Behavioural data - transaction capture, loyalty programs - need to complement with cognitive/attitudinal
Strategic perspective - offensive vs defensive
Direct & indirect competition
Diversity of needs within organization
Diversity of sources - reports, speeches, net, customers, partners, etc.
Ongoing, captured & communicated - used
Leakage - what you are telling competitors
Specialized skills & resources
Summary - Research & Market Intelligence
Uncertainty reduction - effective decision making
Abundance of data - not intelligence
Behavioural & cognitive/attitudinal
System - technology & people, ongoing
Utilization - capture, communicate/share
Framework for Diagnosing Market Opportunity Seed Opportunity in Existing or New Value System Uncover Opportunity Nucleus: Identify Unmet and Underserved Needs Identify Target Segments Declare Company’s Resource-Based Opportunity for Advantage Assess Competitive, Technological and Financial Opportunity Attractiveness Make Go / No-Go Assessment Investigative Stages Final Decision
How can a firm generate new business ideas?
What value can a company unlock or introduce?
Can the new business fulfill an unmet or underserved customer need?
Which segments of the market are most attractive to serve?
What is their profile?
Does the firm have the resources and capabilities to support the new business and serve the customer needs?
Is the new opportunity attractive from a financial, competitive and technology standpoint?
Based on the overall analysis, should the firm launch the new business?
Resources and Assets Needed Provided by the Company Provided Through Partnerships
Types of Capabilities:
Categories of Partners:
Evaluate Capabilities to Deliver Value
Competitive Intensity Customer Dynamics
Number of competitors
Competitors strengths and weaknesses
Rate of growth
Technology Vulnerability Microeconomics
Impact of new technologies
Opportunity Assessment Factors to Assess the Opportunity
Overall Opportunity Assessment Positive Factor Neutral Factor Negative Factor Competitive Vulnerability Technical Vulnerability Magnitude Unmet Need Interaction Between Segments Likely Rate of Growth Technology Vulnerability Market Size Level of Profitability of
Business Attractiveness Assessment Magnitude of the Opportunity Low High Realization Ease Low High Avoid Priority Selective Short-Term Selective Long-Term
Summary: Assessing Market Opportunities
A market opportunity analysis framework helps structure your analyses & thinking
Opportunities linked to value provision
Customers determine value – need to understand customer decision process
Involves identifying & pursuing most attractive customers
Need to source the required resources to deliver value to customers
Assessing the attractiveness involves looking at a number of factors – 6 C’s
Culminates in a go/no-go assessment
Understanding The Customer
Importance – market oriented, drives decisions, relevance – value
Segment profile is a description of the “typical” customer in a segment including:
customer demographics, location and lifestyle information, and
customer usage rates.
Next, the firm tries to forecast each segment’s market potential , the maximum demand expected among consumers in a segment for a product.
Customer Segmentation - Example
marketers evaluate the attractiveness of each potential segment, and
decide which of these groups they will try to turn into customers.
group or groups selected by a firm to be turned into customers as a result of segmentation and targeting.
Follows from segmentation
Choice of which business opportunities to pursue
Fit - company, climate, customer, competitor, channels, cash
Proactive vs reactive
Example: The Women’s Market?
Implications for marketers?
For your company?
Women on a roll… Today Dominate consumer buying and corporate purchasing Rising control of wealth Rising academic dominance Rising business decision role Requiring business response Future Dominate financial decisions Organizations more female Society older and more female ... we are reaching a breakpoint in business?
The lump in the snake…is female Male Female Male Female 13 12 10 10 11 10 10 9 12 12 10 10 10 10 13 14 0-20 20-34 35-50 50-69 2 4 3 5 70+ Total 20 19 20 27 8 Total 25 21 25 20 6 2001 2021 35 16 19 39 20 19 26 12 14 46 23 22 Prime Market 48% Prime Market 54% 16 32 36 13 48 49
“Women’s” market: Facts
Women instigate or complete over 80% of all purchases
All consumer purchases 83%
home furnishings 94%
new homes 91%
DIY projects 80%
Consumer electronics 51%
Cars 60% plus 30%
New bank accounts 89%
Health care 80%
write 80% of cheques
pay 61% of bills
own 53% of all stocks
“ Women’s” market: Facts (cont’d)
2/3rds of working women and 50% of working wives earn over 50% of family income
Constitute 43% of those with net worth over 1/2 million dollars
Influence 75% of financial decisions
Take at least 29% of financial decisions alone
Between 1970 and 1998 female median income rose 63% male 0.6%
By 2000 more women used the web than men, and 6 out of 10 new web users are women
Among wired women 83% are primary financial decision makers
Women constitute over 50% of all corporate purchasing officers, are in a majority in HR and commercial admin officers with attendant purchasing power
“ Women’s” market: Facts (cont’d)
Women directly control 51% of the wealth in the USA, and this will rise dramatically as the baby boom ages. The baby boomers control 70% of all assets
On average, these women will be widowed at 67, and will most likely survive their husbands by at least 6 and as much as 15-18 years*. During this time they have sole control of the household’s assets.
What no-one knows yet is what kinds of spending patterns we will see from what is undoubtedly the youngest, healthiest, wealthiest, best-educated, most ambitious group of retirees ever
*Dr. Nancy Dailey, When Baby Boom Women Retire, 1998, p.39.
How they buy I: Women and men are different!
Smell: relatively insensitive
Touch: the most sensitive man is less sensitive than the least sensitive woman
Are all the way on or in a resting state of 30%
Info processing: men eliminate
hearing: discomfort level half that of men
Smell: more sensitive
People orientation: by age 3 days baby girls exhibit 2x the eye contact of boys
Are never off, their resting state is 90%
Info processing: women integrate (women notice the little things …brain difference…the details not right or wrong, just is)
How women buy II: Women and men are different!
Want to get away from authority and family
pride in self-reliance
hear a language of status and independence
communicate to obtain info
write scripts that are direct and linear
buy and move on, limited research
Women want to connect
pride in team accomplishment
hear a language of connection and intimacy
communicate to create relationships, encourage interaction and exchange feelings
write scripts that have many conflicts, many climaxes and many endings
research facts and opinions (personal network)
How Women buy: Some implications
Women are demanding in making the initial purchase in a category, they recoup their time investment by staying more loyal to the brand they’ve chosen in subsequent purchase cycles increasing retention rates
Word-of-mouth recommendation is more prevalent among women, they are more likely to recommend to others those brands or salespeople that impress them favorably -- in essence, free marketing of the most powerful kind.
The big risk: Companies as have found that marketing and service improvements designed to enhance brand appeal among women have resulted in greater customer satisfaction among men as well. The reason? In many respects, women want all the same things as men - and then some. Accordingly, when you meet the higher expectations of women, you are more than fulfilling the demands of men. Experience indicates that men do not abandon
While in many categories, the traditional male targets are saturated, the corresponding women’s segments are untapped and virtually uncontested by competition.
Then add the Boomers: The boomers have the money...
70% of all wealth plus multi-trillion dollar wealth transfer by inheritance to come
over 50% of discretionary income
79% own homes
41% of new cars and 50% of luxury cars
women over 65 spend as much as 25-34 year-olds on apparel with 12% growth rate versus 0.1%
aging, female boomers will control most of the money or live in dependent poverty
Partial Research List
Martha Barletta: Marketing to women: How to understand, reach, and increase your share of the world’s largest market segment
Joanne Thomas Yaccato: The 80% Minority (Canada)
Deborah Tannen: You just don’t understand: men and women in conversation
Faith Popcorn: Evolution: the eight truths of marketing to women
Tom Peters: Re-imagine
Andrea Learned: ReachWomen
Mary Lou Quinlan: Just ask a woman: cracking the code of what women want and how they buy
Judy Hoyt Pettigrew: Women mean business: the secret of selling to women
Allan & Barbara Pease: Why men don’t listen and women don’t read maps
Dr. Nancy Dailey, When Baby Boom Women Retire, 1998
Positioning Dimensions Occasions Product Attributes Users Lifestyle Image Quality Price Leadership Competitors Product Class Positioning B A E D C H G F
Example: Value Positions
Economy – pay less, get less
Premium – pay more, get more
Better Value – more for the same price
Average Value – average quality & price
Worse Value – pay more, get less
Developing A Positioning Statement
Specify Target Market
Develop a Value Proposition - your distinctive and compelling offer - why this customer segment should do business with you
Supporting Elements - how you will deliver your value proposition /execute and support your offer
What is your company’s positioning statement?
3 Paths to Market Leadership
Operational Excellence – Best total cost
Product Leadership – Best product
Customer Intimacy – Best total solution
Requirements to win?
Minimum requirements to stay?
Why is Value Important? SATISFACTION RETENTION LOYALTY PROFITABILITY VALUE SHAREHOLDER VALUE RELATIONSHIP
Alternatively – If we MUCK UP MISREAD CUSTOMERS & COMPETITORS UNFOCUSED COMPETITIVE POSITION ME-TOO CUSTOMER VALUE CUSTOMER TURNOVER MARKET SHARE INSTABILITY HIGH COST OF CUSTOMER RETENTION & ACQUISITION SPORADIC PROFITS STAGNANT SHAREHOLDER VALUE PRESSURE FOR SHORT RUN RESULTS
Customer Value Creation – Your Opportunity to Differentiate Emotional Elements Organization Interaction Technical Performance Process & Support Core Product or Service REDUCE ADD ++
Lack of caring
Article: - Value Players
Competitive platform & success of value players?
Challenges for non value players?
Your industry & company?
Case: Rebel Creek
Target market selection?
Key implementation issues?
Understand the three steps of developing a target marketing strategy.
Understand the need for market segmentation in today’s business environment.
Know the different dimensions used for segmenting consumer markets.
Understand the bases for segmentation in business-to-business markets.
Explain how marketers evaluate and select potential market segments.
Explain how a targeting strategy is developed.
Understand how a firm develops and implements a positioning strategy.