Principles of Marketing

1
Market Opportunity Analysis and Consumer Analysis

Market Opportunity Analysis and Consumer

Analysis

A potentially favorable condition in which a business can capitalize on a

changing trend or an increasing demand for a product by a demographic
group that has yet to be recognized by its competitors. For a market
opportunity to exist, a company must be able to identify who its potential
customers are, the specific needs that need to be met, the size of the market,
and its capacity to capture market share.
Objectives:
1. Define and Understand Strategic Planning
2. Define and Understand Marketing Planning
3. Distinguish Between Strategic and Marketing Planning in terms of
Objectives and Processes.
“ You need to make sure that you are looking for every possible market
opportunity and taking advantage of them fully. ”

Market Opportunity
A potentially favorable condition in which a business can capitalize on a
changing trend or an increasing demand for a product by a demographic
group that has yet to be recognized by its competitors. For a market
opportunity to exist, a company must be able to identify who its potential
customers are, the specific needs that need to be met, the size of the market,
and its capacity to capture market share.
What to Include in Your Market Analysis?
Industry Description and Outlook – Describe your industry, including its
current size and historic growth rate as well as other trends and
characteristics (e.g., lifeCYCLE stage, projected growth rate). Next, list the
major customer groups within your industry.
Information About Your Target Market – Narrow your target market to a
manageable size. Many businesses make the mistake of trying to appeal to
too many target markets. Research and include the following information
about your market:
Distinguishing characteristics – What are the critical needs of your
potential customers? Are those needs being met? What are the
demographics of the group and where are they located? Are there any
seasonal or cyclical purchasing trends that may impact your business?

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 Size of the primary target market – In addition to the size of your market,
what data can you include about the annual purchases your market makes in
your industry? What is the forecasted market growth for this group? For
more information, see our market research guide for tips and free
government resources that can help you build a market profile.
How much market share can you gain? – What is the market share
percentage and number of customers you expect to obtain in a defined
geographic area? Explain the logic behind your calculation.
Pricing and gross margin targets – Define your pricing structure, gross
margin levels, and any discount that you plan to use.
When you include information about any of the market tests or research
studies you have completed, be sure to focus only on the results of these
tests. Any other details should be included in the appendix.
Competitive Analysis – Your competitive analysis should identify your
competition by product line or service and market segment. Assess the
following characteristics of the competitive landscape:
 Market share
 Strengths and weaknesses
 How IMPORTANT is your target market to your competitors?
 Are there any barriers that may hinder you as you enter the market?
 What is your window of opportunity to enter the market?
 Are there any indirect or secondary competitors who may impact
your success?
 What barriers to market are there (e.g., changing technology, high
investment cost, lack of quality personnel)?
Regulatory Restrictions – Include any customer or governmental
regulatory requirements affecting your business, and how you’ll comply.
Also, cite any operational or cost impact the compliance process will have on
your business.

SWOT Analysis
Strengths
-Strong brand recognition
-TOP of mind when it comes to cancer foundations
Have differentiated themselves from other cancer foundations by identifying
themselves with sports/determination/toughness
Weaknesses
-Livestrong’s credibility has seriously been put into question as a result of
the Lance Armstrong doping scandal
-People have view Lance Armstrong as Livestrong, and Livestrong as Lance
Armstrong
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Market Opportunity Analysis and Consumer Analysis

Opportunities
-Have a chance to finally break away from being the foundation that was
carried by a celebrity founder
If they can overcome the PR nightmare that is Lance Armstrong, they will
prove that they are truly an excellent and determined organization
-Can rebuild their brand and come back stronger
Threats
-Lance Armstrong’s indiscretions might prove too much for donors to
overcome, resulting in donations to decrease significantly
-Those who were regular donors might decide to switch to a different
foundation

