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

A brief discussion about dimensions of a Market Analysis

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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. - PowerPoint PPT Presentation

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A brief discussion about dimensions of a Market Analysis.

Market Analysis

Strategic Marketing

Topics will be discussed:Dimensions of a Market Analysis

Strategic Marketing

Actual and Potential market size

Key success factors

Market Profitability Analysis

Distribution System

Market Growth

Cost Structure

Trends and Developments

1

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3

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Strategic Marketing

• Potential MarketThe User Gap

-Recognize the potentialVision and Program to exploit

• Ghost PotentialTopical Areas

-Inhibiting FactorsDemand of educational equipment

Analysis of Actual and potential Market size

Identifying Driving ForcesMarket Growth

Strategic Marketing

What will happen if market sales decline?How market sales can be kept stable?What will cause to increase market sales??

Addressing Strategic Uncertainties

The key strategic decision can be an investment decision

The prediction of Market Sales

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Strategic Marketing

Forecasting GrowthMarket Growth

1Random fluctuations or short term economic conditions.

Historical Data

The number of births is a indicator of the demand.

Demographic Data

3Number of electronic devices users is the indicator of demand for services needs.

Sales of related equipment

New market sales forecasts can be based on the experience of analogous industries.

2

Detecting Maturity and DeclineMarket Growth

Strategic Marketing

Buyers tend to become more knowledgeable when the product is matured.

Buyers’ Knowledge

1

Price Pressure

tWhen the sales of one product increases, the demand of substitute products also increases.

Substitute Products

Caused by over capacity or the lack of product differentiation.

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Strategic Marketing

Threat of potential entrants

Bargaining power of customers

Bargaining power of suppliers

Threat of substitute products

Competition among existing firms

Market Profitability AnalysisExisting Competitors

Strategic Marketing

Mining or automobile Industries.

Necessary to obtain a large volume quickly.

Gaining distribution is difficult and costly.

Potential Competitors

Market Profitability Analysis

Distribution Channel

Economies of Scale.

.Capital Investment Required

Product Differenciation

Established firms have highly loyal customers.

Market Profitability Analysis

Strategic Marketing

3Increases when it costs high for the customer to switch the supplier.

Supplier Power

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.

Substitute Products

1

Can force price down and demand more services, thereby affecting profitability of the market.

Customer Power

2

Strategic Marketing

Cost Structure

• Analysis of Value ChainTo determine where the value is added to the product

• The Experience Curve ConceptTo determine whether the context is compatible with a given strategy

Strategic Marketing

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

Analysis of Soft-drink IndustryMarket Trends

The consumption of noncola beverages increases thus affect the soft-drink industry.

Demand for exotic flavors.

Increased concern for

health.

Increased price sensitivity.

Strategic Marketing

Risks in High Growth Markets

Organizations may unable to adapt.

Superior product or low cost advantage.

Number of commitment.

Technological Change.

Market growth may fall.

Price Instability.

Risks of High-Growth markets

Risks of high growth markets

Market Changes:• Changing KSFs• New technology• Disappointing

Growth• Price Instability

Competitive Risks:• Overcrowding• Superior

Competitive Entry

Firm Limitations:• Resource

constraints• Distribution

unavailable

Competitive Overcrowding

Resource Constraints

Changing Key Success Factors

Disappointing Market Growth

Superior Competitive Entry

Changing Technology

Price Instability

Strategic Marketing

Key Success Factors

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THANK YOU!

Strategic Marketing