Lecture 2 Flashcards
Selecting key stakeholders of the company
- Identify relevant stakeholders groups
- Prioritising stakeholders
- Capturing key stakeholder expectation
- Integrating stakeholder insight into the strategy
Porters five forces model of industry profitability
The nature of competition in an industry (relevant market) and its profit potential can be analysed with the porters five forced model
Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products or services
All for intensity of rivalry among existing competitors
Different things affecting a firms performance
Factors affecting firms performance: Size growth and profitability Image and positioning Objectives and commitment Current and past strategies Leaders culture and structure Cost structure Exit barriers Strengths and weaknesses
Relevance of market share on the competitive arena
Meta analysis aims at identifying the average elasticity as well as moderating effect of various study characteristics (eg industry, region, time, period) on the relationships
Avenger market share elasticty vs customer and brand elasticities: the metric market share should not be used excessively
Reasons for low performance relevance of market share/
Reasons for low performance relevance of market share:
Global reqsons: digitilisation / globalisation
Customer specific reasons: loss of exclusivity /. Negative network effects
Competitive arena: customer segmentation
Strategically addressing the relevant market may require a segmentation into distinct and homogenous submariners based on various criteria:
Socio demographic: eg age gender
Geographic (eg place of residence)
Psychographic (eg lifestyles attitudes)
Behavioural (eg price sensitivity, buying patterns)
5 ways to identify and exploit customer heterogeneity is key to developing effective marketing strategies:
Individual differences: a Persons stable and consistent with synod responding to the environment in a specific domain
Life experiences: unique to their life / Linge lasting impact
Functional needs: an individual’s personal decision weighting’s acrosss functional attributes based on their personal circumstances
Self identity / needs: customers actively seek products tahtbthey feel will support their desired self image
Marketing activities: firms attempts to build linkages between their brands and prototypical identities or meanings
Overview of the stages of a market research project:
Problem definiton Project design Data collection Analysis and interpretation Decisions and actions
Stage -1 or market research project:
Problem definiton - translate the managerial question into a research question - what is the managerial problem? What decisions need to be made?
Stage 2 of the market research project:
Project design - selection and design of relevant data collection and analysis methods for solving the identified problems -
Types of research projects:
Exploratory - generate general insights into a problem- what demands do customers place on a new console? Qualitative survey
Descriptive - precise description of a phenomenon - how does our brand image compare to the competition - ad hoc survey - Univariate survey
Stage 3 of the market research project
Data collection - establish the target population, source of data and sampling procedure
How should the results data be collected - how should different sources of data to be merged
Stage 4 of market research project:
Analysis and interpretation - process the data to generate valuable information via statistical inference and visualisation
What method will be used to analyse the results? What kind of visualisation will be used to explore the data and communicate the results?
Stage 5 of market research project
Decisions and actions - use the info to develop actionable recommendations
What decisions should be made? What is the range of actions under consideration? Who will make those decisions?
