market research & the 5...
TRANSCRIPT
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Market Research &
The 5 C’s JENNIFER DEBOER
The Marketing Plan 2
Market Research
Marketing Mix
Marketing Strategy
• Customer• Company• Competition • Context/Climate• Collaboration
• Product• Price• Place• Promotion
Marketing Plan
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Market Research
� Different types of market research:
1. Exploratory Research – to connect to your market; to gain ideas and insights; often qualitative research (e.g. “marketing artist”)
2. Descriptive Research – to provide numerical information; often
quantitative approach (e.g. “marketing scientist”)
3. Causal Research – to establish causality; may be qualitative,
quantitative, or mixed methods
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Marketing Artists v. Marketing Scientists
Recently, technology has driven marketing to become far more accountable, data driven, and innovative.
Ideally, each group will combine/balance marketing artistry with marketing science.
http://www.infographicszone.com/business/marketing-artists-vs-marketing-scientists
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Connecting
the 5 C’s5Context
(social, cultural, technological,
demographics, political, etc.)
Customers’Needs
Competitive Environment
Company’sCapabilities
(including collaboration)
Adapted from http://idea-sandbox.com/blog_images/strategic_sweet_spot.png
Connecting
the 5 C’s6Context
(social, cultural, technological,
demographics, political, etc.)
Customers’Needs
Competitors’
Offerings
Company’sCapabilities
(including collaboration)
Sweet
Spot!
Adapted from http://idea-sandbox.com/blog_images/strategic_sweet_spot.png
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Market Research Sources
� Review relevant websites (e.g. competitor websites, industry websites,
google scholar, etc.), online reports, advertisements, brochures
�Consult experts, managers, sales staff, customers, trade associations
� Speak to people with first-hand technical knowledge (i.e. foresters,
carpenters, builders, architects, developers, renovators, etc.);
conduct surveys, utilize focus groups
� Explore government publications/statistics, forest sector associations
data/media, university data/media, industry/trade publications
� Visit retailers, big box stores, department stores, trade shows, home
shows
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5 C’s of Market Research � 5 C’s of Market Research
� Customer: customer needs, customer segments, target markets, and market positioning
� Company: name, image, strengths, weaknesses, opportunities, and threats
� Competition: market environment, competitive rivalry (e.g. Porter’s Five Forces)
� Context/Climate: political, economic, social, and technological environment
� Collaboration: outside sources that may benefit the company
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1. The Customer
“A customer is the most important visitor on our premises.
He is not dependent on us. We are dependent on him.
He is not an interruption of our work. He is the purpose of it.
He is not an outsider on our business. He is part of it.
We are not doing him a favour by serving him.
He is doing us a favour by giving us an opportunity to do so.”
- Mahatma Gandhi, 1890
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Customer Research
Market Segmentation:
Identify bases for segmenting the market; develop segment profiles
Target Market: Develop measures
of market attractiveness; select target markets
Market Positioning: Develop
positioning for target market; develop a
marketing mix
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Market Segmentation 11
Geographic
•Local
•Cities
•Regions
•Province
•State
•Nation
•Country
•Continent
Demographic
•Age
•Gender
•Family
•Education
•Income
•Religion
Psychographic
•Lifestyle
•Social Class
•Personality
•Hobbies
•Interests
Behavioral
•User Status
•Usage Rate
•Benefits Sought
•Loyalty
•Occasions
•Attitudes
Segmentation Strategies
Target Market
Total Available Market
Potential Market
Target
Market
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Target Market = specific group of
consumers at which a company aims its
products and services.
• Total Available = market population
• Potential Market = how many can you
reach
• Target Market = who will be the most
likely customers?
Businesses must have a clear definition of
their target market as this can help reach
its target consumers and analyze what
their needs and suitability are.
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Market Positioning
� Positioning refers to the place that a brand occupies in the mind of the customer and how it is distinguished from products from competitors.
� In order to position products or brands, companies may emphasize the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.).
� Marketing Myopia:
https://hbr.org/video/3590615227001/the-explainer-marketing-myopia
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Think-Pair-Share #1
Discuss (1) your perceived market segment(s), target market, and market positioning
strategies as well as (2) how/where you will conduct customer research.
Marketing
Segmentation
Strategies
(Choose 1-2):
Target Market = specific group of consumers at which a company aims its products and
services; who will be the most likely customer?
Positioning: emphasize the distinguishing features of their brand (what it is, what it does and
how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or
luxurious, entry-level or high-end, etc.).
