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15 Cards in this Set

  • Front
  • Back
3 principle steps involved in electing market segments
1. Determine value of potential customers

2. Determine competitive potential of competitors

3. Determine dynamic potential of external environment
4 critieria of determining value of potential customers
1. Strategic
2. Significant
3. Profitable
4. Loyal
2 procedures in determining competitive potential of competitors
1. Identification of competitors
2. analysis of competitors
How can competition be identified?
- Degree of keen-ness to compete against each other

- Customer decids on who firm's competitors are (firm is powerless in identification)
How can degree of competition be categorized?
- Direct competition (offered & considered)

- Indirect competition (offered but not considered)

- Potential (not offered but considered)

- Incipient (not offered nor considered)
2 factors that govern the 4 categories of competition
1. Technological viability
2. Marketing intermediaries
Technological viability drives product into which degree of competition?
Direct
How can competitors be analyzed?
Identify then predict strategies (cost or differential?)
Surrogates of a low cost strategy
High market share and low prices
Surrogate of a differentiation strategy
high promotion-to-sales ratio
Basic principle in predicting strategy of existing and fture competitors
Put yourself in competitors' shoes
How else can competitor behavior be predicted? (4)
1. Let them tell u (recruit their managers, research, etc)

2. Infer from past behaviors

3. Determine competitors' objectives if strategy not visible
(divest, grow, etc)

4. SWOT analysis on competitor
External environment categorised into 4 groups
Political
Economic
Social
Technological
Combo of 4 methods to monitor and evaluate PEST factors are:
1. Public opinion poll
2. Analysis of popular press
3. Analyse regulations
4. Scenario analysis (expert opinions for future development)
How does market grow to maturity?
By adding more segments (often thru difficult changes in its positioning strategy)