20 terms

Market Structure and Competitor Analysis

Chapter 6
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Terms in this set (...)

Market structure analysis
An analysis in which the marketing manager seeks to better understand who the competition is and thus define the market
Competitor analysis
an analysis in which the strengths and weaknesses of competitors and their current and likely future strategies are examined
Industry
a group of products that are close substitutes to buyers, are available to a common group of buyers, and are distant substitutes for all products not included in the industry
product class/ category
One particular product segment of a particular industry
Product Variants
also called product brands, different specific combinations of features within a specific product type
Product types
group of products that are functional substitues
Brands
a name, term, sign, symbol, or design intended to identify the goods and services of a seller and differentiate them from competition
Product form competition
a level of competition in which only products or services of the same product type are considered
Product class or product category competition
a level of competition in which products or services that have similar features and provide the same function are considered
Generic Competition
a level of competition that includes all products or services that the customer views as fulfilling the need requiring satisfaction on a particular purchase or use occasion
Budget Competition
a level of competition that includes any product, related or unrelated, that coud be viewed as substitutable in a budget
Cross-elasticity of demand
the percentage of change in one product's sales caused by a percentage change in a marketing variable for another product
Competitor Analysis
1.Determination of the competitor's major objectives
2.Assessment of their current marketing strategies
3.Assessment of their strengths and weaknesses
4. Internal analysis of your firm's strengths and weaknesses relative to the competitors
Supporting Marketing Mix
1.Price
2.Communications
3.Distribution
4.Product or service capabilities
Competitor Capabilities
1. The ability of the competitor to conceive and design new products
2.The ability of each competitor to produce the product or deliver the service
3. The ability to market
4. The ability to finance
5. The ability to manage
Scenario planning
Planning that involves asking "what-if" questions to produce forecasts of alternative outcomes based on different assumptions about advertising spending price levels, competitor actions, and other variables
Where do we get the information
Secondary sources:
Internal sources, Annual reports, Patent and trademark filings, other government sources etc.

Primary Sources: Sales force and customers, employees, suppliers, trade shows etc.
Nash Equilibrium
in the game theory, the most common form of equilibrium, which involves a list of strategies, one for each player, with the property that no manager wants to change its strategy unilaterally
Payoff matrix
in the game theory, a graphic depiction of the rewards or costs to each player for each possible combination of strategies.
Prisoner's Dilemma Game
a particular form of competitive game in which neither participant wants to change his or hers current strategy because if one does and the competitor matches both will be worse off