VITO- PROD MGT. 2 COMP ANALYSIS & MAR

Slide 1: 

Competitor Analysis Context (Environment) Market Segmentation

Competitor Analysis : 

Competitor Analysis

Slide 3: 

Strategic 5 - Cs Customer Company Competitor Over competitor (Create greater value) Mktg. Strategy: Achieve max positive differentiation Context/Collaborators

Three Basic Competitive Drives : 

Three Basic Competitive Drives Drive to improve customer satisfaction through increasing quality and reducing price. Drive to reduce costs by increasing process efficiency without reducing output quality. Drive to improve the speed and adaptability of key processes.

Competitor Analysis : 

Competitor Analysis Performance Image & personality Objectives Current & Past Strategy Culture Cost Structure Strengths & weaknesses

You are the marketing Manager of Mc Donald : 

You are the marketing Manager of Mc Donald Make an analysis of your competitor using at least 10 variables.

Anticipating Competitor Behavior : 

Anticipating Competitor Behavior Understand its objectives and competitive thinking Study past behavior of firm and executives involved What signals do they send? Are they credible? What game-playing rules exist in the industry? Think through the impact on trading relationships. Think about the technological and other innovation-imitation paths that are currently driving competition.

Other Competitive Factors (Icarus Paradox) : 

Other Competitive Factors (Icarus Paradox) Know Reasons for Competitors’ Successes Know Reasons for Competitors’ Failures

Context Environment : 

Context Environment

Objectives of Scanning : 

Objectives of Scanning Identifying Opportunities in the Macro-environment Monitoring Demographic and other Developments

VALUE of SCANNING : 

VALUE of SCANNING Capitalize on Early Opportunities Early Warning Signal Basis of Quality Information Intellectual Stimulation Improves Image

Types of Environment : 

Types of Environment Technological Economic/Political/Legal Social/Cultural ©

Social/Cultural Environment : 

Social/Cultural Environment High Persistence of Cultural Values Existence of Sub-Cultures Shifts of Secondary Values over time

Types of Environment : 

Types of Environment Technological Economic/Political/Legal Social Demographic ©

Demographic Environment : 

Demographic Environment Population Growth Population Age Mix Ethnic Markets Household Patterns Educational Groups Geographical Shifts in Population

Strategic MarketSegmentation : 

Strategic MarketSegmentation

Issues in STRATEGIC MARKET SEGMENTATION : 

Issues in STRATEGIC MARKET SEGMENTATION Segmentation and market-driven strategy Identifying market segments Forming segments Selecting the segmentation strategy

Slide 19: 

Purchase Behavior Characteristics of People/ Organizations Use Situation Buyers’ Needs/ Preferences Segmentation Variables

Example of Segmentation Variables : 

Example of Segmentation Variables Characteristics of people/ organizations Consumer Markets Industrial/ Organizational Markets Age, gender, income, family size, lifecycle stage, Geographic location, lifestyle Type of industry, size, geographic location, corporate culture, stage of development, producer/intermediary Use situation Occasion, importance of purchase, prior experience With product, user status Application, purchasing Procedure (new task, modified Re-buy, straight re-buy Buyers’ needs/ preferences Brand loyalty status, brand preference, benefits sought, quality, proneness to make a deal Performance requirements, Brand preferences, desired features, service requirements Purchase behavior Size of purchase, frequency of purchase Volume, frequency of purchase

5 Segments of Gasoline Buyers : 

5 Segments of Gasoline Buyers Road Warriors True Blues Generation F3 (Fuel, Food & Fast) Homebodies Price Shoppers Higher-income, middle-aged men, drive 25-50000 miles a year … buy premium with a credit card … purchase sandwiches and drinks from the convenience store … will sometimes use carwash 16% of buyers Men and women with moderate to high incomes, loyal to a brand and sometimes a particular station …frequently buy premium, pay in cash 16% of buyers Upwardly mobile men and women - half under age 25 - constantly on the go … drive a lot snack heavily from the convenience store 27% of buyers Usually housewives who shuttle children round during the day and use whatever gas station is based on town or on route of travel 21% of buyers Not loyal to brand or station and rarely buy premium … frequently on tight budgets. 20% of buyers

You are selling: bath soap : 

You are selling: bath soap List down as many segments you can see in La Consolacion College-Bacolod

Target Marketing : 

Target Marketing Market Positioning

Generic Strategies : 

Generic Strategies Size of Firm and its STRATEGYaccess to Resources COST Smaller Firms withLesser Access to FOCUSresources DIFFERENTIATION COST LEADERSHIP Larger Firms withGreater Access toResources DIFFERENTIATION

Confused Strategies : 

Firms with confused strategies, “stuck in the middle” Focus Cost Leadership and/or Differentiation Strategy Return on Investment ROI % Market Share Confused Strategies

Low Cost Strategy for Smaller Firms : 

Low Cost Strategy for Smaller Firms No-frills product Low-cost product design Raw material cost advantage Labor/Location cost advantage Production innovation/automation Purchasing inexpensive equipment Reducing overhead

Cost Leadership (for Large Firms) : 

Cost Leadership (for Large Firms)

Ford’s Cost Leadership(Model “T”) : 

Ford’s Cost Leadership(Model “T”) YEAR SELLING PRICE UNITS PRODUCED 1906 $850 (Avg. $2000) 6,400 1910 690 34,500 1915 360 472,000 Market Share: 1907 15%, Market Share 1913 54%, 1925 75% Fordson Tractor 1917 $750 Intl. Harvester $900 1920 625 35% Mkt. Share 1922 395 50% Mkt. Share NB: Only 8,000 cars in U.S in 1900. Only 144 miles of paved road Avg. wage was 22 cents/hr ($2.20 per 10 hour day) Only 8% of homes had telephones