[11:08:45] ysbq: Syllabus reference A-3,4 and
[11:08:47] ysbq: 5
[11:09:17] ysbq: ok Life cycle model
[11:09:22] ysbq: ?
[11:09:45] ysbq: first of all what are the stages of lifecyle
[11:09:57] ysbq: anybody?
[11:10:10] yaroslava: introduction
[11:10:11] sue888: introudction
[11:10:15] sue888: growth
[11:10:15] hilariousastal: there are four of them
[11:10:16] sue888: mature
[11:10:18] sue888: decline
[11:10:25] ysbq: yeah
[11:10:37] yaroslava: {sue888} yes
[11:10:49] potter2009: inception
[11:10:56] potter2009: maturity
[11:11:48] ysbq: introduction- Growth - Maturity- DEcline
[11:12:11] ysbq: ok
[11:12:29] ysbq: now this lifecycle applies to industries and products
[11:12:34] ysbq: everyone agree?
[11:12:47] yaroslava: yep
[11:13:26] sue888: yes
[11:13:38] ysbq: okay wht are the competion features in these stages
[11:14:13] ysbq: like how many competitiors at intro. stage
[11:14:14] ysbq: ?
[11:14:20] potter2009: none
[11:14:30] sue888: int- high growth rate, lower makeet share
[11:15:04] yaroslava: at intr there is probably no new entrants as the product is
fairly new
[11:15:04] sue888: one form
[11:15:32] ysbq: hmmm , i am only asking abt competiors
[11:15:51] ysbq: so at intro stage there will be little or no competiton
[11:16:00] ysbq: little means few competitiors
[11:16:02] sue888: ok
[11:16:03] ysbq: all agrees
[11:16:05] yaroslava: {ysbq} just said that
[11:16:13] ysbq: {yaroslava} yeah fine
[11:16:36] ysbq: okay what will be the demand of products at the intro stage
[11:16:38] ysbq: ?
[11:16:47] sue888: small
[11:17:15] ysbq: {sue888} yes what will the characteristics of these buyers
[11:17:21] sue888: you need to adv, market the new product and make people
aware of it
[11:17:31] ysbq: i agree they will be small in n umbers
[11:17:39] yaroslava: the company is loooking at marketing and promoting the
product at this stage, so it should be small
[11:17:44] potter2009: if you have the resoucres to do so
[11:18:04] sue888: if you don't have the resources, you should not do it in the
first place
[11:18:13] sue888: otherwise, you won' t secceed
[11:18:45] ysbq: {potter2009} a company does launch product if it has the
avalibale financial and techincal and logistics at its hand
[11:18:58] potter2009: true
[11:19:47] ysbq: ok at intro the cost of prod. will be high and so the products
will be expensive and hence, the buyers would be belonging to hIgH incom group
[11:19:51] ysbq: all agreed
[11:19:53] yaroslava: {potter2009} they first do studies on feasibility,
acceptability andsuitability before deciding to invest
[11:20:09] ysbq: {yaroslava} yeah
[11:20:34] potter2009: but even after a product is launched companies may not
hae the man power to deal with the progress
[11:20:45] potter2009: depending on the response to the product
[11:20:49] sue888: possible
[11:20:58] potter2009: it could be money wasted or money well spent
[11:21:14] sue888: not all the products are launched are sucessful
[11:21:35] sue888: quite a lot of them vanished in short time
[11:21:37] ysbq: {potter2009} if at intro the response is lame the company will
not go further
[11:21:47] potter2009: good point
[11:22:03] yaroslava: but you still have a research and development section of
the company before you have a go at something
[11:23:02] sue888: companies won't espect all the products they launched will
be successfual. they will allow themself to have failure rate
[11:23:07] ysbq: because grwoth means increaing sales and more investment in
capital and machines hence, u need to be careful about the cost and benefits, thus
NPV of products would be calculated to check their feasibility
[11:24:06] ysbq: lets get back to discussion ,we are studying this model for
Strategic Analysis
[11:24:17] sue888: sure
[11:24:30] yaroslava: ok
[11:24:57] ysbq: so we need to know certain aspects of different factors at
variuos stages of lifecycle
[11:25:16] sue888: yes
[11:26:00] ysbq: theses factors are ; Competitiors, DEMAND, TECHNOLOGY,
product features, production proccess and Critical succcess factors at this stage
[11:26:27] ysbq: now at intro, we are done with the competitiors and demand
[11:26:33] ysbq: Technology?
[11:26:53] ysbq: will it be standard or unique
[11:26:55] ysbq: ?
