Transcript THE FIVE STEPS TO ANALYZING MARKET

TECHNISCHE UNIVERSITÄT BERLIN
INSTITUT FÜR INFORMATIK
HUMBOLDT-UNIVERSITÄT ZU BERLIN
INSTITUT FÜR INFORMATIK
TECHNICAL ENTREPRENEURSHIP
Vorlesung 3
THE MARKETING
Wintersemester 1999
Leitung: Prof. Dr. Miroslaw Malek
Betreuer: Peter K. Ibach
www.informatik.hu-berlin.de/~rok/entrepreneurship
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THE MARKETING
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The Marketing Concept
Customer and Marketing Orientation
Market Opportunity Analysis (MOA)
Sources of Information for MOA
Consumer Profiles
Marketing Implications of Product Characteristics
Profile of Competitors
Marketing Mix Variables
Marketing Channels
Promotion Mix Tools
Promotion Tools Strengths and Weaknesses
Advantages and Disadvantages of Major Advertising
Media
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THE MARKETING CONCEPT
Customer
Organizational
Orientation
Integration
Customer
Needs &
Success
Wants
Goal
Achievement
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INDICATORS OF CUSTOMER AND
MARKETING ORIENTATION
1) What information do you carefully collect about the
exact needs of your customer ?
2) Could you consider custom designing your services or
products for smaller groups of customers ? How ?
3) Are your (nonsales) employees specifically trained to
represent your company to customers ? How ?
4) Are customers contacted after the sale to determine their
level of satisfaction ? How ?
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INDICATORS OF CUSTOMER AND
MARKETING ORIENTATION (continued)
5) How do you convert unsatisfied customers to satisfied
customers ? Do you have any strategy?
6) Is your top marketer in the company a top-level, equal team
member ?
7) To what extent do you build your strategies around
an in-depth understanding of your customers ?
8) To what extent are activities of different people
(or departments) coordinated to ensure customer satisfaction ?
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MARKETING MANAGEMENT AND
ENTREPRENEURSHIP
Risk taking
Organizational
mission
Creativity
Venture idea
identification,
Market
opportunity
analysis
Creating value
innovation, and
exploiting
opportunity
Business plan
development
Environmental scanning
Marketing strategy
Assembling/
integrating
resources
Target
market
Marketing
objectives
Marketing
program
Team building
Managing
growth
Implementation/control
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THE FIVE STEPS TO ANALYZING MARKET
OPPORTUNITY
• 1. Identify the business environmental forces.
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Economic conditions and trends
Legal and regulatory situations and trends
Technological positioning and trends (state of the art; related R&D)
Relevant social changes
Natural environment (shortages ? vulnerabilities ?)
• 2. Describe the industry and its outlook.
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Type of industry
Size -now and in 3-5 years
Types of marketing practices
Major trends
Implications for opportunity
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THE FIVE STEPS TO ANALYZING MARKET
OPPORTUNITY (continued)
• 3. Analyze the key competitors
– Product description
– Market positioning (relative strength and weaknesses, as seen by
customers)
– Market practices: channels, pricing, promotion, service
– Estimated market share (if relevant)
– Reactions to competition
– Implications for opportunity
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THE FIVE STEPS TO ANALYZING MARKET
OPPORTUNITY (continued)
• 4. Create a target market profile.
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Levels: generic needs, product type, specific brands
End-user focus; also channel members
Targeted customer profiles
Who are my potential customers ?
What are they like as consumers/businesspeople
How do they decide to buy / not buy ?
Importance of different product attributes ?
What outside influences affect buying decisions?
Implications for opportunity ?
