ì  Market Analysis A  Best  Prac+ce  Guide  For  Your  Marke+ng  Strategy  Process  

By:  Wayne  E.  Chen  

©  2011  –  Wayne  Chen  

Learning  Objective  

ì  Market  trends  and  size  

ì  Product  Life  Cycle  (PLC)  

ì  Product  marke+ng  &  adap+on  

ì  Compe+tor  Factors  

Market  Analysis  

ì  A  broader  view  of  poten+al  consumers  to  include  market  sizes  and  trends  

ì  Review  of  the  compe++ve  and  regulatory  environment    

ì  Worth  the  trouble  of  targeted  marke+ng  effort  

 

Three  Evaluation  Questions  

ì  Where  is  the  product  in  its  product  life  cycle?  

ì  What  are  the  key  compe++ve  factors  in  the  industry?  

ì  What  is  the  relevant  market?    

Relevant  Market  

ì  Relevant  Market  ì  Not  Total  Sales  

ì  All  Car  Sales  ì  $10  Billion  

ì  US  Sales  ì  $5  Billion  (50%)  

ì  Product  Differen+a+on  ì  $250  Million  

ì  50%  OCONUS  

$10  Billion  Market  (Total)  

$5  Billion  Market  (Relevant)  

Marketing  Effort  

ì  Is  it  large  enough  to  jus+fy  your  marke+ng  effort?  ì  No  –  “Makable”  product  ì  Yes  –  Only  “Marketable”  

products  make  money  

Sales  

Google  

Bing  

Yahoo  

Alibaba  

Research  &  Investigate  

ì  Market  Research  ì  How  to  research  ì  Availability?  

ì  Inves+ga+on  ì  How  to  inves+gate  ì  Segment    

Product  State  

ì  How  has  the  market  grown  over  +me?  

ì  Projected  sales  growth  for  new  or  exis+ng  customers?  

ì  Shrinking  sales  ì  Cost  to  compe+tors  and  

market  share  fight  

Product  Life  Cycle  (PLC)  

ì  Characterized  by  the  stage  that  they  are  at  in  their  PLC  

ì  Sales  growth  and  awareness  buying  sales    

ì  Adop+on  impacts  product  marke+ng    

ì  Each  product  develops  its  own  unique  PLC  as  it  matures  

Product  Introduction  Stage  

ì  What  is  it?  ì  Needs  awareness  and  

educa+on  ì  Trial  period  ì  High  Ad  Costs  ì  Adapts  to  feedback  ì  Dynamic  pricing  decision  

Product  Growth  Stage  

ì  Where  can  I  get  it?    ì  Educa+on    ì  Intensify  compe++on  ì  Compare  features  

ì  Select  high  distribu+on  channels  relevant  to  the  buyer  

ì  Tipping  point  boost  sales  and  reduce  costs  

Product  Maturity  Stage  

ì  Why  this  over?  ì  Brand  loyalty  ì  Small  differences  

ì  Price  and  stability  ì  Standard  and  expected  

features  ì  High  ad  costs  to  

differen+ate  

ì  All  channel  marke+ng  

ì  Mass  market  strategy  

Product  Decline  Stage  

ì  How  much  will  this  cost?    ì  Compe+tors  and  

products  are  the  same  ì  Key  focus  is  on  price  ì  Trade  rela+ons    

ì  No  necessarily  death  ì  Reinvigorated    ì  Death  could  be  profitable  –  

limited  supply  

Competitive  Factors  

ì  Five  Industry  Factors  ì  Quality  ì  Price  ì  Adver+sing  ì  R&D  ì  Service  

ì  Fast  food  ì  Intense  ad  and  promo+on  

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