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    Session# 4

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    dkmahur99

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    Session# 4

    Uploaded by

    dkmahur99
    1 views15 pages

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    © © All Rights Reserved

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    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    1 views15 pages

    Session# 4

    Uploaded by

    dkmahur99

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    Part 1: Marketing Channel Systems

    Session # 4

    Industry Analysis
    Behavioral
    Processes in
    Marketing Channels
    Dr. Ajay Kumar
    Pandey
    ©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or
    Learning Objectives

    • Importance of Industry

    • Understanding Industry Forces

    2
    Industry Analysis

    1. General Features of the Industry

    • Current size / turnover of the industry

    • Product categories / sub-categories and their relative volumes

    • Factors affecting demand and performance in recent years

    3
    Industry Analysis .. Contd.

    2. Industry Environment / Settings


    This will indicate the kind of strategies needed to be
    successful in that particular industry, this could be:
    • Fragmented or Concentrated industries
    • Emerging industries
    • Industries undergoing a transition to maturity
    • Declining industries
    • Global industries

    4
    Industry Analysis .. Contd.

    3. Industry Structure
    This is about basic fundamental economics, technical features and
    forces of the industry:
    • Number of players
    • Nature of competition (monopoly/oligopoly/perfect competition etc)
    • Entry and Exit barriers
    • Total market size and relative market share of the players
    • Installed production capacity and relative share of the players
    • Significant change in recent years
    • Demand - supply scenario

    5
    Industry Analysis .. Contd.

    4. Industry Attractiveness
    It is an extension of industry structure only:
    • Potential
    • Growth
    • Profitability
    • Industry barriers
    • Forces shaping competition in the industry
    • Likely future pattern of the industry

    6
    Industry Analysis .. Contd.

    5. Industry Performance

    (Overall production, sales, profitability, technological advances etc.)

    6. Industry Practices
    (Marketing mix: product, price, place, promotion;
    and R&D, Legal tactics etc.)

    7. Emerging Trends/Likely Future Patterns

    (growth, changes in buyers needs, pace of innovation, entry/exit of


    firms, policy/regulatory dynamics etc)

    7
    Business Competition
    Most people think business
    competition is a tug of war
    between rivals for market share

    But, Porter says –


    Business Competition is
    rather more complex

    It is not about who is the biggest It is –


    About who is the most
    profitable
    8
    Porter’s Five Forces Model

    9
    1. Bargaining Power of Buyers

    Example: Airline Industry

    Buyers

    Who always want to:

    Get More

    Pay Less
    10
    2. Bargaining Power of Suppliers

    Suppliers

    Who always would like to:

    Get Paid More

    Deliver Less

    11
    3. Threat of Substitutes

    Substitutes

    They come from different industries


    And, serve the same basic need

    They reduce your market share

    12
    4. Threat of New Entrants

    New Entrants

    Can also create tensions


    Say, better service offerings

    This forces you to spend more in order to retain customers


    13
    5. Rivalry among Existing Competitors

    Existing Rivals

    Intense competition reduces,


    everyone's profitability

    14
    Exercise - Call To Action, One Page
    • Project will be evaluated on the content/coverage, flow,
    originality, quality of critique and analysis. The groups
    should take care that they submit original work.

    • One Page Write up:


    • Each group is expected to give a one page write up on
    project they want to undertake by 5th August, 2024. This
    should include:
    - Name of the company,
    - Objective(s), and
    - Research methodology

    15

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