Group 4 - Market Identification and Analysis Flashcards
refers to the group of consumers or potential customers
who have a need or desire for a particular product or service.
Market
can be defined as a group of individuals or organizations that
share common characteristics and have the potential to purchase a specific product or service
Market
refers to a specific group of customers or consumers that
a technopreneur is aiming to reach and serve with their technology product or service.
Target market
the group of people who are most likely to have a need or desire for the technology the solution that the technopreneur is offering
Target market
Why is it important to know the target market?
-Efficient use of resources
-Better understanding of customer needs
-Effective marketing strategies
-Higher profitability
the thorough process of data collection to choose whether the
product or the service that is going to come will cater to customers’ needs.
Market Analysis
provides you with a holistic,
or well-rounded picture of the markets you are interested in operating in.
Market analysis
an exercise undertaken to gather feedback and information
directly from the customers, generally for judging the viability of specific business decisions.
Market research
It helps in addressing strategic questions about brand management, product development, and consumer perceptions.
Market research
Importance of market analysis
- great help in understanding your customers
- analyse your competitors
- helps determine your unique sales proposition
Dimensions of Market Analysis
- market size
- market segment
- market trends
- market growth rate
- market profitability
- industry cost structure
- distribution channel
- key success factors
refers to the current and
potential volume of the selected market.
Market Size
Market Sizing Methods
- Bottom Up
- Top-down
This method involves estimating the size of individual market segments and then adding them up to arrive at an overall market size.
This approach is often used when there is less data available on the overall market, but more detailed data on specific segments.
bottom up (market sizing method)
This method involves starting with the overall market size and then breaking it down into segments based on demographic, geographic, or psychographic factors.
This approach is often used when there is already significant data available on the overall market.
top down (market sizing method)
This refers to the rate at which the the market is expected to grow in terms of demand for a particular product or service over a period of time.
Market Growth Rate
the basic information investors need before making an investment decision.
Market Growth Rate
How to determine market growth rate?
- extrapolating past data
- product diffusion curve
based on the study of characteristics of adoption rate of similar products or services in the past.
product diffusion curve
refer to the general direction or pattern of change in a particular market over time.
Market Trend
are the movements or shifts in demand, supply, and pricing that reflect changes in consumer behavior, preferences, and needs.
Market Trend
the process of dividing a larger market into smaller, more defined groups of consumers who have similar needs, wants or characteristics.
Market segment
are influenced by various factors such as demographic shifts, technological advancements, economic conditions, and
cultural shifts
Market Trend
refers to the ability of a company or product to generate profits within a specific market.
Market Profitability
It is a measure of the potential financial returns a business
can make from operating within a given market segment.
Market Profitability
It refers to the way in which costs are incurred in a particular industry, including the fixed and variable costs associated with producing and delivering products or services
Industry Cost Structure
These are the specific factors that are critical to the success of companies operating in a particular industry.
Key Success Factors
Key Success Factors
i. Accessibility to essential and unique resources
ii. Competence to reach economies of scale
iii. Accessibility to channels of distribution
iv. Accessibility to the state-of-the-art technology
—- is a path or network through which goods or services move from the producer or manufacturer to the final consumer.
Distribution Channel
It is a strategic framework for analyzing the competitive
environment of an industry
PORTER’S FIVE FORCES MODEL
PORTER’S FIVE FORCES MODEL
- Threats of new entrants
- Bargaining power of suppliers
- Threat of substitutes
- Bargaining power of buyers
- Rivalry among existing competitors
This force refers to the potential for new competitors
to enter the market and disrupt the current competitive landscape
Threat of New Entrants
Factors that influence this force include the ease of
entry, capital requirements, and barriers to entry such as
patents, economies of scale, or brand recognition.
Threat of New Entrants
This force refers to the power that suppliers have over the
industry and their ability to increase prices or reduce the
quality of goods or services.
Bargaining Power of Suppliers
This force refers to the potential for substitutes to
take market share away from the industry’s products or
services.
Threat of Substitutes
This force refers to the intensity of competition
among existing firms in the industry.
Rivalry among existing competitors
5 skills that one must acquire to understand their target market
- segmenting the market
- targeting
- understanding your target
- analyzing the competition
- estimating potential market demand
marketing concept that describes grouping potential
customers into segments or groups with comparable
demands and responses to marketing actions
Segmenting the market
segmenting the market
- geographic
- demographic
- psychographic
- behavioral
evaluate and select target segments.
Targeting
allows you to focus your attention on one market
or group at a time
Targeting
The goal of market research is to better understand the
demands of a market by methodically collecting data on individuals, businesses, or both.
The outcomes of market research are then applied to assist business owners in making more informed decisions concerning the company’s operations, strategy, and potential
customers
Understanding your target
Understanding your target
- Surveys
- Observation
- Prototyping
- Focus Group Discussion
- Emphatic Tools
is a marketing skill that has an impact on projecting sales, sales growth, and capital, machine, and manpower requirements
Estimating Potential Market Demand
is a numerical representation of how
well the entrepreneur understands the target market.
estimating potential market demand
6 Steps of a Market Analysis
- Research your industry
- Investigate the competitive landscape
- Identify market gaps
- Define your target market
- Identify barriers to entry
- Create a sales forecast
Gain a holistic understanding of everything happening in your
industry and prepare to navigate it.
research your industry
Know who the big players are and how you can differentiate your brand
Investigate the competitive landscape
Market gaps are needs that are currently not being filled by
existing brands
Identify market gaps
Know your customer’s unique characteristics and tailor your
offers and marketing accordingly.
Define your target market
Know what stands in your way and address challengers head on.
Identify barriers to entry
Estimate future sales and make confident business decisions.
Create a sales forecast.
This refers to certain factors that allow a
company to produce products and services
cheaper and with a higher quality than its
rivaling companies.
Competitive Advantage