[11:27:11] potter2009: no standards are set yet
[11:27:16] sue888: depend
[11:27:28] ysbq: {sue888} well let us know ur opinion
[11:27:38] sue888: on the product itself
[11:28:02] sue888: like Apple design- unique so far
[11:28:13] sue888: but othe computers standard, I guess
[11:28:45] ysbq: {sue888} well the technology would be unique , let me explain
u how
[11:29:11] sue888: depends on you want to be cost leader or differantator as
well
[11:29:59] ysbq: {sue888} When apple came up with i-pads that was the intro
stage and them after wards the androids market came in at the grwoth stage to
compete with apple
[11:30:02] ysbq: agreed
[11:30:28] sue888: but still they are different
[11:30:46] sue888: cosumer like me will perceive them differently
[11:30:54] sue888: consumer
[11:31:00] potter2009: but they cannot price themselves out of the market due
to other competitiors now advancing
[11:31:07] potter2009: on that technology
[11:31:10] ysbq: think i terms of industry point of view
[11:31:21] hilariousastal: {sue888} same features and attributes of the products
make them similar
[11:31:27] ysbq: the industry of smartphines
[11:32:26] ysbq: okay what will be Crticial succes factors at this stage?
[11:32:53] sue888: compartive competive advantages over yr competitor
[11:33:03] ysbq: {sue888} no
[11:33:14] potter2009: ensuring they constantly reveiw their tech
[11:33:16] ysbq: there are no or few competitrs
[11:33:21] sue888: u mean in general or in introduction
[11:33:33] ysbq: at intro stage
[11:33:36] sue888: k
[11:33:41] ysbq: the CSF will be.....
[11:33:43] sue888: marketing
[11:33:56] ysbq: no it will be innovative product
[11:34:10] sue888: cost
[11:34:12] unknown: hi all
[11:34:22] sue888: keep cost low and advertising
[11:34:23] unknown: good morning
[11:34:25] yaroslava: hi
[11:34:26] ratna1238: wot model r we in at the moment peeps?
[11:34:28] sue888: morning
[11:34:37] ysbq: {ratna1238} life cycle
[11:35:00] ratna1238: wot chapter?
[11:35:03] unknown: have you all started long back
[11:35:03] ysbq: ok any view abt prod proccess?
[11:35:07] ysbq: at into stage
[11:35:30] yaroslava: {unknown} just a few mins ago
[11:35:40] unknown: {yaroslava} ok
[11:35:51] unknown: starting with which chapter?
[11:35:58] potter2009: 3 in bpp
[11:36:14] sue888: operating cost
[11:36:40] savvy2012: {ysbq} production is not very quick because of the
learning curve so quite high costs
[11:36:40] potter2009: production process has no stds
[11:36:53] yaroslava: {ysbq} two pple want to know whre you at
[11:37:39] hilariousastal: {savvy2012} agree
[11:38:24] yaroslava: {unknown} {ratna1238} could help you but i am not using
bpp
[11:39:10] ysbq: welll people we are doing lifecycle model chapter 3 in Kaplan
[11:39:22] ysbq: alll on same note
[11:39:34] ratna1238: k thx
[11:40:08] potter2009: improvements are made at inception stage
[11:40:27] ysbq: and chapter 3 and page 62 in bpp
[11:41:55] ysbq: okay i asked abt Prod Proccess
[11:42:30] ysbq: they would be non standard and short prod, runs will be there
[11:43:13] unknown: thanx guys
[11:43:14] savvy2012: a lot of wastage
[11:43:20] unknown: will catch u all later
[11:43:22] unknown: bye
[11:43:34] savvy2012: {unknown} see u
[11:43:37] ratna1238: i gtg very soon
[11:43:38] ysbq: since it is the intro stage and the organisation has not invested
a lot in prodcution and capial
[11:43:41] ratna1238: when r u guys meeting up
[11:43:44] ratna1238: sorry to interrup
[11:43:53] ysbq: {ratna1238} sundays at 1000GMT
[11:44:10] yaroslava: {ratna1238} ask after the session
[11:44:34] ysbq: wow any body ?
[11:44:54] ysbq: are we done with intro stage
[11:44:55] ysbq: ?
[11:44:58] sue888: yes
[11:45:04] potter2009: yes
[11:45:16] yaroslava: yes please
[11:45:20] savvy2012: a lot of efforts made to keep production and technology
process a secret to prevent competitors stealing ideas and entering the market
[11:45:53] yaroslava: {savvy2012} yes good point
[11:46:01] ysbq: {savvy2012} yes through patents and trademarks ect
[11:46:28] ysbq: like apple Slide to UnloCk the screen is patent
[11:46:53] ysbq: well next stage GROWTH
[11:47:07] ysbq: the competition at this stage?
[11:47:19] sue888: high
[11:47:32] ysbq: {sue888} how it will be high
[11:47:33] ysbq: ?
