Analysing the environment - Five Forces Analysis
Analysing the environment - Five Forces Analysis Five forces analysis helps the marketer to contrast a competitive environment. It has similarities with other tools for environmental audit, such as PEST analysis, but tends to focus on the single, stand alone, business or SBU (Strategic Business Unit) rather than a single product or range of products. For example, Dell would analyse the market for Business Computers i.e. one of its SBUs. Five forces looks at five key areas namely the threat of entry, the power of buyers, the power of suppliers, the threat of substitutes, and competitive rivalry. The threat of entry. * Economies of scale e.g. the benefits associated with bulk purchasing. * The high or low cost of entry e.g. how much will it cost for the latest technology? * Ease of access to distribution channels e.g. Do our competitors have the distribution channels sewn up? * Cost advantages not related to the size of the company e.g. personal contacts or knowledge that larger companies do not own or learning curve effects. * Will competitors retaliate? * Government action e.g. will new laws be introduced that will weaken our competitive position? * How important is differentiation? e.g. The Champagne brand cannot be copied. This desensitises the influence of the environment. The power of buyers * This is high where there a few, large players in a market e.g.
Strategies for post recession consumers
Alex P Keaton Marketing 350 9/30/09 Marketing Project- Individual In the article, "Time to reset strategy for post-recession consumer" by David Donnan, what has changed consumers in the present and what will drive consumers in the future is analyzed. As the result of the enormous financial meltdown, consumer spending is down and consumer behaviors are changing. Donnan argues that the lost wealth of Americans will produce a new consumer; who need to be identified and targeted for future economic growth. Americans have seen a 22% decline in its collective net worth. Add this to a high unemployment rate and you have diminished consumer confidence. Consumers will adjust their spending patterns and reevaluate their priorities. A greater emphasis will be placed on affordability and functionality. Donnan states, "Indicators signal that we are entering a new era of nonconspicuous consumption... where less is more; where an emphasis on quality will replace a desire for quantity; and where the pursuit of enjoyment, purpose, and fulfillment will supersede a quest for material success and personal achievement". This is a profound statement about the American consumer in that it declares the end of reckless spending on material goods that dominated the last decade to an era of responsible spending where environment, health, and need are the focus of consumers. Opportunity can
sales promotion
In what business situation/s would you favour sales promotion techniques over other forms of marketing communication? Give examples if appropriate. Business uses a range of marketing communications to promote the company, their products and their services. The objective of this is ultimately to achieve sales so effective communication is important. For effective communication, the following tools are required - advertising, personal selling, direct marketing, internet & online marketing, sales promotion and publicity. In order to stimulate consumer purchasing, and dealer and sales force effectiveness in the short term, through temporary incentives and displays, sales promotion is designed (American Marketing Association). It is followed by a small fall in sales to below normal level because some consumers will have stocked up on the product during the promotion (Jobber, 2004). There are several sales promotion techniques for increasing customer demand. Free samples and money off cause immediate benefit to consumer but it is very expensive way for the company. Also, encouraging repeat purchase by free premiums may require advertising support. Therefore a small business should consider its marketing budget, the stage of the product in its life cycle, the nature of competition in the market, and the target of the promotion. In addition, sales promotion can be an effective
Swot Analysis
SWOT ANALYSIS Strengths * Equipped with four-wheel drive for all-weather for all-weather ability which provides the passengers with a safe and secure ride. * Handles like a sports car and is of typical BMW quality. * The acceleration is outstanding for a six cylinder vehicle and has far more superior performance compared to a four speed vehicle. * The interior and exterior styling is excellent. * Responsiveness offers the perfect counterpoint to "truck-like" handing. * Price/value relationship. * The vehicle's responsiveness to traffic on dry and wet roads is great. * The smoothness of the ride and the roomy interior makes local and long distance trips quite comfortable and provides driving enjoyment for all passengers. * BMW manufactures the safest cars in production of any class anywhere in the world. * Outstanding towing vehicle. * Active and passive safety design; engineering and the vehicles leading-edge technology go well beyond standard SUV levels * Great for outdoor activities. * Provides the driver with improved road visibility. * Elegance, sophistication, luxury, beauty, and robustness of the vehicle set it apart from any SUB in the industry. * Equipped with ten airbags for extra driver and passenger safety. Weaknesses * Very limited cargo space compared to other SUVs. * Low gas mileage for a six-cylinder vehicle. * Windshield
'Act 2 Scene 1' How does Shakespeare use the conventions of a Masked ball to further the plot?
