The Market • The Market is the environment where your company competes to sell a product or service to make a profit.
What is Marketing • Marketing is a set of processes for creating, communicating, and delivering value to customers (American Marketing Association)
Overview: The 4 Ps of Marketing • Price • Product • Promotion • Place
Marketing Research • The process of identifying, describing, locating, and targeting your potential customers • The gathering, processing, interpreting, and reporting of market information to support marketing decisions.
Steps in Marketing Research • Identify the need for information • Searching for secondary data • Collecting primary data • Interpreting the data
Using Marketing Research to Define My Customers • Customers are the lifeblood of the company • Identify your potential customers from the total numbers of consumers in your market • Clearly identify your customers and define their needs before you decide on the 4 Ps
What Is Market Segmentation? • The process of dividing a market into categories of customer types • Market segments share common traits that affect their purchasing decisions. • Research looks at different variables on consumer behavior
Type of Variables • Geographic • Demographic • Benefits sought • Psychographic
Estimating Market Potential for Each Segment • Marketing research uses qualitative and quantitative techniques • Sales forecasting process is a key tool for estimating segment sizes
Who Are My Competitors? • “Keep your friends close; and your enemies closer.” • Competitor analysis is the process for keeping track of what your competition is doing in the marketplace
Scanning, Monitoring, and Benchmarking the Competition • Scanning: Broad survey of competitive marketing activities • Monitoring: Detailed tracking of a key competitor’s actions • Benchmarking: Studying the products, service, and practices of competitors.
Competitor Strengths and Weaknesses Analysis • Defining the internal strengths and weaknesses of your key competitors
Opportunities and Threats • Defining the external environment opportunities and threats that your key competitors possess
Scenario Planning • War-gaming marketplace competitor actions and responses