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Slide 1-1© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKETING STRATEGY FRAMEWORK
Satisfied
Customers
Realized
Organization
Objectives
Market
Selection
Marketing
Programs
Marketing
Strategy
Target
Markets
Slide 1-2© 2013 Pearson Education, Inc. publishing as Prentice Hall
OPPORTUNITY ANALYSIS
Opportunity-
Organization
Matching
Opportunity
Evaluation
Opportunity
Identification
Opportunity analysis consists of
three interrelated activities:
Slide 1-3© 2013 Pearson Education, Inc. publishing as Prentice Hall
OPPORTUNITY ANALYSIS
† Opportunities arise from:
† Opportunity analysis focuses on finding
markets that an organization can profitably
serve
• Identifying new types of buyers
• Creating new ways or means for satisfying
buyer needs
• Uncovering unsatisfied needs of buyers
Opportunity Identification
Slide 1-4© 2013 Pearson Education, Inc. publishing as Prentice Hall
OPPORTUNITY ANALYSIS
Determines whether an identified market
opportunity is consistent with the definition of
the firm’s business, mission statement, and
distinctive competencies
† Assesses strengths and weaknesses via a SWOT
† Identifies the success requirements
† Rejects those that do not conform to a firm’s
character even if they offer sizable sales and profit
Opportunity-Organization Matching
Slide 1-5© 2013 Pearson Education, Inc. publishing as Prentice Hall
OPPORTUNITY ANALYSIS
• Market sales
potential estimates
• Sales forecasts
• Budgets
Matches the attractiveness of an
opportunity with the potential
for uncovering a market niche,
which depends on:
• Competitive activity
• Buyer requirements
• Market demand
• Supplier sources
• Environmental
forces
• Organizational
capabilities
Consists of:
Opportunity Evaluation
Qualitative Quantitative
Slide 1-6© 2013 Pearson Education, Inc. publishing as Prentice Hall
EXHIBIT 4.1: OPPORTUNITY EVALUATION
MATRIX—ATTRACTIVENESS CRITERIA
Market Niche
Criterion
Competitive
Activity
Buyer
Requirements
Environmental
Forces
Organizational
Capabilities
Demand/
Supply
Buyer
Type
·How many and
which firms
compete for this
user group?
·What affects buyer
willingness and
ability to buy?
·Do different buyer
types have
different levels of
effective demand?
·How important are
adequate sources
of supply?
·How sensitive are
different buyers to
these forces?
·Can we gain
access to buyers
through marketing
mix variables?
·Can we supply
these buyers?
Buyer
Needs
·Which firms are
satisfying which
buyer needs?
·Are there buyer
needs that are not
being satisfied?
·What are they?
·Are buyer needs
likely to be
long-term?
·Do we have or
can we acquire
resources to
satisfy buyer
needs?
·How sensitive are
buyer needs to
these forces?
·Which buyer needs
can our firm
profitably satisfy?
Means for
Satisfying
Buyer Needs
·What are the
strategies being
employed to
satisfy buyer
needs?
·Is the technology
for satisfying
buyer needs
changing?
·To what extent are
the means for
satisfying buyer
needs affected by
supply sources?
·Is the demand for
the means for
satisfying buyer
needs changing?
·How sensitive are
the means for
satisfying buyer
needs to these
forces?
·Do we have the
financial, human,
technological,
and marketing
expertise to
satisfy buyer
needs?
Slide 1-7© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET
SEGMENTATION, AND MARKET TARGETING
Slide 1-8© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
A market consists of the
prospective buyers
(individuals or organizations)
willing and able to purchase
the existing or potential
offering (product or service)
of an organization.
Slide 1-9© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
Focus on buyers, not products or
services
Implications for marketers:
Exchanges cannot occur unless
buyers are able and willing to
purchase a product or service
Purchases consist of offerings, not
products or services, due to the
values or benefits that buyers derive
from them
Buyers
Offerings
Effective
Demand
Slide 1-10© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
View as a composite of mini- or regional
markets to:
• Identify competitors and how
they compete
• Monitor changes in sales
volume
• Assess differences between
buyers’ taste preferences and
the competition
Market Structure
Slide 1-11© 2013 Pearson Education, Inc. publishing as Prentice Hall
EXHIBIT 4.2: MARKET STRUCTURE
FOR COFFEE IN THE UNITED STATES
New England Midwest Southeast Northwest
Caffeinated
Ground Whole Bean Instant
Institutional Sales
(restaurants, institutions, etc.)
Decaffeinated
…
… …
…
Total U. S. Coffee Market
Retail Sales
(retail food stores)
Slide 1-12© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
Market
Share
Firm, Offering, or Brand Sales
($ or #)
= = X%
Market Sales
($ or #)
Market Share
Market share is the sales dollars ($) or units(#)
of a firm, offering, or brand divided by the sales
of the “market,” expressed as a percentage (%):
Slide 1-13© 2013 Pearson Education, Inc. publishing as Prentice Hall
Coffee
Dollar Sales
Atlantic
Blend Sales
Market
Definition
WHAT IS A MARKET?