Marketing Plan

A marketing plan may be part of an overall business plan. Solid marketing

strategy is the foundation of a well-written marketing plan. While a
marketing plan contains a list of actions, a marketing plan without a sound
strategic foundation is of little use to a business.
A marketing plan a comprehensive document or blueprint that outlines a
company's advertising and marketing efforts for the coming year. It
describes business activities involved in accomplishing specific marketing
objectives within a set time frame. A marketing plan also includes a
description of the current marketing position of a business, a discussion of
the target market and a description of the marketing mix that a business will
use to achieve their marketing goals.
1. A marketing plan has a formal structure, but can be used as a formal or
informal document which makes it very flexible. It contains some historical
data, future predictions, and methods or strategies to achieve the marketing
objectives.
Marketing plans start with the identification of customer needs through a
market research and how the business can satisfy these needs while
generating an acceptable level of return.
2. This includes processes such as market situation analysis, action
programs, budgets, sales forecasts, strategies and projected financial
statements. A marketing plan can also be described as a technique that helps
a business to decide on the best use of its resources to achieve corporate
objectives. It can also contain a full analysis of the strengths and weaknesses
of a company, its organization and its products.

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 3. The marketing plan shows the step or actions that will be utilized in order
to achieve the plan goals. For example, a marketing plan may include a
strategy to increase the business's market share by fifteen percent. The
marketing plan would then outline the objectives that need to be achieved in
order to reach the fifteen percent increase in the business market share.
4. The marketing plan can be used to describe the methods of applying a
company's marketing resources to fulfill marketing objectives.
5. Marketing planning segments the markets, identifies the market position,
forecast the market size, and plans a viable market share within each market
segment. Marketing planning can also be used to prepare a detailed case for
introducing a new product, revamping current marketing strategies for an
existing product or put together a company marketing plan to be included in
the company corporate or business plan.

Marketing Plan Purpose

One of the main purposes of developing a marketing plan is to set the
company on a specific path in marketing. The marketing goals normally
aligns itself to the broader company objectives. For example, a new company
looking to grow their business will generally have a marketing plan that
emphasizes strategies to increase their customer base.
Acquiring marketing share, increasing customer awareness, and building a
favorable business image are some of the objectives that can be related to
marketing planning.
The marketing plan also helps layout the necessary budget and resources
needed to achieve the goals stated in the marketing plan. The marketing plan
shows what the company is intended to accomplish within the budget and
also to make it possible for company executives to assess potential return on
the investment of marketing dollars. Different aspects of the marketing plan
relate to accountability.
The marketing plan is a general responsibility from company leaders and the
marketing staff to take the company in a specific direction. After the
strategies are laid out and the tasks are developed, each task is assigned to a
person or a team for implementation.
The assigned roles allows companies to keep track of their milestones and
communicate with the teams during the implementation process. Having a
marketing plan helps company leaders to develop and keep an eye on the
expectations for their functional areas. For example, if a company's
marketing plan goal is to increase sales growth then the company leaders
may have to increase their sales staff in stores to help generate more sales.
The marketing plan offers a unique opportunity for a productive discussion
between employees and leaders of an organization. It provides good
communication within the company.
The marketing plan also allows the marketing team to examine their past
decisions and understand their results in order to better prepare for the
future. It also lets the marketing team to observe and study the environment
that they are operating in.
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Market Opportunity Analysis and Consumer Analysis

