2 Market research / strategy Flashcards
what are examples of strong competitive advantages?
1/Patent - prevents anyone else using your product without permission e.g. COLA
2/Government granted monopoly - such as cable television franchise
3/Effective monopoly - microsoft and windows operating systems protected by copyrights
4/Great name brand - such as Oreo cookies gives company prime position in people’s minds within that product category
5/Speed - FedEx, Dominos Pizza
Principal strategies to use with weaker competitive advantages to make business profitable?
- Lower price - but still make profit.
- Provide great service
- Build positive image and brand - business that reflect customer’s values
- Develop good reputation - customers often suffer buyer’s remorse after major purchase question whether worth price of ownership so need reassurance they bought from right company
- Achieve high status - e.g. Rolex, Louis Vuitton - status consumer products.
what are the 5 industry categories?
- emerging
- maturing
- stagnant/declining
- fragmented
- dominant leaders
Industry Category - Emerging?
• Rapid growth • Easy market entrance • Lack of established leaders • Unclear technologies / standards • Limited information • Uncertain demand E.G Virtual Reality
Strategies • Win early • Be higher quality • Go niche • Pick winning technology
Industry category - maturing
Characteristics • Demand slows • Buyers become smarter • Excess supply • Competition increases • Industry consolidation E.G Apple/smart phone
Strategies • Reduce cost • Focus on key customers • Expand to new markets - purchase rivals
Industry category - stagnant/declining?
Characteristics • Zero or negative growth • Low profitability • Generic products (Non-smart phones) Strategies • Reduce cost • Focus on niches • Differentiate and innovate
Industry category - Fragmented?
Characteristics • Many participants • Low entry barriers • Limited economies of scale (Food - e.g. McDonalds) Strategies • Focus local • Specialise • Create formulas • Reduce costs
Industry Category - industries with dominant leaders?
Characteristics • Large, dominant players • Ongoing innovation • Constant demand E.G Toyota, Benz, Tesla
Strategies
• Focus long-term
• Take risks
• Know the market
What are the four potential markets and explain?
- By geography - locate your business near specific markets or target your advertising to reach potential customers more efficiently (UBER EATS)
- By demographics - age, gender, ethnicity in tailoring your ads and focus marketing efforts e.g. INSTAGRAM
- By season e.g. ice cream market, coffee/cafe market (cold/hot drinks)
- By purchasing patterns - identify products or services tend to be bought at same time and match your marketing to those trends e.g. wedding items and baby items
- By competitor (what is missing for you to fill?)
- BY regulation
what are B corporations?
businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose. B Corps are accelerating a global culture shift to redefine success in business and build a more inclusive and sustainable economy.
The B Corp community works toward reduced inequality, lower levels of poverty, a healthier environment, stronger communities, and the creation of more high quality jobs with dignity and purpose.
Baron, R., Mueller, B. and Wolfe, M. findings?
- goal setting theory that difficult goals enhance performance on many tasks. But could negative effect if too hard - reduce motivation.
entrepreneurs are high in self efficacy
self-control important to ensure goals set are not too high
what are the two main categories of strategies (porter)?
Low cost leadership
Differentiation
Basics for analysing market?
- target market: who will use product
- establish size of potential market
- more better for researching, targeting and testing
how can you use competitors to for market analysis?
- collect promotional materials
- determine makreting cost
- develop profile of their customers based on industry research
- comprehensive view of their product line
- history
why should you target you market like a bull’ eye?
- The more tightly defined target market, more likely plan attract funding sources
- Understand motivations of potential customers help target customer groups for marketing strategy
Low price; status; quality; speed of delivery; service; design
What are the 5 megatrends?
- technology
- urbanisation
- demographics
- sustainability (envir)
- rise of developing world
what is megatrend?
macro force that operates in marketing world on an international scale
provide example of each mega trend
technology - Amazon Urbanisation - Starbucks Demographics - retirement home Sustainability - The Body Shop Rise of the Developing world - Apple (production in CHina)
What are the 5 competitive advantages?
- patent (COLA)
- Speed (ferrrari)
- Monopoly (Sydney water)
- High Switching cost (ComBank)
- Brand and Reputation (Rolls Royce)
what are porters five forces theory?
- suppliers
- buyers
- new entrants
- rivarly/existing competition
- substitutes
Christensen’s Disruptive Innovation Theory?
existing players(incumbent)
- start low quality but increase
over time
entrants - low quality but
sometimes increase and
take market share from
existing market players
e. g. education
- public/private and online
to what extent can new
business take over existing
ones
market targeting?
who is you customer?
what do they want?
why buy from you?
market testing?
Approach competitor’s customers Create sample products Get forward sales Run focus groups Launch early but small
Ego Depletion Theory?
[E]ach person’s capacity for self-regulation appears to be a limited resource, which is renewable over time and can be increased or decreased as a result of gradual developments.
