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Market Analysis and Strategy

MKT 750

Dr. West

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Agenda

Marketing Analysis & Strategic Planning

Essential Elements (5Cs, STP, 4Ps)

Situation Analysis / Strategy / Marketing Mix

Use Claritas Prizm to better understand Columbus

View USA Today Case Study

Discuss what we need to know to develop a

marketing plan for the Columbus Clippers? Teams will work together to generate a list of questions

that need to be answered and potential sources

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Involves the allocation of resources todevelop and sell products or services that

consumers will perceive to provide more

value than competitive goods

What isperceived value?

Marketing Strategy

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A thorough understanding of:

Domestic and global market trends

Models to predict purchase and consumption

Communication methods to reach target

markets most effectively

Foundations of Strategy

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Implementation

in Marketplace

Marketing MixProduct, Price, Place,

Promotion,

Situation AnalysisConsumer

Company

CompetitorsCollaborators

Context

STPSegmentation

Targeting

Positioning

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The process of analyzing:

Consumercharacteristics & trends

Resources of the Company Current and potential Compet i tors

Current and potential Col laborators

The Contextor environmental factors

Situation Analysis

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Context

(Environment)

Economic

FactorsPolitical

Factors

Technological

DevelopmentsSocietal

Trends

PEST Analysis

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Situation Analysis: SWOT

SWOT:

Core strengths?

Current weaknesses? What opportuni t iesexist?

What threatsdo we face?

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Analyzing SWOTs

Internal Factors

Strengths: Competitive Advantages;

Resources

Weakness: Competitive Disadvantages;

External Factors

Opportunities: Social and economic

conditions and situations that look positive Threats: Marketplace conditions that reduce

the perceived value of an offering

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Analyzing SWOTs

Outside-in perspective

One should consider the customer viewpoint

rather than relying on internal judgments

Conduct a brand audit comparing managersperceptions to employee and customer

perceptions

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Prioritizing SWOTs

Useful Criteria:

Realistic damage to brand relationships if a

weakness or threat is not addressed

Realistic benefitif a strength or opportunity is

leveraged

Costof addressing or leveraging each SWOT

Time company has to address or leverageeach SWOT

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Prioritizing SWOTs

Rank each SWOT item from 1 to 3 according to its importance to thecompanys objectives (3 = most important)

Damage

If not

addressed

Benefit

If leveraged

Cost of

Addressing/

Leveraging

Window

of Time

Total

Strengths:

Good dealer relationships

Identifiable target

-

-

2

3

3

3

1

3

6

9

Weaknesses:

Lack of brand awareness

Small budget

-3

-3

-

-

-2

-2

-3

-3

-8

-8

Opportunities:

Good economy - 2 1 2 5

Threats:

Established competition

New brands coming

-3

-2

-

-

-3

-2

-1

-1

-7

-5

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Prioritized SWOTs

-10

-8

-6

-4

-2

0

2

4

6

8

10 Strengths Opportunities

Weaknesses Threats

Critical

Need to

Leverage

Need to

Address

Critical

Deale

rship

netwo

rk

Identifiable

Targe

t

NoBrand

Aw

areness

Sm

all

Bu

dget

Good

Economy

Established

Competitors

New

Brands

Coming

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Situation Analysis

Consider the situation the Columbus Clippers

are currently facing.

The team?

Its competitors?

Team collaborator?

Existing and potential fans?

Context (environmental factors and trends)?

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Step 1: Market Segmentation

Process of identifying a group of people

similar in one or more ways, based on avariety of characteristics and behaviors.

Goal: minimize variance within groups and

maximize variance between groups

Strategy Development

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Identifying Market Segments

Behavioral

Heavy versus Light Users 80/20 rule

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Behavioral Segmentation:

Heavy versus Light Users 80/20 ruleHeavy Half Light Half

(top 50%) (bottom 50%)

5%95%

86%

90%

87%

71%

14%

10%

13%

29%Toilet Tissue

Hair Products

Colas

Canned Ham

Bourbon

Heavy Users: Efficiency/profit Caution: Majority Fallacy

(20%)

(32%)

(88%)

(48%)

(95%)

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Identifying Market Segments

Consumer

Characteristics

Demographics: Age, Gender, Income, etc

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Consumer Characteristics

Geodemographics

-- Examine regional differences in demographics

-- Useful for store location decisions, and direct

mailings, and grassroots efforts

Why?

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Identifying Market Segments

Psychographics/

Benefits

Lifestyle & Values

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Psychographics

Lifestyle

segmentation

VALS is based onprimary motivation

and resources

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Psychographics

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Strategy Development

Step 2: Target Market Selection

Select segments of the market to offer

products and services

Who can we most efficientlyand effectively

establish a relationship with better than our

competitors?

What criteria should be used to select atarget market? (see Table 1-1)

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Customer Profiles

Once a basis for segmentation has been

determined and attractive segments have

been selected, the target groups should be

prof i ledby describing them on as manylevels as possible.

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CustomerProfile

Age, Education, Income (SES)

Occupation, Hobbies

Media Habits Prizm Clusters

VAL Segment / Yankelovich Monitor

Musical Taste, Preferred Cars Aspirational Role Models

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Strategy Development

Step 3: Positioning How your product/company is perceived in

the hearts and minds of your customers?

Price leader/Innovator/Fashion leader/

Quality/Service

What associations come to mind?

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Summary

A firm needs to: Start by analyzingthe market

5 Cs (Company, Competitors, Collaborators,

Customers, and Context) Develop a strategic plan

Begin with Segmentation, Targeting, and Positioning

Followed by tacticaldecisions

Product (Brand), Price, Promotion, and Place With a plan in place implementationissues need to

be addressed

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Assignment

Readings:

Chapters 11 & 12 (pp. 387 401, 422 - 426,

429 - 445)

Team Assignment: Develop a set of questions that need to be answered

and potential sources for next time (you can use webCT

for sharing information)

Individual Assignment: Begin searching for secondary research associated with

you team project (see Project information on website)