Now that my project is finished I can evaluate my product - a cd rack. Specification point Description/ fulfilment Be made out of wood 00% of the product was made out of MDF both 12 and 6mm Be able to hold at least 20 standard cds Holds over 20 cds all easy to access but not in the initial way planned My product must not scratch or damage any of the cds it Stores. Smooth varnished finish offers a good protection so no damage becomes of the cds Be designed and constructed with anthropremetrics in mind. It is easy for my customer to use. Have a durable finish that won't be marked or scratched easily. The finish is durable but may scratch the cds. Have rounded edges All edges were rounded off Be varnished It is varnished however some wood filler does show through Nicely shaped It is nicely shaped but Safe to use It is very safe to use Be strong It is very strong an can hold over 60 kgs on the joint Be able to be wall mounted and free standing. It can be either wall mounted or free standing, also it can be displayed in a number of positions Even though I think my project was an overall success I think that there are a number of ways in which I could improve it if I was to make it again in the future. Probably the most obvious would be to make it deeper so that the cds would not be as tight fitting, as at the moment they are put in not how I originally
Should Wal-mart increase their prices consumer spending would decrease in demand for their products
Wal-Mart Consumption Wal-Mart the world's largest company continues to dramatically convert the retail setting by exploring new growth avenues, selling new categories of merchandise, operating in new geographies and business sectors, and appealing to new customers. Wal-Mart along with other U.S.-based retailers continues to dominate the Food, drug, mass (FDM). Mainly, because of the strength among regional retailers, home-good retailers and by weaknesses among companies that operate in the soft goods sector. Wal-Mart was at the top of the list of retailers that benefited from the surge last year in retail spending, which also helped insulated them from the impact of a weak dollar. Soft goods struggled while homegoods led the way. Sales weakened by apparel deflation, the soft goods sector also posted much slower growth than the food, drug, mass sector and homegoods retailers which benefited from strong housing markets around the world. BEA (Bureau of Economic Analysis U.S. Department of Commerce), released a report that the major contributor to increase in real GDP in the third quarter) were personal consumption expenditures (PCE). Non durable goods purchases increased 2.6 percent, compared with an increase of 3.6 percent. This report did not list retailers, but I would imagine that Wal-Mart remains to be the leading retailer. Should Wal-mart increase their prices
What is the likely magnitude of the The "balanced budget multiplier"?
What is the likely magnitude of the The "balanced budget multiplier"? The magnitude of either the multiplier or the balanced budget multiplier for the UK will depend on the accuracy of the statistics that are referred to. Moreover, the multiplier for the UK has to account for expenditure increases which are at market prices. As a result, these include import and fact costs which are not part of domestic product.. Thus rise in GDP will have to be calculated at factor cost, and should be related to the domestic-output content of expenditure. The MPC has been estimated at 0.9, and MPZ is 0.32, giving an import-adjusted MPC of 0.58. The multiplier would be thus: /(1-(MPC-MPZ) = 1/(1-0.58)=1/0.42=2.4. This, though, takes no account of tax, which is necessary to find the balanced budget multiplier. In 1996, there were three marginal rates of taxation, 20%, 24%, and 40%, but it is likely that the average was 24%. National Insurance is another leakage and thus a form of taxation that also has to be taken account of, and in 1996 it was 9%. This gives a figure of 33% for overall taxation. The balanced budget multiplier will therefore be: /{1-[(MPC*0.77)-0.32]} = 1/[1-(0.693-0.32)] = 1/(1-0.373) = 1/0.627 =1.59 .59 is likely to be the magnitude for the balanced budget multiplier. Unfortunately, it is only an estimate. It ignores the effects of firms selling or keeping
The role of Marketing as being an 'Initiator' in identifying, evaluating, recommending and implementing overall retailing strategy.
The role of Marketing as being an 'Initiator' in identifying, evaluating, recommending and implementing overall retailing strategy. We suggest that marketing, along with Finance, Operation, Human Resource management, Property and System are functions that all contribute to the overall retail strategy. We would develop a strategic marketing plan that will identify customer's based opportunities. The central thrust is to positioning of the company in term of its Merchandise, Services and trading environment offer such that it is clearly recognizable by the customer group to which it is directed/targeted. At the same time, the fundamental requirements of the company can be identified and established as a performance requirements which need to be meet and the critical success factor can then form a planning structure for the company strategy decision. CRITICAL SUCCESS FACTORS . Increase sales revenue in real terms. 2. Increase gross profit in real term 3. Containing operation costs throughout the business 4. Increase the productivity of physical & human assets 5. Adding value to the customer offer 6. KEY VARIABLES. Key Variables. . Merchandise selection reflects customer requirement for choice, quality, exclusivity etc. 2. Co-ordinate merchandise ranges. Merchandise availability in stores and distribution centers. 3. Merchandise reorder/replenishment 4. Pricing/price