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
