Bus 188 Part 2

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Bus 188 Part 2

• The Marketing Situation Analysis

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Part 2 - The Marketing Situation Analysis

• Topic 5. Define Your market
• Topic 6. Personal Audit
• Topic 7. Competition

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Topic 5Define Your Market

• 1. Estimate Demand
• Demand is a forecast of future buyer behavior
  characterized by

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Demand is...

• willingness of potential buyers to purchase a
  given amount of goods and services at a given
  price at a given time under given
  circumstances...change these factors and demand
  will respond.

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Demand

• it presumes the ability to pay.
• demand may be split amongst competitors.
• Past demand (actual) has been recorded and can be
  looked up. (market shares).
• potential new users can be estimated.

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2. Factors Affecting Buyer Behavior

• of available substitutes?
• Quality of available substitutes?
• Can the buyer do without the product?
• Can the buyer postpone the purchase?
• Is it a hi or lo-involvement decision?

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Factors Affecting Buyer Behavior

• How motivated is the buyer?
• How strong are the competitors efforts?
• Seasonality?
• Other factors?

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General Buyer Behavior is a Result Of

• Individual and Internal Factors
• Group and External Factors

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Individual Internal Factors affecting Buyer
Behavior

• Personality
• Learning
• Perception
• Motivation
• Attitudes

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Group External Affects on Buyer Behavior

• Culture
• Subculture
• Social Class
• Peer Groups

• Reference Groups
• Physical Environment
• Political/Legal
• Marketers

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A. Describing Your Market (s)

• Decision Making Units - DMU's, basic element
  making up your potential market
• Person (individual)
• Informal Groups (Family, Roommates)
• Formal Groups (Businesses, Resellers, Government
  Agencies)

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B. Set Limits and Define the Potential Market

• Geographics
• Demographics
• Lifestyle
• AIO
• Psychographics

• Brand Loyalty
• Usage Patterns
• Key Benefits
• needs/wants/motivations

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C. Identify Market Segments Target markets

• Demand
• of Customers (DMUs)
• Sales Volume
• Unit Sales Volume
• Market Penetration
• Market Share

• Special Segments
• Niches
• Targeting Strategies
• Undifferentiated
• Differentiated
• Concentrated
• Atomized

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D. Describe The Typical Consumer In Target Market

• Roles Within The Decision Making Units Are

• Decision Maker
• Purchaser
• Influencer
• User

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5. Decision Making Process

• (1) Recognize Needs/Wants - Motivation
• A. Instant Evoked Set
• (2) Information Search
• A. Internal - Evoked Set
• (mental search)
• B. External

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5. Decision Making Process cont.

• (3) Evaluate Alternatives/Make Decisions
• What, Where, When, How To Buy
• (4) Implement Purchase Decisions
• (5) Post-Purchase Evaluation -
• Establish a Probability Of Repeating Same
  Purchase Decision P(Beh.)

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Analyzing Demand

• Lo vs. Hi Involvement Decisions
• Purchase Cycle
• Frequency of purchases
• Purchase Quantity
• per visit, avg. per month, etc.
• Perceptions
• product type, brand issues
• Key Decision Factors

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Analyzing Demand

• Who is the customer?
• geographically
• demographically
• Lifestyle/AIO/Psychographically
• Loyalty/Usage
• Key benefits sought/wants needs

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Average Sales per Customer Visit

• daily weekly monthly
• of customers __________ __________
  __________
• of units __________ __________ __________
• value __________ __________ ______
  ____
• /revenue
• High and Low Range
• ____________ _____________

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Seeking A Competitive Advantage

• 1960s - Marketing Based
• 1970s - Manufacturing Based
• 1980s - Quality Based TQM
• 1990s - Customer Service Based
• SOURCE Total Customer Service the Ultimate
  Weapon by Davidow Uttel Harper Perennial

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Identifying Competitors

• 1. 3 types based on needs filled similarity of
  the product/service
• 2. Unrelated competition for the same .

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Identifying Competitors cont.
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Identifying Competitors cont.

• Unrelated competition for the same .
• (Gross Income Disposable Income Discretionary
  Income)