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CH2 2

This document summarizes key concepts for understanding customers and analyzing markets and competition. It discusses identifying customer characteristics, the buyer decision process, environmental influences on purchasing, building customer profiles, analyzing competition by defining competitive arenas and identifying key competitors, conducting competitor analysis, estimating market size, and developing a strategic vision for the future.

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Daneve Obero
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138 views

CH2 2

This document summarizes key concepts for understanding customers and analyzing markets and competition. It discusses identifying customer characteristics, the buyer decision process, environmental influences on purchasing, building customer profiles, analyzing competition by defining competitive arenas and identifying key competitors, conducting competitor analysis, estimating market size, and developing a strategic vision for the future.

Uploaded by

Daneve Obero
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

Chapter 2-2

*
* Identifying and Describing End-Users
*
* Illustrative buyer characteristics in consumer
markets:
 Family size, age, income, geographical
location, sex, and occupation
* Illustrative factors in organizational markets:
 Type of industry
 Company size
 Location
 Type of products
1-2
*
* How Buyers Make Choices
*
 BUYING DECISION PROCESS:

1. Problem recognition

2. Information search

3. Alternative evaluation

4. Purchase decision

5. Post-purchase behavior
1-3
* Environmental
* Influences
*

* External factors influencing buyers’


needs and wants:
 Government, social change,
economic shifts, technology etc.
* These factors are often non-
controllable but can have a major
impact on purchasing decisions
1-4
*
* Building Customer Profiles
*
* Start with generic product – market
* Move next to product- type and variant
profiles >> increasingly more
specific
* Customer profiles guide decision
making (e.g. targeting, positioning,
market segmentation etc.)

1-5
*
* ANALYZING COMPETITION
*
1. Define the Competitive
Arena for the Generic,
Specific, and Variant
Product Markets

PRODUCT- 2. Identify
4. Identify MARKET
and and
STRUCTURE Describe
Evaluate
AND Key
Potential
MARKET Competitors
Competitors
SEGMENTS

3. Evaluate
Key
Competitors
1-6
*
* Examples of Levels of Competition
* Baseball
cards

Bottle Video
Fast water Games
Food
Regular
colas Diet lemon Ice
Beer limes Cream
Diet-Rite
Cola
Fruit
flavored Diet
Diet Pepsi
colas Coke Wine
Product from
competition: Lemon
Product category
diet colas limes
Juices competition:
soft drinks
Coffee
Generic competition:
beverages
Budget competition:
food & entertainment

1-7
*
* Key Competitor Analysis
*
* Business scope and objectives
* Management experience, capabilities,
and weaknesses
* Market position and trends
* Market target(s) and customer base
* Marketing program positioning strategy
* Financial, technical, and operating
capabilities
* Key competitive advantages (e.g.,
access to resources, patents)
1-8
*
*
*
Extent of
Market Coverage

Competitor
Current Customer
Capabilities Evaluation Satisfaction

Past
Performance

1-9
*
* MARKET SIZE ESTIMATION
*
Product-Market Forecast Market Potential
Relationships Estimate
(area denotes sales in $’s)

Unrealized
Potential

Company Industry
Sales Sales
Forecast Forecast
1-10
*
* Product-Market Forecast Relationships for
* Industrial Painting Units

Sales (in 1000s


of units)
900
800
Market
700 Potential
600 Sales Forecast

500
400
300
200 Company XYZ
Sales Forecast
100
0
2003 2004 2005 2006 2007 2008 2009 2010
1-11
*
* DEVELOPING A STRATEGIC VISION ABOUT
* THE FUTURE

 Industry Boundaries Blurring and Evolving


 Competitive Structure and Players Changing
 Value Migration Paths
 Product Versus Business Design
Competition
 Firms are Collaborating to Influence Industry
Standards

Source: C. K. Prahalad, Journal of Marketing, Aug. 1995, vi.


1-12

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