[11:47:43] ysbq: share ur thoughs
[11:47:44] sue888: they compete each other for market share
[11:47:58] savvy2012: higher than atr introduction stage but still not as high as
at maturity stage
[11:48:20] savvy2012: as the industry becomes more attractive to compatitors
they try to enter the market
[11:48:24] ysbq: {savvy2012} yes a lot of players entering the market.... agreed
[11:48:41] potter2009: some may even buy other companies to grow their
makret share
[11:49:20] savvy2012: the product becomes more popular as customers start to
hear about product and understand why they need it (like its cool to have an iphone :)), so more profits are made
[11:49:23] ysbq: we could say thatt the fight for market share is on
[11:49:43] ysbq: since more market share means more profits
[11:49:51] potter2009: yup
[11:50:00] potter2009: so they think
[11:50:06] ysbq: as the industry is still lucrative and in the money
[11:50:28] ysbq: all agree
[11:50:40] ysbq: OK what abt demand conditions?
[11:50:55] sue888: increasing as well
[11:51:10] sue888: as more and more are aware of it and want to have it
[11:51:14] savvy2012: increasing quite quickly all the time
[11:51:23] ysbq: {sue888} increases and reach its epic
[11:51:34] sue888: not yet
[11:51:35] yaroslava: increasing
[11:51:38] sue888: untiall mature
[11:51:57] ysbq: {sue888} yes approaching the epic stage
[11:52:03] sue888: {ysbq} yes
[11:52:15] yaroslava: but aggressive marketing is required to stand out from the
competitors
[11:52:43] ysbq: okay what abt technology?
[11:52:48] ysbq: at this stage
[11:52:58] sue888: improving the process
[11:53:04] sue888: know how
[11:53:26] ysbq: {sue888} that would be with the product
[11:53:45] ysbq: i am asking abt the tech as a whole
[11:53:46] savvy2012: have to keep monitoring the market in case if there are
fake copies or breach of patent law etc, and try to stop it
[11:53:52] potter2009: constantly being developed
[11:54:04] sue888: they are still keep innovating
[11:55:21] ysbq: Well the unqiueness of technology is eroding and it is gettting
more and more known , But still the tech is not well undestood by all players
[11:55:53] sue888: k
[11:56:26] sue888: but it could be understood by others but has patent maybe
[11:56:57] ysbq: {sue888} yes but not alll tech can be patented
[11:57:09] potter2009: as that is very costly
[11:57:25] ysbq: okay what will be the feature of prod proccess at this satge
[11:57:32] ysbq: ?
[11:57:36] savvy2012: a lot of similar products might appear , almost same
technology but not quite
[11:58:33] ysbq: {savvy2012} this will be product features but not production
proccess makeup
[11:58:34] savvy2012: production will be quite quick and efficient as learning
curve kicks in, all process are more standardised, there's less wastage
[11:58:55] savvy2012: {ysbq} yeah i was still talking about product features and
technology
[11:58:55] ysbq: {savvy2012} yes
[11:58:59] sue888: agreed
[11:59:17] ysbq: {savvy2012} what are the ways of production at this satge
[11:59:36] ysbq: will it be batch, job or MASS
[11:59:38] ysbq: prod
[11:59:39] ysbq: ?
[11:59:48] potter2009: mass
[11:59:54] savvy2012: maybe need to produce a lot in advance to be able to
satisfy demand and avoid shortages in stock
[11:59:56] ysbq: Goood at lastt
[12:00:02] sue888: mass
[12:00:07] potter2009: as everyone struggles to gain mrkt share
[12:00:30] ysbq: ok what will be the CSF at this satge
[12:00:34] ysbq: stage?
[12:01:08] savvy2012: satisfy demand
[12:01:15] yaroslava: creating a brand awareness
[12:01:18] ysbq: {savvy2012} yes .... how
[12:01:21] savvy2012: keep market share by advertising
[12:01:28] ysbq: {savvy2012} okay
[12:02:10] ysbq: remember we have come up from intro satge to growth
[12:02:11] savvy2012: satisfy demand by producing a lot and keeping big stock
of product ready to give to customers to keep them happy and avoid them
changing mind
[12:02:11] sue888: keep cost lower as you have gone through learning curve
[12:02:25] sue888: production
[12:02:29] ysbq: so we are investing in what at this satge
[12:02:29] sue888: advsertising
[12:02:40] ysbq: production
[12:02:41] sue888: peroduction
[12:02:46] ysbq: yessss
[12:02:46] sue888: and advertising
[12:02:48] savvy2012: investing in capital more - more shops etc :)
[12:02:57] sue888: more working capital
[12:03:20] ysbq: the CSF is that the product is mass produced
[12:03:43] ysbq: {savvy2012} do u see a lot of apple advetisment these days
[12:03:47] ysbq: ?
