Professional Documents
Culture Documents
Market targeting
Based on evaluating the segments with regard to its size, growth, effects of competitions, availability of substitute products, power of buyers or suppliers (competition) ,also company objectives or resources. (Antispasmodics, Non sedating antihistamines)
Competition
Includes all of the actual or potential rival offerings and substitutes that a buyer might consider. Types of competition: 1-Brand competition: A company sees its competitors as other companies that offer similar products or services to same customers at similar prices. (Voltaren vs. Feldene)
Competition
2-Industry competition: A company sees its competitors as all companies that make the same product or class of products. GSK vs. SANOFI AVENTIS 3-Form competition: A company sees its competitors as all companies that supply the same pharmaceutical form (All suspension antibiotics)
Competition
4-Generic competition: A company sees its competitors as all companies that compete for the same consumer either brands or scientific names
SWOT Analysis
A tool used by organizations to help the firm establish its strengths, weaknesses, opportunities and threats. Used as a framework to help firms develop their overall corporate, marketing or product strategies.
SWOT Analysis
A method for integrating and cross-analyzing data collected in the market audit, situation audit and product positioning to identify SWOT.
SWOT Analysis
SW: Strengths and Weaknesses of a company or product (internal factors controllable by the company). OT: Opportunities & threats ( in the market/environment) are external factors which are uncontrollable by the organization.
SWOT Analysis
The SWOT method is designed to help produce : The optimum segment to attack The positioning 'message" to communicate the strategy that will bring success . Tactical objectives and their priority . A tactical plan final check
SWOT Analysis
Examples of strengths The Company: - Large size -Excellent reputation -Adequate promotion budgets --Productive R & D. -well-motivated sales force -Effective sales force -well-trained sales force -Excellent distribution -Excellent back-up information
SWOT Analysis
Example list of opportunities: In the market segment Large segment size. High growth rate. High level of customer interest. High degree of acceptance. Many new customers. Low level of price sensitivity
SWOT Analysis
List of opportunities: In the environment Not very complicated government regulations. Little negative public opinion. Growth economy. Competition: - few competitors - Weak selling power -no new products -little promotion activity
Product Strategies
who is the product aimed at ? what benefits will they expect ? how do they plan to position the product in market ? what differential advantages will the product offer compared to competitors ?
Time
Product Strategies
A product must be viewed in 3 levels: Level 1: Core product Level 2: Actual product: aim is to ensure that our potential buyers actually buy one from your company (i.e. add benefits to compete). Level 3: Augmented product: what additional non-tangible benefits can you offer ?, delivery, after sale support.
Product decisions
Design Quality Branding Vs. Copy cats (Generics)
Pricing
It costs to produce, design, distribute and promote a product, thus the price must support these elements. Pricing is difficult and must reflect the supply & demand relationship.
Pricing
Pricing must take into account: Fixed and variable costs. Competition. Company objectives. Proposed positioning strategies. Target group & willingness to pay.
Pricing Strategies
Depends on companys objectives Types of pricing: 1-Penetration pricing : is the pricing technique of
setting a relatively low initial entry price, often lower than the eventual market price, to attract new customers 2-Skimming pricing: is a pricing strategy in which a marketer sets a relatively high price for a product or service at first, then lowers the price over time
3-Competition pricing: Method in which a seller uses prices of competing products as a benchmark instead of considering own costs or the customer demand
Place
Distribute product to user at the right place and at the right time. Efficient Distribution may be: 1-direct (manufacturer consumer) OR 2- indirect (manufacturer wholesaler retailer consumer
Distribution Strategies
Intensive distribution: Marketing strategy under which a firm sells through as many outlets as possible, so that the consumers encounter the product virtually everywhere they go. Exclusive distribution: Retail selling strategy typically used by manufacturers of high-priced, generally upscale merchandise, whereby manufacturers grant certain dealers exclusive territorial rights to sell the product
Distribution Strategies
Selective distribution :Type of product distribution that lies between intensive distribution and exclusive distribution, and in which only a few retail outlets cover a specific geographical area. Considered more suitable for high-end items