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Terms in this set (30)
grouping of businesses that interact in a common environment as part of the value chain or distribution channel
a grouping of customers that an entrepreneur targets
represents that segment of the marketplace that needs the product or service the most.
data collected should answer questions like:
-what does industry look like?
Opinion leaders in industry?
threats to industry?
researching common/broad industries
use online and library resources
researching smaller industries
-check the business press
-talk to trade associations
-consult trade association journals
-blogs, wiki, websites, social networking
secondary industry data
-needs to be validated by talking with people in the industry
-employees of key firms
-professional from service organization
birth, growth and adaption, differentiation and competititon, shakeout, maturity and decline
industry life cycle
-New industry emerges
-changes in customer markets
-intense product differentiation, undertainty reduced, proprietary rights less exclusive
-exit of firms unable to compete
-Domination of a few firms
neither core assets or activities threatened
core activities threatened
core assets and activities threatened
-core assets threatened
Porters five forces model
1. Barriers to entry
2. Threats from substitute products
3. Threats from buyers' bargaining power
4.Threats from suppliers bargaining power
5. Competitive rivarly among existing firms
Barriers to entry
-economies of scale
-switching costs for the buyer
-access to distribution channels
Threats from substitute products
products/services which accomplish the same function in a different way or at a different price.
Threats from buyers' bargaining power
-The more large buyers understand the nature of the industry and the more products are standardized, the greater the liklihood that these buyers will have significant bargaining power.
threats from suppliers' bargaining power
- If the number of suppliers if few relative to the size of the industry or the industry is not the primary customer of the suppliers, the suppliers potential power to raise prices or change the product quality of goods/services supplied to manufactures and distibitors is greater.
Competitive rivalry among existing firms
in general, a highly competitve industry will drive down profts and ultimately the rate of return on investment
Political: Gov, regulatory, legal
Economic: cost of capital, inflation, customer purchasing power, employment rate
Socioculture: democraphics and cultural
Technological : R&D, rate of change
goals in market research
1. Identify and profile the first customer
2. Estimate potential demand from that customer
3. Identify subsequent customer segments and needs to grow that company
market research steps
1. Assess your information needs
2. Research secondary sources first
3. Measure the target market with primary research
4. Forecast demand for the product or service
Primary research techniques
anthropological texhniques, structured interviews, informal focus groups, survery techniques
hospital administration- customer who pays
need to increase productivitiy and reduce risk in patient procedures
save money and decrease potential for litigation
medical equiptment distributor
siemens, general electric, sono site, zonale
Primary customer profile
age, income, education, buying habits, where customer finds product or service, how customer would like to purchase
Types of competitors for a product or service
2. Indirect or substitute
3. Emerging or potential
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