[12:03:50] ysbq: or not
[12:04:05] savvy2012: {ysbq} nope.. but a lot of new stores opening :)
[12:04:15] sue888: not really
[12:04:25] ysbq: {savvy2012} yessss .... this is grwoth stage
[12:04:37] potter2009: no cos their product is well known
[12:04:41] potter2009: and a household name
[12:04:57] ysbq: so more capital is avaliabliity of prod rather than info
[12:05:03] ysbq: agrees
[12:05:12] potter2009: yup
[12:05:23] savvy2012: more machinery to produce product
[12:05:29] sue888: but Apple is just one off
[12:05:45] savvy2012: {sue888} yeah true.. they dont move in same direction as
the rest of market
[12:06:02] sue888: a lot of products havvy reply on advertising at grwoth stage
to gain market share
[12:06:04] potter2009: true they will loose mkt share to others in years to come
[12:06:06] yaroslava: we know the brand, its an established market for them, all
they got to do is reach more customers by economies of scale and low supply
cost{less ads}
[12:06:45] ysbq: i used it as an example for making a point for clairty
[12:06:58] potter2009: they also reduce the costs to keep up with the mkt
[12:07:29] ysbq: OK so wht is the CSF at Growth stage
[12:07:31] ysbq: ?
[12:07:37] ysbq: anybody last time
[12:08:00] yaroslava: have we not done that already?
[12:08:09] ysbq: yes
[12:08:16] ysbq: lets move on
[12:08:28] ysbq: MATURITY stage
[12:08:28] savvy2012: satisfy demand is CSF by having mass production
[12:08:34] ysbq: compt ?
[12:08:40] ysbq: {savvy2012} yes
[12:08:57] ysbq: competiton at maturity stage
[12:08:58] ysbq: ?
[12:09:30] sue888: still very high
[12:09:38] potter2009: increases and less strong companies cannot hold their
place in mkt
[12:09:39] sue888: more profit can be made at this satge
[12:09:41] savvy2012: compatition is at its peak , come big players on the
market fighting hard, so weaker compatitors mght leave the market as they can't
compete (e.g. they can't keep costs as low)
[12:09:58] ysbq: {savvy2012} yes
[12:11:30] ysbq: we said that there is war at growth stage for market share, so
this means that a lot of less resourceful companies will move out for avoiding
losses and only a few major players will be left in the market to compete
[12:11:44] ysbq: all agree
[12:11:49] savvy2012: yeah
[12:11:59] yaroslava: yep
[12:12:11] sue888: yes
[12:12:15] potter2009: yes
[12:12:16] ysbq: so biggies and bullies are left
[12:12:18] ysbq: ;)
[12:12:22] potter2009: ol
[12:12:24] potter2009: lol
[12:12:42] ysbq: well Demand factors at this stage?
[12:13:08] savvy2012: at its peak
[12:13:34] ysbq: yes willl the market share increse on a whole or not?
[12:14:09] sue888: not really if you look at the graph
[12:14:12] ysbq: does the companies need to invest in capital at this stage
[12:14:20] ysbq: {sue888} yes u got the point
[12:14:37] potter2009: no further capital injection
[12:15:03] ysbq: the demand on a whole will not increase and willl remain
stagnant
[12:15:25] potter2009: r&d is also low
[12:15:29] ysbq: What abt tech of industry at this stage?
[12:16:06] ysbq: will it be well known or unique
[12:16:08] ysbq: ?
[12:16:08] sue888: tech is known I guess
[12:16:13] potter2009: competitors understand the tech
[12:16:28] ysbq: Well known ....
[12:16:48] ysbq: product features?
[12:17:06] yaroslava: well known but remains unique to those that established
the product,,if competitors didnt have a sniff
[12:17:14] potter2009: little change in product
[12:17:39] ysbq: the product will move to standardisation
[12:18:30] ysbq: what abt prod... proccess at this stage?
[12:18:56] ysbq: ?
[12:19:04] savvy2012: very quick and standardised
[12:19:23] sue888: still mass
[12:20:08] ysbq: yes but overcapacity will start be build up in the industry
[12:20:38] savvy2012: yeah.. a lot of staff will be hired, a lot of machinery and
stores to satisfy demand.
[12:20:54] ysbq: yes .... what will be the CSF at this satge
[12:20:56] ysbq: /
[12:21:08] ysbq: EEE
[12:21:11] savvy2012: but they can't avoid over capacity as they don't really
know when exactly product is going to start declining
[12:21:22] ysbq: {savvy2012} yes
[12:21:47] ysbq: CSF at maturity stage?
