Market Analysis, 20 march 2007

Market Analysis




Market Position

• Market Niche – small part of an existing market
• Market Leader – maintain dominant position in the market?
• Market Follower – Follow the lead of the market leader – pricing, product development etc
• Market Challenger – Seek to adopt strategies to challenge market leader’s position

Market Objectives

• National Growth
• International Growth
• Ethical Objectives
• Market Share
• Consumer Focus
• Product Focus
• Image
• Social Responsibility
• Revenue Maximisation
• Shareholder Value
• Overcome Competitors
• Will involve/determine some or all of the following:
  –Market Penetration
  –New Product Development
  –Branding
  –Diversification
  –SWOT Analysis

Market Segments

• Age
• Religion
• Gender
• Income Level
• Lifestyle
• Ethnic Grouping
• Geographical region
• Family Circumstances
• Behaviouristics
• Social Class: Institute of Practitioners in Advertising (IPA) Grouping
  –A – Higher managerial, professional and administrative
  –B – Middle management, professional and administrative
  –C1 – Supervisory, clerical and junior management
  –C2 – Skilled Manual Workers
  –D – Semi and unskilled manual workers
  –E – Pensioners, casual workers, unemployed

Which Segment?

• Mass Markets: high volume, low margin goods – confectionary, cars, clothing, food stuffs
• Multiple Segments: appealing to wider range of groups – e.g. 4x4 vehicles – town, country, gender, lifestyle, social class?
• Single Segment: often a specialised product, e.g. machinery, exclusive goods

Market Structure

• Highly Competitive?
• Imperfect Competition?
• Oligopoly?
• Duopoly?
• Monopoly?
• Nature of the market structure determines marketing strategy:
  –Pricing strategy
  –Branding?
  –Product Differentiation?
  –Market Penetration?
  –Direct Selling?