Transcript Bus88Part2
Bus 188 Part 2 The Marketing & Situation Analysis Part 2 - The Marketing & Situation Analysis Topic 5. Define Your market Topic 6. Personal Audit Topic 7. Competition Topic 5 Define Your Market 1. Estimate Demand: Demand is a forecast of future buyer behavior characterized by: Demand is... …willingness of potential buyers to purchase a given amount of goods and services at a given price at a given time under given circumstances...change these factors and demand will respond. Demand it presumes the ability to pay. demand may be split amongst competitors. Past demand (actual) has been recorded and can be looked up. (market shares). potential new users can be estimated. 2. Factors Affecting Buyer Behavior # of available substitutes? Quality of available substitutes? Can the buyer do without the product? Can the buyer postpone the purchase? Is it a hi or lo-involvement decision? Factors Affecting Buyer Behavior How motivated is the buyer? How strong are the competitors efforts? Seasonality? Other factors? General Buyer Behavior is a Result Of: Individual and Internal Factors Group and External Factors Individual & Internal Factors affecting Buyer Behavior Personality Learning Perception Motivation Attitudes Group & External Affects on Buyer Behavior Culture Subculture Social Class Peer Groups Reference Groups Physical Environment Political/Legal Marketers A. Describing Your Market (s) Decision Making Units - DMU's, basic element making up your potential market • Person (individual) • Informal Groups (Family, Roommates) • Formal Groups (Businesses, Resellers, Government Agencies) B. Set Limits and Define the Potential Market Geographics Demographics Lifestyle AIO Psychographics Brand Loyalty Usage Patterns Key Benefits needs/wants/moti vations C. Identify Market Segments & Target markets Demand • # of Customers (DMU’s) • $ Sales Volume • Unit Sales Volume Market Penetration Market Share Special Segments Niches Targeting Strategies • • • • Undifferentiated Differentiated Concentrated Atomized D. Describe The Typical Consumer In Target Market Roles Within The Decision Decision Making Maker Units Are: Purchaser Influencer User 5. Decision Making Process (1) Recognize Needs/Wants Motivation A. Instant Evoked Set (2) Information Search A. Internal - Evoked Set (mental search) B. External 5. Decision Making Process cont. (3) Evaluate Alternatives/Make Decisions What, Where, When, How To Buy (4) Implement Purchase Decisions (5) Post-Purchase Evaluation Establish a Probability Of Repeating Same Purchase Decision = P(Beh.) Analyzing Demand Lo vs. Hi Involvement Decisions Purchase Cycle Frequency of purchases Purchase Quantity per visit, avg. per month, etc. Perceptions product type, brand issues Key Decision Factors Analyzing Demand Who is the customer? geographically demographically Lifestyle/AIO/Psychographically Loyalty/Usage Key benefits sought/wants & needs Average $ Sales per Customer Visit daily # of customers __________ weekly __________ monthly __________ # of units __________ __________ __________ $value /revenue __________ __________ __________ High and Low Range ____________ _____________ Seeking A Competitive Advantage 1960’s - Marketing Based 1970’s - Manufacturing Based 1980’s - Quality Based & TQM 1990’s - Customer Service Based SOURCE: Total Customer Service: the Ultimate Weapon by Davidow & Uttel; Harper Perennial Identifying Competitors 1. 3 types based on needs filled & similarity of the product/service: 2. Unrelated: competition for the same $. Identifying Competitors cont. Need 1) Direct Same Product/ Service Similar 2) Indirect Same Dissimilar 3) Generic same Unalike Identifying Competitors cont. Unrelated: competition for the same $. (Gross Income; Disposable Income; Discretionary Income)