market and demand analysis_new
DESCRIPTION
Market and Demand AnalysisTRANSCRIPT
Dr. Kapil Sharma 2
Study 2Site and Financial
Analysis
Study 2Site and Financial
Analysis
Two-Phased ApproachTwo-Phased ApproachTo the ProjectTo the Project
Two-Phased ApproachTwo-Phased ApproachTo the ProjectTo the Project
Study 1Market Demand
Analysis
Study 1Market Demand
Analysis
Does Market Demand Exist?
No
Yes
Dr. Kapil Sharma 3
Market Analysis – Macro Level
Overall market – size (number of customers, aggregate money spent)
Where is the market on the “S curve” – is it nascent, growing or saturating
Trends in broad categories – demographic, socio-cultural, economic, technological, regulatory
Dr. Kapil Sharma 4
Market Analysis – Micro Level
Target segment benefits and attractiveness – customers buy benefits, not products or features.
Clearly differentiated solution with value delivery unambiguously stated
Does an entry in a segment facilitate lateral entry in other segments
Dr. Kapil Sharma 7
Market Position
Market Niche – small part of an existing market Market Leader – maintain dominant position in
the market? Market Follower – Follow the lead of the
market leader – pricing, product development, etc.
Market Challenger – Seek to adopt strategies to challenge market leader’s position
Dr. Kapil Sharma 9
Market Objectives
Will involve/determine some or all of the following:– Market Penetration– New Product
Development– Branding– Diversification– Product Portfolio
Marketing Objectives for Pepsi?Title: Western goods sell well in China.
Dr. Kapil Sharma 12
Which Segment?
Mass Markets – high volume, low margin goods – confectionary, cars, clothing, food stuffs
Multiple Segments – appealing to wider range of groups – e.g. 4x4 vehicles – town, country, gender, lifestyle, social class?
Single Segment – often a specialised product, e.g. machinery, exclusive goods
Dr. Kapil Sharma 14
Market Structure
Nature of the market structure determines marketing strategy:– Pricing strategy– Branding?– Product Differentiation?– Market Penetration?– Market Skimming?– Direct Selling?
Dr. Kapil Sharma 15
Deciding Marketing Strategy
With the knowledge of these factors the next step is decide upon the marketing strategy.
For laying down a clear cut marketing strategy the following aspects should be considered.
Dr. Kapil Sharma 16
Deciding Marketing Strategy
The channels of distribution to be used keeping in view those used by the competitors and their efficacy and whether any innovative channels can be identified.
When, where and hot to advertise without spending too much and loosing out to the competitors.
Dr. Kapil Sharma 17
Deciding Marketing Strategy In case of a new product, whether
introduction of the same product under a well established brand name will adversely affect the sales and if yes, how to counter such an event
The price at which the product can be sold, considering the prices of competitors products and the ability of the venture to withstand a price war.
Dr. Kapil Sharma 18
Conducting Market Research
Market Research with Primary Data
Market Research with Secondary Data
Dr. Kapil Sharma 19
Market Research with Primary Data
Statement of Objective:- It is very important to clearly
state the output required from the study in precise terms before stating the process of data collection.
Lack of clarity at this stage may lead to collecting the irrelevant data, resulting in waste of time, efforts and money.
Dr. Kapil Sharma 20
Market Research with Primary Data
Specification of Data Requirement :- This to a great
extent depends upon the objective.
Suppose a company is planning to launch a new brand of toothpaste. If it wants to know in which color the toothpaste should be, then the required data will be on the color which the consumers like their tooth paste to be in.
If on the other hand the company is thinking of launching a tooth paste of a foreign brand, which is purple in color, it need data on whether consumers like a purple colored toothpaste. Color preferences of consumers is not necessary in the later case.
Dr. Kapil Sharma 21
Market Research with Primary Data
Design of the Sample :- Depends upon the type of product
and consumers.
Suppose a company is planning to launch a new brand of toothpaste. If it wants to know in which color the toothpaste should be, then the required data will be on the color which the consumers like their tooth paste to be in.
If on the other hand the company is thinking of launching a tooth paste of a foreign brand, which is purple in color, it need data on whether consumers like a purple colored toothpaste. Color preferences of consumers is not necessary in the later case.
Dr. Kapil Sharma 22
Market Research with Primary Data
Mode of Collecting Data :- Can be done using different methods
Observation method, Questionnaire method, Interview method etc. Dependent upon earlier three steps. Time and cost needs to be taken into consideration
Conducting the Survey and obtain Data:- Very important aspect of the entire process. Common difficulty is that many of the constituents do not respond. The problem of non response is generally higher in questionnaire method.
Dr. Kapil Sharma 23
Market Research with Primary Data
Analysis and Conclusion :- Data collected should be edited to eliminate responses that are wrong or dishonest outright before tabulation.
Tabulation should be done keeping in view the type of data collected and in a manner that facilitates the interpretation of the results of the tabulation.
At this stage it is also necessary to look out for other factors that were ignored, earlier, but show up now to be important. Such factors should be analyzed by collecting data afresh, if necessary , otherwise the whole study becomes incomplete defeating the purpose.
Dr. Kapil Sharma 24
Market Research with Primary Data
Advantages of Primary Data :- The accuracy of the study is high. Analysis is easier as data specifically required is collected.
Disadvantages of Primary Data :-
Sampling involves sacrificing a part of the accuracy to reduce the cost
When the response required is a question of opinion rather than fact, the reliability tends to be lower
Respondents inability to understand the questions.
In case of confidential or embarrassing information desired the respondents may not reflect the truth.
The appearance and manners of the interviewer and the presence of a third person may also affect the responses.
Dr. Kapil Sharma 25
Market Research with Secondary Data
Sources of Secondary Data:- Two main sources of secondary data
Internal; past records of the organization, primary information collected earlier for some other purpose may also sometimes come in handy
External; market research organization, trade organizations, government research organizations, etc.
Dr. Kapil Sharma 26
Market Research with Secondary Data
Advantages of Secondary Data:- It is available easily and saves time.
It may be cheaper than collecting it first hand.
Data collected by professional organization may be more accurate and reliable
Disadvantages of Secondary Data:-- For providing highly user specific information, research organizations charge heavily.
The user can often have no direct check on the quality of the data collection process of the research agency.
The plans of the user to enter into a specific area of the market may not remain confidential.