Market Opportunity Analysis &
Consumer Analysis
Presented by: Ma. Cristina Perlas, MBA, LPT
Chapter 3
1
Market Opportunity
Analysis
Objectives
Distinguish between strategic Analyze the elements of macro-
01 02
and marketing planning in and micro-environment and their
terms of objectives and influence on marketing planning
process
03 Discuss the goals of marketing 04 Develop competition analysis
with the aid of a SWOT matrix
in solving marketing cases
MARKETING PLANNING PROCESS
Company vision and mission
Monitoring and Control
Strategic Plan • Performance against
objectives
Function Plans
• Validity of assumptions,
(bus. plan, mktg. plan, etc.)
budgets and performance
measures
Budgets and performance measures
MARKETING PLANNING PROCESS
1. Identifying the company's vision, mission, and values
The company's vision and mission will define its business goals. Different
companies will have distinct visions and missions.
To help us understand a company's vision and mission, we need to determine
the company's orientation toward the marketplace.
Company Orientation
Production sales product
- focused on producing more units - the business makes the product - focused on making high quality
to achieve economies of scale. that they think can sell in the products.
- invest more on acquisition of marketplace. - invest more on product
production and equipment - invest more on equipment and development and research.
activities related to selling
Company Orientation
societal
MARKET
marketing
- focused on the consumer, - the business makes the product that
- consider three components:
thereby leading to profit. they think can sell in the marketplace.
consumer, company, and society.
- invest more on equipment and
- invest on consumer research;
activities related to selling - invest on consumer and societal
what the consumer needs and
research.
wants
MARKETING PLANNING PROCESS
2. Strategic Planning
- defined as the way a business plans to achieve its objectives.
- done with matching company resources with the opportunities in the
marketplace to make sure that there is a fit
- shapes the organization and its resources, assesses the impact of
environmental variables, takes a holistic view of the organization, develops
objectives and strategies, is concerned with the long-term success of the
organization, and is a senior management responsibility.
Environmental Assessment
evaluate current and future competitive
positioning.
- made up of factors that have a direct impact on its business
operations and success.
1. Customers
2. Employees
3. Competitors
4. Suppliers
5. Shareholders and equity partners
6. Relevant Public - e.g. media (newspapers, magazines, etc.)
Environmental Assessment
- made up of factors that have an indirect impact on business operations. We will analyze the macro environment using
the PESTEL (Marketing Theories - PESTEL Analysis).
POLITICAL factors - include government policy, political stability, foreign trade policy, tax policy, labor law,
environmental law, trade restrictions, and so on.
ECONOMIC factors - include economic growth, interest rates, exchange rates, inflation, disposable income of
consumers and businesses, and so on.
SOCIAL factors - include population growth, age distribution, health consciousness, and career attitudes and so on.
TECHNOLOGICAL factors - include new ways of producing goods and services, new ways of distributing goods and
services, and new ways of communicating with target markets.
ENVIRONMENTAL factors - include scarcity of raw materials, pollution targets, doing business as an ethical and
sustainable company, carbon footprint targets set by governments.
LEGAL factors - include health and safety, equal opportunities, advertising standards, consumer rights and laws,
product labelling, and product safety.
Environmental Assessment
Organizational Direction
04
Directional objectives
External objectives
based on market leadership, market
02 03
spread and/or customer service based on social responsibility
Performance
Internal objectives
objectives
01
based on growth and/or profitability
based on efficiency in processes
and/or personnel management
Strategic Formulation
establishing goals and objectives
Cost leadership strategy
- identifies companies that can achieve economies of scale in
production and marketing
- considers a broad market and is more aligned with the
production orientation
- Example:
Unilever - a multinational consumer goods company and its
products include food, beverages, cleaning agents, and personal
care products.
Strategic Formulation
Differentiation strategy
- identifies companies that have distinct products and covers a
broad market.
- this strategy can be seen as being more aligned with the
product orientation.
