MARKETING FEASIBILITY STUDY 1 Chapter (3) Lecturer.Ahmed El Rawas

chapter content 2 1. What is marketing study? 2. What is marketing Mix? 3. What is market structure? 4. What is the Product-Market Growth Matrix? 5. What is SWOT analysis? 6. What is competitive profile? 7. What is market segmentation? 8. What is customer analysis? Lecturer.Ahmed El Rawas

Marketing research 3 Marketing research is the function that links the consumer, customer and public to the market through information. The goal of marketing research is to identify and assess how changing elements of the marketing mix impact consumer behavior. Marketing research consists mainly in the analysis of demand, competition, consumer behavior, consumer needs, competitive products and marketing tools. Lecturer.Ahmed El Rawas

Marketing strategy Is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. Marketing strategies based on market dominance. Typically there are three types of marketing dominance strategies. 1. Leader 2. Challenger 3. Follower 4

Marketing structure Traditionally, marketing analysis was structured into three areas, customer analysis, company analysis and competitor analysis. So called “3Cs” analysis. More recently, it has become fashionable in some marketing circles to divide these further into certain “five Cs” customer analysis, company analysis, collaborator analysis, competitor analysis and analysis of the industry context. Lecturer.Ahmed El Rawas 5

(2)Marketing Mix 6 The 'marketing mix' is a set of controllable, tactical marketing tools that work together to achieve company's objectives. The term marketing mix was coined in 1953 by Neil Borden. Marketing mix includes product, place, promotion and price. Lecturer.Ahmed El Rawas

4PS 7 Lecturer.Ahmed El Rawas

Four Ps 8 Elements of the marketing mix are often referred to as 'the four Ps': Product - A tangible object or an intangible service that is produced or manufactured on a large scale with a specific volume of units. Intangible products are often service based like the tourism industry & the hotel industry. Lecturer.Ahmed El Rawas

Four Ps 9 Place – Place represents the location where a product can be purchased. It is often referred to as the distribution channel. It can include any physical store as well as virtual stores on the Internet. Promotion – Promotion represents all of the communications that a marketer may use in the marketplace. Promotion has four distinct elements - advertising, public relations, word of mouth and point of sale. Lecturer.Ahmed El Rawas

Promotional mix 1. Advertising: presentation and promotion of ideas, goods or services by an identified sponsor. Ex print ads, radio, television, billboard, brochures, catalogs, posters, web pages and s. 2. Personal selling: a process of helping and persuading one or more prospects to purchase a good or service through the use of oral presentation. 3. Sales promotion: media and non media communication for a limited time to increase consumer demand. Ex coupons and exhibition. 4. Public relations Lecturer.Ahmed El Rawas 10

Four Ps 11 Price – The price is the amount a customer pays for the product. It is determined by a number of factors including market share, competition, material costs, product identity and the customer's perceived value of the product. The business may increase or decrease the price of product if other stores have the same product. Lecturer.Ahmed El Rawas

Four Cs 12 The Four Ps is also being replaced by the Four Cs model, consisting of consumer, cost, convenience, and communication. The Four Cs model is more consumer-oriented and fits better in the movement from mass marketing to niche marketing. The product part of the Four Ps model is replaced by consumer or consumer models, shifting the focus to satisfying the consumer. Lecturer.Ahmed El Rawas

Four Cs 13 Pricing is replaced by cost, reflecting the reality of the total cost of ownership. Many factors affect cost Placement is replaced by the convenience function. promotions feature is replaced by communication. Lecturer.Ahmed El Rawas

(3)Market structure 14 In economics, market structure (also known as market form) describes the state of a market with respect to competition. Perfect competition, in which the market consists of a very large number of firms producing a homogeneous product. Monopolistic competition, also called competitive market, where there are a large number of independent firms which have a very small proportion of the market share. Lecturer.Ahmed El Rawas

Market structure 15 Oligopoly, in which a market is dominated by a small number of firms which own more than 40% of the market share. Monopoly, where there is only one provider of a product or service. Lecturer.Ahmed El Rawas

Market share expectation 16 Lecturer.Ahmed El Rawas

(5)Product-Market Growth Matrix 17 Lecturer.Ahmed El Rawas

Product-Market Growth Matrix 18 The matrix consists of four strategies: Market penetration (existing markets, existing products): Market penetration occurs when a company enters/penetrates a market with current products. The best way to achieve this is by gaining competitors' customers (part of their market share). Other ways include attracting non-users of your product or convincing current clients to use more of your product/service, with advertising or other promotions. Market penetration is the least risky way for a company to grow. Lecturer.Ahmed El Rawas

Product-Market Growth Matrix 19 Product development (existing markets, new products): new products need not be new to the market; the point is that the product is new to the company. For example, McDonald's is always within the fast-food industry, but frequently markets new burgers. Frequently, when a firm creates new products, it can gain new customers for these products. Hence, new product development can be a crucial business development strategy for firms to stay competitive. Lecturer.Ahmed El Rawas

