Need’s and wants
1. Needs are things that people feel that they can’t live w/o.
What kind of decisions are they going to need to make?
What kind of process are they going to go through.
-you can’t begin to think about ads until you understand what kind of decision process they go through
2. What mediums are they going to or do use?
3. Economic Environment
4. Political/Legal Environment -ex: sports: regulations/drug testing…etc
5. Natural Environment
Company (HJ) SWOT
Can be some who you colab with to business with to benefit both of you.
5 forces :
Using Porter's Five Forces1 to understand industry competitiveness
After taking a close look at the 5 C's, marketing managers need to delve deeply into the dynamics of the industry in which they compete. Managers need to understand and define what industry they are in and to calculate the size, market share, sales, and profitability of the various firms that compete in that industry. Once the industry and its competitors are defined, the manager needs to understand the underlying competitive dynamics of the industry that determine its profitability.
Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of an industry: 1.) industry competitors, 2.) potential entrants, 3.) availability of substitutes, 4.) buyer power, and 5.) supplier power. Analysis of these five forces allows managers to better understand the industry in which they are competing. While some of these forces may be illuminated in a 5 C's
Analysis, a deliberate focus on them at the industry level of analysis, using Porter's framework, is often useful. These five forces create the profitability potential for the industry and for the firms competing within it and, therefore, have serious implications for marketing strategy.
In general, less competition is generally better for firms. Industries characterized by intense competition generally feature profit-depleting price wars, higher levels of advertising and marketing expenses, and frequent new product introductions. This makes it more expensive to compete in industries with strong and aggressive competitors. While a 5 C's analysis dissects each major competitor individually, analyzing their strengths, weaknesses, and marketing strategies, a Five
Forces analysis focuses on competitors as a whole and analyzes how competitive the industry is, and describes the basis for competition (do competitors compete on price, features, distribution?). This more macro look at the industry helps identity what it takes to compete successfully and what level of profitability is expected given competitive pricing and cost dynamics.
Since new entrants into an industry raise its competitiveness, industries that are unattractive to firms not already participating in them are more valuable than those that may attract lots of new firms. Industries with high entry barriers, where the cost of entering the industry are high, and low exit barriers, where the cost of exiting the industry are low, are therefore the most favorable, as few firms enter the industry and firms who are struggling can easily leave rather than stay and try to eke out profit by competing aggressively.
Availability of Substitutes
When substitutes exist for the firm's product, consumers can easily shift their demand from you to them. Therefore, the availability of substitutes tends to reduce price points and increase the need for marketing expenditures, driving down profitability in the industry. The worst type of industry to compete in is one in which perfect substitutes exist for the product. Commodity products are perfect substitutes for each other.