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Market Potential, Market Demand, and Market Share Chapter Three M arket-Based Management, 4 th edition.

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Presentation on theme: "Market Potential, Market Demand, and Market Share Chapter Three M arket-Based Management, 4 th edition."— Presentation transcript:

1 Market Potential, Market Demand, and Market Share Chapter Three M arket-Based Management, 4 th edition

2 3-2 Market Potential, Market Demand, and Market Share Chapter Three Various forms of Market Demand and Opportunities Market Potential and Growth Product Life Cycle Marketing Mix and Market Share Performance Market Share and Development Metrics

3 3-3 Market Definition Narrow vs. Broad Market Focus

4 3-4 Market Opportunities Vertical vs. Lateral Market Demand

5 3-5 Market Potential Market Penetration vs. Market Demand = Current Market Demand Maximum Market Demand Market Development Index (MDI)

6 3-6 Five Forces of Market Potential 1.Awareness 2.Availability 3.Affordability 4.Ability to Use 5.Benefit Deficiency

7 3-7 Market Growth Three Forces of Market Growth 1. Market Potential 2. Market Penetration 3. Rate of Entry

8 3-8 Accelerating Market Growth

9 3-9 Product Life Cycle Product Life Cycle and Marketing Profitability

10 3-10 The Marketing Mix Product Awareness –Promotion and Advertising Channels Product Attractiveness –Effect of Substitutes Price Acceptability Product Availability –Distribution and Location Service Experience

11 3-11 Market Share Development Tree

12 3-12 Market Share Metrics Market Share Market share = Sale Volume / Market Demand Market Share Index (MSI) –Awareness X Preference X Intent to Buy X Availability X Purchase –Three Important Benefits of MSI Share Development Index (SDI) –Actual Market Share/Potential Market Share

13 3-13 Market Development vs. Market Share (31, 72)

14 3-14 Takeaways / Review Importance of Market Definition and Analysis Encouraging Growth, PLC, and Hastening Adoption Marketing Mix Performance Market Share –Tree –Evaluation Market Performance Metrics –Market Development Index –Market Share Index –Share Development Index

15 3-15 Marketing Performance Tools Market Demand and Unit Sales Volume

16 3-16 Marketing Performance Tools Customer Adoption and Product Adoption

17 3-17 Marketing Performance Tools Customer Adoption and Product Adoption Forces

18 3-18 Marketing Performance Tools Market Share Index and Share Development Index

19 3-19 Marketing Performance Tools Market Share Index and Share Development Index


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