MARKET OPPORTUNITY ANALYSIS

AND CONSUMER ANALYSIS

THE STRATEGIC MARKETING PROCESS

Mission Situation Objective

Identification Anlaysis Setting

Strategy Marketing
Evaluation Strategy
and Control Development
STEP 1: MISSION IDENTIFICATION
 A mission statement defines what an organization
is, why it exists, its reason for being, its primary
customers, the products and services it produces,
and its geographical area of operation.
STEP 2: SITUATION ANALYSIS
 Assesses and evaluates the market, customers,
competitors, and the company’s internal and
external environment.
 The objective is to identify the company’s
strengths and weaknesses, as well as the available
opportunities and possible threats
STEP 3: OBJECTIVE SETTING
 Marketing targets that are specific, measurable,
attainable,realistic and time- bound(SMART).
 Targets includes sales revenues, market share or
profits.
 These are use as basis for strategy selection and
development.
STEP 4: MARKETING STRATEGY DEVELOPMENT

 Involves market segmentation, identification of

target market, positioning, selection of broad
marketing strategies and the translation of
strategies into action plan.
 Can be broadly classified into three categories:
Cost Leadership, Differentiation, and
Focused.
COST LEADERSHIP
 A strategy primarily for achieving low cost
leadership among industry competitors.
 Can be achieved through low cost supply
contracts, overhead expense control..etc..
DIFFERENTIATION
 Seeks to achieve superior product attributes and
features that are different from industry
competitors.
 Consumer preference for the company’s product.
FOCUSED
 The development of products and services
primarily ensures that the needs and wants of this
market are addressed and that satisfaction is
provided
COST LEADERSHIP, DIFFERENTIATION
AND FOCUSED STRATEGIES MAY BE
IMPLEMENTED THROUGH THE FF.
SUBCATEGORIES:
FORWARD INTEGRATION
 This involves gaining ownership or increased
control over distributors or retailers
BACKWARD INTEGRATION
 This involves gaining ownership or increased
control over suppliers
HORIZONTAL INTEGRATION
 This involves purchase of or increased control
over competitors.
MARKET PENETRATION
 The objective of this strategy is to increase
market share of current products or services in
current markets through greater and more
intensive marketing offers.
MARKET DEVELOPMENT
 This strategy involves the introduction of existing
products or services into a new geographical area
or market.
PRODUCT DEVELOPMENT
 This strategy involves the improvement of
current products or services or the development
of new products with the purpose of increasing
sales.
RELATED DIVERSIFICATION
 This involves introducing new but related
products or services.
UNRELATED DIVERSIFICATION
 This involves introducing new but unrelated
products or services.
RETRENCHMENT
 Halting or reversing declining sales and profits
through cost or asset reduction.
DIVESTITURE
 Selling a division or part of an organization
LIQUIDATION
 Selling all of a company’s assets, in parts or as a
whole, for their tangible worth.
STEP 5: STRATEGY AND EVALUATION AND CONTROL

 Periodic monitoring and evaluation are needed.

 Necessary to identify deviations and make
necessary adjustments and corrections.
THE TACTICAL MARKETING PROCESS
 Determines the means or tactics to implement the
strategies.

Marketing Action Marketing Activity

Strategies plans/Tactics Activities Timetables

Monitoring and Activity

Activity Responsibility/
control Budgets
Budgets Accountability
THE MARKETING MICROENVIRONMENT
 Includes forces that are internal to the company
or those that are relevant to its operation.
1. THE COMPANY
 Functions include research and development ,
finance, operations and human resources.
 Marketing cannot function in a vacuum as
marketing decisions must always be aligned with
the organizational goals and strategies.
2. SUPPLIERS
 Provide raw materials, utilities, labor, capital and
equipment.
 The performance of suppliers can directly impact
an organizations’ ability to continuously satisfy
its consumers.
3. MARKET INTERMEDIARIES
 Intermediaries are channels that link the
organization to its customer.
 The most common intermediaries are distributors,
wholesalers and retailers.
 Also help in the promotion of products
4. CUSTOMERS
 Create the demand for products and services
 They can either be customers or end- users,
businesses, or organizations.
5. COMPETITION
 Knowing a competitor is critical to the success of
the firm
 Competitors may introduce new and/or improved
products in the markets.
6. PUBLICS
 May include any individual or entity with an
actual or potential interest in the company and its
products or services.
 Includes shareholders, the community, financial
institution …
IDENTIFYING STRENGTHS AND WEAKNESSES

 Strengths and weaknesses can either be

controllable or uncontrollable.
 The five other forces( suppliers, market
intermediaries, customers, competition and the
various publics) are essentially uncontrollable .
MARKETING MACROENVIRONMENT
 Factors that are external to the organization.
 These can either be influenced nor altered by the
firm.
ECONOMIC MACROENVIRONMENT
 Represents economic factors that can directly
affect a business organization.
POLITICOLEGAL MACROENVIRONMENT
 Encompasses both political and legal factors
SOCIOCULTURAL MACROENVIRONMENT
 Each geographical area has a specific culture that
dictates how business is conducted.
DEMOGRAPHIC MACROENVIRONMENT
 Consist of changes in population characteristics.
TECHNOLOGICAL MACROENVIRONMENT
 Is composed of current and impending
technological changes
NATURAL MACROENVIRONMENT
 Refers to natural resource inputs and
environmental concerns.
IDENTIFYING OPPORTUNITIES AND THREATS

