The document discusses market analysis and marketing management. It provides information on dimensions to consider in a market analysis including submarkets, size, growth, profitability, costs, distribution systems, and trends. It discusses how to structure a market analysis through asking questions about these dimensions. It also discusses emerging submarkets, the customer decision process, and risks of high-growth markets.

1. Marketing Management Stephan Langdon, MBA, M.Ed.

2. Week 4

3. PPT 4-3 Dimensions of a Market Analysis Emerging submarkets Actual and potential market and submarket size Market and submarket growth Market and submarket profitability Cost structure Distribution systems Trends and developments Key success factors

4. Emerging Submarkets Relevance! PPT 4-4

5. Chapter 4 - Market and Submarket Analysis PPT 4-5 Marketing the Wrong Product SUV Hybrid

7. Lexus

8. BMW

9. Mercedes

11. Chapter 4 - Market and Submarket Analysis PPT 4-8 Questions to Help Structure a Market Analysis Profitability How intense is the competition among existing firms? Threats from potential entrants and substitute products? Bargaining power of suppliers and customers? Attractive/profitable markets or submarkets? Cost Structure Major cost and value-added components for various types of competitors? Figure 4.1

12. Chapter 4 - Market and Submarket Analysis PPT 4-9 Questions to Help Structure a Market Analysis Distribution Systems Alternative channels of distribution? How are they changing? Market Trends Key Success Factors Key success factors, assets, and competencies to compete successfully? Can assets and competencies of competitors be neutralized? Figure 4.1

13. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-10 Characteristics of Business Markets Fewer, larger buyers Close supplier-customer relationships Professional purchasing Many buying influences Multiple sales calls Derived demand Inelastic demand Fluctuating demand Geographically concentrated buyers Direct purchasing

14. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-11 Buying Situation Straight rebuy Modified rebuy New task

15. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-12 Systems Buying and Selling Turnkey solution desired; Bids solicited System subcomponents assembled Prime Contractors Second-tier Contractors

16. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-13 The Buying Center Initiators Users Influencers Deciders Approvers Buyers Gatekeepers

17. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-14 Sales Strategies Key Buying Influencers SmallSellers Multilevel In-depth Selling Large Sellers

18. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-15 Stages in the Buying Process: Buyphases Problem recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order-routine specification Performance review

19. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-16 Table 7.2 Buygrid Framework

21. Vertical markets

22. Pure play auction sites

23. Spot markets

24. Private exchanges

25. Barter markets

27. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-19 Table 7.3 Vendor Analysis

28. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-20 Establishing Corporate Trust and Credibility Expertise Likeability Trustworthiness

29. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-21 Factors Affecting Buyer-Supplier Relationships Availability of alternatives Importance of supply Supply market dynamism Complexity of supply

30. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 7-22 Categories of Buyer-Seller Relationships Basic buying and selling Bare bones Contractual transaction Customer supply Cooperative systems Collaborative Mutually adaptive Customer is king

31. Chapter 4 - Market and Submarket Analysis PPT 4-23 Detecting Maturity and Decline Price pressure caused by overcapacity and the lack of product differentiation Buyer sophistication and knowledge Substitute products or technologies Saturation No growth sources Customer disinterest

32. A group of organizations (i.e., sellers) offering goods or services that are similar and close substitutes for one another What’s an industry?

33. Is the market vs. industry distinction important?Why or why not?

34. Does industry attractiveness matter? Why or why not?

35. A Tool for Assessing Industry Attractiveness: Porter’s Five Forces Threat of new entrants Bargaining power of suppliers Bargaining power of buyers Rivalry among existing industry firms Threat of substitute products Source: Adapted from Michael E. Porter, “Industry Structure and Competitive Strategy: Keys to Profitability,” Financial Analysts Journal, July-August 1980, p. 33.

36. Porter: Win - Lose “ The implicit essence of Porter’s theory is that corporate competitiveness play is a “win by some - lose by some” play, where the firms which are competitively agile will alone sustain themselves and grow. In a sense Porter’s theory reflects modern corporate Darwinism where only the fittest would survive.”

37. Sixth Force

38. Downes’ Three new Forces

42. New technology

43. Disappointing growth

44. Price instabilityFigure 4.5

45. Political-Legal Environment Increase in business legislation Growth of special interest groups

46. 3-33 MIS Systems Provide Information on Buyer Preferences and Behavior:Dupont’s Pillow Study Pillow Segments 23% - stackers 20% - plumpers 16% - rollers or folders 16% - cuddlers 10% - smashers

47. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 3-34 What is a Marketing Information System (MIS)? A marketing information system consists of people, equipment, and procedures to gather, sort, analyze, evaluate, and distribute needed, timely, and accurate information to marketing decision makers.

48. Internal Records and Marketing Intelligence Order-to-Payment Cycle Sales Information System Databases, Warehousing, Data Mining Marketing Intelligence System

49. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-36 The Measures of Market Demand Potential Market Available Market Penetrated Market Target Market

50. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-37 Figure 4.4 Ninety Types of Demand Measurement

51. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-38 Figure 4.5 Market Demand Functions

52. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-39 Figure 4.5 Market Demand Functions

53. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall 4-40 Table 4.6 Calculating Brand Development Index

54. 41 The Conentional Marketing Mix

55. Plus 4 P’s