THE UNIVERSITY OF DANANG

UNIVERSITY OF ECONOMICS

Chapter 02

Marketing
Analysis

Marketing Management
Faculty of Marketing
LEARNING OBJECTIVES

LO1. Explain the use of 5Cs framework in analyzing marketing

environment
LO2. Identify the key factors that influence consumer behavior.
LO3. Explain the role cultural, social, and personal factors play
in consumer behavior.
LO4. Explain how consumers’ needs, emotions, and memory
influence their behavior.
LO5. Illustrate the key stages of the buying decision process.
LO6. Explain the key aspects of the organizational buying
process.
LO7. Explain how to measure and forecast market demand.
LO8. Explain different aspects of competitor analysis.
LO9. Explain different aspects of collaborator and climate
analysis.
LO10. Explain the outcome of marketing analysis.
The use of 5Cs in analysing
situations

TL1
Company analysis

The company analysis studies an organization’s vision, strategies,

capabilities, product line, technology, culture, and objectives. It is useful in
understanding the existing and potential problems with the company’s
business.
Look inward to see how the business operates:
- Product lines and offerings.
- The marketing mix you use to position those products.
- Communication channels you’re currently leveraging and those you want to
explore.
- Key influencers for marketing decisions, including representatives from sales,
operations and customer service.
- May also want to include factors like company financials, research initiatives
and product innovation.

▪ => strengths and weaknesses of the business that affect its ability to serve
customers
Customer analysis

Understanding customers is a key part of situation analysis. It involves knowing the

target audience, their behavior, market size, market growth, buying patterns, average
purchase size, frequency of purchase, and preferred retail channels.
Understanding of customers' purchase and usage patterns.
Decision Making Unit (for business customers): 1) who is involved in the process? 2)
what role does each play?
5 Major roles in buying situations:
1) initiators- recognize value and search for products
2) deciders- make the choice
3) influencers- have input in decisions
4) purchaser- consummates the transaction
5) users- consumer the product
Decision making Process (DMP): questions of there is a search for information and
how?
=> opportunities and threats that affect the business’s ability to serve
customers
Managing marketing
information to gain customer
insights
Customer insights

Fresh marketing information- OMO – Dirt is good

based understandings of
customers and the marketplace
What was the customer
that become the basis for insight in OMO’s marketing
creating customer value, strategy
engagement, and relationships.
in Asian markets?
A fresh and deep understanding
of customers.
What Is Consumer Behavior?

Consumer behavior
▪ The study of how individuals, groups, and organizations select, buy,
use, and dispose of goods, services, ideas, or experiences to satisfy
their needs and wants

TL1
Figure 3.1 Model of Consumer Behavior
 What Influences Consumer Behavior? (1 of 3)

• Cultural factors
– Culture
– Subcultures
– Social classes
What Influences Consumer Behavior? (2 of 3)
• Social factors
– Reference groups include all the groups that have a direct or
indirect effect on a person’s beliefs, decisions, and behavior
– Family
Reference Groups
• Primary group is family
• Aspirational groups
• Dissociative groups
• Opinion leader or influencer offers informal advice or
information about a specific product or product category
 Family
• Family of orientation v s family of procreation
ers u
What Influences Consumer Behavior? (3 of 3)

• Personal factors
– Age/stage in life cycle
– Occupation and economic
circumstances
– Personality and self-concept
– Lifestyle and values
 Consumer Psychology

• Consumer motivation
• Perception
• Learning
• Memory
Consumer Motivation (1 of 2)
• Consumer needs
– Basic human requirements
• Biological
• Psychological
– Wants
– Demands
Figure 3.2 Maslow’s Hierarchy of Needs
 Consumer Motivation (2 of 2)