Marketing Plan Aims and Objectives

Behind the corporate objectives, which in themselves offer the main context
for the marketing plan, will lie the "corporate mission," in turn provides the
context for these corporate objectives. In a sales-oriented organization, the
marketing planning function designs incentive pay plans to not only motivate
and reward frontline staff fairly but also to align marketing activities with
corporate mission. The marketing plan basically aims to make the business
provide the solution with the awareness with the expected customers.
This "corporate mission" can be thought of as a definition of what the
organization is, or what it does: "Our business is ...". This definition should
not be too narrow, or it will constrict the development of the organization; a
too rigorous concentration on the view that "We are in the business of
making meat-scales," as IBM was during the early 1900s, might have limited
its subsequent development into other areas. On the other hand, it should not
be too wide or it will become meaningless; "We want to make a profit" is not
too helpful in developing specific plans.
Abell suggested that the definition should cover three dimensions: "customer
groups" to be served, "customer needs" to be served, and "technologies" to
be used. Thus, the definition of IBM's "corporate mission" in the 1940s might
well have been: "We are in the business of handling accounting information
[customer need] for the larger US organizations [customer group] by means
of punched cards [technology]."
Perhaps the most important factor in successful marketing is the "corporate
vision." Surprisingly, it is largely neglected by marketing textbooks, although
not by the popular exponents of corporate strategy — indeed, it was perhaps
the main theme of the book by Peters and Waterman, in the form of their
"Superordinate Goals." "In Search of Excellence" said: "Nothing drives
progress like the imagination. The idea precedes the deed." If the
organization in general, and its chief executive in particular, has a strong
vision of where its future lies, then there is a good chance that the
organization will achieve a strong position in its markets (and attain that
future). This will be not least because its strategies will be consistent and will
be supported by its staff at all levels. In this context, all of IBM's marketing
activities were underpinned by its philosophy of "customer service," a vision
originally promoted by the charismatic Watson dynasty. The emphasis at this
stage is on obtaining a complete and accurate picture.

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A "traditional" — albeit product-based — format for a "brand reference
book" (or, indeed, a "marketing facts book") was suggested by Godley more
than three decades ago:
Financial data—Facts for this section will come from management
accounting, costing and finance sections.
Product data—From production, research and development.
Sales and distribution data — Sales, packaging, distribution sections.
Advertising, sales promotion, merchandising data — Information from
these departments.
Market data and miscellany — From market research, who would in most
cases act as a source for this information. His sources of data, however,
assume the resources of a very large organization. In most organizations they
would be obtained from a much smaller set of people (and not a few of them
would be generated by the marketing manager alone).
It is apparent that a marketing audit can be a complex process, but the aim is
simple: "it is only to identify those existing (external and internal) factors
which will have a significant impact on the future plans of the company." It is
clear that the basic material to be input to the marketing audit should be
comprehensive.
Accordingly, the best approach is to accumulate this material continuously,
as and when it becomes available; since this avoids the otherwise heavy
workload involved in collecting it as part of the regular, typically annual,
planning process itself — when time is usually at a premium.
Even so, the first task of this annual process should be to check that the
material held in the current facts book or facts files actually is comprehensive
and accurate, and can form a sound basis for the marketing audit itself.
The structure of the facts book will be designed to match the specific needs of
the organization, but one simple format — suggested by Malcolm McDonald
— may be applicable in many cases. This splits the material into three
groups:
Review of the marketing environment. A study of the organization's markets,
customers, competitors and the overall economic, political, cultural and
technical environment; covering developing trends, as well as the current
situation.
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Market Opportunity Analysis and Consumer Analysis

Marketing Mix
Review of the detailed marketing activity. A study of the company's
marketing mix; in terms of the 7 Ps
Review of the marketing system. A study of the marketing organization,
marketing research systems and the current marketing objectives and
strategies. The last of these is too frequently ignored. The marketing system
itself needs to be regularly questioned, because the validity of the whole
marketing plan is reliant upon the accuracy of the input from this system,
and `garbage in, garbage out' applies with a vengeance.
* Portfolio planning. In addition, the coordinated planning of the individual
products and services can contribute towards the balanced portfolio.
* 80:20 rule. To achieve the maximum impact, the marketing plan must be
clear, concise and simple. It needs to concentrate on the 20 percent of
products or services, and on the 20 percent of customers, that will account
for 80 percent of the volume and 80 percent of the profit.
* 7 Ps: Product, Place, Price and Promotion, Physical Environment, People,
Process. The 7 Ps can sometimes divert attention from the customer, but the
framework they offer can be very useful in building the action plans.
It is only at this stage (of deciding the marketing objectives) that the active
part of the marketing planning process begins. This next stage in marketing
planning is indeed the key to the whole marketing process.
The "marketing objectives" state just where the company intends to be at
some specific time in the future.
James Quinn succinctly defined objectives in general as: Goals (or objectives)
state what is to be achieved and when results are to be accomplished, but
they do not state "how" the results are to be achieved. They typically relate to
what products (or services) will be where in what markets (and must be
realistically based on customer behavior in those markets). They are
essentially about the match between those "products" and "markets."
Objectives for pricing, distribution, advertising and so on are at a lower level,
and should not be confused with marketing objectives. They are part of the
marketing strategy needed to achieve marketing objectives. To be most
effective, objectives should be capable of measurement and therefore
"quantifiable." This measurement may be in terms of sales volume, money
value, market share, percentage penetration of distribution outlets and so on.
An example of such a measurable marketing objective might be "to enter the
market with product Y and capture 10 percent of the market by value within
one year." As it is quantified it can, within limits, be unequivocally monitored,
and corrective action taken as necessary.

