Presentation on theme: "Stephen Lawrence Leeds School of Business University of Colorado Boulder, Colorado 1 ESSAM 2011."— Presentation transcript:
Stephen Lawrence Leeds School of Business University of Colorado Boulder, Colorado 1 ESSAM 2011
How competitive is our industry? Where do we fit in the global value chain? What do we need to know about our target customers? How should we segment our customers? How should we distribute to our customers? What is our target market? How will we communicate with our customers? What are symptoms of poor marketing? Who are our competitors? What barriers to entry can we erect?
Industry: “Group of sellers that offer product/services that are similar and close substitutes for one another.” Market: “group of current and potential customers having the willingness and ability to buy product/services to satisfy a need.” 3
Power of Suppliers Power of Customers Ease of Substitution Barriers to Entry Industry Industry Rivalry Five Forces Model Michael Porter
What groupings & subdivisions make sense? Geography Demographics Psychographics Culture Product attributes ◦ Features, benefits, prices Distribution channels Sector – industrial, consumer, government Objective is to identify your entry point 7
Who actually does the selling? Direct sales Manufacturers representatives Retailers Distributors Wholesalers Dealers Internet System integrators Original equipment manufacturer (OEM) 8
Combination of ◦ Customer type(s) ◦ Market segment(s) ◦ Distribution channel(s) Attributes of a good target market ◦ Easily identified and addressed ◦ Similar messaging to all within the target ◦ Similar channels of distribution ◦ Similar purchasing habits and frequency Three critical questions ◦ Is the market large enough to support multiple competitors? ◦ What are predictions for short term growth? ◦ What are predictions for longer term growth? 9
How will target market find us? Us them? Advertising (fliers, print, radio, TV, …) Internet search Public relations Direct selling Trade shows & conferences Through trusted intermediaries Blogs, social networking Get creative!
Sales are driven mostly by price Products indistinguishable from competition Disconnected sales gimmicks Marketing messages not unified Sales leads only from sales staff Customers unaware of product line breadth No customer or prospect database Levinson, Guerrilla Marketing, 3 rd edition, 1998.
Economies of scale ◦ Manufacturing, marketing, technological Customer loyalty ◦ Well established brands, long established relationships Agreements with customers, suppliers, strategic partners Control of the distribution channel Create switching costs High initial capital requirements Access to distribution channels ◦ Exclusive distribution agreements Intellectual property ◦ Patents, trade secrets, copyrights, trademarks, know-how Government regulations ◦ Defense contracts, import restrictions Brand recognition and loyalty Innovate faster than the competition! 13
Undertake an industry analysis Identify your target market ◦ Why this one? Explain how you will communicate with your target market. Why?
Stephen Lawrence Leeds School of Business University of Colorado Boulder, Colorado 15 ESSAM 2009