Discussion Questions - Ch. 5
What does HHI index mean? Which industries are relatively less competitive? Why?
The HHI Index is a measure of size of firms compared to the industry and how much competition is amongst them. Increase in HHI mean a decrease in competition while increasing market power, and the opposite is vice-versa.
Based on your answer to part 1, which type of market structure has higher advertising expenditures? Use the characteristics of each market structure to explain why this relationship might exist.
Movie studios & restaurants need to spend more on advertising based on the fact that they have a lower HHI number. Vice versa, cereal and laundry detergent companies would have to spend less. Higher the HHI, lower advertising costs.
Identify an industry of your interest and calculate HHI using the marketing share data online. For instance, if you were to calculate HHI for the ecommerce industry, you could use search queries like “ online ecommerce competition amazon eBay.” The following site shows you the HHI data of the top competitors in the industry: https://www.webretailer.com/lean-commerce/statistics-marketplace-seller-survey/
HHI Index for auto mobiles
https://www.statista.com/statistics/249375/us-market-share-of-selected-automobile-manufacturers/
(17.02)^2 + (14.63)^2 + (14.44)^2 + (12.98)^2 + (9.35)^2 + (9.1)^2 + (7.42)^2 + (3.94)^2 + (3.69)^2 + (2.06)^2 + (1.74)^2 + (1.15)^2 = 1143.7336
For the following two questions, you will be asked to perform some preliminary analysis for the client you will be using for your final project:
Please refer to the reading “Perform a competitor analysis using SimilarWeb” and perform a competitor analysis for your project client you will be using for your final project using SimilarWeb. Attach screenshots to the blog post. SimiarWeb allows you to perform competitor analysis for at least 2 competitors for free. Do not use the paid version for this exercise.
I compared Joseph's to David Wood - both clothing stores in the Old Port.
According to these stats, Joseph's gets all its traffic from search engines. Meanwhile, David Wood has a bit of traffic from direct links - most likely from social media. That gives social reach advantage to David Wood, due to being able to reach those who aren't searching for the store's website on their own.
Identify two target locations for your project client using Claritas (available at https://claritas360.claritas.com/mybestsegments/#zipLookup . Attach the screenshots from the website to your blog post. Explain why your client should segment the target market using Claritas, why the segments are chosen, and which segment should your client target first. Articulate the arguments made by the author of the reading “Nielsen PRIZM Premier Segment Narratives 2015” and assess the evidence used to support them.
Two target locations for Joseph's would be 25 Up-and-Comers and 13 Upward Bound due to having higher income and typically needing higher end clothing more. Whether it be from marriages, formal events,having increased savings. They typically have money to spend on the kind of products Joseph's has.
I would not suggest 47 Striving Selfies or 66 New Beginnings since both are low income w/ no children, so leaving less chance of these people wanting higher end clothing.
The HHI Index is a measure of size of firms compared to the industry and how much competition is amongst them. Increase in HHI mean a decrease in competition while increasing market power, and the opposite is vice-versa.
Based on your answer to part 1, which type of market structure has higher advertising expenditures? Use the characteristics of each market structure to explain why this relationship might exist.
Movie studios & restaurants need to spend more on advertising based on the fact that they have a lower HHI number. Vice versa, cereal and laundry detergent companies would have to spend less. Higher the HHI, lower advertising costs.
Identify an industry of your interest and calculate HHI using the marketing share data online. For instance, if you were to calculate HHI for the ecommerce industry, you could use search queries like “ online ecommerce competition amazon eBay.” The following site shows you the HHI data of the top competitors in the industry: https://www.webretailer.com/lean-commerce/statistics-marketplace-seller-survey/
HHI Index for auto mobiles
https://www.statista.com/statistics/249375/us-market-share-of-selected-automobile-manufacturers/
For the following two questions, you will be asked to perform some preliminary analysis for the client you will be using for your final project:
Please refer to the reading “Perform a competitor analysis using SimilarWeb” and perform a competitor analysis for your project client you will be using for your final project using SimilarWeb. Attach screenshots to the blog post. SimiarWeb allows you to perform competitor analysis for at least 2 competitors for free. Do not use the paid version for this exercise.
I compared Joseph's to David Wood - both clothing stores in the Old Port.
According to these stats, Joseph's gets all its traffic from search engines. Meanwhile, David Wood has a bit of traffic from direct links - most likely from social media. That gives social reach advantage to David Wood, due to being able to reach those who aren't searching for the store's website on their own.
Identify two target locations for your project client using Claritas (available at https://claritas360.claritas.com/mybestsegments/#zipLookup . Attach the screenshots from the website to your blog post. Explain why your client should segment the target market using Claritas, why the segments are chosen, and which segment should your client target first. Articulate the arguments made by the author of the reading “Nielsen PRIZM Premier Segment Narratives 2015” and assess the evidence used to support them.
I would not suggest 47 Striving Selfies or 66 New Beginnings since both are low income w/ no children, so leaving less chance of these people wanting higher end clothing.
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