• Consumer motivation
– A need becomes a motive when it
is aroused to a sufficient level of
intensity to drive us to act
Perception (1 of 3)
• Perception
– The process by which we select, organize, and interpret
information inputs to create a meaningful picture of the
world
Perception (2 of 3)
• Selective attention
– Marketers must work hard to attract the notice of consumers
– Subliminal perception
Perception (3 of 3)
• Selective distortion
– Tendency to interpret information in a way that fits our
preconceptions
Emotions
• Emotions
– Leverage emotional appeal
Memory (1 of 3)
• Memory models
– Short-term memory—a temporary and limited repository of
information
– Long-term memory—a more permanent, essentially
unlimited repository
• Episodic memory
• Semantic memory
• Procedural memory
Memory (2 of 3)
• Associative network memory model
– Brand associations—all brand-related thoughts, feelings,
perceptions, images, experiences, beliefs, attitudes that
become linked to the brand node
Memory (3 of 3)
• Memory processes
– Memory encoding—how and where information gets into
memory
– Memory retrieval—the way information gets out of memory
The Buying Decision Process (1 of 6)
• The consumer typically passes through five stages
– Problem recognition
– Information search
– Evaluation of alternatives
– Purchase decision
– Postpurchase behavior
Figure 3.3 Five-Stage Model of the Consumer Buying
Process
The Buying Decision Process (2 of 6)
• Problem recognition
– The buyer recognizes a problem/need triggered by
internal/external stimuli
The Buying Decision Process (3 of 6)
• Information search
– Personal sources
– Commercial sources
– Public sources
– Experiential sources
• Search Dynamics
Figure 3.4 Successive Sets Involved In Consumer
Decision Making
The Buying Decision Process (4 of 6)
• Evaluation of alternatives
– Beliefs and attitudes
– Information processing
– Expectancy-value model
Table 3.1 Laptop Computer Choice Set

Attribute Memory Attribute Graphics Attribute Size and

Laptop Computer Capacity Capability Weight Attribute Price
A 8 9 6 9

B 7 7 7 7

C 10 4 3 2

D 5 3 8 5
The Buying Decision Process (5 of 6)
• Purchase decision
– Decision heuristics—rules of thumb
– Level of consumer involvement
• Elaboration likelihood model
– Intervening factors
Figure 3.5 Steps between Evaluation of Alternatives
and a Purchase Decision
Intervening Factors
• Types of perceived risk
– Functional risk
– Physical risk
– Time risk
– Financial risk
– Psychological risk
– Social risk
 The Buying Decision Process (6 of 6)

• Postpurchase behavior
– Postpurchase satisfaction
– Postpurchase actions
– Postpurchase uses and disposal
Discussion Questions (1 of 2)

Think back to the commercial breaks in last year’s Super Bowl.

▪ How do they appeal to emotions?
▪ Why are marketers using this tactic?
▪ How do the appeals reflect the current sentiment of audiences?
Discussion Questions (2 of 2)

If you’ve taken a flight recently, you may have received an email

from the airline asking about your onboard experience.
▪ What is the value to companies of understanding consumer behavior
following a purchase.
▪ How has technology facilitated marketers’ understanding
postpurchase behavior?
What Is Organizational Buying?

Business market
–Consists of all the organizations that acquire
goods and services used in the production
of other products or services that are sold,
rented, or supplied to others

LO6
Understanding Business
Markets

• Fewer, larger buyers

• Close supplier–customer relationships
• Professional purchasing
• Multiple buying influences
• Multiple sales calls
• Derived demand
• Inelastic demand
• Fluctuating demand
• Geographically concentrated buyers
• Direct purchasing

TL1 LO6
Types of Buying Situations

Straight Rebuy
Modified Rebuy
New Task

TL1 LO6
The Buying Center

• Initiators
• Users
• Influencers
• Deciders
• Approvers
• Buyers
• Gatekeepers

TL1 LO6
What Is the Role of the
Buying Center?

Seek the best value from fewer and better suppliers

TL1 LO6
Buying Center Dynamics

Participants with differing interests, authority, status, and

susceptibility to persuasion, and sometimes with very different
decision criteria

TL1 LO6
Selling to Buying Centers

• Who are the major decision participants?

