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Chapter-2: Market Sensing: Generating and Using Knowledge About The Market Submitted To:prepared by

This document discusses market sensing and generating knowledge about the market. It describes market sensing as the process of gathering knowledge about the marketplace to formulate, test, revise, update and refine a firm's market view. Key aspects of market sensing discussed include defining the market, monitoring competition, assessing customer value, and gaining customer feedback. Various methods for market segmentation, competitor analysis, assessing customer value, and obtaining customer feedback are also outlined.

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1K views

Chapter-2: Market Sensing: Generating and Using Knowledge About The Market Submitted To:prepared by

This document discusses market sensing and generating knowledge about the market. It describes market sensing as the process of gathering knowledge about the marketplace to formulate, test, revise, update and refine a firm's market view. Key aspects of market sensing discussed include defining the market, monitoring competition, assessing customer value, and gaining customer feedback. Various methods for market segmentation, competitor analysis, assessing customer value, and obtaining customer feedback are also outlined.

Uploaded by

mrugesh_panchal4230
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Chapter-2

MARKET SENSING:
Generating and Using
Knowledge about the Market

Submitted to:Prepared By:


Dr. Naresh Patel Jigar Sharma (1222)
Hiren Sonara (1223)
Mrugesh Panchal(1235)
Market sensing
• Process of gathering knowledge of market
place.

• Enables firm to formulate,


test,revise,update,refine market view.
[represents how market works.]

• Inform & guide decision making.


Aspect of market sencing
• Defining market

• Monitoring competition

• Accessing customer value

• Gaining customer feed back


DEFINING MARKET
fundamentals.
• Market segmentation.

• Determine market segment of interest.


Market segmentation
• Criteria
1. Measurable
2. Profitable
3. Accesible
4. Actionable
• Bases of segmentation.
1. Conventional base
2. Progressive base
Conventional base
• Industries
• customer size
• Customer behavior
• geography
Progressive base
• Application
• Customer capabilities
• Customer business priorities
• Usage situation
Determining market segment of interest

 Market size & growth


-market potential
-total market demand
• Estimate market potential;
-build up method
-chain ratio method
-index method
Contd..
 Sales & profit potential
• Sales potential

• Sales forecast.
Monitoring competition
Why need to study?
• Business marketing is the process of
understanding, creating and delivering value.
• Customer judgment about the value of firm
take place within the market offerings from
other firms.
A framework for competitor analysis

• Future goals
• Assumptions
• Current strategy
• Capabilities
Improving monitoring performance
• Competitor intelligence systems
- the intelligence pyramid
• Benchmarking
• Time lining
Assessing customer value

“ everything is worth what its purchaser will pay


for it” – publilius syrus
Value assessment methods
• Internal engineering assessment
• Field value-in-use assessment
• Indirect survey questions
• Focus group value assessment
• Direct survey questions
• Conjoint analysis
• Banchmarks
Customer Value Management
• Two goals:
– Deliver superior value to targeted market
segments and customer firms.
– Get an equitable return on the value delivered.
Customer Value Models
• Estimates of what a present or prospective
market offering is worth in monetary terms to
targeted customers relative to the next-best-
alternative offering for those customers.
• “Data heavy” and “assumption light”
Customer Value Management Process

1. Translating business issues into projects


2. Customer value workshop
3. Customer value research
4. Constructing a business case for change
5. Value realization
1. Translating business issues into projects

• Pilot program:
– Scope of project
– Definition of success
– Composition of the team
2.Customer value workshop
• Two-three day session
• Practice of building customer value models
– Define the value elements for their project
– Determine next-best alternative to market offering
– Decide which customers to invite to participate in
the customer value research
– Create work plan for accomplishing the project.
Cont…
• Point of Parity:
• Point of Difference:
• Point of Contention:
3. Customer Value Research
a. Gaining initial customer cooperation
b. Gathering the data
c. Analyzing the data
4. Constructing a business case for change

• What specific actions does the team


recommend based on its customer value
research?
• What resources would be needed?
• What would be the profitability impact?
5. Value Realization
• Value models as sales tools:
– Value case histories: written accounts that
document the cost saving or added value a
customer firm actually received from offering

– Value Calculators: spreadsheet software


application that salespeople or value specialist
conduct to demonstrate the value.
GAINING CUSTOMER FEEDBACK
• Why customer feedback?
– Enable the firm to know how well it has fulfilled its
promises to customers.
– Where supplier’s offerings provided the
functionality and performance customer
expected. and where they did not.
– Gives early warning of changing customer
requirements and preferences.
Kinds of customers
• New Customers
• Established Customers
• Stop doing business with supplier
Kinds of customer feedback
• Customer satisfaction measurement
• Customer value analysis
THANK
YOU

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