Marketing Management chapt6_09

Marketing Management chapt6_09 - Marketing Management...

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Chapter 6 Market Structure and Competitor Analysis Marketing Management Marketing Management
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Key Learning Points Performing a market structure analysis, which identifies a firm’s major competitors. Performing a competitor analysis. Alternative sources of information for analyzing competitors. Using game theory in the development of competitive strategy.
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Overview Importance of Market Structure and Competitive Analysis: Allows firms to determine which other products are competing against their products for the same customer benefit. Crucial to understanding / developing a value proposition and making appropriate marketing implementation decisions. Allows firms to be proactive and anticipate competitive actions.
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Market Structure Analysis Identifying Competition is Critical. Failing to identify a competitive threat can have disastrous consequences. s New product forms (e.g. electronic watches in the 1970s) and new can become key competitors. Competitors must be identified in order to properly compute market share. s Market share = “(us / us + them)”. s Unethical managers can manipulate market share computations by changing competitors included in calculation.
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Market Structure Analysis Methods of Identifying Competitors: Supply-based approaches s Classify competitors based on objective attributes. Demand-based approaches s Classify competitors based on customer attitudes and behaviors. The Product-Industry Hierarchy
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Market Structure Analysis Defining Competition: Demand-Based Methods Competition can be defined at every level of the product-industry hierarchy. s This method fails to adequately get at the heart of competition or market definition. s Competition is best defined by the customer, rather than by the marketing manager, as implied in the following definition.
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- Joe S. Bain An industry should be An industry should be recognizable as a group of recognizable as a group of products that are close products that are close substitutes to buyers, are substitutes to buyers, are available to a common group available to a common group of buyers, and are distant of buyers, and are distant substitutes for all products not substitutes for all products not included in the industry. included in the industry.
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Defining Competition: Demand-Based Methods From the customer’s perspective (Figure 6.2) s Product form competition : narrowest form, includes products of the same product type. s Product class/category competition : products with similar features that provide the same basic function. s
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This note was uploaded on 11/04/2009 for the course SBA MKT 4305 taught by Professor B.hamelin during the Spring '09 term at Al Akhawayn University.

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Marketing Management chapt6_09 - Marketing Management...

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