• What decisions do they influence, and how deeply?
• What evaluation criteria do they use?

TL1 LO6
Figure
4.1
Stages in
the
Business
-Buying
Process

TL1 LO6
Understanding the Buying
Process (1 of 6)

Problem recognition
▪ Someone in the company recognizes a problem or need that can be
met by acquiring a good or service
Need description
▪ Next, the buyer determines the needed item’s general characteristics
and the required quantity

TL1 LO6
Understanding the Buying
Process (2 of 6)

Product specification
▪ The buying organization now develops the item’s technical
specifications
• Product value analysis—an approach to cost reduction that studies
whether components can be redesigned, standardized, or made by cheaper
methods of production without adversely affecting product performance

TL1 LO6
Understanding the Buying
Process (3 of 6)

Supplier search
▪ Catalog sites
▪ Vertical markets
▪ “Pure Play” auction
▪ Private exchanges
▪ Spot and barter markets

TL1 LO6
Online Buying

Vertical hubs
Functional hubs

LO6
Understanding the Buying
Process (4 of 6)

Proposal solicitation
▪ The buyer next invites qualified suppliers to submit written proposals
Supplier selection
▪ Before selecting a supplier, the buying center will specify and rank
desired supplier attributes

TL1 LO6
Supplier Selection

Evaluate vendors
▪ Price
▪ Reputation
▪ Reliability
▪ Agility

TL1 LO6
Understanding the Buying
Process (5 of 6)

Contract negotiation
▪ the buyer negotiates the final order, which includes listing the
technical specifications, the quantity needed, the expected time of
delivery, return policies, and warranties

TL1 LO6
Contract Negotiation

Blanket contracts v s periodic purchase orders

ersu

▪ Stockless purchase plans

Long-term contracts to ensure supply
Vendor-managed inventory

TL1 LO6
Understanding the Buying
Process (6 of 6)

Performance review
▪ The buyer periodically reviews the performance of the chosen
supplier(s)

TL1 LO6
Measuring Market Demand

Measure and forecast the size, growth, and profit potential of new
opportunities
Define “market demand”

TL1 LO7
Demand Measurement
Concepts (1 of 5)

Market demand
▪ the total volume that could be bought by a defined customer group in
a defined geographic area in a defined time period in a defined
marketing environment under a defined marketing program

TL1 LO7
Demand Measurement
Concepts (2 of 5)

Company demand
▪ the company’s estimated share of market demand at alternative
levels of company marketing effort in a given time period
Market forecast
▪ the market demand corresponding to the actual level of industry
marketing expenditure

TL1 LO7
Demand Measurement
Concepts (3 of 5)

Company sales forecast

▪ the expected level of company sales based on a chosen marketing
plan and an assumed marketing environment
• Sales quota
• Sales budget

TL1 LO7
Demand Measurement
Concepts (4 of 5)

Market potential
▪ the maximum sales available to all firms in an industry during a given
period, under a given level of industry marketing effort, and under
extant environmental conditions

TL1 LO7
Demand Measurement
Concepts (5 of 5)

Company sales potential

▪ the sales limit approached by company demand as company
marketing effort increases relative to that of competitors

TL1 LO7
Forecasting Market Demand (1
of 2)

Anticipating what buyers are likely to do

Forecasts
▪ Macroeconomic
▪ Industry
▪ Company sales

TL1 LO7
Forecasting Market Demand (2
of 2)

Industry sales and market shares

Survey of buyers’ intentions
Composite of sales force opinions
Expert opinion
Past-sales analyses
Market-test method

TL1 LO7
Competitor analysis

Competitor analysis is critical in understanding the external

environment in which the firm operates. The analysis involves
knowing the competitors’ strengths, weaknesses, positioning,
market share, and upcoming initiatives.
A process for monitoring the competition that involves identifying
competition, anticipating their moves, and determining their
strengths and weaknesses (i.e., often do this to identify the
differentiation).
=> opportunities and threats that affect the business’s
ability to serve customers

LO8
Level of Competition

Two brands provide offerings at similar prices and use similar

distribution channel networks, communication channels, and target
segments.

