CHAPTER 3C

Market Opportunity Analysis:

MARKETING MANAGEMENT PROCESS

•OPPORTUNITIES
•MARKET SEGMENTATION
•POSITIONING
•MARKETING MIX
OPPORTUNITY SEEKING
In a business sense, it is an idea
that has commercial potential.

Something you can make money

with, develop a business around it, or
create value with it.
MAJOR WAYS TO SEEK OPPORTUNITIES

Market Penetration
Product Development
Market Development
Diversification
Merger and Acquisition (M&A)
Market Penetration
Growth by having existing
products in an existing market
(where similar products already
exist)
Product Development
Growth by having new
product in an existing market
Market Development
•Growth by having an existing
product, which may or may not
need some modification to
enter a new market
 Diversification
Diversification is a corporate strategy
to enter into a new market or industry in
which the business doesn't currently
operate, while also creating a new
product for that new market.
 Merger and Acquisition
Mergers and Acquisitions (M&A) are
transactions in which the ownership of
companies, other business organizations,
or their operating units are transferred or
consolidated with other entities
 Price
Segmentation
 Price Segmentation
Price Segmentation is simply charging
different prices to different people for
same or similar product or service.
BUSINESS-TO-BUSINESS SEGMENTATION
Industrial or Business-to-Business Segmentation
Examples of BTB Segmentation
VARIABLES Variables
Industry
Demographics Company Size
Geography
User/Non-User status
Operating Variables Customer requirements
Technology
 Purchase Policies
Purchasing Approaches Organization
Decision Criteria
Urgency
Situation Factors Specific Application or End-use
Order size
Compatibility
Personal Characteristics Attitude Towards risk
Loyalty
Market Measurement
 The aim for market measure is to aid
marketing management to understand
market or sales potential which is
relevant to a specific geographical area,
period of time, products and market
segment.
 Criteria for a Valid Market
How many percent of the market would
Need
need the product?
How many percent of those who need
Pay can afford and be willing to pay for the
product?
How many of those interested and
Authority and willing to pay for the product have the
Availability authority or are available to buy the
product?
RESEARCH SUPPLIER
 RESEARCH SUPPLIER
Research Supplier is a marketing research
firm which can offer a client a complete
range of services, including problem
definition or conceptualisation, research
design, data collection and analysis, and
reporting.
INDUSTRIAL PRODUCTS
MARKET MEASUREMENT
ESTIMATING MARKET DEMAND
 MARKET DEMAND
Market Demand is the number of
units demanded by the total number of
customers in a market.
Estimating Market Demand for Canned Sandwich Spread and Light Beer

Food and Beverage

Food Beverages

Non-
Processed Fresh Alcoholic
Alcoholic

Canned Frozen Beer Non-Beer

Spread Non-Spread Regular Light

 Target Market is a fairly homogeneous group of
people or organizations to which a company wishes to
appeal.

Identifying the target market means choosing the

group of audience who could be a potential customer
for the product. By identifying the target group, the
marketing strategies can be prepared and products can
be shaped.
CRITERIA TO CHOOSE MARKET SEGMENT
Criteria for Market Attractiveness
•Market size
•Market growth
•Homogeneity
•Ease of creating awareness
•Purchase authority
•Loyalty level
•Responsiveness of the customers
 Defining the Target Market
A specific way of defining the target
market is to identify the primary market
(PTM), that is the most logical buyer to
generate the bulk sales. Secondary target
market (STM) must also be reached through
different communications and marketing
mixes.
 Steps in Segmentation, Target Marketing and
Product Positioning
Market Segmentation Target Market Product Positioning
Identify Develop Develop Select Develop Create
basis for profiles of measures Target positioning marketing
segmentati each of market Segment for chosen mix for the
on market market > segment > market market
segment attractiven segment segment
ess consistent
with the
chosen
positioning