Market Demand & Market Share + Ch3 Flashcards
Market definition
The scope and boundaries of the market in which a company operates
Marketing myopia
Narrow focus on existing product markets
Problem of being oblivious to market changes
Broad market definition
Reveals new opportunities - a broader set of customer needs. Recognizes potential substitutes and threats
Eg: Coca-Cola in the beverages industry
Narrow market definition
Can be a strength rather than a limitation
eg: Redbull (0.7% of nonalcoholic beverage market, but 50% of energy drink market)
Market potential
Maximum number of customers that can be attracted
Market development index
Measures a markets growth based on market demand and market potential
3 types of innovation
Continuous (improving)
Disruptive (optimize)
Discontinuous (new)
MDI <33%
Great market growth potential
MDI between 33-67%
Growth based on improving deficiencies and lowering prices
MDI >67%
Difficult to grow
Untapped market reasons (PULLHN)
Prices too high
Unrecognized need
Low awareness
Lacks performance
Hard to use
Not available
5 types of customer groups for products
Innovators
Early adopters
Early majority
Late majority
Laggards
Market penetration
The number of customers who have entered a market at a certain point in time
Rate of entry
The percentage of potential customers who enter during a given period
2 forces for accelerating market growth
Customer adoption forces
Product adoption forces
