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
Implementation in Marketplace Situation Analysis Consumer Company Competitors Collaborators Context STP Segmentation Targeting Positioning Marketing Mix Product, Price, Place, Promotion, Brand
Implementation in Marketplace Situation Analysis Consumer Company Competitors Collaborators Context STP Segmentation Targeting Positioning Marketing Mix Product, Price, Place, Promotion, Brand
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
Political Factors Context (Environment) Economic Factors Technological Developments Societal Trends
Situation Analysis
SWOT: Core
strengths
?
Current
weaknesses
?
What
opportunities
exist? What
threats
do we face?
Situation Analysis
Consider the situation and are currently facing.
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:
Implementation in Marketplace Situation Analysis Consumer Company Competitors Collaborators Environmental Factors STP Segmentation Targeting Positioning Marketing Mix Product, Price, Place, Promotion, Brand
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 Light Half (top 50%) (bottom 50%)
Bourbon Canned Ham Colas
95% 86% 90% 5%
(20%)
14%
(32%)
10%
(88%) Hair Tonic
87% 13%
(48%) Toilet Tissue
Heavy Users: Efficiency/profit 71% 29% Caution: Majority Fallacy
(95%)
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:
apartment dwellers.
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
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