• Examples: carbonated soft

drink brands compete with
each other.

LO8
Level of Competition

Competitors satisfy the same customer need yet in different forms.

For example: thirst is satisfied by Coke, Pepsi, and other bottled
water brands, coconut juice brands, etc.

• What would you buy with

VND 50,000?

LO8
1/9/2026
Market Positions

10% 20% 30% 40%

Market Market Market Market
Nichers Follower Challenger Leader
 Competitive Strategies
for Market Leaders

• Expanding total market demand

• Protecting market share

• Increasing market share

 Expanding total market
demand

• New customers
• More usage
Protecting market
share

• Proactive marketing
– Responsive anticipation
– Creative anticipation
 Protecting market
share
• Defensive marketing
Increasing market share

• The cost of buying higher market share through acquisition may far
exceed its revenue value

Possibility of provoking
Economic cost
antitrust action

Pursuing wrong marketing Increased market share

activities effect on quality
 Figure 12.3
Optimal Market Share
Market-Challenger Strategies

• Defining the strategic objective and opponent(s)

A market challenger can attack:

✓ The market leader
✓ Underfunded firms its own size
✓ Small local and regional firms
✓ The status quo
Market-Challenger Strategies

• Choosing a general attack strategy

Market-Follower Strategies

Cloner

Imitator

Adapter
Market-Nicher Strategies

• To be a leader in a small market

– Firms with low shares of the total
market can become highly
profitable through smart niching
Niche Specialist Roles

End-user Vertical-level
specialist specialist

Channel Customer-
specialist size specialist

Job-shop Geographic
specialist specialist
Product Life-Cycle Marketing
Strategies

• A company’s positioning and

differentiation strategy must change
as its product, market, and
competitors change over the PLC
Collaborator analysis

Collaborators are the external stakeholders who team up with the

organization in a mutually beneficial partnership. Agencies, suppliers,
distributors, and business partners are typical collaborators. It is important to
understand their capabilities, performances, and issues to better identify
business problems.
Looking at (potential) partners' positions, expectations, and goals to see if
they can align to achieve the marketing objectives of your company.

Two key collaborators:

1) Downstream trade (retailers)
2) Upstream suppliers

=> strengths and weaknesses of the business and opportunities and threats
that affect its ability to serve customers

LO9
Climate/context analysis

Climate analysis is the evaluation of the macro-environmental

factors affecting the business. PESTEL analysis can be used to
analyze climate—political, economic, social/cultural, technological,
environmental, and legal scenarios are included in PESTEL.
Looking into changing contexts to see what is possible.
E.g., Technological development, cultural trends (products can find
value and meaning to customers through culture-- therefore value is
vulnerable to shifts in culture), political trends (especially affect TV,
banks, etc.)

opportunities and threats that affect the business’s ability to serve

customers

▪ See also p.32-37 in Kotler et al. (2022)

TL1 LO9
Pulling it together

“Gathering information about the Five Cs is just the beginning, the what. Next
think through what it all means and what you are going to do now that you
know. Complete a SWOT analysis of your strengths and weaknesses and
external opportunities and threats. Specifically, analyze:
•Your sources, drivers, hinderers of revenue, and value.
•Your current strategy/resource deployment: Coherent? Adequate? Defacto
strategy?
•Insights and scenarios (To set up: What/So what/Now what?)
A SWOT analysis gets you started. The combination of strengths and
opportunities yields points of leverage. The combination of weaknesses and
threats yields points risk. Your strategic choices should flow from those.”
(Bradt, G., 2017)
[Link] .com/sites/georgebradt/2017/11/22/consider-5cs-customers-collaborators-capabilities-competitors-conditions-in-onboarding-prep/?sh=6a1f0a3a321c

L10