Market analysis Flashcards
Know your market
Technologies & processes
Products
Markets and customers
Competitors
Channels
Buying centre and buying patterns
Culture
Economic/political situation
Legal regulations (promote or blocking)
Market analysis, why?
To take underpinned target, investment, development but also change strategic decisions. Use the knowledge in your sales/marketing approach (fit to the customers & show them your added value for the future)
Market research steps
- Define the problem & research objectives
- Design the research method: fit to the objectives
- Collect the data
- Analyse and concluded (related to objectives)
- Present the findings in a meaningful way -> Decide!
2 approaches for business development
- Engineering driven (capability push)
- Market/Customer driven (opportunity pull)
Tools for market analysis
- DESTEP-analysis (macro-environment)
- Competition (5 forces model)
- SWOT analysis
- BCG matrix
- Bench marking
- Value chain (Porter)
DESTEP-analysis stands for..
Demography
Economic
Social-Cultural
Technological
Ecology
Political
Competition analysis (5 forces), why?
- No competition (might be a reason or good chance)
- The availability & power influences the behaviour of all market participants
Types of market
Pure competition (easy to enter, freedom to choose)
Monopolistic competition (often differentiate on product)
Oligopolistic competition (a few dominant players)
Pure monopoly (often government products, small & niche markets)
Types of competition
Brand competition: similar offerings to the same target customer
Industry competition: companies making the same offering to the same markets
Form competition: companies making the same offering but for other markets
Generic competition: different offerings competing for the euro’s (substitutes)
5 Forces model
Rivalry among existing firms
Threat of new entrants
Threat of substitute products
Determinents of buyer power
Determinents of supplier power
SWOT analysis
External analysis: identify the opportunities & threats
Internal analysis: identify the strength & weaknesses
Product Portfolio matrix
gives an overview of the offerings and developments and their future perspectives
To help a business consider growth opportunities by reviewing its portfolio of products to decide
Where to invest (in the offering and/or marketing)
To discontinue
To develop new products
Question marks
Low share, high growth markets
Requires cash to create share & develop futher
Star
High growth, high share
Needs heavy investment
(eventually become cash cows)
Cash cows
Low growth, high share
Established, succesful, invest enough to hold market
Cash generators
Dogs
Low growth, low share
One organizations’s dow could be another’s cash cow
Consider spare part service, long term contracts
Benchmarking, why?
To identify gaps
To learn how other see the world and apply technology
To prioritize what to develop first, focus
To improve your performance efficiently
Types of benchmarking
Internal benchmarking: measure & compare key operations between teams/individuals within the organization
External benchmarking: measure and compare key operations with competitors
Apply on different levels: for product functionally but also on service, brand, etc.
Use reverse engineering: analyse, understand & learn from other products/offerings
Seek for competitive superiority, not just competitive parity.
7 Steps of benchmarking
- Determine the level & functions to bench mark
- Identify the key performance variable to measure (KPI)
- Identify the best-in-class parties
- Measure performance of the best-in-class parties
- Measure your performance
- Analyse, prioritise & specify actions & (development) programs
- Implement & monitor
Value chain
processes which enable a company to bring its products from concept to market and keep doinig business