[12:21:55] savvy2012: EEE - econimy, efficiency, effectiveness?
[12:22:02] savvy2012: was it a clue ? :)
[12:22:06] ysbq: {savvy2012} yes
[12:22:10] yaroslava: relaunch
[12:22:18] ysbq: {yaroslava} wow
[12:22:48] savvy2012: maybe start thinking ahead and develope new products
ready to kick off after the first one declines
[12:23:45] sue888: co is think of new products at all stages not only mature
[12:23:53] ysbq: {savvy2012} well book says to keep ur costs low by making ur
proccesses effcient
[12:24:09] ysbq: this is the CSF at this stage
[12:24:16] sue888: 3E is fine
[12:24:22] ysbq: {sue888} yes
[12:24:27] savvy2012: ok
[12:24:28] ysbq: that was the hink
[12:24:34] ysbq: hint
[12:24:48] ysbq: ok ay next stop DECLINE
[12:25:12] ysbq: competiton in decline stage?
[12:25:54] savvy2012: yes as customers start bbyung diferent producs or a lot
of customers already have this product
[12:26:06] sue888: less
[12:26:17] ysbq: {savvy2012} this is demand conditions
[12:26:36] ysbq: i am asking abt the number of players in the market
[12:26:45] sue888: reducing
[12:26:57] yaroslava: exit barriers may be high then rivals chasing falling
numbers of customers, then thus a decline stage
[12:26:59] savvy2012: number of competitors reduces as they start looking for
more profitable products
[12:27:17] sue888: because of market is declining
[12:27:27] ysbq: {savvy2012} yes and they go for price wars at this stage
[12:27:45] ysbq: {sue888} yes cosumer pref are changing
[12:28:02] ysbq: demand is falling
[12:28:13] ysbq: as tastes are changing
[12:28:48] ysbq: for example phone would not buy push to talk phones these
days
[12:29:07] ysbq: what abt Technology of industry at this stage
[12:29:08] ysbq: ?
[12:29:46] savvy2012: start looking at new technologies, new products or
improve existing product significantly
[12:30:11] savvy2012: like develope i-phone 5 :)
[12:30:28] ysbq: {savvy2012} that would be product features ...
[12:30:50] ysbq: i am asking abt technology in relation to industry
[12:30:55] yaroslava: Can the company modify the product or sell into a new
market to take it back to the growth stage?
[12:31:29] savvy2012: i think they can...
[12:31:55] ysbq: {yaroslava} yes those are callled extension strategies but we
are concertarting on a plain vanilla life cycle model
[12:31:57] sue888: yes, they can
[12:32:22] yaroslava: so technology can be done by modification
[12:32:38] ysbq: the tech obsolete at this stage
[12:32:58] ysbq: and is usuallly superceeded by new products ..
[12:33:06] savvy2012: technology will be quite known by this stage
[12:33:17] yaroslava: ok
[12:33:23] ysbq: think of nokia cellphones succeeded by i-phones
[12:33:58] ysbq: would any body go for black and green display screen these
days
[12:34:31] ysbq: okay ...
[12:34:44] ysbq: wht abt CSF
[12:34:45] ysbq: ?
[12:34:48] savvy2012: some ppl would but its not worth producing as wouldn't
make much profit on it
[12:35:14] savvy2012: CSF keep costs down to avoid making losses?
[12:35:21] ysbq: yes
[12:35:42] savvy2012: and maybe exit to new industries
[12:36:00] savvy2012: enter to new industries
[12:36:05] ysbq: incase , we are not interested in going into new industries it
would be brand loyalty
[12:36:13] ysbq: like 501
[12:36:28] ysbq: i am one of the...;)
[12:36:35] savvy2012: :)
[12:36:46] savvy2012: i must be from different generation :)
[12:37:15] ysbq: 501 red tag....
[12:37:50] ysbq: okay so the csf are Brand loyalty and low overheads at decline
stage
[12:38:13] ysbq: all agree
[12:38:19] savvy2012: yeah
[12:38:22] sue888: yes
[12:38:31] yaroslava: yep
[12:38:58] ms1689: yes
[12:39:20] ysbq: BPP has a stage of lifecycle between growth and maturity
called SHAKEOUT
[12:39:37] sue888: didn;t know that
[12:39:51] ysbq: anybody using BPP here
[12:40:00] savvy2012: no...
[12:40:12] sue888: no
[12:40:16] ms1689: no, using Kaplan
[12:40:33] ysbq: well then forget abt that.... no need to discuss
[12:40:37] ysbq: lets move on
[12:41:59] ysbq: Discuss the significance of industry, sector and convergence....
any idea any body?
[12:42:13] ysbq: this is in syllabus
[12:42:31] ysbq: A-3(a.)
