Premium Essay

Marketing Chapter1

In: Business and Management

Submitted By bzhou23
Words 3210
Pages 13
MKTG

MKTG

ADDENDUM TO CHAPTER 2: COMPETITIVE ANALYSIS

It is nice to have valid competition; it pushes you to do better.
– Gianni Versace (Fashion Designer) 1

Developing a Framework for Competitive Analysis
Before developing a marketing strategy, a firm needs to complete an external analysis, looking at social, demographic, economic, technological, political/legal and competitive factors, as outlined in Chapter 2. As the textbook states on page 26, management has little control over the competitive environment in regards to what is faced by a firm. This does not imply, however, that the analysis of competition is a fruitless activity.
In fact, understanding the actions of competitors can be a key component in developing a company’s own strategies. If a company is to develop a competitive advantage that will form the basis of any strategy, it must first understand the competitive environment in which it can create such an advantage (called Competitor Analysis). Then, it must understand the product choices currently available to potential customers (called Competing Products Analysis).

Competitor Analysis
First, a company must understand the types of competition it will face. In order to find the current and potential competitors in a marketplace, a firm must be able to differentiate the various types of competition: direct and indirect. Direct competitors are those branded or product-based competitors that have created direct substitutes to what a company is offering. Generic competitors often compete directly but often without the features and benefits provided by direct competitors. Indirect competition focuses more on satisfying the customer’s needs rather than competing with a direct substitute.
An example of direct competition for Pepsi would include soft drinks such as Coca-Cola and Canada Dry, energy drinks such as Monster, and bottled water…...

Similar Documents

Premium Essay

To Market Your Business

...sales and marketing to a reputable marketer thereby establishing a strong alliance with FitnessQuest. FitnessQuest also further created thousands of alliances with professional trainers who were able to create lock-in with their numerous clients. FitnessQuest was able to keep database of trainer data by which emails and correspondence are sent to trainers and, also to keep trend of hike or reduction in registrations. Feedback as a strong aspect of information technology should be given more priority to keep track of customer s’ reaction to their product. All the alliances with trainers who also had alliances with clients- would be customers-created a strong shield against competitors. In other to empower trainers, FitnessQuest made sure they had everything needed to offer an excellence experience to their clients. Their information system could also ensure a strong feedback system, tracking daily client’s usage of products, to market new products, to repackage existing product, and carry out survey among trainers and their clients. Bosu is more focused on functional training as against focusing more on muscle building in seclusion. IndoRow is elaborate in in providing transforming workout that challenges the body when working out in groups, partners, and individually. Bosu is cheaper, and portable. Making use of existing database of Bosu trainers would be a great advantage in bringing IndoRow to the market, coupled with the experience gain in the sales and marketing......

Words: 342 - Pages: 2

Premium Essay

Marketing Management

...Course Name | Marketing Management-1 | No. of Credits | 3 | No of Contact Hours | 20 | Session Duration | 90 Min. | About the Instructor: Dr Tapan K Panda is a professor of marketing at Great Lakes Institute of Management Chennai and Director of Kotler Srinivasan Centre for Research in Marketing. Prior to joining at Great Lakes, He taught at leading business schools of India including Indian Institute of Management Lucknow, Kozhikode and Indore as a full time faculty member. He has published fifteen books in various areas of marketing and was awarded late Dewang Mehta Best Marketing Faculty Award 2011 and AIMS International Best Management Professor Award in 2013. His areas of interest include brand management, customer relationship management, digital marketing. He can be reached at tapanpanda@gmail.com Course Objectives and Key Take Away This is the first course in marketing for students of the Post Graduate Program in Management. This course is designed to acquaint students with conceptual foundation of marketing and its various facets affecting business decision making in a modern organization. It focuses on * Building clear understanding of customer orientation in organizations and how marketing serves as a value delivery mechanism. * Sensitizing students to issues related to marketing environment and how managers should respond to challenges arising out of subtle and path breaking changes in external marketing environment. ...