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Geographic
•Local
•Cities
•Regions
•Province/State
•Nation/Country
•Continent
Demographic
•Age
•Gender
•Family
•Education
•Income
•Religion
Psychographic
•Lifestyle
•Social Class
•Personality
•Hobbies
•Interests
Behavioral
•User Status
•Usage Rate
•Benefits Sought
•Loyalty
•Occasions
•Attitudes
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2. The Company
� The company analysis studies an organization’s mission, vision, strategies,
capabilities, product line, technology, culture, and objectives. It is useful in
understanding the existing and potential problems with the company’s
business.
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SWOT Analysis 16
Strengths:
What do you do well?
How do you stand apart
from you competitors?
What tangible and
intangible
assets/resources do you
have?
Opportunities:
What opportunities exist in
your market?
How can these
opportunities benefit your
business?
What market changes
might you anticipate?
Weaknesses:
Which areas need
improvement to compete
with competitors?
What does your business
lack?
Are resources limited?
Threats:
Who are your potential
competitors?
Which risks are associated
with your business/market?
What threatens your
marketing efforts?
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Internal SWOT Example 17
STRENGTHS WEAKNESSES
� Good log supply
� Lower log costs
� Part of financially strong group
with a long history
� Sawmills are well invested
� Large scale production capacity
– with a wide product range
� Lack of a clear strategic plan
o Management is currently done ad hoc
(“fighting fires”)
o No clear market strategy
� Too operationally focused
� Too little management capacity
� Lack of entrepreneurship
� There are no synergies between divisions
� Low yield compared to competitors Slow
decision making and implementation
� Limited value-added production capacity
External SWOT Example OPPORTUNITIES THREATS
� Develop a strategy based upon control of
the whole supply chain (forest to market)
� Consolidation of sawmills
� Follow through with development of
internal distribution organization
� Enhance value-added capacities that
match raw materials
� More selective production – matching
sales with individual mill’s capabilities
� Efficiency gains – improve yield
� Owners lose faith / patience
� Raw material supply declines if prices
drop
� Increased competition for small logs from
the fiber industry
� Competent people leave the
organization
� Rationalization would result in being
unable to supply the assortment that
merchants desire
� Knowledge gap – don’t have the in-
house capacity to develop a value-
added market strategy
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Think-Pair-Share #2
Work with your partner or
group to develop 1-2
strengths, weaknesses,
opportunities, and threats
facing your business.
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3. The Competition
Determine not only who competes with your company in meeting the
customer’s needs, but how competitive the market/environment is.
Is the competition active competitors or is potential threats?
What are competing products?
What are competitors’ strengths and weaknesses?
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Porter’s Five Forces 21
Porter's five forces analysis is a framework that attempts to analyze the level of competition within an industry and business strategy development.
Group Exercise 3
Work with your group to discuss and assign levels of low, medium, or high to each of the five forces (threat of new entry, competitive rivalry, supplier power, threat of substitution, and buyer power).
Then, assign a level of low, medium, or high to your overall competitive rivalry.
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Low-Medium?
Low High
Medium
Low
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4. The Context/Climate
� The context/climate analysis is the evaluation of the macro-
environmental factors affecting the business. The primary factors to
consider include political, economic, social/cultural, technological (PEST),
however, some models add legal and environmental (PESTLE).
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PEST Research
� Political = legislation (current and future), taxes, subsidies, grants, and general political climate
� Economic = industry factors, interest and exchange rates, local economic climate, global economic climate, market and trade cycles
� Social = consumer attitudes and opinions, ethical issues, lifestyle trends, demographics, media views, customer spending patterns, major events and influences
� Technological = competing technologies, innovation potential, research funding opportunities, maturity of technology, intellectual property issues
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Think-Pair-Share #4
Work with your group
to discuss one relevant
macro-environmental
factor from each PEST
category.
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Political = legislation (current and future), taxes, subsidies,
grants, and general political climate
Economic = industry factors, interest and exchange rates,
local economic climate, global economic climate,
market and trade cycles
Social = consumer attitudes and opinions, ethical issues,
lifestyle trends, demographics, media views, customer
spending patterns, major events and influences
Technological = competing technologies, innovation
potential, research funding opportunities, maturity of
technology, intellectual property issues
5. The Collaborator
� Collaborators are the external
stakeholders who team up with the
organization in a mutually beneficial
partnership.
� Agencies, suppliers, distributors,
referrals, and business partners are
typical collaborators; it is important to
understand their capabilities,
performances, and issues to better
identify business opportunities and
problems.
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Think-Pair-Share #5 27
Discuss a
potential,
beneficial
collaboration
relevant to
your product
or business.
Questions?
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Quiz!
Describe one method of market research:
(1) identify one specific method and
(2) describe how you could use this method to conduct
market research relevant to your Dragon’s Den
assignment.
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