Module 3: Market Opportunity Flashcards
Businesses do not operate in
isolation
According to Kotler (2011),
strategic planning sets the stage for the rest of planning in the firm.
strategic planning sets the stage for the rest of planning in the firm.
Kotler (2011)
companies must be able “to develop and maintain a strategic fit between its goals and capabilities and its changing market opportunities.”
…
as a process by which the company defines the general direction it will take and translate this into broadly defined goals.
strategic planning
In creating Strategic plan for the company, it is necessary to first define its
mission
After defining the mission statement, the company needs to set its overall
company objectives at the corporate level, which are then translated into the respective departments’ objectives and goals.
After setting realistic goals and objectives per department, the collective products and businesses to offer on the market can then be designed. This collection of businesses that the company owns is referred to ______
business portfolio
The best business portfolio is the one that best fits the company’s
strengths and weaknesses to opportunities in the environment.
In order to design the business portfolio, the business must:
- Analyze its current business portfolio and decide which business should receive more, less, or no investment.
- Develop growth strategies for adding new products or businesses to the portfolio.
is commonly referred to as a core strategy which composed of market segmentation, targeting and brand positioning collectively known as STP
Marketing strategy
Marketing strategy involves?
STP
Segmentation
Targeting
Positioning
______ are popularly known as the 4Ps of marketing, which composed of product, price, place and promotion.
Marketing tactics
After the strategic planning of an organization where it assesses its strategic direction, the next step is for the various departments to ______
implement their plans
resource allocation, interpretation of the strategic plan into specific actions, and the analysis of the projected plan.
The result of this planning process is a
Marketing plan
After the company has assessed its overall strategic direction, the next step is for its various departments to conduct their own _____
strategic planning
marketing department will develop its marketing plan, which will address the following questions:
- How do we allocate our resources to get where we want to go?
- How do we convert our plans into actions?
- How do our results compare with our plans?
There are three steps involved in the strategic marketing process:
(1) Situation (SWOT) Analysis,
(2) market-product focus and goal setting,
(3) the marketing program.
first identify what are the internal and external factors that may prosper or hinder the plans.
Situation or SWOT Analysis
SWOT ANALYSIS – it is used to identify an organization’s
strengths, weaknesses, opportunities and threats.
SWOT ANALYSIS is excellent tool for
· organizing information
· presenting solutions
· identifying roadblocks
· emphasizing opportunities
it includes the company’s attributes that give a competitive edge over others.
good performance and a positive reputation in the business scene.
Strength
attributes of a company that need to be improved or changed.
attributes may hinder the company’s growth and performance.
Weaknesses
these are external factors or events that can give a positive impact to the company if properly addressed.
Opportunities
these are external factors which may negatively impact the company. These are trends, changes or movements over which the company has no control but should be addressed to maintain its status in business.
Threats
The SWOT analysis can be used in the following circumstances:
Ø Exploring avenues of new plans
Ø Determining possibilities of introducing new products/services or entering new markets
Ø Identifying possible areas of change
Ø Making decisions about the direction of the company’s plans
Ø Adjusting plans when new opportunities come up
Ø Communicating information gathered from studies or surveys
The SWOT Analysis allows the company to closely examine the strong and weak points that have not been previously considered. Once identified and enumerated, the company will be able to:
- Build on the company’s strengths
- Correct a prevailing weakness
- Take advantage of an opportunity outside the company
- Avoid potential threat or can prepare action plans that can minimize the impact of the threat
_____ is inevitable
Change
_____ are beyond the control of the marketers,
external factors
is represented by a mix of internal and external forces that surround an organization and have an impact upon it
Marketing environment
Marketing environment is represented by a mix of
internal and external forces
According to Kotler (2013), the marketing environment consists of the
microenvironment and macro environment.
refers to the forces closely influencing the company and directly affecting the organization’s relationships
Microenvironment
There are ______ that make up the microenvironment.
internal and external groups
Within a company, the different departments constitute the microenvironment that marketers interact with.
Internal microenvironment
includes the customers, suppliers, marketing intermediaries, competitors and general public.
external microenvironment
______ refer to the general consumers, including individuals, households, or organizations that purchase a product
They are actual buyers of goods and services
Customers
is composed of the consumer market, business market, reseller market, government market, and the international market
customer market
Types of customer market
Consumer Market
Business Market
Reseller Market
Government Market
International Market
individuals and households that acquire goods and services for individual consumption.
