Presentation on theme: "Step 5: Select, Implement, and Record Chosen Course of Action 1.Define Market & Select Target 2.Develop Market Mix."— Presentation transcript:
Step 5: Select, Implement, and Record Chosen Course of Action 1.Define Market & Select Target 2.Develop Market Mix
What is a Market? A market is a group of individuals or organizations (i.e. buyers) having the willingness and ability to buy goods or services to satisfy a particular class of wants or needs. Understanding the market; selecting the best market & understanding its buying behavior are key to the success of the marketing plan.
Steps in Market Analysis 1.Define Market to Identify Competitive Arena to identify competitive arena e.g. Coffee Market
Steps in Market Analysis 2. Segment the Market to Determine Competitive tactics. –If you can find an objective reliable way to define groups of people; –If you can measure the sales and profit potential of the segments; –If these segments can be profitably reached using marketing –If you can expect a different response from the unique marketing plans you offer each segment
Segmentation Effective If… Measurable – Size, purchasing power, profiles of segments can be measured Substantial – Size of market large enough to justify tailored strategy costs Accessible – Reachable via personal or impersonal media Differential – Homogenous within & heterogeneous between; must respond differently to different marketing mix elements & actions. Actionable – Company can develop different marketing strategies to serve segments.
Steps in Market Analysis 3.Develop profiles of the resulting segments 4.Evaluate the attractiveness of each segment & Select the Target Segment(s) –Understand Customer Motivation and Behavior to determine relevant assets and skills
Demographic Age, gender, family size, life cycle, race, occupation, income Geographic Nations, states, regions, counties, cities, neighborhoods Bases for Segmenting Consumer Markets Explain how each factor affects a company’s marketing strategy. Continued on next slide!
Psychographic Lifestyle or personality Behavioral Occasions, benefits, uses, attitudes, loyalty, buyer-readiness Bases for Segmenting Consumer Markets Multi-Attribute Smaller and better defined target groups, geoclustering
Bases for Segmenting Business Markets Demographic Operating variables Purchasing approaches Situational factors Personal characteristics
Airport Inn Travelodge $ $ $ $ $$ and up $ $ from $ $ $ $from $89.95 $ from $49.95 $from $29.95 How Do You Segment Las Vegas Hotel Market?
Customer Analysis To develop an effective marketing plan, it is necessary to understand customers and their buying behavior
What Do You Need To Know About the Customers? Who constitutes the market? How many are there? Why does the market buy it? When does the market buy it? Where does the market buy it? How much do they buy? How often? How do they make their buying decision?
Consumer Buying Decisions Multifaceted –Product, Brand, Dealer Choice; Purchase Timing, Amount Multi Step –Problem Recognition, Information Search, Evaluation, Decision, Post Purchase Behavior Subject to Multiple Influences –Cultural, Social, Personal and Psychological Factors and External Environment
Features Influencing Brand Choice In Disposable Diapers Rank Order – Number of Respondents Features1*2345Totals Absorbency No Leak Refastenable Tapes Elastic Legs Elastic Waist Size Availability Gender Specific Printed Designs Wetness Indicator Other *1 = most important factor Source: Wilson & Dallas, Nonwovens Industry, January 1992
Factors Influencing Choice of Diaper Type Rank Order – Number of Responses Factor1*2345Totals Convenience Brand Price Daycare Requirements Environmental Concerns No washer or dryer Other *1 = most important factor Source: Wilson & Dallas, Nonwovens Industry, January 1992