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A brief discussion about dimensions of a Market Analysis.

Market Analysis. A brief discussion about dimensions of a Market Analysis. Strategic Marketing. Dimensions of a Market Analysis. Topics will be discussed:. Actual and Potential market size. 1. Market Growth. 2. Market Profitability Analysis. 3. 4. Cost Structure. 5.

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A brief discussion about dimensions of a Market Analysis.

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  1. Market Analysis A brief discussion about dimensions of a Market Analysis. Strategic Marketing

  2. Dimensions of a Market Analysis Topics will be discussed: Actual and Potential market size 1 Market Growth 2 Market Profitability Analysis 3 4 Cost Structure 5 Distribution System 6 Trends and Developments 7 Key success factors Strategic Marketing

  3. Analysis of Actual and potential Market size • Potential Market • The User Gap • -Recognize the potential • Vision and Program to exploit • Ghost Potential • Topical Areas • -Inhibiting Factors • Demand of educational equipment Strategic Marketing

  4. Market Growth Identifying Driving Forces Addressing Strategic Uncertainties The prediction of Market Sales The key strategic decision can be an investment decision What will happen if market sales decline? How market sales can be kept stable? What will cause to increase market sales?? 1 2 Strategic Marketing

  5. Market Growth Forecasting Growth Historical Data 3 New market sales forecasts can be based on the experience of analogous industries. Random fluctuations or short term economic conditions. 1 Demographic Data The number of births is a indicator of the demand. 2 Sales of related equipment Number of electronic devices users is the indicator of demand for services needs. Strategic Marketing

  6. Market Growth Detecting Maturity and Decline Buyers’ Knowledge Substitute Products Price Pressure Caused by over capacity or the lack of product differentiation. Buyers tend to become more knowledgeable when the product is matured. tWhen the sales of one product increases, the demand of substitute products also increases. 3 2 1 Strategic Marketing

  7. Market Profitability Analysis Existing Competitors Strategic Marketing

  8. Market Profitability Analysis Potential Competitors Mining or automobile Industries. .Capital Investment Required Necessary to obtain a large volume quickly. Established firms have highly loyal customers. Economies of Scale. Gaining distribution is difficult and costly. Product Differenciation Distribution Channel Strategic Marketing

  9. Market Profitability Analysis Substitute Products Can influence the profitability of the market and can be a major threat or problem. For example: Plastics, glass and fiber-foil products exert pressure on the metal can market. 3 1 Customer Power Can force price down and demand more services, thereby affecting profitability of the market. 2 Supplier Power Increases when it costs high for the customer to switch the supplier. Strategic Marketing

  10. Cost Structure • Analysis of Value Chain • To determine where the value is added to the product • The Experience Curve Concept • To determine whether the context is compatible with a given strategy Strategic Marketing

  11. Distribution System • What are the alternative distribution channels? • What are the trends? • Who has the power in the channel? • What channels are growing in importance? • What new channels have emerged? • How the power of the channel is likely to shift? Strategic Marketing

  12. Market Trends Analysis of Soft-drink Industry Increased price sensitivity. Increased concern for health. The consumption of noncola beverages increases thus affect the soft-drink industry. Demand for exotic flavors. Strategic Marketing

  13. Risks in High Growth Markets Number of commitment. Price Instability. Superior product or low cost advantage. Market growth may fall. Technological Change. Organizations may unable to adapt. Strategic Marketing

  14. Risks of High-Growth markets Risks of high growth markets • Market Changes: • Changing KSFs • New technology • Disappointing Growth • Price Instability • Firm Limitations: • Resource constraints • Distribution unavailable • Competitive Risks: • Overcrowding • Superior Competitive Entry

  15. Key Success Factors Competitive Overcrowding 1 Superior Competitive Entry 2 Changing Key Success Factors 3 Changing Technology 4 Disappointing Market Growth 5 Price Instability 6 Resource Constraints 7 Strategic Marketing

  16. THANK YOU! Strategic Marketing

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