Understanding Markets
Analyzing Markets

Toyota
teenagers and
20 somethings
already
account for
6% of sales.
How to reach
them?
 Scion?

1. 2. 3.

What is the
potential size
of the cell
phone market
in Tanzania
6 methods

Statistical methods
Regression analysis (Michelin Asia)
 Averages
 Exponential Smoothing
 Models
 Conjoint Analysis


Observation

How many minutes per day the typical pay
phone was used

Surveys
Survey of buyers’ intention
 Survey of Salesforce opinion
 Focus Groups


Analogy
Danone new flavor
 HDTV


Judgment
Executive Judgment
 Delphi Technique


Market tests
Experimental
 Live

Discussion Question
3. How does one go from
methods to math?
Chain ratio method
 Brand or category indices

Ideas for new products or new
ventures: How do we know how fast
customers will adopt?
Source: Adapted with permission from Marketing, 11/e, Acetate 8-8, by Michael J. Etzel, Bruce J. Walker, and William J. Stanton. The McGraw-Hill Companies, Inc. © 1997.
All rights reserved.
The risk
 Relative advantage
 Relative simplicity
 Compatibility
 The ease of Trial
 The ease of communication

Analyzing Customer Needs,
Behavior, and Influences

Cultural considerations


Social considerations


Sub-cultures
Family
Personal Factors





Lifestyle (Psychographics) 973
97330
Motivation
Perception
Attitudes
Sources for consumer research
www.census.gov Census
 www.crc-conquest.org Conference
Board Consumer Research Center
 Http://sosig.ac.uk Social Science
information gateway
 http://cyberatlas.internet.com
Cyberatlas Web usage
 www.geohive.com Global statistics

Business Markets

Organizational connections


Buying Center
Organizational Considerations

Derived Demand
Business sources
www.census.gov/epcd/www./naics.htm
l (NAICS industrial classification data)
 www.ceoexpress.com
 www.inc.com
 www.industryweek.com
 www.ecommercetimes.com

Corvallis
Chamber of Commerce
 Welcome to Corvallis
 Visit Corvallis
 Slide show
 More pictures

Generation Y Trendsetters top 15
brands
15.
14.
13.
12.
11.
Red Stripe Jamaican beer
Vitamin Water
Converse
Volkswagen
Levi’s
10. H&M clothing stores
9. Target
8. American Apparel
7. Adidas
6. Whole Foods
5. Ben & Jerry’s
4. In-N-Out Burger
starts their employees out at $10 an hour -- which
made the trendsetters happier to eat there, as
opposed to some fast-food chains where all the
workers look miserable."
3. Jet Blue
"They loved everything about Jet Blue, noting that the
airline is much easier to navigate, the flights are
always cheap, always one-way and don't have a lot of
weird special prices and restrictions,"
2. Trader Joe’s
 They liked that the company has a dorky
newsletter and makes their employees wear
silly Hawaiian shirts.
Apple
Outlaw Consulting, a San Francisco
research firm, concluded that
Generation Y trendsetters are more
drawn to brands that speak to them
in a "straightforward and strippeddown way, use plain packaging, and
avoid excess
1.


Outlaw surveyed 100 of what it calls its "most forward
trendsetter panelists" in New York City, Los Angeles,
San Francisco and Miami, asking them which
companies they most respected, and why.
the preference for simplification, lean-and-clean
styling and all-in-one convenience could be motivated
by environmental concerns. In other words, as the
"green lifestyle" is something more and more people
aspire to, the notion of excess has fallen into disfavor