Learn how to examine your industry

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2.1 Industry Analysis

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Industry Analysis          Marketing Research          Marketing Factors          ABCD Model

The environment outside your organization is referred to as the external environment. This external environment has a division which is also called the meso and macro environment. How does this work exactly? The figure below shows which marketing environments there are.

Apply to your marketing research

The industry research focuses on the red ring. We investigate the yellow ring through the execution of a macro analysis. In the later stage of your marketing research, the organisation analysis is discussed. This is where we focus on the green ring. So we are trying step by step to get an overview of your marketing environment from which we can identify opportunities for value creation.

Control of marketing factors

The further you go towards the outside of the entire circle, the further marketing factors will decrease. It is obvious that you have full control over your own organization. But the control you have over the industry has become less and less.

Market leaders and market followers

Successful (marketing) organizations have more control over their industry than lesser organizations. Think of the market leaders who start a pricewar or put the focus on delivery in the whole industry. It is here where one can distinguish market leaders and market followers.

The macro environment includes factors over which you experience no control. Demographic factors from a country is one such example. There is no organization that has control over it, but aging or composition of the population may well have far-reaching consequences for your product. Political and legal factors can be used as an example as well. You can hardly manage it as a commercial organization, but you can analyze it in a DESTEP analysis and anticipate approperetly.

Parts of the industry analysis

The industry is usually divided in four parts; customer analysis, distribution analysis, competitive analysis and stakeholder analysis. In step 1 of the MB method you run a quick scan and problem scan. Depending upon this scan, the result will be several different parts of the sector analysis that are more or less important. To monitor the efficiency of your marketing research go into the areas where you suspect the “pain” will come through.

Alternative: ABCD model

An alternative to the branch analysis from above is the ABCD model. The ABCD model resembles the industry analysis of the MB method. ABCD stands for:

• Customers

• Industry

• Competitors

• Distribution

In my view, the ABCD model goes too bluntly by disregarding the stakeholders. Most organizations have to deal with varying partners and the general public. This can have a significant impact on the marketing strategy and actions of the organization.


The ABCD model is recommended when you quickly and efficiently want to identify your branche. This is what makes the ABCD model more pragmatic.

Marketing myopia

One of the main contributors to the marketing literature comes from the American economist Theodore Levitt. His 1960 article in Harvard Business Review; Marketing myopia warns of the consequences of Marketing Myopia.

People are bad at predicting the future, thus you can take a short-sighted approach in analyzing marketing factors. Think about how you can take alternative views of your market in your marketing research.

Jerome Knoot

Jerome Knoot


Since 2012 I'm working on the development of the 7 step Marketing Method. " Marketing accessible to everyone" that's my goal as an entrepreneur and marketer.

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