Market
Share
Slide 1-14© 2013 Pearson Education, Inc. publishing as Prentice Hall
WHAT IS A MARKET?
† A served market is one in which a company,
offering, or brand competes for targeted customers
† Marketing managers often look closely at served
market share when considering strategic options
Use a market development strategy
Use either a product development
or market penetration strategy
“High” Served
Market Share
“Low” Served
Market Share
Market Share
Slide 1-15© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET
SEGMENTATION
CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET
SEGMENTATION, AND MARKET TARGETING
Slide 1-16© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
† Each segment possesses a homogeneous characteristic
that relates to its purchasing behavior and response
to a marketing program
† “Cannot be all things to all people”
Market Segmentation
† Information technology and flexible manufacturing and
service delivery systems can create “segments of one”
† A technique that involves breaking down or building up
of potential buyers into groups, which are called
market segments
Slide 1-17© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
† Tailors products and services to the tastes
and preferences of individual buyers in high
volumes and at a relatively low cost
† Combines the efficiencies of mass
production and the effectiveness of
designing offerings to a single buyer’s
unique wants
Mass Customization
Slide 1-18© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
† Identifies opportunities for new product
development
† Helps in the design of marketing programs
that are most effective for reaching
homogeneous groups of consumers
† Improves the allocation of marketing
resources
Benefits of Market Segmentation
Slide 1-19© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
Behavioral
Variables
• Gender
• Age
Consumers Industrial Buyers
Socioeconomic
Characteristics
Behavioral
Variables
Socioeconomic
Characteristics
• Occupation
• Income
• Family Life Cycle
• Education
• Location
• Benefits Sought
• Usage
• Lifestyle
• Attitudes
• Company Size
• Location
• Industry
• Customers Served
• Purchasing
Objectives
• Product
Benefits
Bases for Market Segmentation
Psychographic
Variables
Slide 1-20© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
† Who are they?
Need to answer six buyer-related questions:
† 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?
Requirements for Effective Market Segmentation
Slide 1-21© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET SEGMENTATION
Measurable Differentiable
Accessible Substantial
Requirements for Effective Market Segmentation
Slide 1-22© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET
SEGMENTATION, AND MARKET TARGETING
Slide 1-23© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
Marketers ask three questions after a
market has been segmented:
Where to
Compete?
How to
Compete?
When to
Compete?
Slide 1-24© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
† Question focuses on which market
segments should be chosen for
marketing efforts
† Market targeting (or target marketing)
is the specification of the segment(s)
the organization wishes to pursue
Where to Compete?
Slide 1-25© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
† Question focuses on how many market
segments the organization will pursue
and the marketing strategies to employ
† Two market targeting approaches are:
Differentiated
Marketing
Concentrated
Marketing
How to Compete?
Slide 1-26© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
Differentiated Marketing
† Simultaneously pursues several different
market segments with a unique marketing
strategy for each segment
† Manages multiple products across multiple
market segments, which increases
marketing-related expenditures
How to Compete?
Slide 1-27© 2013 Pearson Education, Inc. publishing as Prentice Hall
MARKET TARGETING
Concentrated Marketing
† Focuses on a single market segment, sometimes
marketing one product to one segment
† More commonly, offers one or more product lines
to a single market segment
† Provides operating economies
† Limits growth opportunities if the segment size
declines
How to Compete?
Slide 1-28© 2013 Pearson Education, Inc. publishing as Prentice Hall
EXHIBIT 4.3: NOKIA’S DIFFERNTIATED
MARKETING STRATEGY
Series 3000
Series 5000
Series 1000/
Series 2000
Series 6000
Series 7000
Series 8000
Slide 1-29© 2013 Pearson Education, Inc. publishing as Prentice Hall
EXHIBIT 4.1: OPPORTUNITY EVALUATION
MATRIX—ATTRACTIVENESS CRITERIA
Market Niche
Criterion
Competitive
Activity
Buyer
Requirements
Environmental
Forces
Organizational
Capabilities
Demand/
Supply
Buyer
Type
·How many and
which firms
compete for this
user group?
·What affects buyer
willingness and
ability to buy?
·Do different buyer
types have
different levels of
effective demand?
·How important are
adequate sources
of supply?
·How sensitive are
different buyers to
these forces?
·Can we gain
access to buyers
through marketing
mix variables?
·Can we supply
these buyers?
Buyer
Needs
·Which firms are
satisfying which
buyer needs?
·Are there buyer
needs that are not
being satisfied?
·What are they?
