...Husukić Chapter 4. Opportunity Analysis, Market Segmentation and Market Targeting * OPPORTUNITY ANALYSIS * Opportunity analysis focuses on finding markets that an organization can profitably serve * Opportunity analysis consists of three interrelated activities: * Opportunity identification * Opportunity – organization matching ( determines whether an identified market opportunity is consistent with the definition of the organization business, mission statement and distinctive competencies ) * Opportunity evaluation - two distinct phases : * Qualitative ( focuses on matching the attractiveness of an opportunity with the potential for uncovering a market niche ) * Quantitative ( focuses on market sales potential and sales forecasts ) * WHAT IS A MARKET? * A market may be considered to be the prospective buyers ( individuals or organizations ) willing and able to purchase the existing or potential offering ( product or service ) of an organization. * This definition focuses on buyers not on products or services * This definition introduces the concept of effective demand * Using the term offering, rather than product or service, expands the definition of what organizations provide for buyers * Market Structure * Viewing a market as composed of minimarkets allows a marketer to better evaluate opportunities * Market Share * Market share is defined as the sales ( in dollars or units ) of a company, product...
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...Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example Daimler AG Mapping the Business • Daimler AG, Stuttgart, with its businesses Mercedes-Benz Cars, Daimler Trucks, Daimler Financial Services, MercedesBenz Vans and Daimler Buses, is a globally leading producer of premium passenger cars and the global market leader of heavy- and medium-duty trucks as well as busses. The Daimler Financial Services division has a broad offering of financial services, including vehicle financing, leasing, insurance and fleet management. Daimler AG Corporate Mission • As the inventor of the automobile, we have shaped mobility to a great extent with groundbreaking innovations and outstanding vehicles. We aim to continue playing our pioneering role with the ongoing development of mobility – especially in the areas of safety and sustainability. What type of Corporate Objectives are formulated by Organizations? Tutorial 1 Detailed • • • • (Mission) & Corporate objectives Defining markets & short exercise Nielsen data Scanning the environment: example What is a market? • A group of individuals or organizations (i.e., buyers) having the willingness and ability to buy goods or services to satisfy a particular class of wants or needs Example: Group of people (private or business use) who want to travel in prestige, comfort, luxury, and security and who can afford it…. What business/market are we in? Markets MUST be seen from the customer’s...
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...Sales Plan: Phase III MKT/445 November 15, 2011 Professor John Zemaitis Sales Plan: Phase III Throughout the changing landscape of the current economy, companies are striving to increase year-on-year sales and productivity. Arizona Housing Experts is no different in this respect and needs to implement a solid 2012 sales plan to move their business from the maturity stage in the life cycle back to growth. Throughout the remainder of the paper there will be numerous points discussed in relation to the 2012 sales plan for Arizona Housing Experts. The points that will be covered and broken down include real estate opportunities with both apartment locations and residential homes to increase profitability and acquire more customers. There will need to be an actual sales process put into place by management that is identifiable and feasible for the agents to achieve using current and refined sales tactics and techniques. Lastly, marketing will need to be completely revamped. Currently there is a hit and miss marketing approach for Arizona Housing Experts and with a little market research, a complete identifiable and measureable marketing plan will be able to be put in-place while increasing productivity and profitability. However, none of the above will be possible without a plan and identified opportunities. Plan and Opportunities Many programs are available to real estate agents as well as entire brokerages to manage and improve customer relationships and...
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...Market Potential Apple is looking to capitalize the organization’s share in the tablet market for the 2012 fiscal year. Market potential is defined as “the total expected sales of a given product or service for the entire industry in a specific market over a stated period of time” (Spiro & Stanton, 2008, p. 351). The tablet market potential in 2011 was around 116 million units. In 2012, the tablet market potential is expected to grow at the same rate if not more with the number of units totaling 140 million. The market potential for the iPad 2 also can be stated for men and women ages 16-55 years of age in multiple countries around the world. Sales Potential Market potential overviews the forecasted amount of units that will be sold for the industry and not the organization itself. If Apple wants to determine how the organization can capitalize on the 120 million units expected to sell in the tablet industry for 2012, the company must determine the sales potential for the iPad2. Sales potential refers to the “maximum share (or percentage) of market potential that an individual firm can reasonably expect to achieve” (Spiro & Stanton, 2008, p. 351). In the second half of 2011, the iPad 2 has accounted for 68.3% of the approximately 116 million units sold in the tablet market (Peckham, 2011). It is reasonable to agree that in the coming years Apple can expect to see between 55 to 60% market share in the tablet market. In 2012, Apple’s sales potential for the iPad 2 can be...
