II MARKETING ANALYSIS AND PLANNING

Marketing Information Systems Marketing Decision Support Systems Market Analysis Competitive Analysis Environmental Scanning Marketing Segmentation, Niches and Micromarketing Consumer Behavior and Decision Processes Organizational Buying Behavior Positioning via Marketing

Marketing Information System

Set of procedures and sources used by marketing management on a regular and continuing basis to obtain information relevant to marketing planning and strategy

The Marketing Information System

Marketing managers

Marketing Information System

Developing

Marketing environment
Test markets Marketing channels Competitors

information
Marketing intelligence

Analysis Planning Implementtertian Control

Distributing information Marketing decision support analysis Assessing information needs Internal records

Publics
Marketing

research

Macroenvironment forces

Marketing decisions and communication

Marketing Research

The systematic design, collection, analysis, and reporting of data and findings relevant to a specific issue or situation involving marketing planning and strategy

The Marketing Research Process

Define the problem and research objectives

Develop the research plan

Collect the information

Analyze the information

Present the findings

Marketing Decision Support System

Management science, computer-based models through which marketing management gathers and interprets relevant information and uses it to improve marketing actions

Examples
CALLPLAN : optimum number of sales calls
PROMOTER : sales promotion effects measurment
BRANDAID : marketing mix optimizing model

Market Analysis
Key Constructs

Market Target market Market demand Market share Market segment Market behavior

Market

Set of all actual and potential customers for an offering

Target Market
The part of the market any given firm seeks to pursue

Market Demand
The scale of the market measured in dollar volume, unit sales, number of customers, or some combination of these factors

Market Share
Sales of one particular firms product divided by total sales of all firms selling that same product

Market Segment

More homogeneous subset of a larger more heterogeneous market

Market Behavior

What, when , where, how, who, and why the market buys

Who Does the Buying?

Who makes physical purchase? Who uses the product? Who influences the purchases decision?

Consumer Markets (family unit) Industrial Markets (organization)

Competitive Analysis

In addition to analyzing markets (customer), firms also need to focus on competitors

Five Forces Determining Segment Structural Attractiveness

Potential Entrants (Threat of Mobility)

Suppliers (Supplier power)

Industry Competitors (Segment rivalry)

Buyers (Buyer power)

Substitutes (Threats of substitutes)

Five Key Questions for Analyzing Competitors

1. 2. 3. 4. 5.

Who are our competitors? What are their strategies? What are their objectives? What are their strengths and weaknesses? What are their likely reaction patterns?

Benchmarking
The art of finding out how and why some companies can perform particular tasks much better than other companies Copy or improve upon: Best Practices or Best-in-Class

Seven Steps in Benchmarking

1) 2) 3) 4) 5) 6) 7)

Determine which tasks to benchmark Stipulate key performance variables to measure Identify the best-in-class companies Measure performance of best-in- class companies Measure your companys performance Specify programs and actions to close the gap Implement and monitor results

Environmental Scanning

Systematic evaluation of major external environmental factors that might affect the short, medium, and long-term marketing plans and strategies of the firm

Key Environmental Terminology

Opportunities Threats Trends Megatrends Fads

Market Segmentation, Niches and Micromarketing

Market Segmentation

Process of taking a large heterogeneous market and dividing it into smaller submarkets (segments) that are more homogeneous in their buying behaviors

Market Aggregation

The process of taking small diverse market segments and compiling them into a larger market that can be served with more standardized products or marketing mixes

Market aggregation vs. Market Segmentation Continuum

Perfect Market Aggregation

Perfect Market Segmentation

Market Segmentation Strategy

The formulation of the marketing mix to respond to the particular needs of identified market segments

Bases for Segmenting Markets

Demographic bases Geographic bases Psychographic bases
(activities, interests, opinions AIO)

Behavioral bases benefits sought usage rates loyalty

Requirements for Segmenting Markets

Measurable - operationally identifiable Sustainable - large enough to be profitable Accessible - can be reached and served Differentiable - respond to different appeals Actionable - can strategies be formulated

Sub-segment of a market segment with low level of competition

Niche Marketing Micro Market

Very small market segment resulting from fragmentation of mass markets and made feasible for targeting through by mass customization
Marketing by one seller to one buyer

One-to-One Marketing

Consumer Behavior and Decision Processes

Maslows Hierarchy of Needs

5.
Selfactualization

(self-development and realization)

4. 3. 2. 1.

Esteem needs
(self-esteem, recognition)

Social needs (sense of belonging, love) Safety needs (security, protection) Psychological needs (food, water, shelter)

Model of Buyer Behavior

Marketing stimuli Product Price Place Promotion Other stimuli Economic Technological Political Cultural Buyers characteristics Cultural Social Personal Psychological Buyers decision process Problem recognition Information search Evaluation Decision Postpurchase behavior

Buyers decisions Product choice Brand choice Dealer choice Purchase timing Purchase amount

Five-Stage Consumer Buyer Decision Process

Problem recognition

Information search
Evaluation of alternatives Purchase decision Postpurchase behavior

Major Influences on Industrial Buying Behavior

Environmental
Level of demand Economic outlook

Organizational Interpersonal
Objectives Policies Interests Authority Status Empathy Persuasiveness

Individual
Age Income Business Education Job position Buyer Personality Risk attitudes Culture

Interest rate Rate of techno- Procedures logical change Organizational structures Political and regulatory developments Systems Competitive developments Social responsibility concerns

Organizational Buying
Some Key Distinctions

fewer buyers large buyers close supplier-customer relationship geographically concentrated derived demand inelastic demand (short run) professional purchasing multiple buying influences (buying centers) more direct purchasing

Positioning

Designing an offering and its image so that they occupy a meaningful and distinct place in customers minds relative to competitive products

Positioning is a demand side concept not a supply side concept

Therefore Positioning is not what you do to a product but what you do to the mind of the customer