Words: 2290 - Pages: 10

Premium Essay

Supply Chain Management of Starbucks Coffee Company

...four high-level categories to create consistency and balance across the global supply chain team: safety in operations, service measured by on-time delivery and order fill rates, total end-to-end supply chain costs, and enterprise savings. This last refers to cost savings that come from areas outside logistics, such as procurement, marketing, or research and development (Supply Chain Quarterly, 2010). Supply Chain Conflicting Objectives Suppliers typically want manufacturers to commit themselves to purchasing large quantities in stable volumes with flexible delivery dates. Unfortunately, although most manufacturers would like to implement long production runs, they need to be flexible to their customers’ needs and changing demands. Thus, the suppliers’ goals are in direct conflict with the manufacturers’ desire for flexibility. Similarly, the manufacturers’ objective of making large production batches typically conflicts with the objectives of both warehouses and distribution centres to reduce inventory. To make matters worse, this latter objective of reducing inventory levels typically implies an increase in transportation costs. (Slack 2011, chapter1) Supply chain risks With complexity driven by globalization, high transportation costs, poor infrastructure, weather-related disasters, and terrorist threats, managing the supply chain has become even more challenging. Uncertainty and risk are inherent in every supply chain. Delivery lead times, manufacturing yields,......

Words: 954 - Pages: 4

Premium Essay

Information Systems

...having to manually calculate, millions of customer bills every month or quarter! Clearly the clerical effort involved would make it difficult if not impossible for the organisation to make a profit. Similar arguments apply to many other organisations such as the high street banks, central and local government. A recent article in the Daily Telegraph IT supplement suggested that many large organisations could last no longer than 24 hours without IT support! There should be little wonder that attitudes to the development of information systems have changed over the years from an ad hoc almost cavalier approach to a professionally managed, disciplined, planned, and engineering approach. Ref: http://www.comp.glam.ac.uk/pages/staff/tdhutchings/chapter1.html 1. Avison & Fitzgerald 1995, Information Systems Development: Methodologies, Techniques and Tools 2nd ed. McGraw Hill, Maidenhead. 2. Avison and Wood-Harper, 1990 MultiView - an exploration in information systems development, McGraw Hill, Maidenhead. (In Avison & Fitzgerald 1995). 3. Bullen and Rockart 1984, A Primer on Critical Success Factors, CISR Working Paper 69, Sloan Management School, MIT, Boston, Mass. (In Avison & Fitzgerald 1995).Porter 1980, Competetitve Strategy, Free Press, New York. (In Avison and Fitzgerald 1995) 4. Checkland 1981, Systems Thinking Systems Practice, Wiley, Chichester. (In Avison & Fitzgerald 1995). 5. Checkland and Scholes 1990, SOft Systems Methodology in Action Wiley, Chichester.......

Words: 1335 - Pages: 6

Premium Essay

Recruiting at Kia

...This report presents a framework for “Market related challenges faced by marketer”, in this report we will discuss the challenges faced my marketers in the modern era. We start by reviewing on the articles, research reports and literature already available regarding the same topic, how does the poor economic condition, unstable political environment and strong culture affect the marketing processes, how does considering these factors can plays a central role in the marketing processes, and how can it be productive for the marketers. We then explore the literature on market related challenges the factors affecting it. This report contains a survey conducted at Iqra University regarding the market related challenges faced by marketers. Key Words: Marketing process, culture, economic conditions and political environment. TABLE OF CONTENTS S.NO. | DESCRIPTION | PAGE NO. | 1. | ACKNOWLEDGMENTS………………………………… | ii | 2. | ABSTRACTS……………………………………............... | iii | 3. | LIST OF TABLES……………………………………….. | iv | 4. | LIST OF FIGURES………………………………………. | v | 5. | CHAPTER1: INTRODUCTION…………………………1.1 Overview………………………………………………1.2 Problem Statement…………………………………….1.3 Hypothesis…………………………………………….1.4 Outline of the Study………………………………….. | 5-7 | 6. | CHAPTER2: LITERATURE REVIEW……….................. | 8-11 | 7. | CHPTER3: RESEARCH METHODS…………………….3.1 Method of Data Collection……………………………3.2 Sampling Technique………………………………….3.3 Sample......

