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MARKET ANALYSIS PowerPoint Presentation
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MARKET ANALYSIS

MARKET ANALYSIS

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MARKET ANALYSIS

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  1. MARKET ANALYSIS The customer is always right, but we get to pick who is a customer. Market analysis is an essential input to the development of market based management strategies that deliver superior levels of customer value, satisfaction and profitability.

  2. I. MARKET VISION & MARKET DEFINITION • MARKET VISION & MARKET OPPORTUNITIES • VISION = The power of imagination, the mode of seeing or conceiving • an unusual discernment or fore sight 2 3 UNARTICULATED Unexploited market opportunities CUSTOMER NEEDS ARTICULATED 1 SERVED UNSERVED TYPE OF CUSTOMERS “ A BROAD MARKET VISION CONTRIBUTES TO UNEXPLOITED MARKET OPPORTUNITIES”

  3. MARKET POTENTIAL A. UNTAPPED MARKET OPPORTUNITIES 5 FORCES THAT LIMIT MARKET DEMAND : • AWARENESS • AVAILABILITY • ABILITY TO USE • BENEFIT DEFICIENCY • AFFORDABILITY

  4. Maximum number of potential customers NOT AFFORDABLE LACKS BENEFIT Untapped market opportunities UNABLE TO USE NOT AVAILABLE NOT AWARE CURRENT MARKET DEMAND Develop market MAXIMUM MARKET POTENTIAL AND CURRENT MARKET DEMAND

  5. MARKET DEVELOPMENT INDEX CURRENT MARKET DEMAND MAXIMUM MARKET POTENTIAL MDI = X 100 % • MDI LESS THA 33 WOULD SUGGEST THAT THERE IS CONSIDERABLE GROWTH POTENTIAL IN MARKET DEVELOPMENT • WHEN THE MARKET DEVELOPMENT INDEX IS BETWEEN 33-67, FURTHER DEVELOPMENT OF THE MARKET IS BASED ON PRODUCT VARIATIONS THAT FURTHER ADDRESS BENEFIT DEFICIENCIES & COST REDUCTIONS THAT BRING MORE CUSTOMERS INTO THE MARKET AT A MORE AFORDABLE PRICE • WHEN MDI > 67, STILL EXISTS CONSIDERABLE OPPORTUNITY FOR GROWTH THROUGH MARKET DEVELOPMENT

  6. MARKET POTENTIAL & MARKET GROWTH THREE FUNDAMENTAL FORCES THATCAPTURE THE SHAPE OF THE MARKET GROWTH RATE : • MARKET POTENTIAL • MARKET PENETRATION • RATE OF ENTRY  THE RATE AT WHICH NEW CUSTOMERS ENTER THE MARKET

  7. ACCELERATING MARKET GROWTH • 1. CUSTOMER INFLUENCES • FELT NEED • PERCEIVED RISK • INNOVATIVENESS • TYPE OF DECISION • (GROUP OR INDIVIDUAL) • PRODUCT INFLUENCES • Relative Advantage • Relative Cost • Complexity • Ease of use • 3. MARKET INFLUENCES • OBSERVABILITY • TRIALABILITY (EASY TO TRY) • MARKETING EFFORT

  8. MARKET SHARE & SHARE POTENTIAL • MARKET SHARE • PRODUCT AWARENESS • PRODUCT ATTRACTIVENESS • PRICE ACCEPTABLE • PRODUCT AVAILABILITY • SERVICE EXPERIENCE MS INDEX : = Product awareness X Product preference X Intention to buy X Product availability X Product purchase = 0.71 X 0.46 X 0.63 X 0.57 X 0.65 = 7.6 %

  9. CUSTOMER RESPONSE HIERARCHY & MARKET SHARE - INDEX MS-I PURCHASE PRODUCT (0.65) PRODUCT AVAILABLE (0.57) .076 INTEND TO BUY (0.63) DO NOT PURCHASE (.35) PRODUCT NOT AVAILABLE (.43) .041 PRODUCT ATTRACTIVE (0.46) .088 DO NOT INTEND TO BUY (.37) AWARE OF PRODUCT (0.71) .121 PRODUCT NOT ATTRACTIVE (0.54) .388 NOT AWARE OF PRODUCT (0.29) .290 1.000

  10. MARKET SHARE & SHARE POTENTIAL B. MARKET SHARE POTENTIAL & SHARE IMPACT BUSINESS SERVE = $ 500 MILLION (7.6% MS) ACTUAL VS POTENTIAL MSI MS – I .076 .202 - 0.126

  11. MS – I (IMPROVED AWARENESS) = .80 X .46 X .63 X . 57 X . 65 = .085 (8.5 %) (INCREASE 0.9 % MS) SALES = 4.5 MILLION US MS – I (IMPROVED AVAILABILITY) = .71 X .46 X .63 X .70 X .65 = . 093 = (9.3 %) (INCREASE 1.7 %) SALES = 8.5 million US

  12. MARKET SHARE POTENTIAL MS – I POTENTIAL = 0.80 X .60 X .80 X .70 X .75 = 20.2 % • SHARE DEVELOPMENT – INDEX ACTUAL MS POTENTIAL MS SDI = X 100 % 7.6 % 20.2 % = X 100 = 31

  13. 100 67 33 0 MDI 33 67 100 SDI MARKET DEVELOPMENT – SHARE DEVELOPMENT MATRIX