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Competitive Assessment: 3 Components

Topic: Marketing Situation Analysis. Competitive Assessment: 3 Components. 1. Market shares for all direct and indirect competitors 2. Competitive (and your) media mix and expenditure (in $ and % of their budget)

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Competitive Assessment: 3 Components

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  1. Topic: Marketing Situation Analysis Competitive Assessment:3 Components 1.Market shares for all direct and indirect competitors 2. Competitive (and your) media mix and expenditure (in $ and % of their budget) 3.Share-of-Voice or Ad Share (brand’s expenditure as % of all brands’ spending

  2. Topic: Marketing Situation Analysis Competitive Assessment • You may use any data concerning the product market, the industry, etc. • For the analysis of the competitive advertising activities, Use LNA/Media Watch Data • See the competitive media mix & expenditure and SOV • Examine their budget to assess the appropriateness of your budget • Examine the quarterly spending before you develop your advertising timing pattern

  3. Topic: Marketing Situation Analysis Competitive Assessment 1. Competitors & Market Shares • Direct vs. Indirect Competition: Brands in the same product class as yours; e.g., Brands in one or more different product classes; e.g., • Limit your list of competitors to the number you can manage (no more than several) • Competitive Market Share (Market share reporter in our Library, or Nielsen Scantron)

  4. Topic: Marketing Situation Analysis Competitive Assessment 2. Competitive Media Mix & Expenditure • Advertising Spending Pattern (in a Table, from LNA/Media Watch) -- to show, for each competitor (& you): How much was spent in Year 2? Year 1? Any increase or decrease in advertising? What does that mean for the appropriateness of your budget? How much was spent across quarters? Any consistency or inconsistency in advertising spending pattern? Why a particular pattern of ad timing? What does that mean for your future ad timing pattern?

  5. Topic: Marketing Situation Analysis Competitive Assessment 2. Competitive Media Mix & Expenditure • Raw Expenditures & Media Proportion Analysis (in a Table, from LNA/Media Watch) -- to show, for each competitor (& you): What media types have been used and how much ($) has been spent in each of the media? Why certain media are used/popular? Why others not used or unpopular? What does that mean to yourfuture media mix? What percent of the brand budget is spent in each medium? Why they allocated the budget that way? What does that mean for your future media weight allocation?

  6. Topic: Marketing Situation Analysis 2. Media Mix and Expenditure: LNA/Media Watch Data < Media Mix: $ an % Allocation> Fill in the blanks with your brand and competitive information found in LNA/Media Watch (as shown in the Honda Civic example)

  7. Topic: Marketing Situation Analysis Competitive Assessment 3. Share-of-voice or Ad Share(in %)How big a voice Brand Y has vis-à-vis the Competition? • Overall: SOV = Brand Y’s total $ x 100______ All Competitors or Brands total $ • In Each Medium: SOV = Brand Y’s $ in medium x 100______ All Competitors or Brands total $ in medium

  8. Topic: Marketing Situation Analysis 2. Media Mix and Expenditure: LNA/Media Watch Data < Share of Voice> Fill in the blanks with your brand and competitive information found in LNA/Media Watch (as shown in the Honda Civic example)

  9. Topic: Marketing Situation Analysis Competitive Assessment 3. Share-of-Voice (SOV) Example (see handout) • SOV Corolla/Overall = ( / total??) x 100 = % • SOV corolla/Mag = ( / mag total) x 100 = %

  10. Topic: Marketing Situation Analysis Competitive Assessment Guidelines in Assessing Competitive Efforts 1) From competitive media mix & allocation analysis, consider their implications for your own media mix -- what media must be used and why and assess threats and/or opportunities that might exist in the use of certain media 2) From SOV analysis, assess your strengths/weaknesses against the competition, and see if any change in the mix and/or increase or decrease in spending for certain media is warranted for an effective media mix for your brand. Discussion #1: Fill out the blanks in the Mix & Expenditure table; use the LNA data given

  11. Topic: Marketing Situation Analysis Competitive Assessment Discussion/Exercise # 1 • Fill out the blanks in the Mix & Expenditure table; use the LNA data given (you will have more competitors but let’s just use the two three brands, Civic, Sentra, Corolla in this exercise) • Fill out the blanks in the Share of Voice table • Based on the info given (covers only a half year of 2000, this is just an exercise. You need to do the same with the data for an entire year), what can you say about the competitive situation?

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