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The marketing objectives must usually be based, above all, on the
organization's financial objectives; converting these financial measurements
into the related marketing measurements. He went on to explain his view of
the role of "policies," with which strategy is most often confused: "Policies
are rules or guidelines that express the 'limits' within which action should
occur. "Simplifying somewhat, marketing strategies can be seen as the
means, or "game plan," by which marketing objectives will be achieved and,
in the framework that appears here, are generally concerned with the 8 P's.
Examples are:
1. Price — The amount of money needed to buy products
2. Product — The actual product
3. Promotion (advertising)- Getting the product known
4. Placement — Where the product is sold
5. People — Represent the business
6. Physical environment — The ambiance, mood, or tone of the
environment
7. Process — The Value-added services that differentiate the product from
the competition (e.g. after-sales service, warranties)
8. Packaging — How the product will be protected

In principle, these strategies describe how the objectives will be achieved.

The 7 Ps are a useful framework for deciding how a company's resources will
be manipulated (strategically) to achieve its objectives. However, the 7 Ps are
not the only framework, and may divert attention from other real issues. The
focus of a business's strategies must be the objectives of the business— not
the process of planning itself. If the 7 Ps fit the business's strategies, then the
7 Ps may be an acceptable framework for that business.
The strategy statement can take the form of a purely verbal description of the
strategic options which have been chosen. Alternatively, and perhaps more
positively, it might include a structured list of the major options chosen.
One aspect of strategy which is often overlooked is that of "timing." The
timing of each element of the strategy is critical. Taking the right action at the
wrong time can sometimes be almost as bad as taking the wrong action at the
right time. Timing is, therefore, an essential part of any plan; and should
normally appear as a schedule of planned activities. Having completed this
crucial stage of the planning process, to re-check the feasibility of objectives
and strategies in terms of the market share, sales, costs, profits and so on
which these demand in practice. As in the rest of the marketing discipline,
employ judgment, experience, market research or anything else which helps
for conclusions to be seen from all possible angles.
At this stage, overall marketing strategies will need to be developed into
detailed plans and program. Although these detailed plans may cover each of
the 7 Ps (marketing mix), the focus will vary, depending upon the
organization's specific strategies. A product-oriented company will focus its
plans for the 7 Ps around each of its products. A market or geographically
oriented company will concentrate on each market or geographical area.
Each will base its plans upon the detailed needs of its customers, and on the
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Market Opportunity Analysis and Consumer Analysis

strategies chosen to satisfy these needs. Brochures and Websites are used
effectively.
Again, the most important element is, the detailed plans, which spell out
exactly what programs and individual activities will carry at the period of the
plan (usually over the next year). Without these activities the plan cannot be
monitored. These plans must therefore be:
Clear - They should be an unambiguous statement of 'exactly' what is to be
done.
Quantified - The predicted outcome of each activity should be, as far as
possible, quantified, so that its performance can be monitored.
Focused - The temptation to proliferate activities beyond the numbers which
can be realistically controlled should be avoided. The 80:20 Rule applies in
this context too.
Realistic - They should be achievable.
Agreed - Those who are to implement them should be committed to them,
and agree that they are achievable. The resulting plans should become a
working document which will guide the campaigns taking place throughout
the organization over the period of the plan. If the marketing plan is to work,
every exception to it (throughout the year) must be questioned; and the
lessons learnt, to be incorporated in the next year's .

