Transcript Market Opportunity: Definition and Assessment (MODA)

Market Driven Opportunity
and
Marketing
The Marketing Process
*
Marketing Analysis (The 5 C’s)
Customers
Company
Competitors
Market
Segmentation
Creating
Value
Target Market
Selection
Context
Product and
Service Positioning
Marketing Mix (The 4P’s)
Product & Services
Capturing
Value
Sustaining
Value
Collaborators
Place/Channels
Promotion
Pricing
Customer
Acquisition
Customer
Retention
Profits
*Robert Dolan, Note on Marketing Strategy. HBS:9-598-061
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Assessing Opportunity: Fit
Newness to Market
Low
High
Newness
to
Firm
Low
ProductCompany Fit
Issue
High
Maximum
Uncertainty
& Risk
Cannibalization/ ProductMarket
Incremental
Fit Issue
Sales
3
Assessing Opportunity: Time
High
Speed at
which
market window
is closing
Crash
Program
100%
Right
Low
High
Low
Degrees of Technical
Innovation Required
Source: (Krubasik, HBR, 1988)
Assessing Opportunity: Risk
(Decision Outcome)
Market Performance
“Good”
Strategic
Decision
“Bad”
“Go”
Right
Decision
Type I
Error
“No Go”
Type II
Error
Right
Decision
5
Identification of Need:
Kano Method
A car:
+
-
• Airbag






• Gas Mileage
• GPS system
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Performance – Importance Matrix
Performance Level
Low
Importance
of Attribute
to
Customers
High
Low
Improve
Low Priority;
Ignore?
High
Maintain
Possible
Overkill;
Waste?
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Perceptual Map
Unique, Individuality,
Personal Car
Segment 2
Segment 1
. Mini Cooper
. Toyota Prius
Less cool,
Practical,
Functional,
Boring
Cool, Hip,
Hot, Stylish
. Ford Taurus
. Mazda Miata
Segment 4
Segment 3
Common Mass,
People Car
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Diffusion of Innovation
Time
Innovators
Early
Adopters
Early
Majority
Late
Majority
Laggards
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Product Decisions
•
•
•
•
•
Pioneering vs. Incremental
Fit
Cannibalization
Trading up vs. Trading Down
Network Externality
– standardization
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Pricing Decisions
Price based
on financial
considerations
$0
Variable
Cost
Fixed
Cost
Profit
Target
Price based
on customers’
perceived value
$Infinity
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Communication (promotion)
Decisions
•
•
•
•
•
What do I want to achieve? (Mission) (Objective)
How much should I spend? (Money)
Whom should I communicate with? (Market)
What should I say? (Message) (Copy)
Where and when should I place the
advertisement? (Media)
• How do we know the effectiveness of the
advertisement? (Measurement)
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Distribution (place) Decisions
•
•
Channel levels
Channel alternatives
–
–
•
Channel options
–
•
convenience, shopping, and specialty
intensive, selective, exclusive
demand generation vs. fulfillment
Channel conflicts
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