Professional Documents
Culture Documents
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Marketing
Programs
Target
Markets
Realized
Organization
Objectives
Satisfied
Customers
2013 Pearson Education, Inc. publishing as Prentice Hall
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OPPORTUNITY ANALYSIS
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OPPORTUNITY ANALYSIS
Opportunity analysis consists of
three interrelated activities:
Opportunity
Identification
OpportunityOrganization
Matching
Opportunity
Evaluation
2013 Pearson Education, Inc. publishing as Prentice Hall
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OPPORTUNITY ANALYSIS
Opportunity Identification
Opportunities arise from:
Identifying new types of buyers
Uncovering unsatisfied needs of buyers
Creating new ways or means for satisfying
buyer needs
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OPPORTUNITY ANALYSIS
Opportunity-Organization Matching
Determines whether an identified market
opportunity is consistent with the definition of
the firms business, mission statement, and
distinctive competencies
Assesses strengths and weaknesses via a SWOT
Identifies the success requirements
Rejects those that do not conform to a firms
character even if they offer sizable sales and profit
2013 Pearson Education, Inc. publishing as Prentice Hall
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OPPORTUNITY ANALYSIS
Opportunity Evaluation
Qualitative
Quantitative
Buyer requirements
Market demand
Supplier sources
Environmental
forces
Consists of:
Market sales
potential estimates
Sales forecasts
Budgets
Organizational
capabilities
2013 Pearson Education, Inc. publishing as Prentice Hall
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Buyer
Type
Competitive
Activity
How many and
which firms
compete for this
user group?
Buyer
Requirements
Demand/
Supply
Environmental
Forces
Organizational
Capabilities
Do different buyer
types have
different levels of
effective demand?
Can we gain
access to buyers
through marketing
mix variables?
Buyer
Needs
Means for
Satisfying
Buyer Needs
Do we have or
can we acquire
resources to
satisfy buyer
needs?
Is the technology
for satisfying
buyer needs
changing?
Can we supply
these buyers?
Do we have the
financial, human,
technological,
and marketing
expertise to
satisfy buyer
needs?
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WHAT IS A MARKET?
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WHAT IS A MARKET?
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WHAT IS A MARKET?
Implications for marketers:
Buyers
Effective
Demand
Offerings
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WHAT IS A MARKET?
Market Structure
View as a composite of mini- or regional
markets to:
Identify competitors and how
they compete
Monitor changes in sales
volume
Assess differences between
buyers taste preferences and
the competition
2013 Pearson Education, Inc. publishing as Prentice Hall
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Retail Sales
Ground
Caffeinated
Whole Bean
Instant
Decaffeinated
New England
Midwest
Southeast
Northwest
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WHAT IS A MARKET?
Market Share
Market share is the sales dollars ($) or units(#)
of a firm, offering, or brand divided by the sales
of the market, expressed as a percentage (%):
Market
Share
X%
Market Sales
($ or #)
2013 Pearson Education, Inc. publishing as Prentice Hall
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WHAT IS A MARKET?
Market
Definition
Coffee
Dollar Sales
Atlantic
Blend Sales
Market
Share
$8.0 billion
$80 million
1.0%
$6.0 billion
$80 million
1.3%
$4.5 billion
$80 million
1.8%
$3.0 billion
$80 million
2.7%
$230 million
$80 million
32.0%
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WHAT IS A MARKET?
Market Share
Low Served
Market Share
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MARKET
SEGMENTATION
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MARKET SEGMENTATION
Market Segmentation
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MARKET SEGMENTATION
Mass Customization
Tailors products and services to the tastes
and preferences of individual buyers in high
volumes and at a relatively low cost
Combines the efficiencies of mass
production and the effectiveness of
designing offerings to a single buyers
unique wants
2013 Pearson Education, Inc. publishing as Prentice Hall
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MARKET SEGMENTATION
Benefits of Market Segmentation
Identifies opportunities for new product
development
Helps in the design of marketing programs
that are most effective for reaching
homogeneous groups of consumers
Improves the allocation of marketing
resources
2013 Pearson Education, Inc. publishing as Prentice Hall
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MARKET SEGMENTATION
Bases for Market Segmentation
Consumers
Socioeconomic
Characteristics
Industrial Buyers
Behavioral
Variables
Socioeconomic
Characteristics
Gender
Benefits Sought
Company Size
Age
Usage
Location
Occupation
Income
Family Life Cycle
Industry
Psychographic
Variables
Education
Lifestyle
Location
Attitudes
Behavioral
Variables
Purchasing
Objectives
Product
Benefits
Customers Served
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MARKET SEGMENTATION
Requirements for Effective Market Segmentation
Need to answer six buyer-related questions:
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MARKET SEGMENTATION
Requirements for Effective Market Segmentation
Measurable
Differentiable
Accessible
Substantial
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MARKET TARGETING
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MARKET TARGETING
Marketers ask three questions after a
market has been segmented:
Where to
Compete?
How to
Compete?
When to
Compete?
2013 Pearson Education, Inc. publishing as Prentice Hall
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MARKET TARGETING
Where to Compete?
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MARKET TARGETING
How to Compete?
Concentrated
Marketing
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MARKET TARGETING
How to Compete?
Differentiated Marketing
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MARKET TARGETING
How to Compete?
Concentrated Marketing
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Changeable covers;
color displays;
downloadable ring
tones; and games
Small size; stylish;
durable; user
friendly; color
displays; and fitness
monitor
Traditional style; web
browser; networking;
phone book;
calendar; and
camera
Basic
Expression
Active
Classic
Fashion
Premium
First-time users;
Teens needing voice
connectivity
Travelers with
various business
needs who prefer
functionality
World travelers
wanting a PDA,
connectivity, and
games
Series
Series 1000/
1000/
Series
Series 2000
2000
Series
Series 3000
3000
Series
Series 5000
5000
Series 6000
Series
Series 7000
Enhanced user
interface; camera;
color display;
multimed ia;
messaging; and a
PDA
Series
Series 8000
8000
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MARKET SALES
POTENTIAL AND
PROFITABILITY
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Price (P)
Quantity (Q)
Q
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Market Sales
Potential for
Cola-Flavored
Soft Drinks
in a Country
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1,000,000
0.25
Distribution/communication coverage
(75% of target market)
0.75
20
$10.00
=
$37,500,000
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