DTU 42435 – Spring 2012
Market Economy
AGENDA
• Michael Porters Market Model
• The value Chain
• Market response to new products
• Market Analysis
• Marketing Planning
1
DTU Management Engineering,
Technical University of Denmark
Supplier A
Supplier B
Supplier C
Th
e
Su D
Supplier
Michael Porter’s market – and the forces
The Market
Competitor A
bs
t
it u
te
s
Competitor C
YOUR COMPANY
Competitor D
Awareness of the
five forces
can help a company
Competitor
B
understand the structure of its industry and stake out a
position that is more profitable and5less vulnerable
to
Buyers
3
1
attack Michael Porter
1979
4
2
The Intruder
6
7
CUSTOMERS – END USERS
2
DTU Management Engineering,
Technical University of Denmark
1
Michael Porter’s
Five Forces:
1.
2.
3.
4.
5.
Supplier Power
Buyer Power
Competitive Rivalry
Threat of Substitution
Threat of New Entry
http://www.quickmba.com/strategy/porter.shtml
42435 note on MP5F
3
DTU Management Engineering,
Technical University of Denmark
The Value Chain
Forward integration
Supplier
Company
Distributor
End User
Value Creation
Backward integration
4
DTU Management Engineering,
Technical University of Denmark
2
Market Response to new products
Number of customers
A.
B.
C.
D.
E.
Pioneers – love change and technology.
Early Adopters – do too, but they are rational and particular
Early Majority – no strong opinions, influenced by early adopters
Late Majority – fat and lazy – and driven by early majority
Laggards – hate you and buy only when they have to.
D
C
A
B
E
Time
Bridging the Chasm: real pain killing gets the early adopters to ring the bell!
5
DTU Management Engineering,
Technical University of Denmark
Everett Rogers Innovation Adaption
Market Analysis
Research
•
•
•
•
•
•
•
•
•
•
•
6
Who are the customers?
Who are the decision makers?
Where are they – how many? (Demographicals)
Why would they buy? (Ask them!)
How much do they buy? (T/O in the market + trend)
Any important market drivers?
Competitors
Suppliers
Distributors + channels
The value chain
Analysis by MP5F + conclusions
Now you can make your market entry scenario
And then you can make your budgets
DTU Management Engineering,
Technical University of Denmark
3
Marketing Plan
Execution!
• Make a ”pre-flight checklist”
•
•
•
•
•
7
Preconditions for starting sales
• Standards and approvals
• Organizational preconditions
• Subcontractor’s agreements
• Marketing materials
• Launch – production - up scaling
• Etc.: this is case sensitive stuff
Objectives
Quantify your success
Activities
Going in, staying, selling, producing, reporting
Resources needed (heads, facilities etc.)
Time schedule Milestones and work periods
Budget
Total expenditures and cash flow
DTU Management Engineering,
Technical University of Denmark
4