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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?
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Pearson Education, Inc. publishing as Prentice Hall WHAT IS A MARKET? CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
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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.
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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
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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
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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)
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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 (%):
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Pearson Education, Inc. publishing as Prentice Hall Coffee Dollar Sales Atlantic Blend Sales Market Definition WHAT IS A MARKET? Market Share
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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
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Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
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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
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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
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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
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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
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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
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Pearson Education, Inc. publishing as Prentice Hall MARKET SEGMENTATION Measurable Differentiable Accessible Substantial Requirements for Effective Market Segmentation
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Pearson Education, Inc. publishing as Prentice Hall MARKET TARGETING CHAPTER 4: OPPORTUNITY ANALYSIS, MARKET SEGMENTATION, AND MARKET TARGETING
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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?
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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?
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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?
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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?
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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?
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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
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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?
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