Market Analysis • The goal of a market analysis is to determine the attractiveness of a market and to understand its evolving opportunities and threats as they related to the strengths and weaknesses of the firm.
Market Analysis • Situational Analysis and Objectives Specification • Collection of data • Market Survey • Market description • Demand Forecasting • Market planning
Situation Analysis Identify emerging and relevant values and attitudes shaping behavior in order to make optimal marketing decisions.
Purpose of the Situation Analysis • Answers the why are we here? • It provides a background on the factors that influence the company’s functions and performance
THE SITUATIONAL ANALYSIS • Macro environment • Market • Competition • Product • SWOT
THE SITUATIONAL ANALYSIS – Macro environmental Situation • Define and analyze: • Economy • Technology • Political/legal • Social/cultural trends – education, lifestyle changes
THE SITUATIONAL ANALYSIS – Market • How to appropriately identify your target market: • Demographic descriptors –attributes of individual customers • Geographic descriptors – define trade area • Behavioral descriptors – benefits sought by the customer
THE SITUATIONAL ANALYSIS – Competition • Develop a competitor profile: customer base, products or services, revenues, marketing strategies? • Sources for information: marketing materials, employee and customer networks, news releases, prior knowledge • Continually monitor competitive landscape on a periodic basis
THE SITUATIONAL ANALYSIS – Product • Determine and prioritize customer needs • Identify the benefits of your products/services in meeting customer needs • Know where your products/services rank in the competitive landscape
SWOT ANALYSIS Conducting a SWOT analysis that identifies company’s internal strengths (S) and weaknesses (W) from the perspective of the products/services offered and examines external opportunities (O) and threats(T)
Company Analysis • What the company is concerned with • What it stands for • Usually this information is found in mission and vision statements
Company Analysis (cont) • Company’s mission • History • Sales and profits • Market share • Product offerings • Key personnel • Capital resources
Collection of data • Primary data: information that is developed or gathered by the researcher specifically for the research project at hand • Secondary data: information that has previously been gathered by someone other than the researcher and/or for some other purpose than the research project at hand
Primary Sources : • Surveys • Observations • One on one interviews • Consumers • Employees • Competitors
Secondary sources • Library • Databases
Market Survey • Defining the target market • Selecting the sample • Developing the questionnaire • Training the surveyors • Recording the information • Interpreting the information
Market Description • Effective demand • Breakdown of demand • Price • Consumers Interest • Methods of distribution • Sales promotion • Supply and competition • Government policy
DEMAND FORECASTING • An activity of determining qty. of goods to be purchased in Future • Necessity for forecasting Demand • Stock Effects • Market Response effects
Methods of Demand Forecasting • Qualitative Methods • Consumer’s opinion survey. • Sales force composite. • Experts opinion method. • Delphi technique
Quantitative Methods • Econometric method. • Barometric method. • Time series method.