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Opportunity Analysis,  Market Segmentation, and Market Targeting Mostafa Ewees
In this chapter, you will learn about… 4- <ul><li>Opportunity Analysis </li></ul><ul><li>What is a Market? </li></ul><ul><...
In this chapter, you will learn about… 4- <ul><li>Offering-Market Matrix </li></ul><ul><li>Market Targeting </li></ul><ul>...
Marketing Strategy involves… 4- Selection of Markets Development of programs to reach these markets <ul><li>Customer Satis...
Opportunity Analysis Involves… <ul><li>Opportunity Identification </li></ul><ul><li>Opportunity </li></ul><ul><ul><li>- Or...
Opportunity Identification <ul><li>Identifying new types of classes of buyers </li></ul><ul><li>Uncovering unsatisfied nee...
Opportunity-Organization Matching <ul><li>Determines whether an identified opportunity is consistent with an organization’...
Opportunity Evaluation <ul><li>Qualitative </li></ul><ul><ul><li>Evaluates the likelihood of capitalizing on a market nich...
Opportunity Evaluation Matrix Market niche criterion Competitive Activity Buyer Requirements Demand/ Supply Political, Tec...
A Market Consists of… 4- Prospective buyers willing and able to purchase the existing or potential offering of an organiza...
What is Market Segmentation? <ul><li>The breaking down or building up of potential buyers into groups called  </li></ul><u...
Benefits of  Market Segmentation 4- <ul><li>Identifies opportunities for new product development </li></ul><ul><li>Helps d...
Market Segmentation Variables 4- Market  Segmentation Variables Benefits Sought Psychographic Socioeconomic Behavioral
Fundamental-Buyer Related Questions <ul><li>Who are they? </li></ul><ul><li>What do they want to buy? </li></ul><ul><li>Ho...
Each Market Segment should be… 4- Measurable Differentiable Accessible Substantial
Sample Offering - Market Matrix for Handheld Calculators 4- Market Segments (User Groups) Business Scientific Home School ...
Market Targeting Specifying segments to pursue 4- Differentiated Marketing The organization pursues several different mark...
Market Targeting Specifying segments to pursue 4- Concentrated Marketing The organization focuses on a single market segme...
Market Sales Potential <ul><li>The marketing mix activities and efforts of all organizations </li></ul><ul><li>A set of en...
Market Sales Potential and Profitability Chain Ratio Method <ul><li>Market Sales Potential is a function of: </li></ul><ul...
4- Chain Ratio Method Example <ul><li>Market Potential for cola-flavored carbonated drink in Canada: </li></ul><ul><li>Pop...
What is a Sales Forecast? 4- Level of sales a single organization expects to achieve based on a chosen market strategy and...
Forecasted Sales reflect… <ul><li>The size of the target market </li></ul><ul><li>The marketing mix chosen for the target ...
Making a Sales Forecast 4- <ul><li>M arket potential (M) </li></ul><ul><li>Proportion of market you are  T argeting (T) </...
Making a Sales Forecast Example 4- Total number of potential buyers = 1 Million Target Market (25%) =  x 0.25 Market Cover...
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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 of "Opportunity Analysis, Market Segmentation, and Market Targeting by Mostafa Ewees"

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