Market Analysis and
Strategy
Agenda
Marketing Analysis & Strategic Planning
Essential Elements (5Cs, STP, 4Ps)
Situation Analysis / Strategy / Marketing Mix
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View USA Today Case Study
Discuss what we need to know to develop a
marketing plan for the Columbus Clippers?
Teams will work together to generate a list of questions
that need to be answered and potential sources
Marketing Strategy
Involves the allocation of resources
to develop and sell products or
services that consumers will perceive
to provide more value than
competitive goods
What is perceived value?
Foundations of Strategy
A thorough understanding of:
Domestic and global market trends
Models to predict purchase and
consumption
Communication methods to reach
target markets most effectively
Situation Analysis
Consumer
Company
Competitors
Collaborators
Context
Implementation
in Marketplace
Marketing Mix
Product, Price, Place,
Promotion,
STP
Segmentation
Targeting
Positioning
Situation Analysis
The process of analyzing:
Consumer characteristics & trends
Resources of the Company
Current and potential Competitors
Current and potential Collaborators
The Context or environmental
factors
PEST Analysis
Economic
Factors
Political
Factors
Context
(Environment)
Technological
Developments
Societal
Trends
Situation Analysis: SWOT
SWOT:
Core strengths?
Current weaknesses?
What opportunities exist?
What threats do we face?
Analyzing SWOTs
Internal Factors
Strengths: Competitive Advantages;
Resources
Weakness: Competitive Disadvantages;
External Factors
Opportunities: Social and economic
conditions and situations that look positive
Threats: Marketplace conditions that
reduce the perceived value of an offering
Analyzing SWOTs
Outside-in perspective
One should consider the customer
viewpoint rather than relying on internal
judgments
Conduct a brand audit comparing
managers perceptions to employee and
customer perceptions
Prioritizing SWOTs
Useful Criteria:
Realistic damage to brand relationships
if a weakness or threat is not addressed
Realistic benefit if a strength or
opportunity is leveraged
Cost of addressing or leveraging each
SWOT
Time company has to address or
leverage each SWOT
Prioritizing SWOTs
Rank each SWOT item from 1 to 3 according to its
importance to the companys objectives (3 = most
important)
Damage
Benefit
Cost of
Window
Total
If not
addressed
If leveraged
Addressing/
Leveraging
of Time
2
3
3
3
1
3
6
9
-3
-3
-2
-2
-3
-3
-8
-8
-3
-2
-3
-2
-1
-1
-7
-5
Strengths:
Good dealer relationships
Identifiable target
Weaknesses:
Lack of brand awareness
Small budget
Opportunities:
Good economy
Threats:
Established competition
New brands coming
Need to
Address
Weaknesses
New Brands
Coming
Good
Economy
Identifiable
Target
Strengths
Established
Competitors
Small
Budget
No Brand
Awareness
Need to
Leverage
Dealership
network
Prioritized SWOTs
Opportunities
Critical
Critical
Threats
Situation Analysis
Consider the situation the Columbus
Clippers are currently facing.
The team?
Its competitors?
Team collaborator?
Existing and potential fans?
Context (environmental factors and trends)?
Strategy Development
Step 1: Market Segmentation
Process of identifying a group of people
similar in one or more ways, based on a
variety of characteristics and behaviors.
Goal: minimize variance within groups
and maximize variance between groups
Identifying Market
Segments
Heavy versus Light Users 80/20 rule
Behavioral
Behavioral Segmentation:
Heavy versus Light Users 80/20
rule
(20%)
(32%)
(88%)
(48%)
(95%)
Heavy Users: Efficiency/profit
Caution: Majority Fallacy
Identifying Market
Segments
Demographics: Age, Gender, Income, etc
Consumer
Characteristics
Consumer Characteristics
Geodemographics
-- Examine regional differences in
demographics
-- Useful for store location decisions, and
direct mailings, and grassroots efforts
Why?
Identifying Market
Segments
Lifestyle & Values
Psychographics/
Benefits
Psychographics
Lifestyle
segmentation
VALS is based on
primary
motivation and
resources
Psychographics
Strategy Development
Step 2: Target Market Selection
Select segments of the market to offer
products and services
Who can we most efficiently and
effectively establish a relationship with
better than our competitors?
What criteria should be used to select a
target market? (see Table 1-1)
Customer Profiles
Once a basis for segmentation has
been determined and attractive
segments have been selected, the
target groups should be profiled by
describing them on as many levels as
possible.
Customer Profile
Age, Education, Income (SES)
Occupation, Hobbies
Media Habits
Prizm Clusters
VAL Segment / Yankelovich Monitor
Musical Taste, Preferred Cars
Aspirational Role Models
Strategy Development
Step 3: Positioning
How your product/company is perceived
in the hearts and minds of your
customers?
Price leader/Innovator/Fashion leader/
Quality/Service
What associations come to mind?
Summary
A firm needs to:
Start by analyzing the market
5 Cs (Company, Competitors, Collaborators,
Customers, and Context)
Develop a strategic plan
Begin with Segmentation, Targeting, and
Positioning
Followed by tactical decisions
Product (Brand), Price, Promotion, and Place
With a plan in place implementation issues
need to be addressed
