Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                

Lesson 4 1

Download as pdf or txt
Download as pdf or txt
You are on page 1of 33

Lesson 4 :

Market Opportunity
Analysis
BY: MS. CYNTHIA BALDARAJE
TOPICS
01. 02.
Strategic and The Marketing
Tactical Marketing Environment

03. 04.
Market
Segmentation, ACTIVITIES
Targeting and
Positioning
01.
STRATEGIC AND
TACTICAL
MARKETING
Topic 1: Strategic and Tactical Marketing

Strategic Marketing - is defined as the general


plan of action aligned with the company’s vision
and goals. This is carefully thought-out course
of action developed for the purpose of
achieving desired result such as profitability
and high productivity. It puts heavier emphasis
on external environment scanning to develop
strategies to respond to the environmental
forces that confront the company. It takes
longer time frame, usually 3 to 5 years.
Topic 1: Strategic and Tactical Marketing

MISSION SITUATION OBJECTIVE


IDENTIFICATION ANALYSIS SETTING

STRATEGY MARKETING
EVALUATION & STRATEGY
CONTROL DEVELOPMENT

seek to establish a
clear and concerted
“Strategic Marketing Process” direction for all
marketing activities
of an organization
Topic 1: Strategic and Tactical Marketing
Step 1: Mission Identification
The Company’s mission statement is articulated. A Note that Mission and
mission statement defines what an organization is, Vision Statement has been
why it exists, its reasons for being, its primary pointed out in previous
customers, the products and services it produces subject, Organization and
and its geographical area of operation. Management. The General
Mission or Vision of the
For example, Procter and Gamble’s mission
Organization is always
statement is “To provide branded products and taken into consideration in
services for superior quality and value that improve strategic marketing mission
the lives of the world’s consumers. As a result, identification.
consumers will reward us with industry leadership in
sales, profit, and value creation, allowing our people,
shareholders, and the communities in which we live
and work to prosper.”
Topic 1: Strategic and Tactical Marketing
Step 2: Situation Analysis
Assess and evaluates the market, customer, competitors,
and the company internal and external environment. The
objective is to identify the company’s strengths and
weaknesses, as well as the available opportunities
and possible threats.

Step 3: Objective Setting


Objectives are marketing targets that are specific,
measurable, attainable, realistic and time
bound. (SMART). These targets includes sales revenues,
market share and profits. These are used as basis for strategy
selection and development
Topic 1: Strategic and Tactical Marketing
Cost Leadership - a strategy primarily for
Step 4: Marketing Strategy achieving low cost of leadership among
Development industry competitors. Cost leadership can
Involves market segmentation, be achieved through low cost supply
contracts, overhead expense control,
identification of target market, economies of scale, and comprehensive
positioning, selection of brand cost cutting efforts, among others.
marketing strategies, and the Differentiation - seeks to achieve superior
translation of strategies into product attributes and features that are
different from industry competitors. The
action plans. Strategies can be results in pronounced consumer
broadly classified into three preference for the company’s products.
categories: Cost Leadership, Focused- efforts are concentrated on a
relatively small but profitable market. The
Differentiation, and focused. development of products and services
primarily ensures that the needs and wants
of this market are address and that
satisfaction is provided
Topic 1: Strategic and Tactical Marketing

Tactical Marketing – refers to actions a


company undertakes in order to execute an
organization’s strategy. It also refers to a
detailed action program covering a shorter
period.
Topic 1: Strategic and Tactical Marketing

Tactical
Marketing Process

❑ compliment the
strategic
marketing process.

❑ determine the
means or tactics
to implement the
strategies.
Topic 1: Strategic and Tactical Marketing

Action Plan/Tactics
Is the sequential series of marketing
activities. It includes timetable for
each activity, pinpointed
responsibilities and accountabilities
for each, and the corresponding
budgets. Often times, it is necessary
to utilize two or more action plans
to ensure
Topic 1: Strategic and Tactical Marketing
Marketing Activities - refers to the things an Examples are: email
organization undertakes to boost the sales of the marketing, surveys,
products or services and also to improve its brand. It advertising, events, etc.
allows the company to understand customers better
and generate more leads.
-
Activity Timetables - a schedule or list of timeline The Marketing Personnel
tactical activities that bring a particular marketing may also use Gantt Chart
for this scheduling system
strategy.
Topic 1: Strategic and Tactical Marketing
Responsibility/Accountability – the person or
employee responsible in the performance of certain Responsibility - obligation to
marketing task or activity and making sure that it is perform a task
Accountability – denotes
carried out. As we see the sample marketing answerability for the
schedule, the person in charge takes the completion of task.
responsibility/accountability in the performance of
the job.
See sample marketing
Activity Budgets - refers to budget allotment schedule table.