[12:42:52] ms1689: {ysbq} sorry what page are we in kaplan
[12:43:25] ysbq: we had done lifeccyle model in chapter 3
[12:43:42] ysbq: and i was looking the syllabus and i found out
[12:43:54] ysbq: A-3(a.) Discuss the significance of industry, sector and
convergence.
[12:44:17] ysbq: so i need to know that any body knows what is this
[12:45:57] sue888: what shall we go about it here
[12:46:03] ysbq: okay let move to markets and products
[12:47:33] ysbq: all fine with that since it is A-4
[12:47:40] ysbq: syllabus ref..
[12:48:26] ysbq: ?
[12:48:41] yaroslava: what about it?
[12:48:42] ysbq: ok lets take a 5 min break
[12:48:47] savvy2012 has uploaded a file: (Download Industry, sector,
convergence from ACCA P3 LSBF Class Notes June 2011.pdf)
[12:49:18] savvy2012 has uploaded a file: (Download Industry, sector,
convergence from ACCA P3 LSBF Class Notes June 2011.pdf)
[12:50:09] savvy2012: sorry uploaded twice. that was for your first point which
u were asking
[12:50:12] ysbq: {savvy2012} thanks i got it
[12:50:20] sue888: got it
[12:50:20] ysbq: the concept of cnvergence
[12:50:33] ms1689: {savvy2012} thanks
[12:50:52] ysbq: do we need to discuss the concept here or its fine
[12:51:35] ysbq: ?
[12:52:14] ms1689: may be lets example the market led?
[12:53:18] savvy2012: {ms1689} company has to start offering their customers
wider range of products as thats what customer demands
[12:53:51] savvy2012: for example McDonalds started offering coffee to
customers only few years ago as customers wanted it, until then it was just cold
drinks#
[12:54:05] ysbq: {savvy2012} yes
[12:54:14] ms1689: {savvy2012} gocha..thanks
[12:54:27] ysbq: okay lets take a 10 min brk so we can just have a got thru what
we have done
[12:54:33] ysbq: all agree
[12:54:36] ysbq: ?
[12:54:45] ms1689: ok
[12:54:46] yaroslava: 5
[12:55:14] yaroslava: we dont want to spend the whole day, do we?
[12:55:35] ysbq: {yaroslava} yeah ok 5 min
[12:55:37] savvy2012: {yaroslava} yeah, its sun shine outside :)
[12:55:45] ms1689: {savvy2012} do you have the rest of the lsbf class notes?
[12:55:50] ysbq: i will be back
[12:56:11] yaroslava: yeah want some of that see you in 5 guys
[12:56:14] savvy2012: {ms1689} yeah
[12:57:53] sue888: I thing co do all the time
[12:58:05] sue888: pls ingore
[13:07:41] ysbq: ko
[13:07:47] ysbq: ok lets start
[13:08:20] yaroslava: ok
[13:08:29] ysbq: {sue888} u there?
[13:09:16] ysbq: lets wait a bit for sue888
[13:09:29] yaroslava: k
[13:10:42] savvy2012: whats next?
[13:11:31] ysbq: {savvy2012} yes we gonna do syllabus ref. A-4(a.)
[13:11:41] ysbq: thats is chapter 11 in kaplan
[13:11:54] ysbq: abt marketing
[13:12:12] ysbq: we just gonna do customer and market analysis
[13:13:22] ysbq: shall we start
[13:13:27] sue888: yes
[13:13:27] savvy2012: yeah
[13:13:30] yaroslava: yep
[13:13:55] ysbq: okay what is market analysis?
[13:14:26] ysbq: and why it is done
[13:14:27] ysbq: ?
[13:15:27] yaroslava: when you want to sell a product you need to analyse key
customers
[13:15:27] sue888: we need to know what cosumer would like to have
[13:15:46] yaroslava: and competitors in the market
[13:15:48] savvy2012: market is being analysed to see what environment
business operates or is planning to pperate in
[13:16:03] yaroslava: as well as to consider any legal , political and socials
matters
[13:16:13] ysbq: {sue888} {yaroslava} that would be customer analysis not
market
[13:16:20] ysbq: {yaroslava} that is PESTEL
[13:16:32] savvy2012: market needs to be analysed in order to decide which
strategy to take, as in different environments different strategies will succeed
[13:16:44] ysbq: {savvy2012} yes and ...
[13:17:03] ysbq: identify .....what and .....
[13:17:18] yaroslava: yes, but PESTEL is only part of market analysis,it is not
possible to do it in isolation from customers
[13:17:25] savvy2012: identify opportunities and threats?
[13:17:49] yaroslava: That''s SWOT analysis
[13:17:58] ysbq: {savvy2012} yes to identiy gap and oppourtunities the market
has to offer
[13:18:14] savvy2012: are we talking about Macro business environment here?