Words: 3501 - Pages: 15

Premium Essay

Adminstration

...Principles of Marketing Referential answers for assignments Chapter1 D3 Discuss the differences between the production, product, selling, marketing, and societal marketing concepts. Identify circumstances where each one may be appropriate. The production concept: consumers will favor products that are available and highly affordable, which is useful when demand for a product exceeds the supply. The product concept: consumers favor products that are highest in quality, performance, and innovative features, which focus on continuous product improvement. The selling concept: consumers will not buy enough of products unless it undertakes a large-scale selling and promotion effort. Firms often practice the selling concept when they face overcapacity. The marketing concept: achieving organizational goals depends on knowing the needs and wants of target markets and delivering the desired satisfactions better than competitors do. It works best in competitive markets where companies are in tune with customer’s product requirements. The societal marketing concept: marketing strategy should deliver value to customers in a way that maintains or improves both the consumer’s and the society’s well-being. This concept is used by firm’s wishing to take a long-term view of their operations. A1 Human needs are a basic desire for things one does not have (e.g., clothing). These needs are transformed into specific wants by one’s individual personality and the culture in which one......

Words: 1162 - Pages: 5

Premium Essay

Financial Statement Paper

...the Balance Sheet. Many companies or individual owners use this information to gain a strong financial ground in the world of business. Many managers have to have credentials showing they have had some sort of accounting training before actually being considered for a management position. This is because they must be able to make sound financial decisions when it comes to budgeting, investing, or reducing and expanding operating resources. Many companies rely too heavily on financial statements. Financial statements, like any business tool, is used to help business succeed and financial stability for expansion. This truly is not the only way to see how a business is doing or how it will do in the future. That is why many leaders use marketing studies as an alternative in order to predict the strength and future of their finances. Many companies feel that the statement of cash flow is the only important financial document needed. That is far from the truth. It does play a part, however, all the statements come together to produce all the necessary information needed to become a very successful company when making top financial decisions. Financial statements are also needed to accountants and leaders tangible financial information to move forward with expansion, investment, etc. The information provided show what is coming in and what is going out so this can lead to the company’s success. Many of the financial statement users such as managers and employees use the......

Words: 880 - Pages: 4

Free Essay

Urban Outfiters Continuing Case Study: Marketing a Business

...people who risk their time, money and other resources to start and manage business-business basics chapter 1 page 3 ➢ Sale and marketing entry: Selecting the right location is very important. The location of your business can be very critical to its success. Getting your name out there by advertising in very important in trying to get new customers. Owners need to do their homework and research so that they advertise in the right places. Writing down the names of people you know, personally telling them about your business, handing out business cards and flyers, letting others know about your business are all various methods and ways of letting others know. People will remember their conversations. You hope is that they make referrals to their friends. The best advertising in the business is “word of mouth”. These people get to know your business by name and reputation. Urban Outfitters were originally located near colleges and universities. Today, Urban Outfitters has stores around the U.S. and around the world. These entrepreneurs even brought Urban Outfitters to the upscale market level by selling different design products to different people. Satisfied customers can become advocates for a business, spreading the word with more speed and creditability tan even the best promotional campaign – Chapter1 page 5, The Relationship Era ➢ Conducting a competitive analysis: is an important part of the job. It shows you how your......