Monitoring and Control – the process of measuring


performance and taking corrective action to assure Build mechanism to measure
the success of marketing
that the activity is carried out as planned. activities.
2. MARKETING ENVIRONMENT
Marketing MACROEnvironment –
includes factors that are external to the
Marketing MICROEnvironment –
organization. Essentially these
includes forces that are internal to the
factors neither be influenced nor altered
company or those that are relevant to
by the company, however, they can
its operation. It affect the company’s
affect a company’s operational
ability to build and maintain
viability. They can be opportunities,
sustainable relationships with current
which business organization can take
and prospective customers.
advantage of, or threats, which the
company most avoid
Topic 2: Marketing Environment
•The organization as a whole, it’s
Marketing MicroEnvironment goals and strategies.
•Providers of raw materials, utilities,
labor, capital and equipment.
1. Company •People or organization
2. Suppliers responsible for linking the
3. Market Intermediaries producers/manufacturers to
consumers.
4. Customers •Create the demand for products
5. Competition or services
•Company that offers
6. Publics similar goods or services.
•Individual or entity with an actual
or potential interest in the
company and its products or
services.
Topic 2: Marketing Environment

Marketing MacroEnvironment

1. Economic Macroenvironment
2. Politicolegal Macroenvironment
3. Sociocultural Macroenvironment
4. Demographic Macroenvironment
5. Technological Macroenvironment
6. Natural Macroenvironment
Topic 2: Marketing Environment

Economic Macroenvironment Inflation rate – in simple term


Represents economic factors that is the rising prices of goods and
services.
can directly affect an organization.
Examples of these are inflation rate, Consumer price index –
measures the average change
foreign exchange rate, consumer in price over time that
spending shifts, consumer price consumers pay for a basket of
goods and services.
index, among others. Economic
Exchange rate – the price od
factors are significant because they one currency in terms of
indicate the cost of doing business as another currency.

well as consumer buying power.


Topic 2: Marketing Environment

Politicolegal Macroenvironment Legal factors include


Includes both political and legal laws passed recently as
factors. Highly uncertain political well as legislative bills
situations, such as an impending that could be enacted
into law. The effect of
national election, may affect the these should be in a
stability of businesses. A new company’s planning
administration may have different agenda. Laws that
economic and monetary priorities directly affect the
and may favor a divergent business such as Tax
reform laws, minimum
legislative agenda. Political unrest wage law, franchise laws,
may lead to government etc.
instability.
Topic 2: Marketing Environment

Sociocultural Macroenvironment

Socio cultural forces are links that affects society’s values,


preferences and behavior. These factors are part of the
firm’s marketing efforts, examples are the family, culture,
traditions, language, religion, level of education, customer
preference and the attitude of the society towards foreign
goods or services.
Topic 2: Marketing Environment

Demographic Macroenvironment
❑ Consist of changes in population characteristics. These
include population rate, gender, age, income composition
patterns, civil status and family size.
❑ Populations increase rates can be particularly beneficial for
mass marketing efforts.
❑ Positive shifts in gender and age composition patterns can
be utilized as opportunities for gender-and age specific
products like sanitary napkins and toys.
❑ The growing population with higher income present
opportunities for higher –prices products.
❑ Increase family size can predict a higher demand for
minivans and full sized vans, and lower demand for studio
condominium units.
Topic 2: Marketing Environment

Technological Macroenvironment

Is composed of current and impending technological


change. This is sometimes the single factor that can
cause the rapid acceleration or bring about the
untimely demise of products, services or companies.
The development of electronic word processing
machines, computers with enhance features, smart
phones, internet connection, digital technology, social
media platforms have decrease the popularity of
traditional media. This environment can be both an
opportunity or threat to some businesses.
Topic 2: Marketing Environment

Natural Macroenvironment

Refers to natural resources inputs and environmental


concerns. The uncontrolled used of natural resources,
activities that heightened concerns for the
sustainability of the natural environment. Other
equally pressing issues are pollution, global warming,
and the rampant denudation of forest. Although
legislations is in place, the preservation of the natural
environment is a major factor to consider in the
company’s activities.
3. Market Segmentation
Target Market
-is a group of people to whom
a company intends to sell Stages in Target Marketing
its products and services. 1. MARKET SEGMENTATION
-this group of consumers is 2. MARKET TARGETING
the primary recipient of the 3. MARKET POSITIONING
company’s marketing
efforts.
Topic 3: Market Segmentation

MARKET SEGMENTATION
- is the process of dividing the Homogeneous –
market into homogeneous parts or uniform in nature
group. or essentially alike
or of the same kind
- is a marketing term that refers to
aggregating prospective buyers Segment – divide
into separate parts
into group or segments with or section
common needs and who respond
similarly to a marketing action.
Topic 3: Market Segmentation

Variables in Market Segmentation


(Four Categories)

1. Demographic Segmentation
2. Geographic Segmentation
3. Psychographic Segmentation
4. Behavioristic Segmentation
Topic 3: Market Segmentation

Demographic Segmentation – divides the market into


smaller categories or grouping customers or potential Demography –
customers together by focusing on certain traits such as is the study of
human
age, gender, occupation, family status and income.
populations.

