Understanding Marketing Opportunities

Question 1

market

Answer 1

composed of individuals or organizations who are interested in and willing to buy a good or service to obtain its benefits that will satisfy a particular want or need and have the resources to engage in such a transaction (buyers)

Question 2

industry

Answer 2

group of firms that offer a product or class of products that are similar and are close substitutes for one another (sellers)

Question 3

Why is SWOT limited

Answer 3

Strengths, Weaknesses, Opportunities, Threats analysis doesn’t not organize the output into answers to important strategic questions

Question 4

Macro-environmental trends 6 factors

Answer 4

1. Demographic
2. Socio-cultural
3. Economic
4. Political/Legal/Regulatory
5. Technological
6. Natural

Question 5

Is the industry attractive? (Porter 5 Forces)

Answer 5

1. Rivalry Among Industry Firms
2. Threats of New Entrants
3. Threat of Substitute Products
4. Bargaining Power of Suppliers
5. Bargaining Power of Buyers

Question 6

Market is attractive at the micro level if the market offering meets these 4 tests:

Answer 6

1. There is a clearly identified and evidence based source of customer pain for some clearly identifiable set of target customer, which the offering resolves.
2. The offering provides customer benefits - even outright delight - that the other solutions do not.
3. The target solution is likely to grow
4. There are other segments for which the currently targeted segment may provide a springboard for subsequent entry

Question 7

Industry side 2 questions

Answer 7

1. Whether whatever competitive advantage there might be as a result of the benefits offered to the target market can be sustained over a significant period of time.
2. Can the business model last for a while without running out of cash

Question 8

Opportunities are attractive at the micro level on the industry side when the company or product meets most or all of the following tests (3):

Answer 8

1. It posses something proprietary that other companies cannot easily duplicate or imitate
2. The business has or can develop superior organizational processes, capabilities, or resources that others would find it difficult to imitate or duplicate.
3. The company’s business model is economically viable

Question 9

3 Questions for an attractive opportunity

Answer 9

1. Does the opportunity fit what we want to do?
2. Do we have the people who can execute on whatever it takes to be successful int this industry?
3. Do we have the right connections?

Question 10

2 questions to identify CSFs

Answer 10

1. Which few decisions or activities are the ones that, if got wrong, will almost have severely negative effects on company performance?
2. Which decision or activities, done right, will almost always deliver disproportionately positive effects on performance?

Question 11

2x2 dimensional opportunity/risk matrix

Answer 11

level of impact on company and probability of occurrence

Question 12

Macro trends

Answer 12

Can and will profoundly influence the success of any business. Swim downstream with the trends.

Question 13

7 domains of attractive opportunities

Answer 13

market attractiveness (macro, market)
target segment benefits and attractiveness (micro, market)
industry attractiveness (macro, industry)
Competitive and economic sustainability (micro, industry)
Mission aspiration, propensity for risk (team)
Ability to execute on CSFs (team)
Connectedness up and down the value chain (team)