Words: 1362 - Pages: 6

Premium Essay

Chapter 1

...management Operations management is the management of processes or systems that create goods or provide services. It encompasses forecasting, capacity planning, scheduling, managing inventories, assuring quality, motivating employees, deciding where to locate facilities, buying material and equipment and maintaining them, and more. There are examples of these goods and services all around us. Every book we read, every video we watch, every e-mail we send, every telephone conversation we have, and every medical treatment we receive involves the operations function of one or more organizations. 2. What are the three basic functions in business organizations? http://highered.mcgraw-hill.com/sites/0073041912/student_view0/ebook/chapter1/chbody1/introduction.html 3. What is meant by the term value-added? The amount by which the price or value of an output is increased due to the addition of material, labor, or other resource. 4. The majority of service jobs fall into about seven categories: • Government • Wholesale/retail • Healthcare • Education • Financial services • Personal services • Business services 5. Name some ways that manufacturing and systems and service systems differ. 1. Jobs in services are often less structured than in manufacturing 2. Customer contact is generally much higher in services compared to manufacturing 3. In many services, worker......

Words: 1119 - Pages: 5

Premium Essay

Accounting 290 Paper

...expected to collect, such as sales on products, and returns. This is also known as the “returns and allowances”. If you subtract the returns and allowances from the gross you get the net revenue, which is also shown on the income statement, or other words “net”. Cost of sales can be found on the income statement as well. This shows the number the company spent to produce goods and services. When looking at a typical income statement you will also see what is called “gross profit or gross margin”. (Beginners' Guide to Financial Statements, 2007) How to arrive at this number? Take the cost of sales and subtracting the net revenues. A few other things that can be found on an income statement are operating expenses. This is made up of marketing, personnel, administration costs and the research of new products. Last but definitely not least depreciation, income from operations, interest income and interest expense are all accounted for and put on an income statement. After all this, a number can finally be shown that symbolizes the net profit or net loss, depending on whether the company made a profit or lose. The next statement that was mentioned above, as number two, is a retained earnings statement. The retained earnings statement is a statement that shows how much income is not distributed to the stockholders. In order to make the retained earnings increase a company must see an increase by net income or decrease by net loss, and decrease by dividend. “A......

Words: 1012 - Pages: 5

Free Essay

Chapter 2 Research

...a good starting foundation for the proponents. Review of Related Literatures and Studies Computerized sales and inventory systems help manage products and ensure that transactions are completed correctly. These tools track products and provide ongoing inventory controls that reduce shrinkage. Use of these resources makes retail activities much easier and efficient. Using computerized sales and inventory systems allows for much greater accuracy in stocking and product management. They encourage ease of interaction between employees and shoppers as transactions are processed and items move from the business to the consumer. Computerized sales help provide better insight into which products are most popular. It also allows for enhanced marketing, stocking and oversight of critical sales objectives. Computerized sales and inventory systems save time for businesses by speeding up transactions while raising accuracy. This allows for confidence in accounting and accountability among employees as it is easy to verify how much money is in a till and what time transactions took place. They also allow for consistent experiences in terms of customer service. People know there is always a uniform interaction at the register that requires tendering payment, taking a receipt and transition of ownership of products and services. This generates confidence in a business and ensures ongoing consumer relationships. Computerized systems are the most common method of inventory control and sales...

Words: 1374 - Pages: 6

Premium Essay

Gen Y Advertising

...engagement. A familiar song will be used so that brand recognition can be build between Chevrolet and this song whenever it may be heard. Message Themes The market for fuel-efficient, environmentally friendly and technologically advances vehicles is growing. To attract Gen Y buyers, Chevrolet needs to focus on (Archer): * Financing deals to give younger buyers a better chance of driving off in a new car * Ability to customize the vehicle to buyers individual tastes * Highlighting the distinct look of their vehicle line up * Technology features * Fuel efficiency for cost savings There will be three major advertising message themes to pique Generations Y interest in the Chevrolet brand through the integrated marketing approach. All messages will revolve around the slogan – Chevrolet. Amplify. The messages will appeal to the target with the main focuses of customization, technology and value. Within each message, the primary focus will be highlighted and the other complimentary messages will also be mentioned both verbally and visually. Chevrolet. Amplify Who You Are. This message will relay how Gen Y can customize their brand new Chevrolet, as they are demanding consumers who expect more selectivity, personalization and customization in their products and services (Sweeney, 2006). If they can’t have their specific dream car, then they do not want to drive anything or their mom’s mini-van (Faw, 2012). In fact, 77% of the target audience is so......