Marketing Plan Outline

A marketing plan should based on where a company needs to be at some

point in the future. These are some of the most important things that
companies need when developing a marketing plan:
Market research: Gathering and classifying data about the market the
organization is currently in. Examining the market dynamics, patterns,
customers, and the current sales volume for the industry as a whole.
Competition: The marketing plan should identify the organization's
competition. The plan should describe how the organization will stick out
from its competition and what it will do to become a market leader.
Market plan strategies: Developing the marketing and promotion strategies
that the organization will use. Such strategies may include advertising, direct
marketing, training programs, trade shows, website, etc.
Marketing plan budget: Strategies identified in the marketing plan should
be within the budget. Top managers need to revise what they hope to
accomplish with the marketing plan, review their current financial situation,
and then allocate funding for the marketing plan.
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 Marketing goals: The marketing plan should include attainable marketing
goals. For example, one goal might be to increase the current client base by
100 over a three month period.
Monitoring of the marketing plan results: The marketing plan should
include the process of analyzing the current position of the organization. The
organization needs to identify the strategies that are working and those that
are not working.
By researching markets, competition, and determining the organization's
unique positioning, the organization is in a much better position to promote
and sell its product or service. By establishing goals for the marketing plan,
the organization can better understand whether the efforts are generating
results through ongoing review and evaluation.

Content of Marketing Plan

A Marketing Plan for a small business typically includes Small Business
Administration Description of competitors, including the level of demand for
the product or service and the strengths and weaknesses of competitors
1. Description of the product or service, including special features
2. Marketing budget, including the advertising and promotional plan
3. Description of the business location, including advantages and
disadvantages for marketing
4. Pricing strategy
5. Market Segmentation
Medium Size and Large Organizations
The main contents of a marketing plan are:
1. Executive Summary
2. Situational Analysis
3. Opportunities / Issue Analysis - SWOT Analysis
4. Objectives
5. Marketing Strategy
6. Action Program (the operational marketing plan itself for the period
under review)
7. Financial Forecast
8. Controls
A complete marketing plan typically includes:
1. Title Page
2. Executive Summary
3. Current Situation - Macroenvironment
a. Economic State
b. Legal State
c. Governmental State
d. Technological State
e. Ecological State
f. Sociocultural State
g. Supply chain State
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4. Current Situation - Market Analysis

a. Market definition
b. Market size
c. Market segmentation
d. Industry structure and strategic groupings
e. Porter 5 forces analysis
f. Competition and market share
g. competitors' strengths and weaknesses
h. Market trends
5. Current Situation - Consumer Analysis
a. Nature of the buying decision
b. Participants
c. Demographics
d. Psychographics
e. Buyer motivation and expectations
f. Loyalty segments
6. Current Situation - Internal
a. Company Resources
i. Finances
ii. People (workforce)
iii. Time
iv. Skills
b. Objectives
i. Mission statement and Vision statement
ii. Corporate objectives
iii. Financial objective
iv. Marketing objectives
v. Long term objectives
vi. Description of the basic business philosophy
c. Corporate Culture (Organizational Culture)
7. Summary of Situation Analysis
a. External threats
b. External opportunities
c. Internal strengths
d. Internal weaknesses
e. Critical success factors in the industry
f. Sustainable competitive advantage
8. Marketing Research
a. Information requirements
b. Research methodology
c. Research results

