PRESENTATION ON

COMPETITION ANALYSIS

MARKETING

MEASUREMENT

About the future we can be certain of only 3 things:

1.It cannot be known with certainity!2.It will be different from what it is

now!3. It will be different from what we

expect it to be!

BY: PETER DRUCKER

MEASURING MARKET DEMAND

FORECASTING COMPANY

SALES

MEASURING CURRENT MARKET DEMAND

FORECASTING FUTURE MARKET DEMAND

MEASURING CURRENT

TOTAL DEMAND

MEASURING CURRENT

AREA DEMAND

TWIN TASKS INVOLVED

IDENTIFYING TRENDS

MARKETING PLANS

PRICE ANALYSIS

SWOT ANALYSIS

LOCATION ANALYSIS

COMPETITIVE ANALYSIS

TARGET ANALYSIS

WHAT IS THE MAIN REASON FOR

CONDUCTING MARKETING RESEARCH???

OTHER BENEFITS OF DOING MARKETING RESEARCH…………..

* TO FIND OUT CREDIBILITY OF THE PRODUCT IN THE MARKET * SALES PATTERN OF THE PRODUCT * BUYER’S ACCEPTANCE LEVEL * FORECAST FUTURE SALES

WHICH MARKET TO MEASURE???

POTENTIAL MARKET

AVAILABLE

MARKET

QUALIFIED

AVAILALLE

MARKET

TARGET MARKET

PENETRATED MARKET

TYPES OF MARKETS

TERMS USED IN SALES FORCASTING

1. MARKET POTENTIAL {INDUSTRY PO:}2. COMPANY POTENTIAL {SALES PO:} 3. MARKET DEMAND {INDUSTRY DE:}4. COMPANY DEMAND {COMPANY SALES POSSIBILITIES}5. MARKET FORECAST {INDUSTRY FR:} 6. COMPANY FORECAST {SALES FR:}

MARKET POTENTIAL“Total possible sales by all firms selling the same

product in the given market , assuming that ideal marketing effort is made.”

COMPANY POTENTIAL“Refers to a part of market potential; the maximum sales that

an individual firm can achieve on a given market, again under ideal conditions and on the assumption that ideal marketing effort is being made.”

MARKET DEMAND“ Refers to that portion of market potential that

is achievable under existing conditions.”

COMPANY DEMAND“Refers to that portion of company potential

that is achievable under existing conditions.”

MARKET FORECAST“It is narrower in scope than market

demand. Refers to that part of market demand that will materialise with the level of marketing effort the industry will put in during the period of forecast.”

COMPANY FORECAST“Refers to that portion of company demand,

which the company actually expects with the chosen marketing effort.”

PERIOD RANGE OF DEMAND/ SALES FORECASTS:

It facilitates investment decisions at a time of

starting a new industrialised unit or

while attempting expansion or

diversification.

It is used for projecting cash flow of the enterprise and for planning various

marketing activities like advertising , warehousing

etc.

LONG RANGE FORECAST

SHORT RANGE FORECAST

Role played by sales forecasting:

Guarantees effective control.Sound decisions on expansion or

contraction.Judicious resources allocation.Helps in making sound personnel

decisions.Aids in performance evaluation.It is the foundation for budgeting.

Factors governing sales forecasting:

Prevailing economic conditions

Prevailing business conditions

Sociological conditions

Psychological conditions

Competitive conditions

Internal conditions

STEPS IN SALES FORECASTING:

7. Check and recheck

the deductions

2. Divide the company

products into homogeneous

groups

3. Determine factors

affecting sales of

each product

4. Choose the

forecasting methods

5. Gather the

available data

8. Make assumptions

regarding other factors

10. Apply the forecasts to

company operations

1.Determine the purposes

for which forecasts are

used

9. Convert deductions and

assumptions into forecasts

6. Analyse the data

METHODS USED IN SALES

FORECASTING

The delphi method

Sales force composite

method

Survey of expert’s opinionJury

method/executive opinion method

Market survey method

Analytical and statistical methods

User expectation method/end use

method

Test marketing method

Substitution/replacement

method

Market share method

JURY METHOD/ EXECUTIVE OPINION METHOD

TOTALLY BASED ON JUDGEMENT.

TWO ASPECTS

TOP JURY METHOD

PERCOLATED JURY METHOD

Judgement based method. Opinion of experts in the

concerned field , inside or outside the organisation , are approached .

More useful for developing total industry forecast rather than company sales forecast.