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...products are in a state of readiness to begin exporting to Europe because the Continent provides countries with similar market characterisitics and requirements to its home market, the United States. The products are also ready for exporting to emerging markets such as Brazil, Russia, India, and China (BRIC) among others due to the rapidly progressive living standards and an expanding middle class with rising economic potentials in these countries. ABD’s Speedheal branded products have strong possibilities of advantageous demand in all types of foreign countries due to the following reasons: - It’s Speedheal products produce exceptional sales performance in the domestic market of the United States. - The products address universal health needs through the promotion of healing and the reduction of postsurgical pain by keeping the wound area from swelling. - The products are unique and cater to current and evolving health needs not well served internationally. - The devices are relatively small and portable and thus miniaturization remains one of ABD’s competitive advantages. - The product prices are relatively affordable and inexpensive to ship based on the miniature sizes. - ABD’s products were seldom defective and replacement of defective ones was a solution instituted by the company that augured well for good international business practice in after-sales service. - Speedheal devices are sensitive to changes in temperature and humidity and management has identified that...
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...Industrial Marketing Management A holistic approach to market assessment for a manufacturing company in an emerging economy Malini Natarajarathinam ⁎, Bimal Nepal 1 Department of Engineering Technology & Industrial Distribution, Texas A&M University, 3367 TAMU College Station, TX 77843, United States a r t i c l e i n f o Article history: Received 26 May 2011 Received in revised form 18 March 2012 Accepted 29 April 2012 Available online 1 June 2012 Keywords: Market assessment Sales potential Market potential Emerging market Mexico a b s t r a c t Assessing the potential for a new market is challenging both for new businesses and for already existing businesses that are trying to expand. The primary challenge is the difficulty in identifying the important factors that influence market potential. The other challenge is that once the influencing factors are identified, there are very few structured mechanisms available to show how these factors affect the bottom line of the business. In this paper, the authors present a three step market assessment methodology and illustrate it with an example of a manufacturing company. The proposed methodology is applicable especially to the case of an already existing company trying to expand its operations and sales to a new country or emerging market. The first step assesses the broad market potential of a country; the second step estimates the sales potential for a specific company, and the third step calculates return...
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...Marketing Management MM 1-2013 1 “Midterm Review” By: cherriie.cherry* :) Chapter 1 defining mkting Marketing – set of activities that create value in order to satisfy customer & make profit to co. Demand states 1. Negative – Find other ways to change cus. attitude (design, price, more promotion) i.e. insurance 2. Nonexistent- donno, never thought about it i.e. health checkup - find way to connect benefits with personal’s natural needs 3. Latent – product can’t satisfy cus need i.e. cars- more efficient / food- low calories - measure mkt potential & develop efficient good & service to satisfy demand 4. Declining – sales drop, buy less frequently i.e. กระเช้ าbrand ทาไงก้ ได้ ให้ sales เพิ่ม เช่น -product development change product features -mkt development new target mkt - find new way of use, more effective communication, sales pro 5. irregular- purchase vary on season i.e. hotels/cinema/ restaurant - Smoothen demand sales pro, flexible pricing, other incentives - Low season- low price 6. Unwholesome- cigarette/alcohol Demand for unethical product- reduce habit by use fear communication/ price hikes/ reduce availability - cause dissatisfaction i.e. บุหรี่ ที่ USA รณรงค์ให้ คนสูบน้ อยๆ เพื่อให้ เป็ นลูกค้ ามันไปได้ นานๆ (อย่าเพิ่งรี บตาย) 7. Full – no surplus/shortage demand=supply /Buying amount=amount produce - maintain demand 8. Overfull- demand > supply Reduce demand temporarily/permanently “demarketing” i.e. เด็กในห้ องเยอะ อาจารย์เก๊ กดุ forceให้ เด็กออกจากsec ...