- Example:
L'Oreal - they serve the beauty and personal care market. Their
focus on doing research indicates their inclination towards the
product orientation.
Strategic Formulation
Cost Focus strategy
- identifies companies that are low cost providers to the segment.
- this strategy can be seen as being more aligned with the
production and marketing orientations.
- Example:
HBC - it was initially selling nail care products. It became famous
for selling salon accessories and tools on top of its reliable
sharpening service.
Strategic Formulation
Differentiation focus strategy
- identifies companies that have distinct products and covers a
narrower segment.
- this strategy can be seen as being more aligned with the
production and marketing orientations.
- Example:
Human Nature - they describe their company as a passionate
social enterprise, driven by love for the Philippines, the poor, and
the environment.
MARKETING PLANNING PROCESS
3. Implementation Planning
- identify function plans to achieve the goals.
Goals of Marketing
Monetary marketing SOCIAL RELATED
goals related goals GOALS
- marketing objectives can be stated in
- marketing objectives can be stated in - marketing objectives can be stated in
terms of direction. Indicators of
terms of performance. Indicators are terms of external objectives. Indicators of
directional objectives include market
growth and profitability. external objectives include social
leadership, market share, market spread,
responsibility.
and customer service
MARKETING PLANNING PROCESS
4. Marketing Plan
- is a one year road map or a set of actions that the company will take to
achieve its marketing objectives.
Marketing Plan
Executive Situational Marketing
Summary analysis objectives
- this provides an overview of - examine the factors and trends - determine what you want to
plan and explains cost involved in that affect marketing strategies. achieve or accomplish.
implementing the plan.
MARKETING PLAN
Marketing implementation evaluation
Strategies and
control
- identify the target markets and - outline how implementation will - these are activities during the
marketing mix. be accomplished. It is also in this period under review that monitor
part where you include sales the attainment of objectives and
forecasts. evaluation of attainment or non-
attainment of objectives.
Situational Analysis
1. Relevant micro and macro factors
- the situational analysis needs to incorporate relevant macro and micro factors.
- the distinguishing characteristics of a marketing plan is the extensive discussion of customer and
competitive analysis, this should be incorporated in the market analysis.
Situational Analysis
2. market analysis
Market Analysis Dimensions
(David A. Aaker)
a. Market size
- refers to the current and future
number of customers and/or number
of units.
- You can get this information from
government data, trade associations,
and customer survey.
Situational Analysis
2. market analysis
b. Market growth rate
- refers to the projected increase of the
market size.
- is based in past data.
Situational Analysis
2. market analysis
c. Market profitability
- refers to the profit potential for a
market.
- Porter's five forces can be used to
determine market profitability.
Situational Analysis
2. market analysis
d. Industry cost structure
- refers to the types and relative proportions of fixed and variable costs that a business incurs.
To define a cost structure, you need to define every cost incurred in relation to a cost object. The following
bullet points highlight key elements of the cost structures of various cost objects:
Product cost structure
Fixed costs. Direct labor, manufacturing overhead
Variable costs. Direct materials, commissions, production supplies, piece rate wages
Service cost structure
Fixed costs. Administrative overhead
Variable costs. Staff wages, bonuses, payroll taxes, travel and entertainment
Situational Analysis
2. market analysis
Product line cost structure
Fixed costs. Administrative overhead, manufacturing overhead, direct labor
Variable costs. Direct materials, commissions, production supplies
Customer cost structure
Fixed costs. Administrative overhead for customer service, warranty claims
Variable costs. Costs of products and services sold to the customer, product returns, credits taken, early
payment discounts taken
Situational Analysis
2. market analysis
e. Distribution channels
- refers to existing and
emerging channels.
Situational Analysis
2. market analysis
f. Market Trends
- know and keep up with the
trends in the marketplace.
Source: [Link]
11/asian-trends-2020/
Situational Analysis
3. customer analysis
- Customers are great source of information. By studying their buying habits, we may reveal patterns
that offer insights into product offerings and pricing strategies (Farese, Kimbrell, & Woloszyk, 2012).
