Presentation on theme: "Market Analysis and Strategy MKT 750 Dr. West. Agenda Pop quiz Marketing Analysis & Strategic Planning Essential Elements Application: Work on a strategic."— Presentation transcript:
Market Analysis and Strategy MKT 750 Dr. West
Agenda Pop quiz Marketing Analysis & Strategic Planning Essential Elements Application: Work on a strategic plan for Form teams
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
Perceived Value Benefits Value = Cost What are benefits? Costs? How can customers perception of each be influenced?
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
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
Situation Analysis SWOT: Core strengths? Current weaknesses? What opportunities exist? What threats do we face?
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?
Situation Analysis Company Resources: Finances, Employees, Production, Development and Design, Research,Facilities, Marketing/Advertising What are s Strengths? Weaknesses?
Situation Analysis Competitors Who are they? What are their advantages/disadvantages? How will competitors react? Assess s competition:
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?
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.
Situation Analysis Market Environment Government Regulations State of the Economy Physical Conditions Technology
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
Identifying Market Segments Behavioral
Behavioral Segmentation: Heavy versus Light Users – 80/20 rule Heavy Users: Efficiency/profitCaution: Majority Fallacy (20%) (32%) (88%) (48%) (95%)
Consumer Characteristics Demographics: Age, Gender, Income, etc… These are widely available but limited in usefulness They tell us who buys, or doesnt buy our product, but not why
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
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
Psychographics Lifestyle segmentation VALS is based on primary motivation and resources
Segment Profiles Once a basis for segmentation has been determined, segments should be profiled by describing them on as many levels as possible.
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?
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?
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?
Summary A firm needs to: Analyze the market 4 Cs (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
Assignment Read Chapter 7 & Marketing to Muggles Memo 1: Conduct your Customer Depth Interview before next Monday Write-up your results for next Wednesday