Markets and Competitive

Space (1/2)
 MARKETS AND COMPETITIVE SPACE

 Markets and Strategies

 Product-Market Scope and Structure

 Describing and Analyzing End Users

 Analyzing Competition
 MARKETS AND COMPETITIVE SPACE
The Challenges ―
• Markets are increasingly complex, turbulent, and
interrelated
• Importance of a broad view of the market
• Essential to develop a vision about how the
market is likely to change in the future
Continuous monitoring is necessary to:
• Identify shifts in value requirements
• Understand competitors’ positioning
• Guide targeting and positioning
decisions
MARKETS AND STRATEGIES

Markets and
Strategies are
Interlinked

Forming a Shared Value Migration

Vision Challenges
 Markets and Strategies are
Interlinked

• Market changes often require altering

business and marketing strategies
• Forces of change create both market
opportunities and threats
• Market-driven companies proactively
alter their strategies to provide superior
value to existing and new customers
 Value Migrations

• Customers shift purchasing to new

business designs with enhanced value
offering
• Beware of disruptive technologies
• Market sensing and organizational
learning are essential
PRODUCT-MARKET SCOPE AND STRUCTURE

Matching Needs with Product Benefits

Product-Market Boundaries and Structure
Forming Product-Markets
 Matching Needs with Product Benefits

• A product – market matches needs to the

product benefits that satisfy those needs

• Unless the product benefits are available,

there is no market – only people with
needs
 Product – Market Boundaries and Structure

• Determining Product-Market Structure

1. Start with the generic need satisfied by the

product category of interest to management
2. Identify the product categories (types) that
can satisfy the generic need
3. Identify the specific product – markets
within the generic product – market
Illustrative Fast-Food Product-Market Structure

SUPER MICROWAVE
MARKETS OVENS

FAST-FOOD MARKET

CONVENIENCE TRADITIONAL
STORES
RESTAURANTS
 Factors influencing how
product – market
boundaries are
determined:

 Purpose of analysis

 Changing composition of markets

 Extent of market complexity

 Extent of Market Complexity

• Three characteristics of markets:

– 1. Functions or uses of the product

– 2. The enabling technology of the product

– 3. Customer segments in the product-

market
 Illustrative Product – Market Structure

Food and beverages • Generic Product

for breakfast meal Class

Cereals • Product Type

Ready to eat • Variant A

Regular
Natural • Variant B
Pre-sweetened
Nutritional

Life Product 19 Special K • Brands