The Delphi method

It is also a kind of survey of expert’s opinion but in this method experts are interrogated by a sequence of questionnaires.

Used for working out broad- based , futuristic estimates, rather than sales forecast.

Sales force composite Sales force composite methodmethod

Salesman develops the forecast for his respective territory.

Territory wise forecasts are then consolidated at branch/area/region level.

Finally aggregate of all these forecasts are taken as final forecast.

JUDGEMENT BASED METHOD

USER EXPECTATION METHOD Also called end-use method/ survey of buyers’ intentions. Users of the product under forecasting are listed. Their individual likely demand is ascertained. From the above collected data, demand forecast for the product is consolidated.

MARKET SHARE METHOD

Key factor is ‘planned market share of the firm.’

First of all firm works out the ‘INDUSTRY FORECAST’ and then applies ‘market share factor’ and arrives at the ‘COMPANY FORECAST’.

Market share factor is developed on the basis of past trends, company’s present competitive position, it’s plans for the future, brand preference etc.

Normally used to estimate demand of new-products.

Demand for existing product is forecasted.

Based on that, an idea of the demand for the new product is gained.

TEST MARKETING METHOD:USED FOR THE LAUNCH OF NEW PRODUCT.

IN THIS METHOD, new product is launched and marketed in a few selected ‘TEST’ cities/ towns/ territories.

Finally these ‘TEST-MARKETS’ are considered as ‘FINAL - MARKET’.

ANALYTICAL AND

STATISTICAL METHODS

SIMPLE - PROJECTION METHOD.

EXTRAPOLATION.MOVING

AVERAGES. EXPONENTIAL

SMOOTHING. TIME - SERIES

ANALYSIS.REGRESION

ANALYSIS.

YEARS

HOW IN YOUR

OPINION THE

FORECASTS CAN

BE IMPROVED

??????

COMBINATION OF METHODS:

1.It would give better insight into the situation.

2.Enables cross – checking.3.Minimize risks involved in the

forecasts.4.Will help the forecaster to probe

deeply the reasons for the variations between the forecasts arrived at by different methods.

Acc to MR MICHEAL PORTER: ‘”competitive advantage is a function of either providing comparable

buyer value more efficiently than

competitors(LOW COST) and performing activities

at comparable but in unique ways that

create more buyer value than competitors and hence , command a

premium price (DIFFERENTIATION) ”

FIVE FORCES THAT SHAPE COMPETITION IN AN

INDUSTRY

RIVALRY AMONG EXISTING

COMPETITORS

THREAT OF NEW ENTRANTS

BARGAINING POWER OF

BUYERS

THREAT OF SUBSTITUTE PRODUCTS

BARGANING POWER OF SUPPLIERS

TYPES OF COMPETITION

1. BRAND COMPETITION

2. PRODUCT TYPE COMPETITION

3. NEED BASED PRIORITY COMPETITION

4. SUBSTITUTION COMPETITION

WHY COMPETITION

SIGNIFICANCE OF COMPETITIVE ADVANTAGE

IT IS THE HEART OF MARKETING STRATEGY

IT IS THE ANTIDOTE FOR COMPETITORS SUPERIORITY

IT IS THE ROUTE TO THE LONG TERM MARKETING

SUCCESS

IT SUPPORTS ENVIRONMENT ANALYSIS

IT MAKES PROFIT A SECONDARY PRODUCT

IT MAKES THE UNIT TO REMAIN COMPETITIVE

EVERGREEN

SOURCES OF COMPETITIVE ADVANTAGE:

1.MARKETING FACTORS.

2.PRODUCTION FACTORS.

3.RESEARCH & DEVELOPMENT& ENGINEERING FACTORS

4.PERSONNEL & EXPERTISE FACTORS.

5. CORPORATE RESOURCES & FINANCIAL FACTORS.

WHAT THE COMPANY SHOULD KNOW

ABOUT KEY COMPETITOR

S?????

1.FINANCIAL SIZE AND STRENGHT. 2.OBJECTIVES AND CAPABILITIES.

3.KEY COMPETITION EVALUATION.4. PREDICTING COMPETITOR’S FUTURE

ACTION.

1.THROUGH INTEGRATION

PROCESS.

2.THROUGH RESEARCH AND DEVELOPMENT

ACTIVITIES.

3.THROUGH ALLIANCES.

4.THROUGH MERGERS.

5.THROUGH CORE-COMPETENCY.

THANKS!!