Market and competition analysis Flashcards
In order to market a product (P/S) we do what ?
prepare a marketing strategy
Mkg strategy (POIC) incorporates 2 key components, which one ?
- target market
- value proposition
In order to prepare a marketing strategy they ?
- study the environment
- be aware of the situation
- consider demand
- assess market potential and business opportunities
3 elements of external environment to consider ?
the market
the competition
the market dynamics
Market definition for economics ?
Is a physical or virtual place where two or more parties can meet to engage in an economic transaction
- market transaction may include goods, services, information, currency or any combination that passes from one party to another
Market definition for marketing
In marketing, the market refers to the group of consumers or organisations that is interested in the product (P/S), has the resources to purchase the product
- Market is demand, what the costumers want what I can make him think that he need
In other words : market is defined by ?
demand
What are The major concepts in demand measurements ?
- Market demand
- Company demand
- Market forecast
What is market demand ?
Volume that could de brough by a defined customer group in a defined geographic area, time period, marketing environment under a defined marketing program.
Total volume of activity we can get
What is company demand ?
- Company’s estimated share of market demand at a given time period.
- Its my budget, expectations, forecast of the sales I can do according to my capacity of manufacturing, resources that are available to me
What is market forecast ?
- a market forecast refers to the process of estimating future market conditions, consumer demand, and industry trends to guide marketing strategies and decision-making.
- It helps businesses anticipate changes and opportunities in the market.
- Credibility that we do and give about our marketing and vision and understanding of the market
-If under forecast, you seem like you didn’t anticipate the market whiwh is not good in the eyes of others
What is a market ?
Market is a group of customers or potential customers, in the population.
What are the 4 market categories ?
Potential market (PM)
Available market (AM)
Target market (TM)
Already penetrated market (APM)
what is Potential market (PM) ?
Population that have an interest (industries).
What is Available market (AM) ?
Prospective customers that have the money to buy, and are qualified (industries).
What is Target market (TM) ?
Customer that the company has determined to serve.
what is Already penetrated market (APM) ?
Customers who already bought our P/S (company).
What are the marketing strategy performance evaluation (quantification) ?
- Rate of achievement of objectives (I1):
- Company market shares (I2):
- Market penetration rate (I3):
What is Rate of achievement of objectives (I1):
?
Penetrated market versus Target market (APM/TM).
what is Company market shares (I2):?
Penetrated market versus Available market (APM/AM).
It is my already penetrated market divided by available market
what is Market penetration rate (I3) ?
Available market versus Potential market (AM/PM).
What is the law of diffusion and innovation ?
Is the theory describes how new ideas, behaviors, technologies or goods spread through a population, gradually rather than all at once.
innovators, early adopters, early majority, late majority, laggards
What is the Law of demand ?
One of the most fundamental concepts in economy.
The law of demand states that the quantity varies inversely with price.
Price elasticity.
What are the 2 factors that influence demand ?
- Endogenous factors, controllable. The one the within my organization I can influence
- Exogenous factors, uncontrollable. I don’t have an influence on that. No customers, no business
What is Forecasting market demand ?
Forecasting is the art of anticipating what buyers are likely to do under a given set of conditions. Those conditions comes out from our mix marketing that we can get
- Market potential
- Company sales potential
= Our capacity to deliver, what we did forecast and what the market expects from us. If we don’t deliver people will not be happy about that
what is Market potential ?
Consists of the maximum sales available to all firms in the industry during a given period, under a given level of industry marketing effort and extant environmental conditions
Macroeconomics forecast ?
influence by inflation, unemployment, interest rates, customer spending, business investment, government expenditures, net exports and other variables (Gross Domestic Product).
what is Company sales potential ?
Sales limit approached by the company as company marketing effort increases to that of competitors
- Importance of marketing research.
Forecasts are built on one of the 3 information bases ?
What people say,
what people do
what people have done.
Company sales potential, building forecast:
On what people do, means ?
Putting the product into a market to measure buyer respond.
Concerns about what people do and not what they have done
Company sales potential, building forecast:
On what people have done, means ?
Analyse records of past buying behavior or use time-series analysis or statistical demande analysis.
Consumer’s buying process and organizational ‘s purchasing process (class 5):
Cognitive (1-2) – emotional (3) – conative (4-5).
Survey of buyer’s intentions. Ask marketers to do that, provide information about what is happening to our costumers
Composite of sales force opinions.
Expert opinions.
Past-sales analysis.
Market-test method.
what are the 4 competitive situations ?
- Pure and perfect competition
- Oligopoly
- Monopolistic competition
- Monopoly
what is Pure and perfect competition ?
A market with a large number of competitor selling the same or similar products (P/S).
Products are the same but the price changes
what is Oligopoly ?
Markets dominated by a small number of suppliers.
Ex : the fuel companies,
How can we know that is it a oligopoly ? Government will pay a particular attention to it.
what is Monopolistic competition ?
Market structure where many compagnies are present in an industry. They produce similar but differential products (P/S).
They don’t disturb the market about it
what is Monopoly ?
Market structure where a single seller or producer assumes a dominant position in an industry or a sector (patent).
What are the 3 competitive advantage measurements ?
- Business competition
- Competitive environment
- Competitive advantage
what is Business competition ?
I- s the rivalry (the aggressivity people have in their marketing and business plan) between organisations or compagnies that offer the same P/S or have the same target audience as customers. (rivalry comes from competitors or we can decided to become our own)
- These businesses compete with one another to increase their sales, gain more market share and retain more customers
what is Competitive environment ?
- Space where rivalries take place according to 2 elements.
- Product and Service (P/S).
- Geographic horizon (territory).
- More important is the market share more rivalry there will be
what is Competitive advantage ?
2 main competitive advantage :
- Market power: product superiority (differentiation or patent).
- Productivity power: ability to manufacture or deliver at lower cost (P/S).
Ideal to have both power.
= best protection from rivalry that you can get about
The Five Forces model is for what ?
- To analyse the industry structure of a company as well as its corporate strategy.
- To measure competition intensity.
voir clide 15 class 6 for FIVE FORCES MODEL
- suppliers
- new entrants
- customers
- substitutes
- COMPETITION IN THE INDUSTRY
RIVALRY BETWEEN COMPANIES
