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 )
- Objectives:
- What are the financial goals of the competitor?
- Does the competitor emphasize short-term or long-term performance?
- Does the competitor emphasize profits or growth in sales?
- Does the competitor have non-financial objectives, such as to be known as an innovator or a market leader?
- What incentive systems are used to reward key management people?
- Stock options,bonuses?
- Strategy
- In what geographic regions does the competitor operate?
- Is its geographic focus changing?
- What are the competitor's target markets?
- What is the competitor's merchandise offering?
- What are its categories of merchandise,depth in those categories,private-label versus national brands,and prices?
- What service does the competitor offer?
- Performance
- How have the competitor's sales and profits grown over the last five years?
- What is the competitor's market share? Is it increasing or decreasing?
- Financial Resources
- Is the competitor part of a larger company?
- What is the competitor's cash flow?
- How much debt does the competitor have compared to equity?
- Vendor Relationships
- Does the competitor have exclusive relationships with vendors?
- Does competitor get favorable terms from vendors?
- Locations
- How goods are the competitor's locations?
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( 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
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Merchandising capabilities
- Knowledge and skills of buyers
- Relationships with vendors
- Capabilities in developing private brands
- Advertising, promotion capabilities
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