Consumer Market
they buy goods and services for further processing, production, and eventually selling to consumers.
Business Market
organizational or individual buyers who buy for resell at a profit without adding anything to the product.
Reseller Market
agencies that buy goods and services for government use or in order to produce public services.
Government Market
buyers are from other countries.
International Market
company relies on external business partners called ______ who are either individuals or companies that provide the necessary resources to produce goods and services.
suppliers
help the company to promote, sell, and distribute its products to the final buyers
Marketing intermediaries
intermediaries are an important component of the company’s overall delivery of customer value and also give better utilities to consumers which include
place utility,
time utility,
assortment utility, and
price utility
Types of Marketing Intermediaries
- Distribution Channel
- Logistics Firm
- Marketing Services Firms
- Financial Intermediaries
individuals or companies who buy and resell the company’s products to final buyers.
Distribution Channel
they help the company stock and move goods from a warehouse to the final place of selling or other destinations.
Logistics Firm
help in targeting and promoting products.
Marketing Services Firms
help in financing transactions and also in providing the financial backing to fund company operations.
Financial Intermediaries
the products and services a company offers have a ______ of similar nature, purpose, or value
competitor
2 types of competitors:
- Direct Competitors
- Indirect Competitors
companies that offer the same products or services
Direct Competitors
companies that offer substitutes to another product or service.
Indirect Competitors
is any group that has an actual or potential interest in or impact on an organization’s ability to achieve its objectives.
public
Public include
- Financial publics
- Media publics
- Government publics
- Local publics
- Internal publics
organizations or individuals who can ease or hinder an organization’s access to credit. Example: credit rating agencies like CIBI.
Financial publics
mass media or social media, including columnists and bloggers, who can publish articles or create social media posts influencing customer’s opinions.
Media publics
mayor or powerful officials can create problem for uncooperative businesses.
Government publics
neighborhood and community groups who can question a company’s effect on the local area.
Local publics
workers, volunteers, managers and the board of directors
Internal publics
consists of external forces that have a significant influence on marketing strategy.
beyond the control of the organization.
macro environment
One framework in conducting environmental scanning is the
PESTLE Analysis
PESTLE analysis
Political,
Economic,
Social,
Technological,
Legal,
Environmental.
these refer to government actions and policies that influence the economy at large.
Political Forces
these are the determinants of an economy and its condition.
Economic Forces
such as demographics and culture can impact the industry environment by influencing peak buying periods, purchasing habits, and lifestyle choices.
Include:
Trends:
Fads
Megatrends
religion and ethics, consumer buying patterns, demographics, education, fashion and lifestyle, culture.
Social Forces
refer to particular behavior of a certain group of individuals which lasts for a certain period.
Trends
Trends that are short-lived are called
fads
trends that persist over a long period are called
megatrends
Companies analyze trends and development in technology to determine how the changes in technology can be used for their benefit.
Technological Forces
these refer to laws, regulations, and government policies that impact the business organization and its operations. These forces regulate the activities of the business organization,
Legal and Regulatory Forces
these forces refer to ecological and environmental aspects that can affect businesses. Examples of environmental forces are: weather, climate and climate change.
Environmental Forces
_____ is a framework used to analyze the nature and level of competition within an industry.
Porter’s Five Forces Analysis
In undertaking the Five Forces Analysis, marketers have to answer the following questions:
- The entry of competitors
- The threat of substitutes
- Bargaining power of buyers
- Bargaining power of suppliers
- Competitive rivalry
How easy or difficult is it for new businesses to enter the market?
The entry of competitor
How easily can our product be substituted by an existing product on the market?
The threat of substitutes
How strong is the influence of buyers on the company? Can they work together to drive down our prices?
Bargaining power of buyers
How strongly can suppliers influence the prices of resources and materials? Is there only one supplier or are there many? Are there other potential suppliers?
Bargaining power of suppliers
Is there strong competition among existing players? Is there a dominant player, or are all businesses equal in strength?
Competitive rivalry
is defined as a careful, systematic study in a field of knowledge that is undertaken to discover or establish facts or principle.
systematic process of collecting and analyzing data
research
refers to research intended to solve business problems or validate or test existing business theories.
