2. SITUATION ANALYSIS
• Identifying opportunities to satisfy unfulfilled customer needs.
• Before identifying customer needs, firms needs to understand its own
capabilities in which its operating.
• Firms need to analyze the external and internal environment.( macro &
micro environment )
• Situation analysis should include past, present and future aspects.
• Framework that can be used to add structure to the situation analysis :
5C analysis – Company. Customers, competitors, climate.
Company covers internal situation and the rest external
PEST analysis – political, economic, social and technological
SWOT analysis – Strength, weaknesses, opportunity and threat
3. MARKETING STRATEGY
• Once you have identified the best opportunity to satisfied unfulfilled customer
needs, a marketing strategy or a strategic plan cen be developed.
• The marketing strategy involves :
1. Market Segmentation
- Identification of the market that are different from one another
- Market segment is important as customers have different needs
and wants and its impossible to serve them all alike.
Requirements of Market Segments :
- Segmentation criteria should be evaluated against the following criteria :
1. Accessible – reachable through communication and distribution channel
2. Identifiable – must be measurable so that they can be identified
3. Substantial - segments should be large to justify resources required to
4. BASES FOR SEGEMENTATION IN CONSUMER MARKETS
A. GEOGRAPHIC SEGMENTATION
- Variables include:
Region : country,state
Size of area : according to size population
Population density : urban, surburban, rural
Climate : according to weather patterns
B. DEMOGRAPHIC SEGMENTATION
- Variables include :
5. BASES FOR SEGEMENTATION IN CONSUMER MARKETS
C.) Psychographic Segmentation ( Group customers according to their lifestyle)
- Variables include:
D.) Behavioralistic Segmentation ( Based on actual customer behaviour toward product)
- Variables include:
User status: first time, regular
Readiness to buy
6. Bases Segmentation for Industrial Market
- Industrial Customers are fewer in numbers and purchase in larger quantities.
- Example: Governments, Resellers, Institutions
- Can be segmented on such characteristics such as :
1). Location – customer location may be important for products having a high
bulk in ratio for shipping costs
2.) Company Type – can be classified as follows:
- Company size
- Decision making unit
3.) Behavioralistic Characteristics – Usage rate, Buying status ,purchase procedure
7. ATTRACTIVENESS OF A MARKET SEGMENTS
• Aspects to consider when evaluating attractiveness of a market segment:
- Competition in the segment
- Sales potential
- Brand loyalty of existing customers in the segment
And to obtain these information can be done via market research and
Take note : Target market will have more competitors and are not the most
profitable market to target.
It may be profitable to target smaller segments that have little
8. 5 Target Market Strategies
- Known as a concentrated strategy
- For smaller companies with limited resources.
- One Market segment is served with marketing mix.
2.) Selective specialization
- Known as differentiated strategy
- Different marketing mixes are offered to different strategies.
3.) Product specialization
- Specializes in a particular product.
4.) Market specialization
- Firm specialize in a particular market segment and offers an array of
5.) Full Market coverage
- Serve the entire market and achieved via mass market.
- Single undifferentiated marketing mix is offered to the entire market.
9. MARKETING MIX DECISIONS
decisions falls into 4 controllable categories
1. Product- Brand name, quality, styling, safety packaging
2. Price – Pricing strategy, flexibility, discrimination
3. Place- distribution channel, centres, members
4. Promotion – Promotional campaign development, advertising, sales promotion.
IMPLEMENTATION & CONTROL.
• At this point we assume that the marketing plan has been developed and the
product has been launched.
• As the market changes, marketing mix can be adjusted to accommodate the
changes either changing the advertising message or redesign the entire product
• Implementation is needed to accommodate these changes and continual
monitoring us needed to fulfill customer needs consistently.
• Control makes sure that the marketing programmemoves in the direction set for it.