Chapter 4- Opportunity Analysis, market segmentation, and market targeting
Opportunity Analysis
• Consist of 3 interrelated activities: 1. opp. identification, 2. opp.-organization match- use SWOT analysis, 3. opportunity evaluation- 2 distinct phases; qualitative and quantitative.
• Opp. evaluation depend on 1. competitive activity, 2. buyer requirements, 3. market demand, 4. social, political, economic, technological forces, 5. org. capabilities.
• Find mkts that the org. can profitably serve
What is a Market
• May be considered to be the prospective buyers (ind. or org.) willing and able to purchase the existing or potential offering(product or service) of an org.
• Definition focus on buyers.
• Effective demand- buyers willingness or ability to purchase; depend on mkting mix.
• Offering rather than product or service expands definition.
• Market share- sales of a firm, product, or brand divided by the sales of the "market".
Market Segmentation
• the breaking down or building up of potential buyers into groups or market segments.
• Grew because an org. cannot be all things to all people.
• Disagree with Henry Ford idea of any color as long as its black.
• Mass customization- tailoring products and services to the tastes and preferences of individual buyers in high volumes and at a relatively low cost.
Benefits of Market Segmentation
• 1. Identifies opportunities for new product development
• 2. Helps in the design of mkting programs that are most effective for reaching homogeneous groups of consumers.
• 3. Improves the allocation of mkting resources.
Bases for market segmentation
• Two broad types of variables are used for Mkt. Seg.
• 1. socioeconomic characteristics of consumers- gender, age, income, education.
• 2. behavioral variables- benefits sought from products and services, usage behavior, life...