:)
[13:18:18] yaroslava: which is internal analysis for the company
[13:18:35] ysbq: {yaroslava} Sw - strenght and weaknesses
[13:18:43] yaroslava: if we do market analisys we need to consider external
analysis
[13:18:43] sue888: identify a market gap which you can step in
[13:18:46] yaroslava: of the market
[13:18:53] ysbq: {sue888} yes
[13:19:07] savvy2012: {yaroslava} streanth and weaknesses are internal,
opportunities and threats are external
[13:19:36] yaroslava: {savvy2012} thus right
[13:19:41] ysbq: it is the study of market for making an appropriate strategy
and identfying gaps and oppourtunity
[13:20:14] ysbq: so what would typically be done in markt analysis
[13:20:16] ysbq: .....
[13:20:22] ysbq: like .....what .....
[13:20:56] ysbq: how would market analysis be done???
[13:21:04] sue888: price-, quantily of the product
[13:21:06] sue888: eg
[13:21:16] savvy2012: PESTEL?
[13:21:33] ysbq: {sue888} yes that is called the appraisal of current /similar
products
[13:21:33] yaroslava: use four Ps
[13:21:35] sue888: quality not quantity
[13:21:47] sue888: k
[13:21:48] ysbq: {yaroslava} no
[13:21:58] yaroslava: {ysbq} k go on
[13:23:19] ms1689: swot analysis
[13:24:25] ysbq: in apppraisal of products u will see the strenght and weakness
of products whether they met all the needs of the consumers , what is the
product life cycle and how much the competition between the products, what
segments exist in the market to which different products of similar nature are
targeted
[13:24:39] ysbq: and what is the customer profile
[13:25:08] ysbq: this all is apppraisal of present situation and similar products
[13:26:14] yaroslava: So basically you find out is the consumer need the product
before you pour you resources into investing
[13:26:50] sue888: yes, always
[13:26:57] sue888: {yaroslava}
[13:28:37] ysbq: next we look at the 4 p's of the products of players in the
market, since this would reflect their strategy
[13:29:06] ysbq: in other words the marketing strategy used by the players in
the market
[13:30:03] ysbq: is studied
[13:30:10] ysbq: .... all agree
[13:30:20] sue888: yes
[13:30:42] yaroslava: what do you mean by words?
[13:31:07] yaroslava: {ysbq} sorry i got it
[13:31:10] ysbq: {yaroslava} 4 p's is marketing strategy
[13:31:16] ysbq: lol
[13:31:41] ysbq: next we study the objectives of the players of the market
[13:32:11] ysbq: like is it profit maximization, market share, image , or
postioning
[13:32:31] ysbq: market position by segment i meant
[13:34:16] ysbq: lastly, we study the control methods deployed by these players
to check their progress against their objectives
[13:34:21] ysbq: .....#....
[13:34:54] ysbq: it seems i am speaking greek...
[13:35:16] sue888: yeah
[13:36:17] yaroslava: keep going please, we are with you
[13:36:24] ysbq: i every body okay with market analysis ,, ok u need time to
ponder
[13:36:45] ms1689: {ysbq} keep going...taking notes
[13:37:07] ysbq: okay next stop CUSTOMER ANALYSIS
[13:37:32] ysbq: how will u do customer analysis???
[13:37:52] ysbq: anybody ....no ........anybody.......?
[13:38:18] savvy2012: i was talking notes too.
[13:38:43] savvy2012: taking *
[13:38:53] yaroslava: by finding out what product could be in demand at the
market, is anyone doing it yet, if not can we do it and do we have the financial
and other resources to go ahead?
[13:39:04] ysbq: {savvy2012} fine i will wait a bit
[13:39:16] savvy2012: im ready to move on but cant say much :)
[13:39:26] savvy2012: {yaroslava} i agree
[13:39:47] yaroslava: Doing surveys, brainstorming
[13:40:34] ms1689: do we need to identify whom our product is aimed at?
[13:40:41] ysbq: {yaroslava} those will be methods ,,,, but we are discussing abt
finding the nature of cusotmer in themarket
[13:40:46] sue888: yes we do
[13:40:56] sue888: {ms1689}
[13:41:01] ms1689: like teenagers? or male/female
[13:41:09] yaroslava: {ysbq} as in how customers behave?
[13:41:12] sue888: diff group has diff needs
[13:41:30] ms1689: target group?
[13:41:35] sue888: personal use, industiral use, for govement
[13:41:58] ysbq: okay Kaplan says that there are 3 factors that are needed to
analyze customers....
[13:42:32] ysbq: 1). Motivation 2). Segmentation and 3). Unmet needs
[13:42:43] sue888: 3)?