Business research
who defined marketing research
Churchill, Brown, and Suter (2012)
______ defined as the function that links the consumer, customer, and public to the marketer through information.
used to identify and define marketing opportunities and problems
marketing research
Sources of Data
- Primary Data
- Secondary Data
type of data results from research specifically developed and conducted for explicit objectives and goals of the company or the brand. This data can be collected through such research tools as surveys, experiments, or observational research.
Primary Data
this consists of research from public documents, books, journals, magazines, the Internet, and even the company’s internal database. Information obtained may not always be specific to the needs of the company
Secondary Data
Classification of Marketing Research
Qualitative Marketing Research
Quantitative Marketing Research
exploring and understanding the problem or issue at hand, reducing the number of options so that only the relevant ones are carried for further research, understanding consumer behavior through observation and interpretation, or simply studying a company and its operations.
Qualitative Marketing Research
Types of Qualitative Market Research
- Exploratory Research
- Ethnographic or Observational Research
- Case Analysis
it is conducted if the researcher would like to gather more information about the problem or issue
Exploratory Research
are used in exploratory research to solicit ideas about a particular topic or problem.
Focus group discussions (FGD)
done by observing consumer behavior through various means. Simple observation can be used, where the observer watches the consumers and records their behavior using video cameras, audio recorders and computers.
Ethnographic or Observational Research
Ethnographic or Observational Research
There is a need to consult those who are experts in interpreting behavior such as an
anthropologist, a sociologist, or a psychiatrist.
it involves the study of a particular company, group, or person through personal interviews or published literature.
To make it interesting to readers, the personality of the person/s involved is reflected and linked to the case
not intended to be an accurate solution to the problems
Case Analysis
The traditional format for a case analysis based on the Harvard model is:
a. Problem and Objective/s
b. Areas of Consideration
c. Alternative Courses of Action
d. Decision Criteria
e. Recommendations
involves the collection of information, statistical data, and precise measurements through surveys
subjected to mathematical analysis and statistical treatment
Quantitative Marketing Research
Types of Quantitative Market Research
- Descriptive Research
- Correlational and Explanatory Research
- Causal Research
it answers the questions who, what, when, why and how in the problem statement.
used because it is easy to implement and the findings are easy to interpret.
interpretation involves frequency count, percentage, or ratio
Descriptive Research
it measures the relationships between variables to determine their interdependence.
Interpretation is done through correlational, explanatory, or predictive methods.
Correlational and Explanatory Research
most complicated kind of quantitative research. It looks into the cause-and-effect relationships of its variables and how one variable would affect another variable
Causal Research
Causal research utilizes multivariate tools such as
covariance-based structural equation modelling (CB-SEM)
partial least squares structural equation modelling (PLS-SEM).
Steps in creating quantitative market research
Step 1: Defining the problem and research objective
Step 2: Developing the research plan for collecting information
Step 3: Implementing the research plan – collecting and analyzing the data
Step 4: Interpreting and reporting the findings
Importance of Marketing Research to a Business Enterprise
- It can help the business to easily spot business opportunities
- It can lower business risks (it can help to identify potential problems)
- It can help business to create relevant promotional materials
- It can help the business know where to advertise
- It can help company to monitor and outsell competitors
- It can help to set better goals and growth strategy for the business
- It can help in decision making
- It can help to determine market needs
focuses on the target market and determines and estimates its demand relative to a particular company offering. It covers trends, competition, and socio-economic conditions affecting the demand of the target market.
market study
is defined as a tool used to gather information about existing or potential customers in a certain market or population
is defined as a tool used to gather information about existing or potential customers in a certain market or population
Steps in Conducting a Market Study
- Define the problem and objectives of the study.
- Gather secondary data from existing literature and studies. You can use the internet to research on related topics or you can consult with government agencies or business organizations that have the data significant to your study. Try to look for the following data:
a. General market situation (socio-demographic)
b. Specific competitive situation
c. Specific marketing environmental factors (trends, technology, etc.) that influence market demand
d. Specify supply situation
- Prepare a letter of request to conduct a market study addressed to your respondent or a company.
- Conduct a survey (gather primary data) on:
a. Buyer’s intentions and preferences
b. Their demographic and geographic data
- Tabulate, analyze, and interpret the data.
- Prepare a Market Study Report using the suggested format.
