I. Market Analysis (Situational Analysis)1
A. The Situational Environs
1.
Demand and demand trends (What is the forecast demand for the
product: Is growing or declining? Who is the decision maker? The
purchase agent? How, when where, what, and why do they buy?
2.
Social and cultural factors.
3.
Demographics
4.
Economics and business conditions for this product at this time and in
the geographical area selected.
5.
State of technology for this class of product. Is it high-tech state-of-art?
Are newer products succeeding older ones frequently (short life cycle)?
In short, how is technology affecting this product or service?
6.
Politics. Are politics in any way affecting the situation for marketing
this product?
7.
Laws and regulations. (What laws or regulations are applicable here?)
B. The Neutral Environs
1.
Financial environment. (How does the availability or unavailability of
funds affect the situation?)
2.
Goverments environment. (Is current legislative action in state, federal,
or local goverment likely to affect marketing of this product or service?)
3.
Media environment. (What’s happening in the media? Does current
publicity favors this project?)
4.
Special interest environment. (Aside from direct competitors, are any
influential groups likely to affect your plans?)
C. The Competitor Environs
1.
Describe your main competitors, their products, plans, experience,
know-how, financial, human, and capital resources, suppliers, and
strategy. Do they enjoy the favor with their customers? If so, why?
What marketing channels do the competitor use? What are their
strengths and weakness?
D. The Company Environs
1.
Describe your products, experience, know-how, financial, human, and
capital resources and suppliers. Do you enjoy the favor of your
customers? If so, why? What are your strengths and weakness?
II. The Target Market
Describe your target market segment in detail by using demographics,
psychographics, geography, lifestyle, or whatever segmentation is appropiate. Why is
your target market? How large is it?
1
Cohen, W. The Marketing Plan. Wiley:1995
Market Segmentation and Selection2
Market segmentation is the process of dividing all possible users of a product into
groups that have similar needs the products might satisfy. Market segmentation should
be done prior to the final development of a new product.
Market Segmentation
1. Identify segmentation variables and segment the market
2. Develop profiles of resulting segments
Market Targeting
3. Evaluate the attractiveness of each segment
4. Select the target segment(s)
Market Positioning
5. Identify possible positioning concepts for each target segment
6. Select, develop and communicate the chosen positioning concept
Segmentation Variables
I. Geographic
Region, urban, suburban, size of city, population density, climate.
II. Demographic
Age, gender, family size, family life cycle, income, occupation, education,
religion, race, nationality.
III. Psychosocial
Social class, lifestyle, personality, references group( those you turn to for
information).
IV. Behaviors and Feelings
Attitudes, benefits sought, readiness stage, perceived risk, innovativeness,
involvement, loyalty status, usage rate, user status, usage situation, price
sensitivity.
2
Hawkins, Best & Coney. Consumer Behavior: Implications for Marketing Strategy. Irwin:1995
TARGET MARKET
Geographical location _______________________________________
Special Climate or topography ________________________________
CONSUMER BUYERS
Cultural, ethnic, religious, or racial groups _______________________
Social class(es) _____________________________________________
References group (s) ________________________________________
Basic Demographics: Sex ______
Age Range __________________
Education ________
Income _____________________
Household size description ___________________________________
Stage of family life cycle _____________________________________
Family work status: Husband _______
Wife _________________
Occupation ( Husband and wife) _______________________________
Decision maker _______________ Purchase agent ________________
Risk perception: Functional ___________ Psychological ___________
Physical _____________ Social ______________ Financial _________
Income for each family member ________________________________
Disposable income ____________________________________________
Additional descriptions, classifications, and traits of target market________
_____________________________________________________________
Target market wants and needs 1. _________________________________
2.________________________ 3. ________________________________
Product general description ______________________________________
Frequency of usage____________________ Traits ____________________
Size of target market ____________________________________________
Growth trends _________________________________________________
ORGANIZATIONAL BUYER
Decision makers __________________________________________
________________________________________________________
Primary motivation of each decision maker _____________________
________________________________________________________
Amount of money budgeted for purchase ______________________
________________________________________________________
Purchase history __________________________________________
________________________________________________________
Additional descriptions, classifications, and traits of target market___
________________________________________________________
________________________________________________________
Target market wants and needs: 1. ___________________________
2._____________________________ 3. ______________________
Product general description _________________________________
_______________________________________________________
Frequency of usage _________________ Traits ________________
Size of target market _____________________________________
Growth trends ___________________________________________