Bus 188 Part 2

1. Bus 188 Part 2 The Marketing & Situation Analysis

2. Topic 5. Define Your market Topic 6. Personal Audit Topic 7. Competition Part 2 - The Marketing & Situation Analysis

3. Topic 5Define Your Market • 1. Estimate Demand: Demand is a forecast of future buyer behavior characterized by:

4. 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.

5. 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.

6. 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?

7. Factors Affecting Buyer Behavior • How motivated is the buyer? • How strong are the competitors efforts? • Seasonality? • Other factors?

8. General Buyer Behavior is a Result Of: • Individual and Internal Factors • Group and External Factors

9. Individual & Internal Factors affecting Buyer Behavior • Personality • Learning • Perception • Motivation • Attitudes

10. Culture Subculture Social Class Peer Groups Reference Groups Physical Environment Political/Legal Marketers Group & External Affects on Buyer Behavior

11. 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)

12. Geographics Demographics Lifestyle AIO Psychographics Brand Loyalty Usage Patterns Key Benefits needs/wants/motivations B. Set Limits and Define the Potential Market

13. Demand # of Customers (DMU’s) $ Sales Volume Unit Sales Volume Market Penetration Market Share Special Segments Niches Targeting Strategies Undifferentiated Differentiated Concentrated Atomized C. Identify Market Segments & Target markets

14. Roles Within The Decision Making Units Are: Decision Maker Purchaser Influencer User D. Describe The Typical Consumer In Target Market

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

16. 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.)

17. 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

18. Analyzing Demand Who is the customer? • geographically • demographically • Lifestyle/AIO/Psychographically • Loyalty/Usage • Key benefits sought/wants & needs

19. Average $ Sales per Customer Visit daily weekly monthly # of customers______________________________ # of units __________ __________ __________ $value __________ __________ __________ /revenue High and Low Range ____________ _____________

20. Seeking A Competitive Advantage • 1960’s - Marketing Based • 1970’s - Manufacturing Based • 1980’s - Quality Based & TQM • 1990’s - Customer Service Based SOURCE: Total Customer Service: the Ultimate Weapon by Davidow & Uttel; Harper Perennial

21. Identifying Competitors • 1. 3 types based on needs filled & similarity of the product/service: • 2. Unrelated: competition for the same $.

22. Identifying Competitors cont.

23. Identifying Competitors cont. • Unrelated: competition for the same $. (Gross Income; Disposable Income; Discretionary Income)