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...developed a packaging technology that instantly chills single-serving containers of cold beverages such as beer, carbonated drinks, and fruit juices. The customers of such packaging, therefore, would be beverage-makers. You are not certain whether your technology is patentable. Using the seven domains framework, assess this opportunity and describe any strategic decisions you could make to maximize the opportunity’s attractiveness. In terms of market attractiveness, the customers being beverage makers like Coca-Cola or Pepsi Cola would be interested in a machine that instantly chills single serve beverages. These companies specialize in producing carbonated and fruit drinks in a single serve capacity, distributing them to stores across the world. Companies whose customers could benefit as well from this innovative technology are beer companies. Instead of having to wait hours for your drinks to get cold, or ruining it with ice, one can simply put it in the machine, and immediately it will get cold. In terms of attractiveness to their market, the technology can be of great use to thousands of beverage makers around the world, presenting an opportunity to globalize. In terms of industry attractiveness, opportunities should be evaluated ranking Porter’s 5 forces. The threat of new entrants and threat of substitutes in this industry would be high due to the technology lacking a patent. Many companies who make their own beverages usually expand the business to encompass facets essential...
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...5 * a prediction of the future market potential for a specific product. * sales forecast * is a quantitative estimate, in either physical or monetary units, of the total sales for a product within a market. * Market potential * is the portion of market potential that one among a set of competing firms can reasonably expect to obtain. * Sales potential * based on primary research * Build-up approach * Forecast economic conditions, such as these: I. GNP II. consumer price index III. wholesale price index IV. interest rates V. unemployment levels * Breakdown approach * assumes that the next period’s sales will be the same as they were in the previous period. * Naïve forecast * method asks key managers within the company for their best estimate of sales in a given planning horizon and combines the results to develop the forecast. * Jury of executive opinion * method is similar, but it asks the sales force for their best estimates of sales in the planning horizon. * Sales force composite * survey of customers’ buying intentions or test marketing * Counting methods * are movements in a time series as a result of developments in population, technology, or capital formation. * Trends * are consistent patterns of sales changes in a given period generally called seasonal variations. * Periodic movements * are wave-like movements of sales that are longer in duration than a...
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...many countries around the world. Michael T. Duke, President and Chief Executive Officer of Wal-Mart Stores, Inc. expresses one financial priority of Wal-Mart as growth. Growth: We will continue to grow around the world. We have many opportunities to grow by opening new stores, entering new markets, making acquisitions, integrating online channels, and developing new, innovative formats to allow people to experience the Walmart brands (Wal-Mart, 2010). Herein, Wal-Mart’s growth initiative, three potential financial outcomes, including decreased sales, increased sales, and no change in sales, and an evaluation of the most likely outcome will be discussed. Financial Outcome: Decrease in Sales Wal-Mart’s growth initiative is spawned by the company’s potential in untapped markets. On January 31, 2010, Wal-Mart had 4,300 stores in the United States alone (Wal-Mart, 2010). According to Wal-Mart (2010), “the company [has grown] more than 8,400 stores in 15 countries around the world” (Business Description, para, 1). This feat has been done through an aggressive approach to new market entry. However, organizations around the world are committed to keeping the retail giant from entering new markets. Portland, Oregon is known for its stance on Wal-Mart as the city has fought to keep the retailer from building additional stores....
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...Problem and Recommendation Sealed Air has seen new competitors enter the protective packaging market industry producing uncoated bubble at a lower cost by employing a cheaper more efficient production method. We believe the entrance of this new competition will have a significant impact on the sustainability of Sealed Air potentially reducing sales by 55% and eliminating 40% of 1980 EBIT (see exhibit for backup). Given the significant impact we feel Sealed Air must employ a defensive strategy and start production of uncoated bubbles. Sealed Air can use a current production process which would allow them to effectively compete with the new competition requiring no additional capital. Company Analysis Sealed Air produces 2 main products (see exhibit for product breakdown, sales and market share) and also licenses to Astro its patented technology to produce coated and uncoated bubbles. Sealed Air’s core strengths include 1) 1st to market and leader in R&D, innovation and technical development, 2) best trained sales staff in industry, and 3) premium pricing position 4) patented manufacturing process for sealed bubbles. Significant weaknesses include 1) limited resources, 2) having premium products aimed at niche segments of the protective packaging customers, 2) lots of cheap competition and lack of easily demonstrable universal superiority confusing end users. Deciding to start manufacturing uncoated bubbles does not significantly leverage Sealed Air core competencies...