 The company shall now proceed to identify

threats or opportunities among these factors.
 For example, a company can take advantage of
the increased economic growth in the Visayas by
developing the market through the opening of
outlets in the region.
MARKETING RESEARCH
 A function under a business organizations’
Marketing Information System (MkIS)
 MkIS is primarily responsible for the gathering,
analysis, and timely distribution of info for the
use of marketing decision makers,
MARKETING RESEARCH
 Function responsible for acquiring and evaluating
market and consumer- based info for decision
making.
THE PURPOSE AND IMPORTANCE OF MARKETING RESEARCH

 Who uses the products, how it is used, how much

or how little of it is used and the general attitudes
of the consumer toward the product are not
known explicitly.
THE FF. ARE SOME ISSUES THAT CAN BE ADDRESSED BY
MARKETING RESEARCH:

 Identify viable new products and services

 Enable risk reduction
 Identify market opportunities and threats
 Determine the level of customer satisfaction
 Pinpoint and anticipate market trends or changes
 Decide on the best advertising medim
 Pre- test and post- test advertising and promotional campaigns
 Evaluate the results of packaging, brand name, and label testing
 Determine consumer price awareness and sensitivity
 Undertake location studies
STEPS IN THE MARKETING RESEARCH PROCESS

Research Need Problem/Opport Establishment of Research design

determination unity definition research objectives determination

Sample size and Determination of Information

Data collection
sampling plan data access sources/types
forms design
determination methods identification

Report preparation
Data Collection Data Analysis
and presentation
STEP 1: RESEARCH NEED DETERMINATION
 The problem situation has to be assessed initially
to determine if marketing research is need at all.
STEP 2: PROBLEM/ OPPORTUNITY DEFINITION

 To set the general research direction and

operational parameters, the problem/opportunity
must be defined in precision.
STEP 3: ESTABLISHMENT OF RESEARCH OBJECTIVES

 To gather precise info to address inforamtion

gaps.
 Research objectives must be clear, detailed and
operational.
STEP 4:RESEARCH DESIGN DETERMINATION

 At this step, methods and procedures for the

collection and analysis of info must be
determined.
FOUR MAJOR TYPES OF MARKETING RESEARCH DESIGN

 Observational- can be made any one time or regularly

within a period of time.
 Experimental- includes laboratory experiments and test
marketing. Results from two sets of samples are
compared.
 Qualitative- includes focus groups, in- depth interviews
and projective techniques. Uses only small no. of
respondents.
 Quantitative- use of surveys. Used to test observations.
STEP 5: INFORMATION SOURCE/TYPE IDENTIFICATION

 Primary Information- refers to data gathered by

the researcher for the specific problem.
 Secondary info- information acquired from
previously conducted researches.
 Secondary Data- relatively easy and inexpensive.
 Information can also be sourced from internal
data and focus groups.
 Internal Data-information collected from
company records
 Focus Groups- a marketing research tool that
involves a small group of people.
STEP 6:DETERMINATION OF DATA ACCESS METHODS

 Person administered surveys- either v=be

administered through face to face or telephone
interviews.
 Computer- administered- faster method of data
access
 Self- administered- the respondents complete the
surveys on their own.
 Hybrid Surveys- utilizes multiple data methods.
STEP 7: DATA COLLECTION FORMS DESIGN
 Survey Questionnaire is the most common form used in
data collection. It has the ff. major parts:
 Introduction- contains greeting, introduction, researcher
intro and affiliation, purpose…
 Screening- series of questions designed to eliminate
respondents who are not qualified to take part in survey.
 Core- body of the survey questionnaire
 Classification- questions used to classify respondents
into diff. groups for stratification and analysis purposes.
SEVERAL TYPES OF QUESTIONS ARE USED IN
QUESTIONNAIRES:

 Categorical Response Questions- questions where

answer is provided. There are 2 types which are
dual choice- only two choices of answers (yes Or
no); multiple choices- three or more choices of
answers.
 Open- end questions- respondent can answer these
questions in his/her own idea.
 Metric Questions- require respondents to answer
using no. on a scale developed by the researcher.
STEP 8: SAMPLE SIZE AND SAMPLING PLAN DETERMINATION

 It is ideal to give questionnaires to every member of

the target population.This type of survey is called
census.
 Sample size is determined using 3 variables:
confidence level, variability and margin of error..
 After the sample size has been calculated, the
sampling plan is determined.
 Sampling Methodology can either be non-
probability or probability based.
TYPES OF NON- PROBABILITY SAMPLING
 Convenience Sampling
 Judgment Sampling
 Referral Sampling
 Quota Sampling
TYPES OF PROBABILITY SAMPLING
 Simple Random Sampling
 Systematic sampling
 Cluster sampling
 Stratified sampling
STEP 9: DATA COLLECTION
 This the stage in the process where the
questionnaires are administered to the selected
respondents.
STEP 10: DATA ANALYSIS
 Collected Data is summarized and generalized.
STEP 11: REPORT PREPARATION AND PRESENTATION

 This serves a s basis for strategic or tactical

decisions.
MAKING MARKETING RESEARCH BASED DECISIONS

 External factor research- the info acquired from these

researchers can help marketers identify and anticipate
macroenvironmental shifts.
 Observation research- an invaluable aid in
determining consumer behavior.
 Test Marketing-based on results , the company shall to
gauge the acceptability of a proposed product/service
 Target Market Studies- these help companies identify,
quantify and understand its target market better.
 Concept, Product Development and product studies- using
the results generated by the concepts, product, development
 Pricing Tests- can be utilized by marketer to calculate a
products or service
 Location Studies- determines ideal retail store locations and
is a valuable tool in site location
 Advertising pre- and post- testing- these test can determine
advertising copy effectiveness
 Usage, attitude and image studies- can indicate to marketers
cost effective ways