Marketing Analysis

Marketing Analysis

Lourdes Rodríguez

MKT 498

March 18, 2014

University of Phoenix

Prof. Maria Aponte

Marketing Analysis

In order to develop a good marketing strategic is essential to know the internal and external factors that may determine this strategy. Should then be performed a thorough analysis of the resources and capabilities of the company and have them in mind at all times. Factors external to the organization, such as the environment, the target audience or competition, have turn important, so you should also keep them in mind. All information obtained will help to minimize the margin of error in the definition of objectives. To develop this analysis industries have various types of market analysis.

Competitive analysis

The market consists of different companies offering products and services to the market with similar features. These companies compete to retain and attract new customers. The existence of competition is healthy for both businesses and customers. The companies are forced to innovate, develop strategies, provide a service and product quality. Customer’s competition guarantees the possibility of choice, comparison, convenience, variety, etc. The competitive analysis consist of understanding your competitor in order to confront it, you need to be informed about who and what they are doing. It is recommended to identify the geographic area of influence and the main advantage that has allowed them to gain market share. With this information it may be determined more easily, the positioning strategy to be followed by your company to enter and grow in the market. One of the disadvantages could be that we should not only focus on competition but will also highlight the strengths of the service or product being offered.

Competitive analysis consists of four steps:

• Define the target market. In this step the limits of interest to the market of a product is established and the specific target segments within these limits are identified.

• Identify direct competitors. Direct competitors are those most likely we removed our customers (or source of new customers) because they serve the same target market.

• Examine the competitive market forces. The nature and intensity of competition and the competitive dynamics are influenced by market forces.

• Assess the competitive advantage. Finally, managers must have a vision of the relative advantages possessed by each competitor. This leads to consider both vantage points achieved (from customer perspective) as the capabilities and resources that are the sources of advantage.

Value chain analysis (distribution)

This strategic analysis tool identify clearly the different activities taking place in companies, distinguished by those that have a direct connection with the creation of value for the product, and other activities are those that serve for primary tasks. All activities identified, the next step is to analyze which of these activities a competitive advantage for the company involve in the market against its competition. Those activities that make the company more profitable and strengthen their position in the market should be enhanced and maintained in the organization. All other tasks should reduce their cost as possible, always, without losing the intrinsic quality of the product. For these activities should be choosing to outsource or outsource. This whole process of analysis that explain aims to fulfill the objective of the model of the value chain of Porter: "maximize value creation while minimizing costs." (Porter 1985)

This analysis consist of examining the sectorial level, each link in the 'chain of activity', from the time the product or service is just an idea to disposal after use. In drawing the diagram of the entire process, planners better determine what stage of the national component of the global chain can capture more value. The value chain analysis requires an evaluation of workflow and efficiency. Customer service is a high priority, and is related to business growth and success. In the service industry, customer response is the main objective. The presence of an excellent customer service can be detected by performing an analysis of the value chain. This type of analysis can examine the activities that lead to the sale of a product or service.

Opportunity analysis

Analysis of opportunities involves carefully studying the characteristics of your business and the market in which it participates to discover opportunities, niches, needs the resources that account or the company would have be covered. It is the analysis of controllable variables (strengths and weaknesses that are internal to the organization and therefore can act on them more easily), and uncontrollable variables (opportunities and threats presents the context and action than we can make about them is act and anticipate them to our convenience). In this regard, the SWOT can be defined as a tool of strategic analysis, to analyze internal elements to the company and therefore controllable, such as strength and weaknesses, as well as external factors to it and therefore not controllable, such as opportunities and threats.

Product life-cycle analysis

The product life cycle has been designed to reflect the life of a product class. Normally the product life cycle goes through four stages:

1. Product birth or introduction

2. Sales growth

3. Maturity

4. Decline and even disappearance of the product

Knowing the stage of the cycle in which our product or service is allow us to design the most effective for longer life in an increasingly fast-changing and market strategy. The true value of life-cycle analysis of a product as a planning tool is that it helps us to understand the changes that, over the life of the product are produced in the market and competitive conditions.

Customer analysis

The definition of consumer in marketing depends in part on their behavior, that is, the nature of their decision-making processes. The consumer behavior is defined as an individual's activities aimed at the acquisition and use of goods and / or services, including the decision processes that precede and determine these activities. Shares that the consumer takes place in the search, purchase, use and evaluation of products waiting to serve your needs. The customer analysis studies this behavior mentioned in order to detect need of consumption and how to satisfy them. It also analysis buying habits such as what consumers buy, when they buy it, where and how much in order to develop strategies to attract those customers. The ultimate goal is to provide data to improve marketing techniques to sell a product or a range of products to meet unmet consumer demand.

Target market analysis

The target market is the market segment to which it is directed either product or service. Generally the target market is defined in terms of age, gender or socioeconomic variables. The company needs to identify the market segments it can serve more effectively. The target market study is a method that helps you meet your current and potential customers. So knowing what the tastes and preferences of the customers are and their location, social class, education and occupation, among others, can provide the products they want at the right price. This leads to increase sales and maintain customer satisfaction to achieve their preference.

Market segmentation

Market segmentation is the process of dividing the total market for a good or service into several smaller groups and internally homogeneous. The essence of the segmentation is truly meet consumers. One of the key elements of the success of a company is its ability to properly segment your market. Segmentation is also an effort to improve the accuracy of a company's marketing. It is a process of aggregation: to group in a market segment to people with similar needs. The market segment is a relatively large and homogeneous group of consumers that can be identified within a market, having desires, purchasing power, geographical location, buying attitudes or similar buying habits and react similarly to marketing mix. Consumer behavior is generally too complex to explain in one or two features, you should consider several dimensions, based on the needs of consumers. It is therefore recommended to make offers flexible market segment market. The offer flexible demand is: A solution consisting of product and service elements that all segment members’ value and that only a few options valued, each option involves an additional charge. A good segmentation should result in subgroups or market segments

Strategic planning process is formalized long-term planning, allowing you to select according to the environment in which the organization operates, the vision, mission, philosophy, objectives, strategies and goals to guide the operating plans necessary to achieve the desired future. It is therefore an inclusive process of all functions and activities of an organization (whatever its nature), and attending or aims to essential primary issues; allows developing strategies, strategic plans and tactical plans, it provides a framework for inherent in the different areas of an organization's operational planning; indicates the scope or context of long-term planning; oriented resources of the organization as a whole, be an activity undertaken by the highest level of authority in the organization. 

References

Kotler, P. & Keller K. (2007). A framework for marketing management (3rd ed.). Upper Saddle River, NJ: Pearson Prentice Hall.

Porter, M. E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. Free Press, New York, 1985.

...