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...steady growth since starting up in 1970 and now has annual sales of $50 million. PFM has patents covering over 200 types of machines, but typically only sells 30 different types annually. These machines are purchased to increase capacity or replace old equipment. PFM’s promotion and selling activities in the West Coast market are handled by six sales representatives; costing about $880,000 per year including salary, bonuses, supervision, travel, and entertaining. When the sales reps are close to making a sale, they are supported by two sales engineers—at a cost of about $130,000 per year per engineer. Any sales contact outside the West Coast market is handled by manufacturers’ agents who are paid 4 percent on sales, however these sales are very infrequent. PFM spends up to $100 000 in advertising; much of it appearing in trade journals. Occasionally PFM will use direct mailings and trade-show exhibits to feature its products. They also have a simple website. PFM’s promotion of its products is primarily through personal selling. There are 12 US-based firms in the US plastic-forming manufacturing market. This market is segmented into three geographic regions – West Coast, East Coast and the Midwest. In the West Coast market, PFM competes against one other competitor, which is based in Tacoma, Washington. There are four competitors active in the Midwest market and six competitors active in the East Coast market. Each of these competitors is approximately the same...
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...Mr. M Natrajan Paper: Market Demand / Potential – LUX Soap PRODUCT PROFILE • • • • • LUX is a global brand developed by Unilever. The range of products includes beauty soaps, shower gels, bath additives, hair shampoos and conditioners. LUX started as “Sunlight Flakes” laundry soap in 1899. In 1924, it became the first mass market toilet soap in the world. It is noted as a brand that pioneered female celebrity endorsements. As of 2005, Lux revenue is at 1.0 billion euros, with market shares spread out to more than 100 countries across the globe. Today, Lux is the market leader in several countries including Brazil, India, Thailand and South Africa. For years, LUX has been one of the India top soaps that offer a way to gain smooth and fair looking skin without worrying too much on how old the user is. LUX soap came from one of the biggest corporation in the India today, Unilever. LUX is a personal care brand owned by Unilever. LUX is primarily made from synthetic surfactants, as well as some vegetable oil based soap ingredients, such as sodium palm kernelate. LUX is formulated to be pH neutral, with a pH that is usually between 6.5 and 7.5. As paper title specify, market research is done for the LUX soap to estimate the current demand and market potential. Market research is the process through which one can indentifies the basic problems area relating the product demand, its potential and as conclusion strategies to enhance demand and potential within specified geographical...
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...Explain how you determined your brand design decisions. When making brand decisions, I utilized market research as well as the provided statistics in regards to what customers desired in regards to a specific type of computer. Unfortunately, by using this technique, both of my original designs were rated poorly in terms of how they met a customer need. By benchmarking my decisions against my competitors in the subsequent designs, I was able to design a more successful product. Whereas I had focused on the specific and literal definitions of the customer need, my competitor had provided “bonus” items that increased the customer’s overall experience and satisfaction with the product. Based on the needs and wants information provided, the most important features and benefits to the Workhorse market were ease of use, low price, office applications, and after sales service and support. Additionally, the ability to link with other computers, fun to use and fast and powerful ranked somewhat high on the desired list. Based on these preferred features and benefits, my initial design included features to match the top five requirements. I did not include “extra” features to keep the initial production cost down. Similarly, with the Traveler market, the most important features and benefits were portability, the ability to link to other computers, office applications, low price and easy on the eyes. Other notable features and benefits were after sales service and support, ease of use and fun to use. Again...
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...perspectives and methodologies. Please describe the main perspective and methodologies highlighting pros and cons. Segmentation is identification of portions of the market that are different from the other. Segmentation allows the firm to better satisfy the needs of its potential customers. Creative market segmentation strategies often afford the business organization a strategic advantage over its competition. Foreign firms often enter a domestic market by segmenting the market, uncovering an underserved niche, and then concentrating their marketing and financial resources into that niche. There are three types and two methods of segmentation. Attidunal type is based on primary research into customer attitudes. Its good side is that it insights cut across the customers and prospects. But on the other side it is soft segmentation. It’s hard to measure impact, and nearly impossible to score a customer database. Transactional type is based on purchasing patterns. For example new, growing, stable, declining, and lapsed segments. Pro side is that it’s grounded in revenue metrics. Moderately easy to measure impact. And bad side is that it’s relatively unstable – customers can shift between segments frequently. Very different customers can have the same value. Comprehensive type is based on a combination of current and potential purchase patterns, demographic psychographic, behavioral and geo-spatial data. It combines all approaches. Allows for investment based on revenue upside. Easy...
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