What is a market?
1. A (physical or virtual) medium that allows buyers and sellers of a specific good or service to interact in order to facilitate an exchange.
2. "The set of all actual and potential buyers of a product or service."
Markets are apparatuses that facilitate exchange
Marketing drives the exchange by creating, communicating and delivering value to both sides of the exchange.
Market Players
Intra-Market
1. Company
2. Consumers
3. Competitors
4. Collaborators
- Manufacturers
Wholesalers Distributors
- Retailers
- Service agencies
Ad agencies . Partners
- Financial Intermediaries
- Financiers (Banks, VC, Investors)
Market Inputs (Seller): Product Offerings
"Goods"
Market Inputs (Buyer): Consumer Demands
"Needs"
Company
Value Proposition
The full mix of benefits relative to the costs
Benefits provided and/or costs reduced
"Why should I buy your product / brand?"
. "Value Chain"
Internal partners & processes
: "Value Delivery Network" (Collaborators)
External partners & processes
Company Orientation
Marketing Myopia
Production
- Product
. "Marketing Myopia"
: Selling
- Service
Competitor
Consumer
Tech
"Market Orientation" : "The organization-wide generation, dissemination, and responsiveness to market intelligence."
Company Competitive Position:
1. Market Leader
2. Market Competitor
3. Market Follower
4. Niche Player
What is your company's... - Value Proposition? Focus / Orientation? Value Discipline? - Competitive Strategy? . Market Position?
Product Portfolio (Product Mix): "The set of all product lines and items that a particular firm offers for sale."
Product line: "A group of closely related products that function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges." . Line filling (Horizontal) Line stretching (Vertical)
BcG Growth-Share Matrix -Business/Brand/Product Portfolio
"Marketing strategy refers to an organization's integrated pattern of decisions that specify its crucial
perform and the manner of performance of these activities, and... 3. The allocation of marketing resources among markets, market segments and marketing activities...
Segmentation Geographic Demographic Psychographic Behavioral
Ethnicity
Buying power : Ethnic minorities spend more than $3.9 trillion annually
- Accommodation Theory
- Communication changes between people in order to "accommodate" the other
- Showing awareness / interest in / appreciation of differences is appreciated
Target Market -- A set of buyers sharing common needs (wants / demands) that the company
KPIs: Metrics Revenue Profit / Loss - Unit Sales X Profit Margin Market Share - % Units or Dollars -
Cluster Analysis - Assigns observations to "clusters" based on selected variables - Minimizes the sum of squared Euclidian distances between cluster members and their cluster centroid. - Can assign cluster membership as a data output
Latent Profile fi Latent Class Analysis Objective: classify individuals into latent groups based on underlying patterns of responses. - Can test multiple profile numbers and model options to provide optimum model - Latent Profile Analysis -- R: tidyLPA (Continuous IVs) Latent Class Analysis -- R: poLCA (Binary / Categorical IVs)
Positioning- "The way a product is perceived along important attributes relative to competing products."
4Ps
Pr