Transcript Market Analysis and Strategy

Market Analysis and Strategy
MKT 750
Dr. West
Agenda
vs
Free Association Task
Reactions to merger
Marketing Analysis & Strategic Planning
Essential Elements (5Cs, STP, 4Ps)
Situation Analysis / Strategy / Marketing Mix
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
What is perceived value?
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
Situation Analysis
Consumer
Company
Competitors
Collaborators
Context
Implementation
in Marketplace
Marketing Mix
Product, Price, Place,
Promotion, Brand
STP
Segmentation
Targeting
Positioning
Situation Analysis
Consumer
Company
Competitors
Collaborators
Context
Implementation
in Marketplace
Marketing Mix
Product, Price, Place,
Promotion, Brand
STP
Segmentation
Targeting
Positioning
Situation Analysis
The process of analyzing:
Consumer characteristics & trends
Resources of the Company
Current and potential Competitors
Current and potential Collaborators
The Context or environmental factors
PEST Analysis
Economic
Factors
Political
Factors
Context
(Environment)
Technological
Developments
Societal
Trends
Situation Analysis
SWOT:
Core strengths?
Current weaknesses?
What opportunities exist?
What threats do we face?
Situation Analysis
Consider the situation
are currently facing.
and
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 context (environmental factors and
trends)?
Situation Analysis
Company
Resources: Finances, Employees, Production,
Development and Design, Research,Facilities,
Marketing/Advertising
What are
Strengths?
Weaknesses?
&
Situation Analysis
Competitors
Who are they?
What are their advantages/disadvantages?
How will competitors react?
Situation Analysis
Consumers
Who are our current and potential
customers?
What do we know about these individuals?
How do they compare to those who shop at
the competitor stores?
Situation Analysis
Collaborators
Whose strengths best complement ours?
How will each partner benefit from a
strategic alliance?
Risks & rewards of collaboration?
SWOT Analysis
Strengths:
Weaknesses:
Opportunities:
Threats:
Situation Analysis
Consumer
Company
Competitors
Collaborators
Environmental Factors
Implementation
in Marketplace
Marketing Mix
Product, Price, Place,
Promotion, Brand
STP
Segmentation
Targeting
Positioning
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
“Heavy versus Light” Users – “80/20 rule”
Behavioral Segmentation:
“Heavy versus Light” Users – “80/20 rule”
Heavy Half
(top 50%)
Light Half
(bottom 50%)
Bourbon
95%
5%
(20%)
Canned Ham
86%
14%
(32%)
Colas
90%
10%
(88%)
Hair Tonic
87%
13%
(48%)
Toilet Tissue
71%
29%
(95%)
Heavy Users: Efficiency/profit
Caution: Majority Fallacy
Identifying Market Segments
Consumer
Characteristics
Demographics: Age, Gender, Income, etc…
Consumer Characteristics
Geodemographics
Examine regional differences in
demographics
Useful for store location decisions and
targeting direct mailings
Why?
Prizm by
New Beginnings: Filled with young, single adults, New Beginnings is a
magnet for adults in transition. Many of its residents are twenty-something
singles and couples just starting out on their career paths -or starting over
after recent divorces or company transfers. Ethnically diverse -with nearly
half its residents Hispanic, Asian or African-American- New Beginnings
households tend to have the modest living standards typical of transient
apartment dwellers.
Identifying Market Segments
Psychographics/
Benefits
Psychographics
Lifestyle
segmentation
VALS 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.
&
Customer Profile
Age, Education, Income (SES)
Occupation, Hobbies
Media Habits
Prizm Clusters
Musical Taste, Preferred Cars
Aspirational Role Models
Strategy
Targeting
Select 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?
Summary
A firm needs to:
Analyze the market
5 C’s (Company, Competitors, Collaborators,
Customers, and Context)
Develop a strategic plan beginning with
Segmentation, Targeting, and Positioning
Followed by tactical decisions
Product (Brand), Price, Promotion, and Place
Implementation issues
DDB Needham Dataset
Familiarize yourself with the data
Heavy Users/Owners/Viewers versus AIO/Personality
Table 1 and 1a: Household Characteristics
Table 2 and 2a: Female Employment & Motivation
Table 3 and 3a: Income & Education
Table 4 and 4a: Occupation
Table 5 and 5a: Age & Ethnic Subculture
Table 6 and 6a: Gender & Geographic Region
Table 7 and 7a: Personality
Assignment
Read Chapter 12 (pp 422 - 426, 429 - 445)
Topic: Self-Concept & Lifestyle
Assignment:
Visit www.sric-bi.com/VALS and
www.yankelovich.com and complete the VALS and
Monitor surveys. Bring your results to class.
DDB Needham Exercise: p. 447 # 2