- What will appreat in this part is the profile of the market segment.
Situational Analysis
4. Competitive analysis
- Companies need to know what their competitors are doing at all times. Changes in competitor's
financial situation and problems in the marketplace can provide opportunities (Farese, Kimbrell, &
Woloszyk, 2012).
- What will apprear in this part is the perpetual map.
Situational Analysis
5. SWOT Analysis
- is a tool that you can use in strategy development.
Four (4) basic questions:
1. Where is the organization now?
2. How did it get there?
3. What conditions are you heading into?
4. What strategy should it adopt for the future?
Internet Resources for SWOT
A. SWOT Analysis Generator
B. [Link]
C. Creately
D. SmartDraw
E. SWOT Map
F. Grapholite
Marketing Objectives
SMART
- set SMART
objectives.
Marketing Objectives
Marketing Objectives
a. objectives related to monetary goals
- to gain 30% market share for stationary by 2016.
Market share - is defined as the percentage of an industry or market's total sales that is earned by
a particular company over a specified time period.
Market share = company sales
total market sales
Where do you get information about total market sales?
- Trade associations, market research firms or online sources like Euromonitor
Marketing Objectives
a. objectives related to monetary goals
Marketing Objectives
a. objectives related to monetary goals
- to achieve as the benefit to the company resulting from an investment.
ROI - is defined as the benefit to the company resulting from an investment.
ROI = gains - investment cost
investment cost
For example, if you buy 20 pieces of loom band bracelets for P10/piece, your investment cost is
P200. If you sell those loom band bracelets for P250, then your ROI is (P250-200)/200 for a total
of 0.25 or 25%. You can check this by taking the cost of P200 and multiplying by 1.25, yielding
P250.
Marketing Objectives
B. objectives related to marketing goals
- To increase the percentage of customers who rate service as excellent from 80% to 85% within 1
year.
- To increase the usage of solar energy from 2% to 5% of our target group by January of 2017.
Marketing Objectives
C. objectives related to social responsibility
- To increase awareness of the dangers of MERS in the Philippines from 20% to 50% by the end of
2015.
Marketing Objectives
sample objectives
Marketing Strategies
ansoff's growth strategy matrix
A business has the potential to grow bu using
one of four strategies.
- These strategies involve making the most of
existing markets and products, introducing new
products, or entering new target markets.
Marketing Strategies
ansoff's growth strategy matrix
Market Penetration
- the strategy for market penetration is to reduce
prices and promote heavily.
- this strategy has the lowest risk since the
company knows the product and the market.
Marketing Strategies
ansoff's growth strategy matrix
Product Development
- the strategy is to develop new products serving
the same market.
- this strategy has medium risk since the
company is familiar with the market but not the
new product.
Marketing Strategies
ansoff's growth strategy matrix
Market Development
- the strategy is to develop new markets for
existing products.
- this strategy has medium risk since the
company is familiar with the product but not
with the market.
Marketing Strategies
ansoff's growth strategy matrix
Diversification
- the strategy is to develop new products for
new markets.
- this strategy has the highest risk since the
company is not familiar with the product and the
market.
Marketing Strategies
ansoff's growth strategy matrix
Diversification
- the strategy is to develop new products for
new markets.
- this strategy has the highest risk since the
company is not familiar with the product and the
market.
Implementation
- outline how implementation will be accomplished.
- It includes sales forecast. The quantity component in the sales equation should be research based. This
could be based on trends or primary research.
Evaluation and Control
- these are activities during the period under review that monitor the attainment of objectives and
evaluation of attainment or non-attainment of objectives.
- Marketing plan is monitored to determine if targets have been met and to assess if adjustments need to be
made given the changing environment.
- Examples of monitoring: distributing customer feedback forms and having mystery shoppers. Some
companies employ technology for monitoring and control.
THANK YOU!
2020