M300 1st EditionOutline of Current Lecture I. Unmet/Unknown NeedsII. PECTS ModelIII. What Do We Want PECTS to Produce for Us?IV. Political Analysis Key PointsV. Economic Analysis Key PointsVI. Competitive Analysis Key PointsVII. Technological Analysis Key PointsVIII. Social Analysis Key PointsIX. Identifying CompetitorsX. Strategic vs. Customer Choice AnalysisCurrent LectureI. Unmet/Unknown Needsa. Unmet customer needs: needs that are known, but have not been fulfilled.i. Example: You like Blackberry’s buttons, and want buttons on your Androidphone. The needs is known, but isn’t met. b. Unknown customer needs: Solutions for customers that are so radical/revolutionary that they can’t envision them. i. Example: People did not know they wanted he iPod before it existed.II. PECTS Modela. P-politicalb. E-economicc. C-competitiond. T-technologye. S-socialIII. What Do We Want PECTS to Produce for Us?a. An effective PECTS analysis produces WOWs.b. WOW: an insight that arises from a PECTS analysis that can’t be explained solely by the facts from the PECTS themselves. IV. Political Analysis Key Pointsa. Current/future laws and regulationsb. Lobbying organizations and effortsc. Ecological and environment issuesd. Present and future political climatesV. Economic Analysis Key Pointsa. Economic growthb. Inflation ratesc. Unemployment levelsThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.d. Exchange ratese. Customer confidence levelsf. Ecological and environment issuesVI. Competitive Analysis Key Pointsa. Direct/indirect competitorsb. Intensity of competition and trendsc. Competitor successVII. Technological Analysis Key Pointsa. Present/future state of technologyb. Competing technologies to present technologiesc. Innovation potentiald. Customer use of technologye. Legislation on technologyVIII. Social Analysis Key Pointsa. Demographicsb. Buying trendsc. Customer needsd. Lifestyle trendse. Ethical issuesIX. Identifying Competitorsa. A strategic group definition argues that competitors can be defined by how they compete to serve the customer. Competitors grouped according to whether theyi. Pursue similar competitive strategies: use the same distribution channel, etc.ii. Have similar firm characteristics: size, geography, etc.b. Strategic groups analysis: sitting in headquarters, divide up marketplace to figure out who competitors are.i. This is inwardly focused.X. Strategic vs. Customer Choice Analysisa. A customer choice analysis is based on how the customer defines competing solutions.i. In other words, in relation to their life how do they group together these competing products? (It’s not always by price!)b. This is compared to a strategic group analysis, because the results are often conflicting and surprising.c. Example: A consumer choice analysis may group together Nordstrom’s and Costco because of their great return policy. A strategic group analysis may have only grouped them by