market analysis and strategy
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Market Analysis and Strategy. MKT 750 Dr. West. Agenda. Pop quiz Marketing Analysis & Strategic Planning Essential Elements Application: Work on a strategic plan for Form teams. Marketing Strategy. - PowerPoint PPT PresentationTRANSCRIPT
Market Analysis and Strategy
MKT 750Dr. West
Agenda
Pop quizMarketing Analysis & Strategic Planning
Essential ElementsApplication: Work on a strategic plan for
Form teams
Marketing Strategy
Involves the allocation of resources to develop and sell products or services that consumers will perceive to provide more value than competitive goods
Value: the difference between what consumers give up (pay with resources) and the benefits they receive in return
Perceived Value
Benefits
Value =
Cost
What are benefits? Costs?
How can customers perception of each be influenced?
Foundations of Strategy
A thorough understanding of: Domestic and global market trends
Models to predict purchase and consumption
Communication methods to reach target markets most effectively
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Situation Analysis
The process of analyzing:Consumer characteristics & trendsResources of the Company Current and potential CompetitorsCurrent and potential CollaboratorsTechnological, Legal, Political and Economic Environments
Situation Analysis
SWOT: Core strengths? Current weaknesses? What opportunities exist? What threats do we face?
Situation Analysis
Consider the situation is currently facing.
What do we know about the company? What do we know about its competitors? Who does the company collaborate with? What do we know about consumers? What about environmental factors and trends?
Situation Analysis
Company Resources: Finances, Employees, Production, Development and Design, Research,Facilities, Marketing/Advertising
What are ‘s
Strengths?
Weaknesses?
Situation Analysis
Competitors
Who are they?
What are their advantages/disadvantages?
How will competitors react?
Assess ‘s competition:
Situation Analysis
CollaboratorsWhose strengths best complement ours?
How will each partner benefit from a strategic alliance?
Risks & rewards of collaboration?
Who are ‘s current and potential collaborators?
Situation Analysis
Consumer Insights: An understanding of consumers’ expressed and unspoken needs and realities that affect how they make life, brand, and product choices.
Includes: demographic trends, personal and social influences, motivation, attitudes, knowledge, lifestyle, and consumption patterns.
Situation Analysis
Market Environment
Market Environment
Government
Regulations
Government
Regulations
State of the
Economy
State of the
Economy
Physical Conditio
ns
Physical Conditio
ns
Technology
Technology
Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
Strategy
Segmentation:
Process of identifying a group of people similar in one or more ways, based on a variety of characteristics and behaviors.
Goal: minimize variance within groups and maximize variance between groups
Identifying Market Segments
Behavioral
Behavioral Segmentation:
“Heavy versus Light” Users – “80/20 rule” Heavy Half Light Half
(top 50%) (bottom 50%)
5%95%
86%
90%
87%
71%
14%
10%
13%
29%Toilet Tissue
Hair Tonic
Colas
Canned Ham
Bourbon
Heavy Users: Efficiency/profit Caution: Majority Fallacy
(20%)
(32%)
(88%)
(48%)
(95%)
Identifying Market Segments
ConsumerCharacteristics
Consumer Characteristics
Demographics: Age, Gender, Income, etc…
These are widely available but limited in usefulness They tell us who buys, or doesn’t buy our product, but not why
Consumer Characteristics
Geodemographics Examine regional differences in demographics Useful for store location decisions and targeting direct mailings
Why? Because “birds of a feather flock together”
Prizm by
Towns & Gowns: College Town SinglesThis cluster is composed of thousands of penniless 18-24 year olds and highly educated professionals, all with a penchant for prestige products that are beyond their evident means. Age Groups: Under 24 Dominant Race: White, High Asian
Identifying Market Segments
Psychographics/
Benefits
PsychographicsLifestyle segmentationVALS is based on primary motivation and resources
Segment Profiles
Once a basis for segmentation has been determined, segments should be profiled by describing them on as many levels as possible.
Strategy
TargetingSelect segments of the market to offer products and services Who can we most efficiently and effectively establish a relationship with better than our competitors?
What criteria should be used to select a target market?
Strategy
Positioning How your product/company is perceived in the hearts and minds of your customers?
Price leader/Innovator/Fashion leader/ Quality/Service What associations come to mind?
Food for thought
Who are ‘s current and potential customers? (age, income, lifestyle)Why do they prefer to its competitors?How well is positioned relative to its competitors?How can leverage its brand?
SummaryA firm needs to:
Analyze the market 4 C’s (Company, Competitors, Collaborators, Customers), and environmental factors
Develop a strategic plan beginning with Segmentation, Targeting, and Positioning
Followed by tactical decisions Product (Brand), Price, Promotion, and Place
Implementation issues
Assignment
Read Chapter 7 & “Marketing to Muggles”Memo 1:
Conduct your “Customer Depth Interview” before next MondayWrite-up your results for next Wednesday