WHY BUSINESSES FAIL? Lack of objective evaluation - many entrepreneurs lack objectivity No real insight into the market - Lack of information about the demand potential - Present and future size of the market - Knowledge of product life cycle - Timing Inadequate understanding of technical requirements - thorough in studying a new product - technical difficulties – costly problems Poor financial understanding - entrepreneurs are sometime ignorant of costs - victims of inadequate research and planning
WHY BUSINESSES FAIL? Lack of venture uniqueness - a new venture should be unique - product differentiation is needed to separate product from competitor’s Faulty product performance Hasty shortcuts in product development Ineffective marketing and sales efforts Inadequate promotional efforts Inadequate awareness of competitive pressure Possible reactions of competitors -price cuts
MARKET LED MARKETING PROCESS AND THE ROLE OF RESEARCH
MARKETING PLANNING PROCESS Situation Analysis Implementing and Managing Marketing Strategy Designing Marketing Strategy Marketing Program Development TM 2-5
MARKETING STRATEGY DEVELOPMENT Product strategy Positioning strategy Promotion strategy Distribution strategy Target Market Price strategy
UNDERSTANDING MARKETS Mapping the Product-Market Market Structure Analysis Market Forecasts Future Vision About the Market
DEFINING AND ANALYZING MARKETS Define Product-MarketBoundaries and Structures Describe and Analyze End-User Analyze Industry and Value Added System Evaluate Key Competitors Forecast Market Size and Growth Trends
Identifying and Describing Buyers Building Customer Profiles How Buyers Make Choices DESCRIBING AND ANALYZING END-USERS Environmental Influences
ANALYZING COMPETITION Define the competitive arena for the generic, specific, and variant product markets Identify and describe key competitors Evaluate key competitors Anticipate actions by competitors Identify potential competitors
MARKETING IN ACTION INNOVATON AT KINKO’S A copy machine operator at Kinko’s , a major chain of outlet providing copying and document services, noticed that customer demand for copying dropped off in December. People were too pre-occupied with Christmas presents. So he came up with a creative idea. Why not allow customers to use Kinko’s colour copying and binding facilities to create their own customised calendars using their personal photos for each of the months? He prototyped the idea in the store and it proved popular- people could create personalised gifts of calendars featuring favourite family photos. The operator phoned the founder and CEO of Kinko’s, Paul Orfalea, and explained the idea. Orfalea was so excited by it that he rushed out as a service in all outlets. It was very successful and a new product- custom calendars – and a new revenue stream were created.
Strategies for Obtaining Information Internal Data Collect existing information Published information Subscription Strategy alternatives Use standardized research services Single purchase Exploratory Conduct research study Full-scale
Types of Marketing Information Marketing research studies Standardized information services Management information systems Database systems Decision support systems Customer relationship management (CRM) systems Competitor intelligence systems
Show how to position your product to go to market and why customers will prefer you over the competition.
STEP # 1:PRIMARY MARKET RESEARCH Collect the information your self Talk to suppliers Talk to dealers Talk to competitors Talk to potential customers Talk to complimentary services/products Use questionnaires and surveys Talk to bankers, lawyers and accountants Use the Internet
STEP # 2 Based on your market research undertaken, and the strategies developed: