BSBMKG301A Research the market BSBMKG403A Analyse market data Week 14

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BSBMKG301A Research the market/ BSBMKG403A
Analyse market dataWeek 14

• Tonights topics
• Competitor market performance
• Investigating new or emerging factors in the
  market
• Analyzing our survey data

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Product level - 1

• Possible substitutes
• Industry
• Company
• Product category
• Product line
• Product item

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Competition

• Companies face three types of competition
• 1 Brand from similar products or services.
• 2 Substitute different products satisfying the
  same needs.
• 3 Indirect or generic other firms trying to win
  customers purchasing power to satisfy other
  needs.

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Industry competitive structure

• 1 Pure competition.
• 2 Monopolistic competition.
• 3 Oligopoly.
• 4 Monopoly.

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Pure competition

• Large number of sellers sell an undifferentiated
  product or commodity like agricultural products
• Price takers

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Monopolistic competition

• Reasonable number of suppliers no one dominant
• Marketer aims to get the buyer to perceive an
  attractive difference in their offerings.
• Marketers have more control over products and
  price owing to perceived differences.

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Oligopoly

• A few large firms dominate the market
• E.g. air travel, beer, cigarettes.
• Actions of large competitors influence the market
  as a whole

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Monopoly

• A market structure where there is only one
  supplier of a product, for which there are no
  close substitutes.
• E.g. CSR (sugar refining), electricity and gas
  suppliers (usually government-owned).
• Monopolies are becoming rare in Australia (e.g.
  even Telstra now has competition).
• Sometimes patent protection can provide firms
  with something close to a monopoly.

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What are the competitors objectives and how do
they compare to ours?

• Short term vs long term profit
• Market share growth
• Cash flow
• Tech or service leqadership

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Review capabilitiesSWOT analysis
Internal
External
Emphasize Build
AvoidFix
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What is their targeting strategy?

• Mass Market (shotgun) -- Undifferentiated
• Focus on single segment (rifle) - Concentrated
• A number of selected segments - Differentiated

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Undifferentiated marketing

• Segments Marketing mix

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Differentiated marketing

• Segments Marketing mixes

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Concentrated marketing

• Segments Marketing mixes

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Competitive advantageCost leadership vs product
differentiation
Product Differentiation
High Low
Low High Cost
leadership
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Market focusMass vs niche markets
Market focus
Mass
Niche
Product Differentiation
High Low
Low High Cost
leadership
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Competitive position and strategies

• Market leader
• Market Challenger
• Market follower (me too)
• Specialist

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Customer value analysis where are the soft
spots?

• What are the important things to customers?
• Rate these attributes for importance
• Assess out company and the competitors
• Are there different segments showing up
• Track over time

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Perceptual mapping

• Attitude scales and snake diagrams
• Spiderweb diagrams
• Multiarmed diagrams
• How close is one to the next?

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Snake diagram based on attitude scales
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Spider web diagram
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THE SIX INTERRELATED MACRO-ENVIRONMENTAL FORCES

• Demographics.
• Economic conditions.
• Competition.
• Social and cultural forces.
• Political and legal forces.
• Technology.

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Monitoring the environment

• Marketing intelligence involves
• Monitoring business trends and new developments.
• Studying population growth models (ABS).
• Reviewing government publications, industry
  periodicals and news releases.
• Attending conferences and exhibitions.