Terms and Concepts in Reading #1More terms and conceptsPESTSlide 4S-CurveProduct diffusion curveEmergent economic developmentsDynamics of consumer demandTerms 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 managementMore 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 dataPEST•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. MiS-CurveUnits soldtimeProduct diffusion curveInnovatorsEarly adoptersEarly majorityLate majorityLaggards2.5%13.5%34%34%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 innovationDynamics of consumer demand•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