Age – one of the variable that marketers take into


Demographic -
consideration in dividing markets and how this affect a particular
consumption. For instance, when purchasing a mobile sector of a
phone, teenagers may be more interested in social media, population
or camera features of the device; on the other
hand, professionals may be more interested in features
that are helpful in performing their task.
Topic 3: Market Segmentation

Gender – another factor that can affect demographic market


segmentation. For instance, men and women my be highly
concerned with the type of personal hygiene products that they
will buy. Example deodorant, soap, shampoo.
Income – marketers may also divide consumer markets base on
the income they earn. For instance, member of higher-income
classes may be interested in purchasing luxury cars while middle
income earner choose a much cheaper cars.
Religion, race, and nationality - religious beliefs and cultural
identity of consumer are also considered in the segmentation of
markets. Restaurant and food chains cater to their customers in
terms of religion, culture and beliefs.
Topic 3: Market Segmentation

Rural - countryside
Geographic Segmentation - are used areas. Or areas far
away from large towns
for dividing customer markets or cities.
according to the physical features of a
certain area and other related Suburban – (suburb) a
smaller community
characteristics. Geographically segment adjacent to or
a market by area, such as cities, within short distance
from the city
countries, regions, local or international.
You can also break a market down into Urban - highly
rural, suburban, and urban areas. developed and
populated area in the
city or town.
Topic 3: Market Segmentation
Social Status - in most
Psychographic Segmentation - method cases, the social status of
used to group prospective, current or previous, people primarily decides the
products they use and their
customers by their shared personality traits, preferences.
beliefs, values, attitudes, lifestyles and social
class. Activities, interest, and
opinions (AIO) - based on
what activities are the
Personality – few defined personality traits are customers inclined to do,
creative, emotional, friendly, opinionated, topics they are enthusiastically
introvert, extrovert, etc. help organizations to interested with, or what are
filter their customers in a systematic manner. their opinions about specific
matters.

Lifestyle – the way or the condition a particular Attitudes - individual’s


person or group of people is living. Example attitude is molded by the way
products for athletes, persons living in the person is raised and their
cultural background.
condominiums etc.
Topic 3: Market Segmentation Usage Oriented – the
grouping can be on the basis
of how much a product is
4. Behavioristic Segmentation – is done by being consumed by the
organization on the basis of buying patterns of customer. Accordingly we can
customers like usage of frequency, brand loyalty, call them heavy user or light
user group. This is also
benefits needed, during any occasion. It is done called the usage frequency.
keeping in the mind the needs and wants of a
customer base on the behavior that they Loyalty Oriented - markets
show. The behavioral Characteristics can be as are segmented based on the
retention rates of the
follows: customers which is a fair
indication of brand loyalty.
Occasional Oriented - when product is used or
purchased for a particular occasion only. The Benefit sought – Also knows
as benefit segmentation, is
occasion can be repetitive or can be once in a done on the basis of the
lifetime occasion. This is also known as occasion different benefits perceived by
segmentation. different customers.
Topic 3: Market Segmentation
2. TARGET MARKETING – once the company identified possible target segments,
the company or firm further examines its potential as an actual target
market. The company also deliberates whether it has the resources to cater to
that market segment.
Types of Market Targeting Strategies
1. Undifferentiated Marketing – also referred to as Mass Marketing. In this
strategy the company tend to sell a wide variety of products with highly
generalized features. This strategy however, makes it more difficult for companies
to cater to consumers with highly specific needs. Example of company that
practices undifferentiated marketing is SM Malls and Supermarkets.
2. Differentiated marketing – also known as Segment Marketing. Companies
make sure that their products cater to he needs of a particular segment in
consumer market, their products tend to have highly specific features. Examples
are Unilever - Cream Silk, Nestle – Nescafe coffee.
3. Concentrated Marketing – also referred to as Niche Marketing. The firm
tailors its product or services to only one specific segment called niche. Example
are products or services for Vegan people.
Topic 3: Market Segmentation
3. MARKET POSITIONING – refers to the ability to influence consumer
perception.
- establishing the image or identity of a brand or product so that consumer perceive
it in a certain way.
Types of Market Positioning Strategies
• Features-Based Positioning - marketers sell their products on the basis of their
features. For example a brand of shampoo that keeps hair soft and shiny.
• Used-Based Positioning - marketers sell their products or services based on their
possible uses or the types of circumstances when they can be used. For instance a
Seasoning brand that focuses on how it can be used for various types of dishes.
• User-Based Positioning - marketers advertise their products based on the type of
consumer who can benefit from the products. The brand flaunts the famous
personalities who uses their products or services.
• Head-on Competitive Positioning - is used by market challengers or the number 2
brand in the market. The Champion VS the Challenger strategy.
• Lifestyle Positioning - marketers sell their products or services according to the
cultural practices or values that their target markets subscribe to. Targeting certain
family values and traditions.
ACTIVITY Neatness: 2
Completeness: 3
ANSWER THE FOLLOWING QUSTIONS. YOU CAN Creativity: 2
ANSWER IT USING ANY RESOURCES YOU HAVE. Output: 8
Total: 15

1. Discuss how each of the components of


MICROENVIRONMENT can impact the company’s
business.

2. What does MACROENVIRONMENT of marketing


consists of?

You might also like