined for the capabilities and resources of the organization. So very specialized segments may not be appropriate
value proposition
consumers see a product / brand as a bundle of benefits and choose the product/brand that offers the best benefits in in return for the experienced sacrifices of costs
Multi attribute model
brand value for customers of one specific segment
importance of product characteristics * brand score on characteristics
Value curve
the value curve is used to analyze the customer needs and expectations in an intuitive way
its a vizualization of the customer value expected by your customer
this expected customer value can then be compared to the value offer by you and your competitors
in order to identify the right value elements you need a deep insight in the needs of your customer? This can be obtained via market research, observation and or data analysis
idem for the expected level
perceptual map
make a distinction between the value elements
a customer value proposition is a symbiotic bundle of competitive advantages
tickets to ride
the olympic minimum in order to be allowed in the arena
tickets to heaven
true competitive analysis
perceptual map definition
visualisation of the fit between customer value (your target group is looking for) and the value proposition (your company offering)
by selecting the 2 most relevant value elements and sticking your target segment and product offer on it
porters 5 forces model
Threat of new entrants
rivalry among existing competitors
bargaining power of suppliers
threat of substitutes
bargaining power of buyers
this model is used to analyze industry profitability and the attractiveness of a certain market
a 6th force
the threat of complementary products
harper hype cycle !!!!!!!!!!!! EXAM QUESTION!!!!!!!!!!!!!!
A graph that shows the visibility over time of certain technology, there is always a peak of inflated expactations and then there will be a curve
there is a technology trigger, which increases the visibility, and then there is too much expectations and the curve will go down
Harper hype cycle 5 phases
technology trigger
peak of enlightenment
trough of disillusionment
slope of enlightenment
plateau of productivity
barriers to entry
economies of scale
proprietary product differences
determinants of supplier power
differentiation of inputs
switching costs of suppliers and firms in the industry
substitutes
relative price performance of substitutes
switching costs
rivalry determinans
industry growth
intermittent overcapacity
