Thursday, May 20, 2010

Assessing Strengths and Weaknesses and of Competitors

The strengths and weaknesses of each competitor should be assessed. It should be based on:
• Resources: They can be physical, financial, human and information resources of the competitor.
• Competencies: Competencies and performance record of the competitor’s human resources. Competitive advantages of competitors which cannot be copied.
• Share of target market: Percent of market share of the competitor.
• Share of mind: Image of the competitor in customer’s perception.
• Share of heart: Preference by customers to buy the product of the competitor.
The company should “benchmark” to learn from the best practices of competitors. It should attack the weaknesses of the competitors of competitors to gain competitive advantage.
Perceptual mapping technique can be used. It is a graphic way to view and compare own product against the competitor’s product. Price and quality are commonly used. This technique helps to identify niches in the market.

Friday, May 14, 2010

Market Competition

Market CompetitionMarket competition refers to many companies engaged in satisfying the same customer need. For example, copying need can be satisfying by carbon paper, stencil paper, computer printer, and photocopies. Market competition can be:

A) Product Class: It is a group of homogeneous products which are substitutes for each other. For example, breakfast products can be cornflakes, chiura (bitten rice), bread, and sausage. They compete with each other.
• Generic Competition is among unbranded products. They compete for purchasing power of customers.
B) Brands: Brands identity products and sellers. They can be a name, sign, symbol, or design. They differentiate a product from competitor’s products. Brand competition is similar brands competing with one another. For example, coke with Pepsi, waiwai, and manyos.

C) Price and Non-price: Price competition involves lowering and raising prices. Non-price competition is based on product, place, and promotion. It is used for product positioning. It describes how a brand differs from competing brands in the perception of cutomers.

Monday, May 10, 2010

Understanding Market Opportunities

Understanding Market Opportunities Opportunity is a favorable condition in the environment. It enables marketing to consolidate and strengthen its position. It is an important factor in shaping market strategy. Good marketing is the art of finding, developing and profiting from opportunities.
Opportunity is located in the external environment. External environment consists of conditions and forces outside the marketing. They influence performance and outcomes of marketing. The forces are political, legal, economic, social, cultural, and technological. They cannot be controlled by marketing1. However, marketers need to spot opportunities in these forces.
Market is the source of opportunity. Marketing managers must understand market opportunities. They are determined :

a) Target Market: the market is divided into segments consisting of homogeneous groups of customers who share similar needs and characteristics. Attractive segments are chosen as target market after careful evaluation. They are potential buyers of company’s products.

b) Market Requirements: they are needs that customers want fulfilled by using the product. They can be functional, service and emotional benefits. Functional benefits are derived from features, advantages, and benefits from product. Service benefits are derived by support services offered along with the product. Emotional benefit is derived by ownership and use of brand.

c) Market Development:
It is done through market promotion programmes. The buyers are made aware about the product and its benefits. Competition also helps to bring awareness about product among buyers. The brand is effectively positioned.

d) Market Size: It refers to the amount of sales volume. It is number of customer multiplied by quantity of purchase during a specified period.

Tuesday, May 4, 2010

Marketing Information System in Nepal

Marketing Information System in Nepal1. Market The Nepalese has traditionally been a seller’s market characterized by controls, shortages, and scarcities. Most of the organizations lack effective marketing information system. Marketing decisions are largely based on hunches and intuition where personal knowledge and experience play an important role.
2. Since 1980, Nepal has adopted the policy of liberalization and privatization. Globalization of the economy has been increasing. The growing competition has led to the emergence of a buyer’s market. Computerization is increasing in business enterprises. This has led to growing awareness about the importance of marketing information system for decision making.
3. The following points characterize the current state of marketing information system in Nepal:
a) The marketing information needs are not carefully assessed. Ad- hoc managerial decisions generally determine such needs.
b) The internal records constitute the most important components of marketing information system. They are used to make sales analysis, customer demand, and market analysis. There is a growing trend computerization of internal records.
c) Marketing intelligence is also used by Nepalese companies in a limited way. They subscribe to newspapers and magazines. They also use “press cutting services” which provide cutting of newspapers that are of interest to the company. Sales force and middlemen also provide intelligence but they are not properly trained and motivated.
d) Decision Support System has not made much headway in Nepal. Some global companies use quantitative tools to interpret data. Private sector banks use MKIS for their operations.
e) Marketing research is at an early stage of development. But it is not getting attention from marketing managers. Some organizations have set up their own market research department. Consulting firms in the private sector have mushroomed to provide market research services. Professional marketing research firms have started operations in Nepal. Marketing research in Nepal is dominated by advertising and product-related problems. Customer characteristics have been little researched.
f) Nepal has been fast introducing new information technology. It is expected that the growth of market information technology will be rapid in the 21st century. The demand for market research is likely to grow.

Saturday, May 1, 2010

Measures of Market Demand

Measures of Market DemandDemand is want for specific product backed by purchasing power and willingness to spend. A market is the set of all actual and potential customers of a product with demand. Demand analysis is the basis of most marketing decisions. Market can be:

a) Potential Market: It is size of market with set of customers having sufficient level of interest in a product. They have prospect of buying the product. Marketing can stimulate demand in potential market.

b) Available Market: It is size of market with set of customers who have interest, income and access to a product. It represents demand for a product in all segments of the market.

c)Target Market (Served Market): It is size or segments of the available market selected to be pursued. It represents demand for a product in chosen segments of the market. It is served by the company.

d) Penetrated Market: It is set of customers who are actually buying a product. It is size of market reached by the target market.

Friday, April 30, 2010

Features of Marketing Information System

Features of Marketing Information System The features of marketing information system are:

a) Inter related components: Marketing information system is a set of inter-related components. They consist of people, equipment, and procedures. Computer hardware, software, and information communication technology is used to design and deliver it.

b) Processing: Marketing information system collects, processes, analysis, stores, retrieves, and disseminates information for decision marketing and control. Its output consists of various reports.
c) Timeliness: Marketing information system provides right information to right people at right time. Information if received late has no use.

d) Accuracy: Marketing information system provides accurate and reliable information. Past and present information are more accurate than future forecasts. It also provides complete information.

e) Consistency: Market information system provides consistent information. All data is based on same definition, assumptions, and time period.

f) Accessibility: Market information system is easily accessible. The information is properly secured. But it is easily available to authorized persons. Information communication technology has facilitated accessibility. It also avoids information overload.

Marketing Intelligence System

Marketing Intelligence SystemThe marketing intelligence system provides information about everyday happenings in the marketing environment. It is based on environmental scanning.
The Sources of marketing intelligence are:

a) Marketing Managers: They read books, newspapers, and trade publications. They talk with customers, suppliers distributors and personnel within the organization to gather information.

b) Sale Force : They spot and report new developments in the market place. Organizations train and motivate them for marketing intelligence purposes.

c)Middlemen: They handle several products and usually know in advance about competitor's moves. They can provide vital market information.

d) Specialists:They are appointed to gather market intelligence. They even pose as "mystery shopper" to assess how employees treat customers or how compositors price their products.

e) Outsourcing: Commercial detectives are hired to gather specific information. Data can be purchased from research firms which specialize in supplying information at low cost.

f) Marketing Information Section: Organizations can establish a Marketing Information Section for marketing intelligence. It formally scans the environment to gather information. It also surfs
the internet to gather data.