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Terms and Concepts in Reading #1
• Why do strategic management?
• Market research tools
– Segmenting
– Targeting
– Positioning
• Competitive research
– Importance of benchmarking
• From single product marketing to niche marketing to
particle marketing
• Criticality of life cycle marketing
• Justification of capital construction funds
• Single provider—implications for strategic management
More terms and concepts
• Trends in communication
– Preference for bundled packages
– “new media households’—high income
consumers in early phases
• Jumping the S-curve
• First to market acceptance versus first to
market
• Need for qualitative and quantitative data
PEST
• Political-economic-sociological-technical
variables
• “a telecommunications-based provider should
never just consider its immediate environment
but also those of its suppliers, customers, and
analogous areas . . . The main strategic issues
identified by telecommunications companies in
general are: competition, deregulation, falling
costs and prices, downsizing, adding value,
globalization, market focus, strategic alliances,
and what to do about the Internet.”
--F. Mi
S-Curve
Units
sold
time
Product diffusion curve
Innovators Early
majority
2.5%
13.5%
34%
Early
adopters
Laggards
34%
Late
majority
16%
Emergent economic developments
• Aggregation: how firms expand and retain their
customer base
• Complementation: synergy of two or more firms
cooperating to develop new products or markets
• Consolidation: mergers or acquisitions of competitors
• Disintermediation: loss of traditional distribution
markets—lack access to customer base because of new
firms that directly link producers with consumers
• Tertiary analysis: study of externalities aimed at
forecasting development of new markets precipitated by
advance of technology
• Convergence: traditional sector of communication is
either invaded by or invades an unrelated sector as
result of tech innovation
Dynamics of consumer demand
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Shift from producer to consumer control
Production cost reductions
Mass customization
Product life cycle contraction
Value of time and convenience
Sensitivity to discounting
Consumer service and post-purchase
satisfaction
• Quality
• Value-added design