·Are buyer needs
likely to be
long-term?
·Do we have or
can we acquire
resources to
satisfy buyer
needs?
·How sensitive are
buyer needs to
these forces?
·Which buyer needs
can our firm
profitably satisfy?
Means for
Satisfying
Buyer Needs
·What are the
strategies being
employed to
satisfy buyer
needs?
·Is the technology
for satisfying
buyer needs
changing?
·To what extent are
the means for
satisfying buyer
needs affected by
supply sources?
·Is the demand for
the means for
satisfying buyer
needs changing?
·How sensitive are
the means for
satisfying buyer
needs to these
forces?
·Do we have the
financial, human,
technological,
and marketing
expertise to
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Up mie sep 7 1 29

  • 1. Slide 1-1© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKETING STRATEGY FRAMEWORK Satisfied Customers Realized Organization Objectives Market Selection Marketing Programs Marketing Strategy Target Markets
  • 2. Slide 1-2© 2013 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS Opportunity- Organization Matching Opportunity Evaluation Opportunity Identification Opportunity analysis consists of three interrelated activities:
  • 3. Slide 1-3© 2013 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS † Opportunities arise from: † Opportunity analysis focuses on finding markets that an organization can profitably serve • Identifying new types of buyers • Creating new ways or means for satisfying buyer needs • Uncovering unsatisfied needs of buyers Opportunity Identification
  • 4. Slide 1-4© 2013 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS Determines whether an identified market opportunity is consistent with the definition of the firm’s business, mission statement, and distinctive competencies † Assesses strengths and weaknesses via a SWOT † Identifies the success requirements † Rejects those that do not conform to a firm’s character even if they offer sizable sales and profit Opportunity-Organization Matching
  • 5. Slide 1-5© 2013 Pearson Education, Inc. publishing as Prentice Hall OPPORTUNITY ANALYSIS • Market sales potential estimates • Sales forecasts • Budgets Matches the attractiveness of an opportunity with the potential for uncovering a market niche, which depends on: • Competitive activity • Buyer requirements • Market demand • Supplier sources • Environmental forces • Organizational capabilities Consists of: Opportunity Evaluation Qualitative Quantitative
  • 6. Slide 1-6© 2013 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 4.1: OPPORTUNITY EVALUATION MATRIX—ATTRACTIVENESS CRITERIA Market Niche Criterion Competitive Activity Buyer Requirements Environmental Forces Organizational Capabilities Demand/ Supply Buyer Type ·How many and which firms compete for this user group? ·What affects buyer willingness and ability to buy? ·Do different buyer types have different levels of effective demand? ·How important are adequate sources of supply? ·How sensitive are different buyers to these forces? ·Can we gain access to buyers through marketing mix variables? ·Can we supply these buyers? Buyer Needs ·Which firms are satisfying which buyer needs? ·Are there buyer needs that are not being satisfied? ·What are they? ·Are buyer needs likely to be long-term? ·Do we have or can we acquire resources to satisfy buyer needs? ·How sensitive are buyer needs to these forces? ·Which buyer needs can our firm profitably satisfy? Means for Satisfying Buyer Needs ·What are the strategies being employed to satisfy buyer needs? ·Is the technology for satisfying buyer needs changing? ·To what extent are the means for satisfying buyer needs affected by supply sources? ·Is the demand for the means for satisfying buyer needs changing? ·How sensitive are the means for satisfying buyer needs to these forces? ·Do we have the financial, human, technological, and marketing expertise to satisfy buyer needs?
  • 7. Slide 1-7© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
  • 8. Slide 1-8© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? A market consists of the prospective buyers (individuals or organizations) willing and able to purchase the existing or potential offering (product or service) of an organization.