• 5. Set sales projections
– As many formal or intuitive approaches as possible
– Comparison of results
– Go/ no go
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SOURCES OF INFORMATION FOR
MARKET OPPORTUNITY ANALYSIS (MOAS)
• Published Sources
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Periodicals and newspapers
Trade association reports
Standardized information service reports
Government documents
Company reports
• Personal observation
– Of customers
– Of competitors
– Of macroenvironmental influences
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SOURCES OF INFORMATION FOR MARKET
OPPORTUNITY ANALYSIS (MOAS) (continued)
• Interviews with experts
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Managers of suppliers
Managers of trade companies
Managers of trade associations
Consultants
Salespersons
• Primary marketing research
– Cross-sectional surveys
– Longitudinal panels
– Experiments
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Proportion of
eventual adopters
TYPES OF ADOPTERS BY ADOPTION TIME
REQUIRED
Innovators
Early
adopters
Early
majority
Late
majority
Laggards
Time to adoption decision
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COMPARATIVE PROFILES OF THE CONSUMER
INNOVATOR AND THE LATER ADOPTER
Characteristic
Innovator
Product interest
More
Noninnovator
(or later adopter)
Less
Opinion leadership More
Less
Personality
Dogmatism
Social character
Category width
Open-minded
Inner-directed
Broad categorizer
Closed-minded
Other-directed
Narrow categorizer
Venturesome
More
Less
Perceived risk
Less
More
Purchase and
consumption traits
Brand loyalty
Deal proneness
Usage
Less
More
More
More
Less
Less
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COMPARATIVE PROFILES OF THE CONSUMER
INNOVATOR AND THE LATER ADOPTER (contin.)
Characteristic
Innovator Noninnovator
(or later adopter)
Media habits
Total magazine exposure
More
Special-interest magazines More
Television
Less
Social characteristics
social integration
Social striving
(e.g., social, physical,
and occupational
mobility)
Group memberships
Demographic characteristics
Age
Income
Education
Occupational status
Less
Less
More
More
Less
More
More
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Less
Younger
More
More
More
Older
Less
Less
Less
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MARKETING IMPLICATIONS OF IMPORTANT
PRODUCT VENTURE CHARACTERISTICS
Characteristic
Marketing action
Relative advantage Clearly and credibly communicate the product's
advantage. Obtain third-party/professional/
objective endorsements. Price the product to
"deliver" benefits quickly.
Compatibility
Complexity
Develop an understanding of customer
lifestyles, behavior, etc., to minimize the
required adaption.
Make the product fit in with related products.
Make the product/brand fit customer's social
situation
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Make the product readily understandable.
Strive to make the product user friendly.
Make the product at a complexity level not
exceeding that of substitutes.
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MARKETING IMPLICATIONS OF IMPORTANT
PRODUCT VENTURE CHARACTERISTICS (contin.)
Characteristic
Marketing action
Testability
Offer money-back guarantee (reduce the
cost/risk of trial).
Make small quantities free or at low price.
Provide incentives to encourage trial.
Offer special incentives for durable items (test
drives for autos, etc.)
Observability
Encourage visible use by customers.
Make it easy for others to perceive the
product/brand.
Create incentives for customers to encourage
friends to consider trial.
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Factors influencing the marketing
strategy of key competitors
Key competitor’s financial
size and strength
Key competitor’s
objectives
Key competitor’s
marketing strategy
Target market’s
requirements
Key competitor’s technical, marketing
and management capabilities
Profile of Competitors
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Mission and business objectives
Market position and sales trends
Management capabilities and limitations
Target market strategies
Marketing objectives
Marketing strategies and tactics
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MARKETING MIX VARIABLES
Product
Distribution
Price
Features
Types of channels/ List price
middlemen
Promotion blend
Advertising
Media
Timing
Quality
Store/distributor
location
Credit terms
Personal selling
Training
Motivation
Allocation
Packaging
Storage
Discounts
Sales promotion
Branding
Transportation and Selection and
logistics
allowances
Services
Service levels
Flexibility
Guarantees
Assortment
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Promotion
Publicity
CUSTOMER PERCEPTION HIERARCHY
Customer product perception
Benefits / satisfactions
Tangible attributes
Quality
Packaging
Style
Branding
Other
features
Extended product
Warranties
Promotion
Company image
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Distribution
convenience
NEW PRODUCT DEVELOPMENT PROCESS
Business Strategy
Product/service development
Idea generation
Idea screening and evaluation
Product/service testing
Business analysis
Market entry
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ALTERNATIVE MARKETING CHANNELS
Manufacturers / producers
Agents / brokers
Wholesalers /distributors
Retailers
Retailers
Consumers and organizational end-users
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Channel design decisions and decision criteria
Design stages
Identification
of channel
alternatives
Evaluation and
selection of
channel(s) to
be used
Selection
of channel
participants
Decision criteria
Intensity of distribution
Access to end-user
Prevailing distribution practices
Necessary activities
and functions
Revenue-cost analysis
Time horizon for development
Control considerations
Legal constraints
Channel availability
Market coverage
Capability
Intermediary’s needs
Functionsprovided
Availability
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PROMOTION MIX TOOLS
Advertising
Personal selling
Print ads
Broadcast ads
Billboard ads
Packaging logos
and information
In-person sales
presentations
Telemarketing
Sales promotion
The
promotion
mix
Publicity
Print media
news stories
Broadcast media
news stories
Annual reports
Speeches by
employees
Games, contests
Free samples
Trade shows
Couponing
Trading stamps
Price promotion
Signs and displays
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PROMOTION TOOL’S STRENGTHS AND
WEAKNESSES
Criteria
Cost per
Audience
member
Sales
Advertising promotion Publicity
Personal
selling
Low
Low
Very
low
Very
high
Confined to
target markets
Poor
to good
Good
Moderate
Very
good
Deliver a
Complicated
message
Poor
to good
Poor
Poor to
good
Very
good
None
None
Low to
moderate
Very
good
Low
Low
High
Moderate
to high
Interchange
with audiences
Credibility
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ADVANTAGES AND DISADVANTAGES OF
MAJOR ADVERTISING MEDIA
Media
Advantages
Disadvantages
Reaches large audiences
Has visual and audio capabilities
Provides great flexibility
in getting attention
Short lead time needed
to place ad
Magazines Reach of issues is high for demographic and geographic segments
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High-quality production
journals
Ad lasts as long as magazines or
journal is kept
Issues are often read by
more than one person
Credibility of magazine
or journal can benefit ad
Relatively inexpensive
Outdoor
advertising Many repeat exposures
Television
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Not easy to reach specific markets
Total cost is high relative to other
media
Requires production
specialists
Short exposure time
Must place ad well in advance of
Publication
Provide limited flexibility in
gaining attention
Provide incomplete
control over
location of ad in
issue
Only very limited message possible
Cannot reach well-defined target
markets
ADVANTAGES AND DISADVANTAGES OF MAJOR
ADVERTISING MEDIA (continued)
Media
Advantages
Disadvantages
Audio capability
Low cost relative to costs of the
other media
Short lead time needed
to place ad
Can reach demographic
and geographic segments
Reaches large audiences
Reaches audiences in cars
News- Reach large audiences
papers Can reach segments by locale
Short lead time needed to
place ad
Credibility of newspaper
can benefit ad
Direct Provides great flexibility in reaching target market segments
mail
No clutter from competing ads
Easy to personalize copy
and layout
Radio
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No visual capability
Short exposure time
Provides little
flexibility in gaining
attention
May be relatively expensive
Provide little flexibility
for use of creativity
Limited reproduction quality
(e.g., little or no use of color)
Short life carries over to ad
Easily thrown away
as "junk mail"
Obtaining appropriate mailing
lists can be expensive
CONDITIONS SUGGESTING PERSONAL SELLING
AS A MAJOR ELEMENT OF THE MARKETING MIX
Mix area
Characteristics
Product or
service
Complex products requiring customer application
assistance (computers, pollution control systems,
steam turbines)
Major purchase decisions, such as food
items purchased by supermarket chains
Features and performance of the product
requiring personal demonstration and
trial by the customer (private aircraft)
Channels
Channel system relatively short and direct to endusers channel intermediaries
Personal selling needed in "pushing"
product through channel
Channel intermediaries available to perform personal
selling function for supplier with limited resources
and experience (brokers or manufacturer's agents)
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CONDITIONS SUGGESTING PERSONAL SELLING
AS A MAJOR ELEMENT OF THE MARKETING MIX
(continued).
Mix area
Characteristics
Price
Final price negotiated between buyer and seller
(appliances, automobiles, real estate)
Selling price or quantity purchased enable an adequate
margin to support selling expenses (traditional department
store compared to discount house)
Advertising
Advertising media do not provide effective link with market
targets
Information needed by buyer cannot be provided entirely
through advertising and sales promotion (life insurance)
Number and dispersion of customers will not enable
acceptable advertising economies
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