Tcm step 2 market needs analysis
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Transcript of Tcm step 2 market needs analysis
“Does your product meet a clear market demand or solve a
problem?”
Innovation SPACE™ Technology Commercialization Model Phase 1 : CONCEPT
Stage 1 : DISCOVERYStep 2 : MARKET NEEDS ANALYSIS
The Technology Commercialisation Model
SCIENCE & TECHNOLOGY MARKET ENTERPRISE / BUSINESS
CONCEPT PHASE
STAGE 1 : DISCOVERY Step 1 Technology Analysis
Step 2Market Needs Analysis
Step 3Venture Assessment
CREATION PHASE
STAGE 2 : DO-ABILITY Step 4Technical Feasibility
Step 5Market Study
Step 6Economic Feasibility
STAGE 3 : DESIGN Step 7Engineering Prototype /
Pilot Plant
Step 8Strategic Marketing Plan
Step 9Strategic Business Plan
STAGE 4 : DEPLOYMENT Step 10Pre-production Prototype
Step 11Market Validation
Step 12Business Start-Up
COMMERCIAL PHASE
STAGE 5 : DELIVERY Step 13Production
Step 14Sales & Distribution
Step 15Business Growth
STAGE 6 : DOMINATION Step 16Production Support
Step 17Market Diversification
Step 18Business Maturity
Step 2: Market Needs Analysis Does this product meet a clear market demand or solve a problem? • Assuming all things are still positive, the next
step is to investigate a marketing concept for the product. This step is called the Market Needs Analysis. The questions are straightforward and simple: who will buy the product, how many will they buy, and how much will they pay? Discovering this information is not as simple as asking the questions. At this level of analysis, the information comes primarily from secondary sources such as trade journals, periodicals, existing market studies and electronic data. The permissible margin for error at this level is large. This activity is designed more to qualify the market opportunity than quantify it at this point in the process. The purpose here is to develop a level of confidence about the marketability of the product.
• Definition: The process of determining whether the concept demonstrates superior ability over current solutions to meet a market need.
• Objective: The objective of a market needs assessment is to identify a potential market for the concept, estimate the market size and determine a preliminary value of the product.
• Product: The product of this step is a short summary of information from trade journals, data bases, and interviews which follows the marketing section of a standard business plan format.
• Marketing Activities: The marketing activities common to this step are those necessary to demonstrate that the product is unique and sustainable in a competitive marketplace.
• During the conceptual phase the following activities must be completed:
• • Identify three unique features or benefits of the product;• Identify the competition;• Establish customer requirements for the product;• Identify potential market barriers;• Identify market distribution channels;• Identify product pricing criteria
• Milestones: Background research materials
• Funding Sources: Personal finances, Family and friends
• Marketing Information: Completion of the conceptual marketing step will usually result in a rationale of why the product will receive a positive market response, gross estimates of the market and its segmentation, a simple explanation of how the product will be marketed, and an estimated price for the product.
• Key Questions :
• Have you assessed the needs of the market?Do you know the product uniqueness?Do you know the product competition?Do you know the customer requirements?Have you identified the barriers to market entry?Have you identified distribution channels?Do you know the pricing criteria?
KEY QUESTIONS1. Have you assessed the needs of the market?2. Do you know the product uniqueness?3. Do you know the product competition?4. Do you know the customer requirements?5. Have you identified distribution channels?6. Do you know the pricing criteria?7. Have you identified the barriers to market entry?
WHAT IS A MARKET SEGMENT? WHO IS THE
CUSTOMER?
Demographic Grouping and Buying Behaviour
MARKET SEGMENT : GENERATIONAL
•GEN ALPHA (2011 - )•GEN Z (iGen)(1995 – 2010)•MILLENNIALS (GEN whY?)
(1979-1994)•GEN X (1964-1978)• BABY BOOMERS (1946-1964)• SILENT GENERATION /
TRADITIONALISTS (1925-1945)
Average Ages & Generations
MARKET SEGMENT : LIFESTYLE1. DINGO : Double Income Not Going
Out (Saver) 2. DINKY : Double Income No Kids Yet3. DITCHED : Dual Income, Two or
more CHildren, Expanding Debts4. MUPPIE : Middle-aged Urban
Professional5. OINKY : One Income No Kids Yet6. ORCHID : One Recent Child Heavily
In Debt7. GLAM : Greying Leisurely Affluent
Married
8. GOFER : Genial Old Fellow/Female Enjoying Retirement
9. HENRY : High Earner Not Rich Yet10. KIPPERS : Kid in Parents Pockets
Eroding Retirement Savings11. LOHAS : Lifestyle of Health And
Sustainability12. SINBAD : Single Income No Boyfriend
And Desperate13. SITCOM : Single Income Two Children
Oppressive Mortgage14. YUPPIE : Young, Upwardly mobile
Professional
My Reasons to Own a car
Choices•Past Experience•Present Relationship
(Emotional Attachment)• Future Dream
(Expectations)
Determinants•Affordability•Pleasure•Practical•Status Symbol•Latest Technology
AFFORDABILITY
PLEASURE
PRACTICAL
STATUS SYMBOL
LATEST TECHNOLOGY
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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3
