TradeSalon Solution

Evaluation Trading Chain QC Product Life Cycle Market Analysis Marketing Strategies Import & Export problems Import price Export price

Market Analysis
( Types of marketing information )
Data: Facts and figures pertinent to the problem Methods: Approaches to help solve the problem Concepts: Hypotheses and ideas

Primary data:
Facts and figures newly collected for the project

Observational data (watching people)
Mechanical and electronic approaches
( Book Theory )
Questionnaire data (asking people)
Idea generation through in-depth interviews and focus groups
Idea evaluation through mail, telephone, and personal surveys

Secondary data:
Facts and figures already recorded prior to the project

Internal data (inside the firm)
Financial statements,research reports,files,customer letters,sales call reports, and customer lists
( PC Imitate )
External data (outside the firm)
Census reports, trade association studies and magazines, business periodicals, and commercial reports

( Information typically sought )
Major External Categories Types of Information Typically Sought

Environmental factors

Costs and availability of needed materials;costs and availability of energy, economic conditions, such as recession,inflation,unemployment,interest rates and capital availability;technology changes; social changes tasking place in markets; environmental policies and regulations;industry regulations; general business regulations

Market conditions

Market size;growth rate;geographic concentrations; market potentials & forecasts;market shares;sales penetrations Customers Market segments;rates of product usage uses by product types; buying behavior and shopping patterns; brand loyalty; buying influences; demographic characteristics;receptivity to advertising,price changes,and channel changes; psychographic characteristics

Non-customers

Market segments;buying behavior and shopping patterns;brand loyalty; buying influences; demographic characteristics;receptivity to advertising,price changes,and channel changes; psychographic characteristics; past users versus never users

Channels

Analysis of present relations with channel component;power relationships; control of channel components; motivation of channel component;cost of channel arrangements; costs of alternative channel arrangements; inventory levels;f.o.b. points; legal aspects;price discounts;consignment

Competitors

Number of competitor: location of competitors;market shares; competitive strengths and weaknesses in terms of products, prices, advertising and sales promotion,channels, sales,production R & D engineering, purchasing and distribution; vulnerability; possible competitive reactions

( Competitive analysis )
  1. Objectives:
    1. What are the financial goals of the competitor?
    2. Does the competitor emphasize short-term or long-term performance?
    3. Does the competitor emphasize profits or growth in sales?
    4. Does the competitor have non-financial objectives, such as to be known as an innovator or a market leader?
    5. What incentive systems are used to reward key management people?
    6. Stock options,bonuses?

  2. Strategy
    1. In what geographic regions does the competitor operate?
    2. Is its geographic focus changing?
    3. What are the competitor's target markets?
    4. What is the competitor's merchandise offering?
    5. What are its categories of merchandise,depth in those categories,private-label versus national brands,and prices?
    6. What service does the competitor offer?

  3. Performance
    1. How have the competitor's sales and profits grown over the last five years?
    2. What is the competitor's market share? Is it increasing or decreasing?

  4. Financial Resources
    1. Is the competitor part of a larger company?
    2. What is the competitor's cash flow?
    3. How much debt does the competitor have compared to equity?

  5. Vendor Relationships
    1. Does the competitor have exclusive relationships with vendors?
    2. Does competitor get favorable terms from vendors?

  6. Locations
    1. How goods are the competitor's locations?
( Self-Analysis )
Management capability
  • Capabilities and experience of top management
  • Depth of management-capabilities of middle management
  • Commitment of management to firm
Store management capabilities
  • Management capabilities
  • Quality of sales associates
  • Commitment of sales associates to firm
Financial Resources
  • Cash flow from existing business
  • Ability to raise debt or equity financing
Locations Customer base
  • Size and growth of customers
  • Loyalty of customers
Operations
  • Overhead cost structure
  • Quality of operating systems
  • Distribution capabilities
  • Management information systems
  • Security system
  • Inventory control system
Merchandising capabilities
  • Knowledge and skills of buyers
  • Relationships with vendors
  • Capabilities in developing private brands
  • Advertising, promotion capabilities

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