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MARKETING EVALUATION
Presented by-
Ayisha Kowsar A
MBA
MARKET EVALUATION
A MARKET ANALYSIS STUDIES THE
ATTRACTIVENESS AND THE DYNAMICS
OF A SPECIAL MARKET WITHIN A
SPECIAL INDUSTRY. IT IS PART OF THE
INDUSTRY ANALYSIS AND THUS IN TURN
OF THE GLOBAL ENVIRONMENTAL
ANALYSIS. THROUGH ALL OF THESE
ANALYSES THE STRENGTHS,
WEAKNESSES, OPPORTUNITIES AND
THREATS (SWOT) OF A COMPANY CAN
BE IDENTIFIED
MARKTE EVALUATION IMPORTANCE
 Market size (current and future)
 Market trends
 Market growth rate
 Market profitability
 Industry cost structure
 Distribution channels
 Key success factors
 Key success Details
Market size
 The market size is defined through the market volume and the market
potential. The market volume exhibits the totality of all realized sales volume
of a special market.
 Government data
 Trade association data
 Financial data from major players
 Customer surveys
Market trends
 Market trends are the upward or downward movement of a market, during a
period of time
 Customer analysis
 Choice modelling
 Competitor analysis
 Risk analysis
 Product research
 Advertising the research
 Marketing mix modeling
 Simulated Test Marketing[5]
Market growth rate
 A simple means of forecasting the market growth rate is
to extrapolate historical data into the future. While this
method may provide a first-order estimate, it does not
predict important turning points. A better method is to
study market trends and sales growth in complementary
products.
Market opportunity
 A market opportunity product or a service, based on
either one technology or several, fulfills the need(s) of a
(preferably increasing) market better than the competition
and better than substitution-technologies within the given
environmental frame (e.g. society, politics, legislation,
etc.).
Market profitability
 While different organizations in a market will have
different levels of profitability, they are all similar to
different market conditions. Michael Porter devised a
useful framework for evaluating the attractiveness of an
industry or market. This framework, known as Porter five
forces analysis, identifies five factors that influence the
market profitability:
 Buyer power
 Supplier power
 Barriers to entry
 Threat of substitute products
 Rivalry among firms in the industry[citation needed]
Industry cost structure
 The cost structure is important for identifying key factors for success.
To this end, Porter's value chain model is useful for determining
where value is added and for isolating the costs.
Distribution channels
 Examining the following aspects of the distribution system may help
with a market analysis:
 Existing distribution channels - can be described by how direct they
are to the customer.
 Trends and emerging channels - new channels can offer the
opportunity to develop a competitive advantage.
 Channel power structure - for example, in the case of a product
having little brand equity, retailers have negotiating power over
manufacturers and can capture more margin.
Success factors
 The key success factors are those elements that are necessary in
order for the firm to achieve its marketing objectives. A few examples
of such factors include:
 Access to essential unique resources
 Ability to achieve economies of scale
 Access to distribution channels
 Technological progress
Marketing evaluation

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Marketing evaluation

  • 3. A MARKET ANALYSIS STUDIES THE ATTRACTIVENESS AND THE DYNAMICS OF A SPECIAL MARKET WITHIN A SPECIAL INDUSTRY. IT IS PART OF THE INDUSTRY ANALYSIS AND THUS IN TURN OF THE GLOBAL ENVIRONMENTAL ANALYSIS. THROUGH ALL OF THESE ANALYSES THE STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS (SWOT) OF A COMPANY CAN BE IDENTIFIED
  • 4. MARKTE EVALUATION IMPORTANCE  Market size (current and future)  Market trends  Market growth rate  Market profitability  Industry cost structure  Distribution channels  Key success factors  Key success Details
  • 5. Market size  The market size is defined through the market volume and the market potential. The market volume exhibits the totality of all realized sales volume of a special market.  Government data  Trade association data  Financial data from major players  Customer surveys Market trends  Market trends are the upward or downward movement of a market, during a period of time  Customer analysis  Choice modelling  Competitor analysis  Risk analysis  Product research  Advertising the research  Marketing mix modeling  Simulated Test Marketing[5]
  • 6. Market growth rate  A simple means of forecasting the market growth rate is to extrapolate historical data into the future. While this method may provide a first-order estimate, it does not predict important turning points. A better method is to study market trends and sales growth in complementary products. Market opportunity  A market opportunity product or a service, based on either one technology or several, fulfills the need(s) of a (preferably increasing) market better than the competition and better than substitution-technologies within the given environmental frame (e.g. society, politics, legislation, etc.).
  • 7. Market profitability  While different organizations in a market will have different levels of profitability, they are all similar to different market conditions. Michael Porter devised a useful framework for evaluating the attractiveness of an industry or market. This framework, known as Porter five forces analysis, identifies five factors that influence the market profitability:  Buyer power  Supplier power  Barriers to entry  Threat of substitute products  Rivalry among firms in the industry[citation needed]
  • 8. Industry cost structure  The cost structure is important for identifying key factors for success. To this end, Porter's value chain model is useful for determining where value is added and for isolating the costs. Distribution channels  Examining the following aspects of the distribution system may help with a market analysis:  Existing distribution channels - can be described by how direct they are to the customer.  Trends and emerging channels - new channels can offer the opportunity to develop a competitive advantage.  Channel power structure - for example, in the case of a product having little brand equity, retailers have negotiating power over manufacturers and can capture more margin. Success factors  The key success factors are those elements that are necessary in order for the firm to achieve its marketing objectives. A few examples of such factors include:  Access to essential unique resources  Ability to achieve economies of scale  Access to distribution channels  Technological progress