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Opportunity Analysis,  Market Segmentation, and Market Targeting by Mostafa Ewees
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Opportunity Analysis, Market Segmentation, and Market Targeting by Mostafa Ewees

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  • Prospective buyers willing and able to purchase the existing Or potential offering of an organization.
  • Transcript

    • 1. Opportunity Analysis, Market Segmentation, and Market Targeting Mostafa Ewees
    • 2. In this chapter, you will learn about… 4-
      • Opportunity Analysis
      • What is a Market?
      • Market Segmentation
        • Benefits of Market Segmentation
        • Bases for Market Segmentation
        • Requirements for Effective Market Segmentation
    • 3. In this chapter, you will learn about… 4-
      • Offering-Market Matrix
      • Market Targeting
      • Market Sales Potential and Profitability
        • Estimating Market Sales Potential
        • Sales and Profit Forecasting
    • 4. Marketing Strategy involves… 4- Selection of Markets Development of programs to reach these markets
      • Customer Satisfaction
      • Organizational Objectives
    • 5. Opportunity Analysis Involves…
      • Opportunity Identification
      • Opportunity
        • - Organization Matching
      • Opportunity Evaluation
      4-
    • 6. Opportunity Identification
      • Identifying new types of classes of buyers
      • Uncovering unsatisfied needs of buyers
      • Creating new ways or means for satisfying buyer needs
      4-
    • 7. Opportunity-Organization Matching
      • Determines whether an identified opportunity is consistent with an organization’s business, mission, and competencies
      • SWOT Analysis often employed
      • Financially attractive opportunities are sometimes rejected at this stage due to lack of match
      4-
    • 8. Opportunity Evaluation
      • Qualitative
        • Evaluates the likelihood of capitalizing on a market niche
      • Quantitative
        • Yields estimates of market sales potential and company sales forecasts
      4- Has both qualitative & quantitative phases
    • 9. Opportunity Evaluation Matrix Market niche criterion Competitive Activity Buyer Requirements Demand/ Supply Political, Technological, and Socioeconomic Forces Organizational Capabilities Buyer Type Buyer Needs Means for Buyer Needs
    • 10. A Market Consists of… 4- Prospective buyers willing and able to purchase the existing or potential offering of an organization. Focus on Buyers Effective Demand “ Offering” rather than product or service Market Share
    • 11. What is Market Segmentation?
      • The breaking down or building up of potential buyers into groups called
      • Market Segments
      4-
    • 12. Benefits of Market Segmentation 4-
      • Identifies opportunities for new product development
      • Helps design marketing programs most effective for reaching homogenous groups of buyers
      • Improves allocation of marketing resources
    • 13. Market Segmentation Variables 4- Market Segmentation Variables Benefits Sought Psychographic Socioeconomic Behavioral
    • 14. Fundamental-Buyer Related Questions
      • Who are they?
      • What do they want to buy?
      • How do they want to buy?
      • When do they want to buy?
      • Where do they want to buy?
      • Why do they want to buy?
      4-
    • 15. Each Market Segment should be… 4- Measurable Differentiable Accessible Substantial
    • 16. Sample Offering - Market Matrix for Handheld Calculators 4- Market Segments (User Groups) Business Scientific Home School Simple Moderate Complex Very complex
    • 17. Market Targeting Specifying segments to pursue 4- Differentiated Marketing The organization pursues several different market segments simultaneously Organization Market
    • 18. Market Targeting Specifying segments to pursue 4- Concentrated Marketing The organization focuses on a single market segment Organization Market
    • 19. Market Sales Potential
      • The marketing mix activities and efforts of all organizations
      • A set of environmental conditions
      4- Maximum level of sales available to all firms serving a defined market in a specific time period given:
    • 20. Market Sales Potential and Profitability Chain Ratio Method
      • Market Sales Potential is a function of:
      • The number of Prospective Buyers (B)
      • The Quantity Purchased (Q)
      • The Price of an Average Unit (P)
      4- Market Sales Potential = B x Q x P
    • 21. 4- Chain Ratio Method Example
      • Market Potential for cola-flavored carbonated drink in Canada:
      • Population (P) = 32,000,000
      • Proportion of P that consumes carbonated beverages (R) = 95%
      • Proportion of R that consumes cola-flavored carbonated beverages (C) = 70%
      • Average number of liters of cola consumed per cola-consumer per week (L) = 1.7 liters
      • Average price per liter of cola (A) = $ 0.50
      • Market Sales Potential = P x R x C x L x A
      • = 32 Million x 0.95 x 0.70 x 1.7 x 52 x 0.50 = $94.06 Million
    • 22. What is a Sales Forecast? 4- Level of sales a single organization expects to achieve based on a chosen market strategy and an assumed competitive environment.
    • 23. Forecasted Sales reflect…
      • The size of the target market
      • The marketing mix chosen for the target market
      • The assumed number of competitors and competitive intensity in the target market
      4-
    • 24. Making a Sales Forecast 4-
      • M arket potential (M)
      • Proportion of market you are T argeting (T)
      • Extent of market C overage (C)
      • Number of U nits expected to sell per customer during the year (U)
      • Average P rice per unit (P)
      Sales Forecast is a function of: Sales Forecast = M x T x C x U x P
    • 25. Making a Sales Forecast Example 4- Total number of potential buyers = 1 Million Target Market (25%) = x 0.25 Market Coverage (75%) = x 0.75 Units purchased per year (20) = x 20 Average Price ($10) = x $10 Forecasted Sales = $ 37.5 Million

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