1. Be able to design e-Commerce solutions
Part 3
Dyala Rousan

2. Overview Market Analysis : Market Size Market Share
Market Segmentation
Competitor Analysis

3. Market Analysis
Whether you are starting a new business or launching a new product, conducting a marketing analysis is the first step in determining if there is a need or audience for your idea.
Conducting a market analysis will help you:
Prepare to enter a new market
Launch a new product/service
Start a new business

4. What is Market Analysis?
Marketing encompasses all of the activities that go into promoting a product or service. A marketing analysis is the actual assessment of the target population, competition and needs for marketing that product or service.
Marketing research that yields information 
about the marketplace.
Research intended to predict the future of a market.
Market Analysis is a process that seeks to identify and quantify the key features of a market by using a range of Market Research techniques. Based on a clearer understanding of consumers, customers, competitors, distribution channels etc, the business is then able to market more effectively.

5. Why should you embark on the market analysis process?
To determine if there is a market for your products or services
To establish the need for developing a marketing plan
To ascertain market information that will assist in the sale of your product or service

6. Dimensions of market analysis
Market Size and Trends
Market Share
Market Segmentation

7. Market size
Market Size is measured by the total volume and or value of all sales in the market. Sales volume is measured in terms of the number of units of goods purchased, whilst sales value measures the total amount spent by customers on the volume of goods sold.
For example, if local homeowners are part of your target market, then you should be able to count them. You need to know whether you have 500 people in your market, or 200,000, or 2 billion. Be able to show what the total market is for your business.

8. Market Share
A firm’s market share is its sales as a % of total sales of that product.
Market Share measures the proportion of the total market held by a business, product or brand.
The formula for calculating Market Share is presented below
Market Share (%) = sales of the business, product or brand / total sales in the market

10. Market Segmentation
Market segmentation is the process of dividing a market into groups, known as segments, of customers with similar needs or characteristics who are likely to exhibit similar purchase behaviour.
 In segmenting the market the business is acknowledging that different 'types' of buyers may require different products.
Market segmentation enables the business to target different groups of buyers by adapting its product to best suit each targeted segment.

11. Example on Market Segmentation
A good example of this approach can be seen in the mobile phone industry.
T-Mobile provide a wide range of mobile phones with different features which target customers in terms of their communication needs and wants.
This is then complemented by a range of mobile phone tariffs, or price plans, created to suit the different phone usage behaviour of customers in the market.

13. Market Segmentation
When you have a great market segmentation definition you can see how finding the correct group of people can really help you grow your business.
A good market segmentation definition saves you time and makes you money in the long run, because you are marketing to the correct demographic for your business.
There are four basic market segmentation strategies:
behaviour segmentation (seeking profits, degree of use, degree of loyalty...)
demographic segmentation (age, gender, life cycle phase...)
geographic segmentation (region, urban/non-urban environment...)
physiographic segmentation (lifestyle, values, personality...)

14. Geographic segmentation
Geographic segmentation divides the market into different geographical units, be they neighbourhoods,cities, counties, countries, or world regions such as Europe or South East Asia etc.
Such segmentation will seek to identify factors, which should be taken into account in developing appropriate marketing strategies for each area, including Language, Climate, and Lifestyles.
Geographical segmentation is most commonly used by multi- national and global businesses, who may alter their marketing mix based on the differing needs of consumers in each geographic segment they operate within.
marketing mix: Combining marketing elements, including advertising, promotional products, direct mail and public relations, into one cohesive mar­keting program.

15. Demographic segmentation
Demographic segmentation divides the market into groups based on demographic variables including age, gender, Income level and life cycle.
The following four variables are examples of demographic factors used in market segmentation:

16. Age : Consumer needs and wants change with age
Age : Consumer needs and wants change with age. The marketing mix may therefore need to be adapted depending on which age segment or segments are being targeted.
Gender : Dividing a market into different groups based on sex, has long been common for many products including cosmetics, clothing and magazines.  A company that manufactures men and women's clothes may create a segment for the women customers and promote a new dress line they're offering to them, while promoting a new tie line to the men.

17. Life-cycle stage : Dividing a market into different groups based on which stage in the life-cycle, presented in the table below, reflects the fact that people change the goods and services they want and need over their lifetime.

18. Income Level : When companies develop pricing strategies for their brands and products, they consider the income levels of their target markets. Salary, or income level, is an example of a demographic segmentation businesses use when they prepare to introduce a product to the market or initiate a sale.
For example, designers such as Zac Posen and Isaac Mizrahi have created affordable clothing and accessories, sold at Target, to reach customers who cannot afford their high-end, more expensive lines.

19. Psychographic segmentation
This type of segmentation divides the market into groups according to customers’ lifestyles. 
Psychographic segmentation divides the market into groups based on social class, lifestyle and personality characteristics. It is based on the assumption that the types of products and brands an individual purchases will reflect thatpersons characteristics and patterns of living.

20. Psychographic segmentation
SOCIAL CLASS
The different characteristics and wants of people in the different classes make social class a useful basis for segmenting markets such as those for liquor, furniture, financial services, cars, clothing, hotels, and leisure activities. Retailers, especially, often use social class in segmenting their markets.
Prestige department stores, for example, cater to the upper classes while discount department stores and retailers like Family Dollar target the lower classes.
Lifestyle :
Involves classifying people according to their values, beliefs, opinions, and interests.
 The marketer gains a better understanding of consumers' lifestyles, how the purchase of a product fits in with their lifestyles, what other products they might buy, and what types of advertising themes might appeal to them.

21. Behavioural segmentation
Behavioural segmentation divides the market into groups based on their knowledge, attitudes, uses and responses to the product.
Behavioural segments can group consumers in terms of:
Occasions : When a product is consumed or purchased. For example, cereals have traditionally been marketed as a breakfast-related product. Kelloggs have always encouraged consumers to eat breakfast cereals on the "occasion" of getting up. More recently, they have tried to extend the consumption of cereals by promoting the product as an ideal, anytime snack food.

22. Usage Rate : Groups individuals according to the level of usage they make of the product, be it Heavy,Medium or Light usage.
Loyalty Status : Groups individuals according to their level of loyalty to the product. 'Hard core loyals' always purchase the product / brand in question. Whilst 'Soft core loyals' will sometimes purchase another brand, and 'Switchers' will not specifically seek out a particular brand, but rather purchase the brand available to them at time of need, or that which was on sale.
Benefits Sought : Groups individuals according to the benefits they seek from the product.

23. What is Competitive Analysis?
Competitive Analysis is a process of gathering and analyzing information about your competitors, their practices, products, strengths and weaknesses and business trends in order to assess your position in the market and improve your products and marketing strategies.

24. What is the purpose of Competitive Analysis?
In today’s market, you must know what your competitors are doing and what to do to stay ahead of the competition. Many businesses believe they are providing a good product to their customers, but do not have reliable information showing how customers perceive their product or how it compares to the competition.

25. Competitive Analysis can help you determine the following:
Strengths and weaknesses: How your product stacks up against the competition and in what areas they have an edge over your product and in what areas your product is superior.
Identify your competition: Verify who your primary and secondary competitors are.
Improvements: How and in what areas your product, processes, and practices must be improved to meet market demands or to stay ahead of the competition.
Marketing: What improvements you need to make in your marketing approach, and what features you want to highlight in a marketing campaign.

26. Competitor Analysis Open the following link:
companal_2.htm