marketing strategy

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Marketing Strategy Seminar 4 – Analysis of the Players

Dr Iain Watson [email protected]

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The focus of this session

⊹ Discussion about ‘players’ related

models

⊹ Application of the relevant models

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Recap

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Class Preparation: Activity

Salavou, H, (2015), Competitive Strategies and their

Shift to the Future, European Business Review,Vol 7,

Issue 1, pp 80 - 99.

⊹ What was interesting?

⊹ What can be taken forward?

⊹ What were the key discussion points?

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Today – Analysis of competition related factors

⊹ This is the task in assignment 1

⊹ PLAYERS - Who is the competition?

What’s going on with them? How have they been affected? How has the competitive landscape changed? What are they doing about it?

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What does the Market look like and who are the players which shape

competition?

Porter, M.E. (1979), ‘‘How competitive forces shape strategy’’, Harvard Business Review, March/April.

Competitive

rivalry

New entrants

Suppliers Customers

Substitutes

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Level of Competitive

Rivalry

Threat of New

Entrants

Buyer Power

Threat of Substitutes

Supplier Power

- How long has the organisation’s market been around?

- Is it a market that is currently growing?

- How easy is it for a new organisation to start trading?

- Would bigger corporations be interested in joining the market through an acquisition?

- Can customers shop around for the best price?

- Is it easy for the organisation to

differentiate itself on something other than price?

- How loyal are customers generally?

- Can customers buy alternative products which will allow them to achieve the same outcome?

- Is the current technology about to be superseded by something significantly

different? - Could the organisation also potentially offer

these alternatives ?

- How many total competitors are there in the organisation’s market?

- Has this number of competitors increased or

decreased in the last 12 months? - Who are the organisation’s main

competitors? - What is the ‘atmosphere’ of the market? e.g.

Price battles, Acquisitions, Contentment.

Adapted from Porter (1979)

- Do suppliers have the power to change prices up or down easily?

- Does the organisation have a range of suppliers so it can

shop around? - Is the supplier power

relatively the same for all

products and services the organisation buys or are

there certain exceptions?

Reminder: Porter’s Five Forces

LOW

MEDIUM

HIGH

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Activity – Find Author A: Journal Search

Find the journal by: Grundy, T. (2006) Rethinking and reinventing Michael Porter’s five forces model. (This can be found on the Online Library, Databases, ‘W’ and then click onto ‘Wiley Online’).

1.) What does Grundy say about when Michael Porter ‘conceived the five competitive forces model’?

2.) What does the author say about the ‘original composition’ of Porter’s model?

This Journal is just to get your critical discussion started.

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Underpinning some of this week’s Frameworks: Journal Search

Find the journal by: Grundy, T. (2006) Rethinking and reinventing Michael Porter’s five forces model. (This can be found on the Online Library, Databases, ‘W’ and then click onto ‘Wiley Online’.

1.) What does the author say is the estimated percentage ‘awareness’ of the basic SWOT and ‘active use’ of it?

2.) What does the author say PEST analysis is in terms of a ‘strategy technique’ compared to SWOT?

3.) What do they say about the gap between PEST and SWOT?

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The organisation to use for this activity…

The same organisation is part of The Chartered Institute of Marketing’s ‘The Pitch’ challenge this year.

Visit The Chartered Institute of Marketing (CIM) website using this link if you would like to know more about ‘The Pitch’ and if you would like to register for the event. https://www.cim.co.uk/events/the-pitch/

‘The Pitch’ is an international competition designed to recognise and reward the marketing talent of the future. Each year we (CIM) task undergraduate marketing and business students in their second year or third year of university with a real-life marketing challenge. (CIM.co.uk)

This organisation is used for this activity so that everyone can consider and critique the Porter’s Five Forces model using the same organisation.

The organisation to use for this activity is: WeAre8

https://www.weare8.com

Activity: Find out more about this organisation and what it does so

that you can consider how the Porter’s Five Forces model would

link to it as part of the critical evaluation.

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Level of Competitive

Rivalry

Threat of New

Entrants

Buyer Power

Threat of Substitutes

Supplier Power

Adapted from Porter (1979)

Activity – Adapt the P5F model…

Adapt the Porter’s Five Forces model in some way.

For example, is it still relevant for today’s modern world?

Does it need something adding or taken away from it?

Linked to the WeAre8 organisation you are using does it need adapting for this company?

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Let’s take a break…

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Competitor analysis?

⊹ Who are our KEY competitors?

⊹ Their MAIN strength & weakness

⊹ Their CORE strategic objective

⊹ Their TYPICAL response pattern

⊹ The VITAL elements of their marketing mix

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Pre Battle Competitive Relationships

Two constructs were proposed, namely:

▪ Market Commonality: the degree of presence that a

competitor manifests in the market it overlaps with the

focal firm and

▪ Resource Similarity: the extent to which a given

competitor possesses strategic endowments

comparable, in terms of both type and amount, to

those of the focal firm. (Chen, 1996, pg. 106 and pg. 102)

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Recognising and Classifying the Competition

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Market

Commonality

Resource

Similarity (Chen, 1996)

Direct

Competitors

Indirect

Competitors

(Substitutes)

Potential/

emergent Competitors Points of Parity &

Points of Difference

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What does your competitor

map look like?…

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Task - Work on the competitor analysis?

⊹ Who are the KEY competitors and why?

⊹ What appear to be their MAIN strength &

weakness

⊹ What seems to be their CORE strategic objective

⊹ What are the VITAL elements of their marketing

mix?

⊹ What is their TYPICAL response pattern?

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What are the vital elements of a competitor analysis?

⊹ VITAL elements of their marketing mix – 4Ps (McCarthy

1960) or 7Ps (Booms and Bitner 1981) or 4CS (Lauterborn

1990)

⊹ 4ps – Product, place, price, promotion

⊹ 7ps – Product, place, price, promotion, physical evidence,

people, processes (Service company orientated)

⊹ 4Cs – Consumer, cost, communication, convenience

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Customer Persona

How might a customer persona be useful for your

assignment?

Discuss

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What to include in a customer persona?

⊹ Demographics e.g. age, gender, income, location, education, job

⊹ Values and goals e.g. beliefs, motivations, professional/personal goals

⊹ Challenges e.g. worries, frustrations, barriers

⊹ Sources and influence e.g. blogs, websites, influential voices in their life

⊹ Buying decisions e.g. preferred brands, where they buy from, average spend

⊹ Final details e.g. give them a name, image, quote to capture their attitude

(Yesbeck, 2020)

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Task – What is your target customer persona

⊹ What is their demographic?

⊹ What motivates them?

⊹ What frustrates them?

⊹ Who do they listen to?

⊹ How do they buy?

⊹ If they were a real person what would they look and sound like?

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Thanks! Any questions?

Next Week: Model Recap and SWOT/TOWS

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References Chen M.-J. 1996. Competitor analysis and interfirm rivalry: toward a theoretical integration.

Academy of Management Review 21: 100-134.

Chen M.-J, Hambrick DC. 1995. Speed, stealth, and selective attack: how small firms differ from

large firms in competitive behavior. Academy of Manage- ment Journal 38: 453-482.

Jenkinson, A., 1994. Beyond segmentation. Journal of targeting, measurement and analysis for

marketing, 3(1), pp.60-72.

Peteraf MA, Bergen M. 2001. Scanning Dynamic Competitive Landscapes.: A customer and

resource based framework. Working paper, Carlson School of Management, University of Minne

Porter, M.E., 2008. The five competitive forces that shape strategy. Harvard business

review, 86(1), pp.25-40. (you can find the link on portals like Google scholar)