Words: 2004 - Pages: 9

Premium Essay

Brand Development Strategy of Kiehl’s

...Research object: Kiehl’s CHAPTER1. INTRODUCTION 1.1 Report Objective The goal of this study was to discuss the brand development strategy of Kiehl’s in skin care industry. Methods of analysis include customer-based brand equity, brand equity and marketing mix will be combined to review and evaluate the brand development strategies of Kiehl’s. 1.2 Company background 160 years ago, Kiehl’s was founded as an old-world apothecary in New York City's East Village in 1851. Kiehl's was purchased by the L'Oréal Group in 2000 and currently has more than 250 retail stores worldwide, and over 1000 points of sale supported by sales in high-end department stores, airport locations, as well as independent stockists and agents. The vision of Kiehl’s is wherever they serve their patrons, they are committed to serving a quality product through the most outstanding service that they are able to provide. Kiehl’s is one of the top 20 the best skin care brands, rank at 19th in 2013. (Appendix 1) CHAPTER2. BRAND EQUITY MODELS There are two models are used to analyze Kiehl’s. One is customer-based brand equity by Keller (2008), the other one is brand equity models by Aaker (2010). These two models will be combined to analyze the brand development strategies of Kiehl’s. Figure 1: Keller’s Brand Equity Model “We formally define customer-based brand equity as the differential effect that brand knowledge has on consumer response to the marketing of that brand. A brand has......

Words: 2010 - Pages: 9

Premium Essay

Dencowear

...Leeds Metropolitan University Business School Entrepreneurial Marketing Dencowear Report by Julie Mombielova Executive Summary Over the last 48years, Dencowear Ltd has been a successful manufacturer, proving unique uniforms in the UK. Dencowear Ltd have managed to innovate their uniform designs and further expanded as years have passed, into establishing other brands within the Denco Group. Mainly the clothing is being manufactured in China. Dencowear are proud to support breast cancer awareness. The Haven remains the only charity that promotes integrated healthcare specifically designed to support people through their breast cancer treatment. They provide up to date support, information and complementary therapies to people in need. Dencowear Ltd is now a leading manufacturer for healthcare and medical wear in the UK and voted best uniform supplier for three consecutive years. They were also the frst to establish a beautician uniform website, with large demands, and further demand in student college courses and Universities. Dencowear have extended their range of uniforms, to fashionable and modern ‘twist’ as Iian Sherman, the owner and co-finder of the Dencowear Group explained, when presenting at Leeds Metropolitan University. Other companies, such as care homes and spa’s are approaching Dencowear. This means there is a potential market for the company, to provide their product to those industries and expand further. Therefore this report will......

Words: 2939 - Pages: 12

Premium Essay

Cis 500 Assignment 4

...grocery stores and have made analysis much easier and hence this type of analysis is sometimes called "market basket analysis." The article Business Intelligence: A widely growing option through web mining (August, 2012) defines web mining as "web mining is a research is converging area from several research communities such as Database, Information Retrieval, Machine Learning and Natural Language Processing" , it is related to the data mining method but it is not its equivalent. The article continues to explain how web mining works it "is the use of data mining techniques to automatically discover and extract useful information from web documents and pages. This extracted information enables an individual to promote business understanding marketing dynamics; current trends opted by companies for better growth results etc." This method takes information, which the user decides they want before launching the program; the program will then extract only the information it needs within the predetermined scope of the search, this information is then used to promote a business or a specific even within a business. According to the article Applying TwoStep Cluster Analysis for Identifying Bank Customers' Profile (Schiopu, (NDG), it defines clustering as "a method that can form classes of objects with similar characteristics. Clustering is often confused with classification, but there is a major difference between them, namely, when classifying, the objects are assigned to......

Words: 1808 - Pages: 8