Transcript Market definition

Analysis for
Marketing Planning
Defining the Market
Marketing Planning

A written document containing a
specific blueprint for business/business
unit’s marketing program and
allocations for a specific period of time.
Corporate
strategic planning
Group or
sector planning
SBU
planning
Annual marketing
plan
Marketing Planning Sequence
Collect
data
Analyze
data
Develop
objectives,
strategies,
programs
Develop
financial
documents
Negotiate
final plan
Measure
progress
toward
objectives
Audit
Marketing Plan Components


Executive summary
Situation analysis







Marketing objectives
Marketing strategy
Marketing tactics







Industry analysis
Competitor analysis
Customer analysis
Demand analysis & forecasts
Product/brand management
Pricing management
Distribution management
Communications management
Budget
Implementation and control plan
Contingency plan
Market Definition


How a business sees or defines its market
for its product/service.
Who do we or will we compete with?
Different Bases of Competition


Customer-oriented
Marketing-oriented, i.e., advertising and
promotion

Resource-oriented

Geographic
Methods for Determining
Competitors

Existing categories

Substitutability

Managerial judgment
Defining market using
customer-based data


Brand switching
Basic question: Are these products
substitutes for each other?

Positive cross-elasticity of demand


Substitute products
Negative cross-elasticity of demand

Complementary products

Customer judgment

Based on customer perceptions

Overall similarity--perceptual map
More Gentle
Less
Strong
Anacin 3


Tylenol
Reg. Str.

Bayer

Anacin

Bufferin

Tylenol
Extra Str.


Excedrin Anacin Max.
Less Gentle
More
Strong

Customer judgment

Similarity of consideration sets

Product deletion

Substitution in use
Defining market by levels of
competition


Identify levels or dimensions of
competition
Three dimensions of competition:


Works from broad to narrow
Identifies all possible opportunities,
enabling business to be proactive and to
anticipate consumer needs
First Dimension:

Identifies competing product classes
serving generic need.
Example:
Generic need = thirst
Competing product classes =
milk, soda, coffee, tea,
juices, water, etc.
Second Dimension:

Identifies competing product forms
within product class.
Example:
Product class = coffee
Competing forms = whole
bean, ground, instant,
coffee bags, etc.
Third Dimension:

Identifies competing brands within
product form.
Example:
Product form = whole bean
Competing brands = Folger’s,
Starbuck’s, Millstone,
Gevalia, etc.
Marketing Definition
Thirst
Broad
Milk
Soda
Ground
Narrow
Folger’s
Coffee
Whole
Bean
Starbuck’s
Instant
Millstone
Tea
Coffee
Bag
Gevalia
Juice
Product form
competition:
Diet colas
Product category
competition:
Soft drinks
Generic competition:
Beverages
Budget competition:
Food & entertainment
Choosing Competitor Focus





Depends on several factors:
Long-term vs. short-term
Product life cycle stage
Rate of change in technology
Firm’s distinctive capabilities
Product Life Cycle