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DETERMINANTS ON CAR CHOICES
PAST EXPERIENCE PRESENT RELATIONSHIP FUTURE DREAM
PRODUCT PROMISES : Car Ownership
1. Building Cars People First2. It’s in the Drive!3. The Power of Dreams4. All about the drive.5. Innovation that excites6. Passion for life7. Driving matters
8. Go further.9. [email protected] best or nothing.11.The Ultimate Driving
Machine12.New thinking New
Possibilities13.The power to surprise
0 1 2 3 4 5 6 7 8 9 10
0
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CAR OWNERSHIP : MALAYSIA
DEPENDABLE - PASSIONATE
CLAS
SIC
- IN
NO
VATI
ON
PAS-SION
INNOVATIVE
CONVENTIONAL
DEPENDABLE
PERCEPTUAL MAP : INNOVATIVE VS PASSION
0 1 2 3 4 5 6 7 8 9 10
0
1
2
3
4
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10
Perodua
Proton
Honda
Toyota
Nissan Renault Mazda
Isuzu Ford
Mitsubishi Mercedes
BMW
HyundaiKia
CAR OWNERSHIP : MALAYSIA 2015 (591,298 new cars)
DEPENDABLE - PASSIONATE
CLAS
SIC
- IN
NO
VATI
ON
PAS-SION
INNOVATIVE
CONVENTIONAL
DEPENDABLE
PERCEPTUAL MAP : INNOVATIVE VS PASSION
PRODUCT PROMISES : Car OwnershipBRANDS1. Perodua2. Proton3. Honda4. Toyota5. Nissan / Renault6. Mazda7. Isuzu / Ford8. Mitsubishi9. Mercedes10. BMW11. Hyundai12. Kia
PROMISES1. Building Cars People First2. It’s in the Drive!3. The Power of Dreams4. All about the drive.5. Innovation that excites / Passion for life6. Driving matters7. Go further.8. Drive@earth9. The best or nothing.10. The Ultimate Driving Machine11. New thinking New Possibilities12. The power to surprise
WHAT ARE THE NEEDS OF YOUR CUSTOMER?
Hierarchy of Needs of Individuals and Organisations
Maslow Hierarchy of Needs1.Self-actualization2.Esteem3.Love/Belonging4.Safety5.Physiological
PROMISES, PROMISES
CONSUMER1. “Think different”2. “Do the Right Thing”3. “Taste the Feeling”4. “Be What’s Next”5. “Let’s Go Places”6. “Imagine the Possibilities”7. “i’m lovin’ it”8. “and you’re done.”
B2B1. “Do the Right Thing”2. “Be What’s Next”3. “Think.”4. “Let’s Go Places”5. “Imagine the Possibilities”6. “Imagination at work”
Organisation Hierarchy of Needs1. Brand. The brand describes a promise to stakeholders. The brand is
more than the collection of products or services offered by the company. The brand encompasses an emotional value, an aspiration, and the public face of a business strategy. The brand can be viewed as a person, product, organization, and symbol for the company.
2. Strategic Corporate Stakeholder Relations. Organizations seek strategic relationships to achieve a desired reputation, create a defensible competitive advantage, and influence preferential behaviors in the value chain. Tools include positioning strategy, design thinking, CSR and innovation programs.
3. Operational Efficiency Operational efficiency priorities focus on reducing costs, improving existing performance, and optimizing existing landscapes. Operational efficiency is also know as bottom line priorities.
4. Regulatory Compliance. Regulatory compliance is a base need. Organizations must comply with legal requirements. In addition, organizations may want to avoid legal suits, causing injury, or failing to meet a commitment.
5. Revenue and Cashflow Growth. Revenue growth reflects the initiatives used to drive new customers, revenues, and market share and increased cashflow generation to ensure the survival of the organization. Revenue growth is also known as top line priorities.
Brand
Strategic Corporate
Stakeholder Relations
Operational Efficiency
Regulatory Compliance
Revenue and Cashflow Growth
MARKET SEGMENTATION : B2B• DEMOGRAPHIC
• Industries range• Company size• Geographic Locations
• OPERATING VARIABLES• Customer Technologies• User or non-user status / Level of usage• Customer capabilities / Level of service
support needed • SITUATIONAL FACTORS
• Urgency• Specific or all applications• Size of order
• PURCHASING APPROACHES• Centralized or decentralized purchasing
function in organization• Power structure of decision-makers
(engineering/finance)• Nature of existing relationships• General purchasing policies
(leasing/service contract/system purchases/tenders)
• Purchasing criteria (quality/ service/ price)• PERSONAL CHARACTERISTICS
• Buyer-seller similarity (People/values)• Attitude towards risk• Loyalty level to suppliers
GLOBAL BRANDS
THE MARKETING MIX 4+Ppl
Understanding interactions with the customer
Select your Supermarket Product
PRODUCT COMPETITORS
COMPLEMENTORS
SUBSTITUTES
BRANDS SELECTED BRAND COMPETITOR 1 COMPETITOR 2 (SUBSTITUTE)
COMPETITOR 3 (COMPLEMENTOR)
MARKETING MIX(1=Disadvantage, 2=No difference,
3=Superior Advantage to competitors)
1. PRODUCT : promise, packaging, ingredients
2. PRICE : Value for money, discounts, bundling offers3. PROMOTION : On pack offers, in-store advertising, newspaper ad, social media, website4. PLACE : Availability, convenience of outlets, online store5. PEOPLE : Store customer service, Helpline, Email support
TOTAL SCORE (x/15)
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0
1
2
3
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10CONSUMER BRANDS@SUPERMAKET
MARKET SHARE
COM
PETI
TIVE
ADV
ANTA
GES
MARKET LEADERS
CHALLENGERS
COMPLEMENTORS
LAGGARDS
COMPETITOR ANALYSIS : SUPERMARKET WARS
Consumption at 10x speed …
There is always an alternative …