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15 Cards in this Set
- Front
- Back
3 principle steps involved in electing market segments
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1. Determine value of potential customers
2. Determine competitive potential of competitors 3. Determine dynamic potential of external environment |
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4 critieria of determining value of potential customers
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1. Strategic
2. Significant 3. Profitable 4. Loyal |
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2 procedures in determining competitive potential of competitors
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1. Identification of competitors
2. analysis of competitors |
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How can competition be identified?
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- Degree of keen-ness to compete against each other
- Customer decids on who firm's competitors are (firm is powerless in identification) |
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How can degree of competition be categorized?
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- Direct competition (offered & considered)
- Indirect competition (offered but not considered) - Potential (not offered but considered) - Incipient (not offered nor considered) |
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2 factors that govern the 4 categories of competition
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1. Technological viability
2. Marketing intermediaries |
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Technological viability drives product into which degree of competition?
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Direct
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How can competitors be analyzed?
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Identify then predict strategies (cost or differential?)
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Surrogates of a low cost strategy
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High market share and low prices
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Surrogate of a differentiation strategy
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high promotion-to-sales ratio
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Basic principle in predicting strategy of existing and fture competitors
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Put yourself in competitors' shoes
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How else can competitor behavior be predicted? (4)
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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 |
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External environment categorised into 4 groups
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Political
Economic Social Technological |
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Combo of 4 methods to monitor and evaluate PEST factors are:
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1. Public opinion poll
2. Analysis of popular press 3. Analyse regulations 4. Scenario analysis (expert opinions for future development) |
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How does market grow to maturity?
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By adding more segments (often thru difficult changes in its positioning strategy)
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