[13:42:54] sue888: unmet?
[13:43:14] savvy2012: {sue888} unsatisfied needs
[13:43:17] sue888: k
[13:43:42] ysbq: ok lets discuss motivation...
[13:44:13] ysbq: This means what is motivation to customer?
[13:44:35] savvy2012: what will make them buy product
[13:44:45] ysbq: {savvy2012} yes
[13:45:08] yaroslava: The reputation of the company selling the product will
either motivate or demotivate customers
[13:45:15] savvy2012: like what motivates them - some can be motivated by
value for money, some can be motivated by having a luxury product... ?
[13:45:26] sue888: or status
[13:45:34] savvy2012: truth..
[13:45:55] yaroslava: cost of the product and availabilty of substitutes
[13:46:24] ms1689: quality
[13:46:41] yaroslava: the stage at which the product is at in the cycle
[13:46:42] ysbq: It means that in a particular market what the
customer/consumers value the most , and this factor serves as the basis of their
decision to but product, like sleek design and top notch quality incase of apple ipads
[13:47:06] ysbq: i hope it is clear..
[13:47:17] sue888: yes, v.clear
[13:47:23] savvy2012: yeah thanks
[13:47:39] ysbq: next is segmentation....
[13:48:53] savvy2012: maybe its about how much disposable income do
customers have and how much of it they can spend on basics (nessecities) and
how much they can spend on luxiry products, gadgets, fun etc
[13:49:15] yaroslava: the social class, determines what product may be sold
where at times
[13:49:31] saline: segmentation is to target the particular kind of portential
customer according to age, gender
[13:49:57] ysbq: {savvy2012} {yaroslava} these are crtieria for segmentaiton
not to make business profitable
[13:50:03] ssergg: therea are geografical segmentation, social segmentation
[13:50:15] ysbq: here it is
[13:50:16] ysbq: we will see what is the biggest and most profitable segment of
market (customers ) to serve , inorder to reap more profits
[13:51:36] yaroslava: {ysbq} maybe present it in a question form so that we
dont stray
[13:52:33] ysbq: this discussion was incontext of Customer analysis
[13:52:54] ysbq: Secondly, it would also include that whether is it possible to
make a new segment which would be profitable to serve on the basis of common
features in customers
[13:52:58] ysbq: all agree
[13:53:13] savvy2012: ok
[13:53:19] yaroslava: ok
[13:53:45] ysbq: now u see why this paper is called business analysis?
[13:53:46] ysbq: ;)
[13:54:09] savvy2012: can u pls give example of this
[13:54:10] savvy2012: ysbq: Secondly, it would also include that whether is it
possible to make a new segment which would be profitable to serve on the basis
of common features in
customers
[13:54:28] ysbq: {savvy2012} ok
[13:56:02] ysbq: like offering auto loans to students account holders..
[13:56:19] savvy2012: maybe e.g. customers who like fishing - create a new
segment for them..
[13:56:32] savvy2012: {ysbq} ok
[13:56:52] yaroslava: {ysbq} good example
[13:57:01] ysbq: next is unmet needs... i think it is self explanatory
[13:57:45] savvy2012: yeah
[13:59:03] yaroslava: does this mean a product that customers may need but
companiesare overlooking or ther dont see potential in terms of profitability?
[14:00:12] ysbq: {yaroslava} yeah they are ovelooking and it is profitable to
target
[14:00:32] yaroslava: got you thanks
[14:00:52] ysbq: ok we are done with syllabus ref A-4 (a.)
[14:01:16] sue888: thanks
[14:01:21] sue888: {ysbq}
[14:01:26] sue888: great effort
[14:01:33] savvy2012: yeah
[14:01:36] ysbq: u r welcome
[14:01:41] yaroslava: yeap
[14:01:43] ysbq: lets move on
[14:01:50] ms1689: yes
[14:03:13] yaroslava: whats next?
[14:05:18] ysbq: plz. wait
[14:05:44] ysbq: we did part a-3 (which was left last
time ) and did till mid of a-4
[14:05:57] ysbq: lets call it a day
[14:06:11] ysbq: everyone agrees
[14:06:12] savvy2012: up to u but im happy to continue
[14:06:41] ysbq: we will continue next sunday
[14:06:47] savvy2012: ok
[14:06:59] ysbq: : everyone agrees
[14:07:26] ysbq: ?
[14:07:34] yaroslava: so what is the topic for sunday, please, i dont understand
these a4 and whatnot. topic so that i will be prepared
[14:07:53] yaroslava: feel like we let you do all the work today
[14:09:03] ysbq: {yaroslava} it is the syllabus
[14:09:20] ysbq: u can get that from acca website