Target Market IV

Target Market IV

Competition

​Evaluate the Competition

​Competition

​•Knowing exactly what the competition is doing helps marketers make decisions about how to market their products or companies

–Direct or indirect competition

–Based on price or nonprice factors

​•Direct competitors are companies that sell identical or very similar goods or services

•Indirect competitors offer different, but similar, goods or services that meet customer needs

​Competition

​•Price competition occurs when a lower price is the main reason for customers to buy from one business over another

–Focus is to make more sales by offering the lowest prices

•A competitive advantage based on factors other than price is called nonprice competition

–Examples: extended hours, gift wrapping, custom orders

​​Competition

​•Nonprice competition also focuses on features and benefits of a product

–Features are facts about a product

–Benefits are the traits of a product that serve as an advantage for the customer

–A unique selling proposition (USP) is a statement that summarizes the special features or benefits of a product or business

Multiple Choice

A direct competitor for Verizon Wireless would be all of the following except...

• AT & T Wireless

• Cricket Wireless

• Samsung

• T Mobile

Multiple Choice

A non price competitive advantage would be all of the following except...

• gift wrapping

• extended hours

• customization

• 10% off for a limited time

Multiple Choice

Features are the traits of a product that serve as an advantage for the customer.

• True

• False

​​Market Analysis

​•A market analysis is the process of gathering information on the market in which a business is competing

–Completed as part of the process of developing a marketing plan

–Should be updated regularly

​Market Analysis

​•A competitive analysis is used to compare the strengths and weaknesses of a product or company with its competitors

•Many ways to find information about competitors

–Websites are a good source for product information

–Competitors’ products can be evaluated

–Trade shows are large gatherings of businesses for the purpose of displaying products for sale

–A sales team will likely hear product comments

•

​Market Analysis

​Competitive analysis completed by

• Identifying names of primary competitors

• Information about price, features, benefits, etc. recorded

• Used to evaluate each competitor and determine if they pose a threat to the company

• ​​The competitive advantage of a product or business is offering better value, features, or service than the competition

  •Having an advantage over competitors tends to increase sales

​Market Analysis

​•A SWOT analysis lists company strengths, weaknesses, opportunities, and threats faced by the business

–Strengths are internal factors that give a company a competitive advantage

–Weaknesses are internal factors that place a company at a disadvantage, relative to competitors

–Opportunities are external factors that provide chances for a company to increase profits

–Threats are external factors that can jeopardize a company’s growth or ability to make profits

​Market Analysis

​•An environmental scan is an analysis of the external factors that affect the success of business

•A PEST analysis is a type of environmental scan that evaluates the political, economic, social, and technological factors that might impact the success of a business

–Political factors affect the stability of the government

–Economic factors affect the ability to purchase

–Social factors are the personal qualities of customers

–Technological factors affect the level of productivity possible

Multiple Choice

To create a competitive market analysis, you must do all of the following except...

• create an online survey for your suppliers

• gather competitor information about price

• identify names of primary competitors

• gather information about competitor product features and benefits

Multiple Choice

The P in PEST Analysis stands for?

• partial

• political

• parasitic

• philanthropic

Open Ended

Explain how having a competitive advantage over the competition can increase your sales.

​Product Positioning

​•Product positioning is used to influence the customer’s perception of a brand or product, in relation to the competition

–Features and benefits

–Price and quality

–Competitive positioning

•Repositioning is changing the marketing strategy used to influence consumer perception of a product, in comparison to the competition, with the goal of increasing sales

​Sales Analysis

​•Market potential is the maximum number of customers and amount of sales that can be generated from a specific segment in a defined time period

•Market share is the percentage of the total sales that one business has in a specific market

•Market size is the total sales per year for a specific product held by all the competition

•(company sales ÷ total sales in market) × 100 = percent market share

​Sales Analysis

Multiple Choice

In a SWOT analysis, SWOT stands for what?

• strengths, weaknesses, options and technology

• strengths, weaknesses, opportunities, threats

• strategies, weaknesses, options, technologies

• satisfaction, worth, organizations, trade associations

Multiple Choice

The S in PEST analysis stands for?

• satisfaction

• safety

• separation

• social

Open Ended

Define the term Market Share.