Product-Market Growth Matrix 20 Market development (new markets, existing products): An established product in the marketplace can be targeted to a different customer segment, as a strategy to earn more revenue for the firm. For example, Lucozade was first marketed for sick children and then target athletes. This is a good example of developing a new market for an existing product. Again, the market need not be new in itself, the point is that the market is new to the company. Lecturer.Ahmed El Rawas

Product-Market Growth Matrix 21 Diversification is a form of growth marketing strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification (new markets, new products): Virgin Cola, Virgin Megastores, Virgin Airlines, Virgin Telecommunications are examples of new products created by the Virgin Group of UK, to leverage the Virgin brand. This resulted in the company entering new markets where it had no presence before. Lecturer.Ahmed El Rawas

Types of diversification 22 Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a new product which helps the particular company to earn profit. However,, Addition of tomato ketchup and sauce to the existing "Maggi" brand processed items of Food Specialties Ltd. is an example of Technological-related concentric diversification. Lecturer.Ahmed El Rawas

Types of diversification 23 Horizontal diversification The company adds new products or services that are technologically or commercially unrelated (but not always) to current products, but which may appeal to current customers. In a competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced.. In other words, this strategy tends to increase the firm’s dependence on certain market segments. For example company was making note books earlier now they are also entering into pen market through its new product. Lecturer.Ahmed El Rawas

Types of diversification 24 Conglomerate diversification (or lateral diversification) The company markets new products or services that have no technological or commercial synergies with current products, but which may appeal to new groups of customers. The conglomerate diversification has very little relationship with the firm’s current business. Therefore, the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger. Even if this strategy is very risky, it could also, if successful, provide increased growth and profitability. Lecturer.Ahmed El Rawas

(6)SWOT Analysis 25 Lecturer.Ahmed El Rawas

SWOT analysis 26 Strengths: attributes of the person or company that are helpful to achieving the objective. Weaknesses: attributes of the person or company that are harmful to achieving the objective. Opportunities: external conditions that are helpful to achieving the objective. Threats: external conditions which could do damage to the business's performance. Lecturer.Ahmed El Rawas

SWOT analysis 27 Internal environment Strengths 1- Service quality 2- Service fees 3- Location 4- Safety 5- Speed 6- Reliability 7- Environment Lecturer.Ahmed El Rawas

SWOT analysis 28 Weakness 1- High cost of the project 2- Long construction years 3- Intangibility 5- high Operating cost 6- Working hours Lecturer.Ahmed El Rawas

SWOT analysis 29 External environment Opportunities 1-Growth rate Threats 1- Energy cost 2- high Competition 3- bad transportation Lecturer.Ahmed El Rawas

(7)Competitive profile 30 Competitive profile is a profile prepared by the researcher through primary or secondary data, its function is to compare between your project and other similar competitors. Comparison includes pricing, quality packaging etc… Lecturer.Ahmed El Rawas

(8)Market segmentation 31 A market analysis can be made for either the market as a whole or each market segment separately. It is advisable, however, to divide the market into certain segments, on the basis of differentiated customer behavior. Market segmentation is, moreover, a central prerequisite for efficient use of the marketing tools. Lecturer.Ahmed El Rawas

(9)How to Identify Potential Customers, Clients 32 This component of your small business market feasibility study should be descriptive. Your potential customers, clients, and contract sources should include the following: A list of current customers, clients, and contracts and the potential for new or renewed contracts. Any sales leads that may generate new customers or clients. Lecturer.Ahmed El Rawas

Analyzing Your Current Market 33 This section of a market feasibility study describes the current market for your product or service. If you are offering something so unique that there are few market statistics, you can either use related industry information, or even conduct your own independent study. Several ways to conduct your own research for new ideas include: questionnaires addressed to targeted consumer groups or the general population, or even customer surveys. Lecturer.Ahmed El Rawas

Analyzing Your Current Market 34 Any “proof” you have that there is a demand (or market) for your product or services will help you sell your idea. This is particularly important if you are marketing something unique, or within a very small, specialized market. You need to show that your ideas is novel because you have found a niche and not because there is no existing market for the idea. Lecturer.Ahmed El Rawas

Advertising budget 35 Lecturer.Ahmed El Rawas

Marketing analysis main points (project) 36 Marketing mix 1. Product ( Quality, packaging, maintenance, service and design) 2. Price ( price positioning and strategy) 3. Place ( channel of distribution, lead time, transport,) 4. Promotion ( adv, public relations, sales promotion ) Type of market. Lecturer.Ahmed El Rawas

Marketing analysis main points ( project) 37 Target customer and segmentation Competitive profile SWOT analysis Market share Analyze current market. Pricing strategy Lecturer.Ahmed El Rawas