Market Analysis and Strategy
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![Page 1: Market Analysis and Strategy](https://reader031.fdocuments.in/reader031/viewer/2022032708/56812dbb550346895d92f320/html5/thumbnails/1.jpg)
Market Analysis and Strategy
MKT 750Dr. West
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Agenda
vs Free Association Task Reactions to merger
Marketing Analysis & Strategic Planning Essential Elements (5Cs, STP, 4Ps) Situation Analysis / Strategy / Marketing Mix
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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?
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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
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Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Context
STPSegmentation
TargetingPositioning
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Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Context
STPSegmentation
TargetingPositioning
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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
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PEST Analysis
Context(Environmen
t)
Context(Environmen
t)
Economic Factors
Economic Factors
Political Factors
Political Factors
Technological
Developments
Technological
Developments
Societal Trends
Societal Trends
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Situation Analysis
SWOT: Core strengths? Current weaknesses? What opportunities exist? What threats do we face?
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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)?
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Situation Analysis
Company Resources: Finances, Employees, Production, Development and Design, Research,Facilities, Marketing/Advertising
What are &
Strengths?
Weaknesses?
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Situation Analysis
Competitors
Who are they?
What are their advantages/disadvantages?
How will competitors react?
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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?
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Situation Analysis
Collaborators
Whose strengths best complement ours?
How will each partner benefit from a strategic alliance?
Risks & rewards of collaboration?
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SWOT AnalysisStrengths:
Weaknesses:
Opportunities:
Threats:
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Implementationin Marketplace
Marketing Mix Product, Price, Place,
Promotion, Brand
Situation AnalysisConsumerCompany
CompetitorsCollaborators
Environmental Factors
STPSegmentation
TargetingPositioning
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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
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Identifying Market Segments
Behavioral
“Heavy versus Light” Users – “80/20 rule”
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Behavioral Segmentation:
“Heavy versus Light” Users – “80/20 rule” Heavy Half Light Half
(top 50%) (bottom 50%)
5%95%
86%
90%
87%
71%
14%
10%
13%
29%Toilet Tissue
Hair Tonic
Colas
Canned Ham
Bourbon
Heavy Users: Efficiency/profit Caution: Majority Fallacy
(20%)
(32%)
(88%)
(48%)
(95%)
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Identifying Market Segments
ConsumerCharacteristics
Demographics: Age, Gender, Income, etc…
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Consumer Characteristics
Geodemographics Examine regional differences in demographics Useful for store location decisions and targeting direct mailings
Why?
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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.
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Identifying Market Segments
Psychographics/
Benefits
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Psychographics
Lifestyle segmentationVALS is based on primary motivation and resources
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Segment Profiles
Once a basis for segmentation has been determined, segments should be profiled by describing them on as many levels as possible.
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& Customer Profile
Age, Education, Income (SES) Occupation, HobbiesMedia Habits Prizm ClustersMusical Taste, Preferred CarsAspirational Role Models
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Strategy
TargetingSelect 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?
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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?
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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
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DDB Needham Dataset
Familiarize yourself with the dataHeavy Users/Owners/Viewers versus AIO/Personality
Table 1 and 1a: Household CharacteristicsTable 2 and 2a: Female Employment & MotivationTable 3 and 3a: Income & EducationTable 4 and 4a: OccupationTable 5 and 5a: Age & Ethnic SubcultureTable 6 and 6a: Gender & Geographic RegionTable 7 and 7a: Personality
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Assignment
Read Chapter 12 (pp 422 - 426, 429 - 445)Topic: Self-Concept & LifestyleAssignment:
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