  • 9. Slide 1-9© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? Focus on buyers, not products or services Implications for marketers: Exchanges cannot occur unless buyers are able and willing to purchase a product or service Purchases consist of offerings, not products or services, due to the values or benefits that buyers derive from them Buyers Offerings Effective Demand
  • 10. Slide 1-10© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? View as a composite of mini- or regional markets to: • Identify competitors and how they compete • Monitor changes in sales volume • Assess differences between buyers’ taste preferences and the competition Market Structure
  • 11. Slide 1-11© 2013 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 4.2: MARKET STRUCTURE FOR COFFEE IN THE UNITED STATES New England Midwest Southeast Northwest Caffeinated Ground Whole Bean Instant Institutional Sales (restaurants, institutions, etc.) Decaffeinated … … … … Total U. S. Coffee Market Retail Sales (retail food stores)
  • 12. Slide 1-12© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? Market Share Firm, Offering, or Brand Sales ($ or #) = = X% Market Sales ($ or #) Market Share Market share is the sales dollars ($) or units(#) of a firm, offering, or brand divided by the sales of the “market,” expressed as a percentage (%):
  • 13. Slide 1-13© 2013 Pearson Education, Inc. publishing as Prentice Hall Coffee Dollar Sales Atlantic Blend Sales Market Definition WHAT IS A MARKET? Market Share
  • 14. Slide 1-14© 2013 Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? † A served market is one in which a company, offering, or brand competes for targeted customers † Marketing managers often look closely at served market share when considering strategic options Use a market development strategy Use either a product development or market penetration strategy “High” Served Market Share “Low” Served Market Share Market Share
  • 15. Slide 1-15© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
  • 16. Slide 1-16© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION † Each segment possesses a homogeneous characteristic that relates to its purchasing behavior and response to a marketing program † “Cannot be all things to all people” Market Segmentation † Information technology and flexible manufacturing and service delivery systems can create “segments of one” † A technique that involves breaking down or building up of potential buyers into groups, which are called market segments
  • 17. Slide 1-17© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION † Tailors products and services to the tastes and preferences of individual buyers in high volumes and at a relatively low cost † Combines the efficiencies of mass production and the effectiveness of designing offerings to a single buyer’s unique wants Mass Customization
  • 18. Slide 1-18© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION † Identifies opportunities for new product development † Helps in the design of marketing programs that are most effective for reaching homogeneous groups of consumers † Improves the allocation of marketing resources Benefits of Market Segmentation
  • 19. Slide 1-19© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION Behavioral Variables • Gender • Age Consumers Industrial Buyers Socioeconomic Characteristics Behavioral Variables Socioeconomic Characteristics • Occupation • Income • Family Life Cycle • Education • Location • Benefits Sought • Usage • Lifestyle • Attitudes • Company Size • Location • Industry • Customers Served • Purchasing Objectives • Product Benefits Bases for Market Segmentation Psychographic Variables
  • 20. Slide 1-20© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION † Who are they? Need to answer six buyer-related questions: † 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? Requirements for Effective Market Segmentation
  • 21. Slide 1-21© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION Measurable Differentiable Accessible Substantial Requirements for Effective Market Segmentation
  • 22. Slide 1-22© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
  • 23. Slide 1-23© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING Marketers ask three questions after a market has been segmented: Where to Compete? How to Compete? When to Compete?
  • 24. Slide 1-24© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING † Question focuses on which market segments should be chosen for marketing efforts † Market targeting (or target marketing) is the specification of the segment(s) the organization wishes to pursue Where to Compete?
  • 25. Slide 1-25© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING † Question focuses on how many market segments the organization will pursue and the marketing strategies to employ † Two market targeting approaches are: Differentiated Marketing Concentrated Marketing How to Compete?
  • 26. Slide 1-26© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING Differentiated Marketing † Simultaneously pursues several different market segments with a unique marketing strategy for each segment † Manages multiple products across multiple market segments, which increases marketing-related expenditures How to Compete?
  • 27. Slide 1-27© 2013 Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING Concentrated Marketing † Focuses on a single market segment, sometimes marketing one product to one segment † More commonly, offers one or more product lines to a single market segment † Provides operating economies † Limits growth opportunities if the segment size declines How to Compete?
  • 28. Slide 1-28© 2013 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 4.3: NOKIA’S DIFFERNTIATED MARKETING STRATEGY Series 3000 Series 5000 Series 1000/ Series 2000 Series 6000 Series 7000 Series 8000
  • 29. Slide 1-29© 2013 Pearson Education, Inc. publishing as Prentice Hall EXHIBIT 4.1: OPPORTUNITY EVALUATION MATRIX—ATTRACTIVENESS CRITERIA Market Niche Criterion Competitive Activity Buyer Requirements Environmental Forces Organizational Capabilities Demand/ Supply Buyer Type ·How many and which firms compete for this user group? ·What affects buyer willingness and ability to buy? ·Do different buyer types have different levels of effective demand? ·How important are adequate sources of supply? ·How sensitive are different buyers to these forces? ·Can we gain access to buyers through marketing mix variables? ·Can we supply these buyers? Buyer Needs ·Which firms are satisfying which buyer needs? ·Are there buyer needs that are not being satisfied? ·What are they? ·Are buyer needs likely to be long-term? ·Do we have or can we acquire resources to satisfy buyer needs? ·How sensitive are buyer needs to these forces? ·Which buyer needs can our firm profitably satisfy? Means for Satisfying Buyer Needs ·What are the strategies being employed to satisfy buyer needs? ·Is the technology for satisfying buyer needs changing? ·To what extent are the means for satisfying buyer needs affected by supply sources? ·Is the demand for the means for satisfying buyer needs changing? ·How sensitive are the means for satisfying buyer needs to these forces? ·Do we have the financial, human, technological, and marketing expertise to satisfy buyer needs?