1. Market Analysis and Strategy
MKT 750
Dr. West

2. Agenda Pop quiz Marketing Analysis & Strategic Planning Form teams
Essential Elements
Application: Work on a strategic plan for
Form teams

3. 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
Value: the difference between what consumers give up (pay with resources) and the benefits they receive in return

4. Perceived Value Value = Cost Benefits What are benefits? Costs?
How can customers perception of each be influenced?

5. 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

6. Environmental Factors
Situation Analysis
Consumer
Company
Competitors
Collaborators
Environmental Factors
Implementation
in Marketplace
STP
Segmentation
Targeting
Positioning
Marketing Mix
Product, Price, Place,
Promotion, Brand

7. Environmental Factors
Situation Analysis
Consumer
Company
Competitors
Collaborators
Environmental Factors
Implementation
in Marketplace
STP
Segmentation
Targeting
Positioning
Marketing Mix
Product, Price, Place,
Promotion, Brand

8. Situation Analysis The process of analyzing:
Consumer characteristics & trends
Resources of the Company
Current and potential Competitors
Current and potential Collaborators
Technological, Legal, Political and Economic Environments

9. Situation Analysis SWOT: Core strengths? Current weaknesses?
What opportunities exist?
What threats do we face?

10. Situation Analysis Consider the situation is 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 environmental factors and trends?
                   
                 

11. Situation Analysis Company What are ‘s Strengths? Weaknesses?
Resources: Finances, Employees, Production, Development and Design, Research,Facilities, Marketing/Advertising
What are ‘s
Strengths?
Weaknesses?

12. Situation Analysis Competitors Assess ‘s competition: Who are they?
What are their advantages/disadvantages?
How will competitors react?
Assess ‘s competition:

13. Situation Analysis Collaborators
Whose strengths best complement ours?
How will each partner benefit from a strategic alliance?
Risks & rewards of collaboration?
Who are ‘s current and potential collaborators?

14. Situation Analysis Consumer Insights:
An understanding of consumers’ expressed and unspoken needs and realities that affect how they make life, brand, and product choices.
Includes: demographic trends, personal and social influences, motivation, attitudes, knowledge, lifestyle, and consumption patterns.

15. Government Regulations
Situation Analysis
Government Regulations
State of the Economy
Market Environment
Physical Conditions
Technology

16. Environmental Factors
Situation Analysis
Consumer
Company
Competitors
Collaborators
Environmental Factors
Implementation
in Marketplace
STP
Segmentation
Targeting
Positioning
Marketing Mix
Product, Price, Place,
Promotion, Brand

17. 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

18. Identifying Market Segments
Behavioral

19. Behavioral Segmentation:
“Heavy versus Light” Users – “80/20 rule”
(20%)
(32%)
(88%)
(48%)
(95%)
Heavy Users: Efficiency/profit Caution: Majority Fallacy

20. Identifying Market Segments
Consumer
Characteristics

21. Consumer Characteristics
Demographics: Age, Gender, Income, etc…
These are widely available but limited in usefulness
They tell us who buys, or doesn’t buy our product, but not why

22. Consumer Characteristics
Geodemographics
Examine regional differences in demographics
Useful for store location decisions and targeting direct mailings
Why?
Because “birds of a feather flock together”

23. Prizm by
Towns & Gowns:  College Town Singles This cluster is composed of thousands of penniless year olds and highly educated professionals, all with a penchant for prestige products that are beyond their evident means.  Age Groups: Under 24  Dominant Race:  White, High Asian

24. Identifying Market Segments
Psychographics/
Benefits

25. Psychographics Lifestyle segmentation
VALS is based on primary motivation and resources

26. Segment Profiles
Once a basis for segmentation has been determined, segments should be profiled by describing them on as many levels as possible.

27. 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?

28. 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?

29. Food for thought
Who are ‘s current and potential customers? (age, income, lifestyle)
Why do they prefer to its competitors?
How well is positioned relative to its competitors?
How can leverage its brand?

30. Summary A firm needs to: Analyze the market
4 C’s (Company, Competitors, Collaborators, Customers), and environmental factors
Develop a strategic plan beginning with
Segmentation, Targeting, and Positioning
Followed by tactical decisions
Product (Brand), Price, Promotion, and Place
Implementation issues

31. Assignment Read Chapter 7 & “Marketing to Muggles” Memo 1:
Conduct your “Customer Depth Interview” before next Monday
Write-up your results for next Wednesday