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9. Marketing Strategy - Product
a. Unique selling proposition (USP)
b. Product mix
c. Product strengths and weaknesses
i. Perceptual mapping
d. Product life cycle management and new product development
e. Brand name, brand image, and brand equity
f. Augmented product
g. Product portfolio analysis
i. B.C.G. Analysis
ii. Contribution margin analysis
iii. G.E. Multi Factoral analysis
iv. Quality Function Deployment
10. Marketing Strategy - segmented marketing actions and market
share objectives
a. By product
b. By customer segment
c. By geographical market
d. By distribution channel
11. Marketing Strategy - Price
a. Pricing objectives
b. Pricing method (e.g.: cost plus, demand based, or competitor
indexing)
c. Pricing strategy (e.g.: skimming, or penetration)
d. Discounts and allowances
e. Price elasticity and customer sensitivity
f. Price zoning
g. break even analysis at various prices
12. Marketing Strategy - Promotion
a. Promotional goals
b. Promotional Mix
c. Advertising reach, frequency, flights, theme, and media
d. Sales force requirements, techniques, and management
e. Sales promotion
f. Publicity and public relations
g. Electronic Promotion (e.g.: web, or telephone)
h. Word of Mouth marketing
i. Viral Marketing
13. Marketing Strategy - Distribution
a. Geographical coverage
b. Distribution channels
c. Physical distribution and logistics
d. Electronic distribution
14. Implementation
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a. Personnel requirements
i. Assigning responsibilities
ii. Giving incentives
iii. Training on selling methods
b. Financial requirements
c. Management information systems requirements
d. Month-by-month agenda
i. Gantt chart using PERT or critical path analysis systems
e. Monitoring results and benchmarks
f. Adjustment mechanism
g. Contingencies (what ifs)
15. Financial Summary
a. Assumptions
b. Pro-forma monthly income statement
c. Contribution margin analysis
d. Breakeven analysis
e. Monte Carlo method
f. ISI: Internet Strategic Intelligence
16. Scenarios
a. Prediction of future scenarios
b. Plan of action for each scenario
17. Controls
a. Performance indicator
b. Feedback Mechanisms
18. Appendix
a. Pictures and specifications of products
b. Results from completed research

Market Opportunity Analysis Steps

In its simplest form, to properly perform a market opportunity analysis there
are five steps to follow:
1. Identify what’s currently happening in the business environment.
In this section you need to look at the economic conditions (growth, stable or
decline) as well as any trends or social changes that could have an impact on
the business. Delve into both the legal and regulatory situations, as these can
often change and you need to be prepared for any future expected changes as
well. Research the latest technology and state of the art developments, and
take into account the natural environment. Are there any vulnerabilities or
limitations on resources that could hinder your growth?

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2. Define the industry and determine the outlook.
Here you need to state exactly the industry that you are operating within,
and make forecasts on the size of the market. Look back over the last 5 years,
and project how you believe it will grow over the next 12 months, 3 years
and 5 years. Look to your competition and discover the marketing practices
that are being utilized, and see if you can see any major trends or shifts
within your industry. Here there are major implications for potential
opportunities, as you need to ensure you’re moving in the same direction as
the market.
3. Dive into the details of your competitors.
You need to know what businesses you are competing with, and know their
products inside and out. Go through their product mix, and compare this with
the products you are offering. Make sure you’re objective in your approach,
and also identify the relative strengths and weaknesses of the products from
your customers point of view. Look at how your competition is reaching the
market, the channels they’re using to both distribute and market their
products, and the level of service that’s being offered. If you have details on
the market share of other businesses include it here, and sum it all up in a
couple of short sentences that outline the implications of this section
regarding the opportunities in the market.
4. Describe your target market.
You need to build a profile of your ideal customer, so that you can adequately
focus your sales and marketing efforts and reach your customers. If you
haven’t built a marketing plan before, this course is a great place to start as it
covers both understanding and a strategy to reach your market, and has a
number of templates to guide your progress. In essence you simply need to
look at the needs of your customers, but if you get stuck try asking yourself
one of these questions:
1. Who are my potential customers?
2. What are my potential customers like as a consumer?
3. What are my potential customers looking for?
4. When is the product needed?
5. Is there a particular channel that the product sells best in?
6. How do my potential customers make a decision to buy a product?
7. How important is each of my products attributes to my potential
customers?
8. Are there any outside influences that have an effect on their buying
decision?
9. Is there any limitations that can influence the level of opportunity?
10. What is the competition starting to do?
11. How is the market developing and changing?
Thinking and answering these should get the ball rolling, remember the
entire goal is to focus on the end-user, and determine what it is they actually
need. If the need is there, the market is there, and you’ve got the basic
fundamentals for creating success selling your products.
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5. Create your projections.

Use a variety of techniques that build on all of the information in your
business plan to set a forecast of your sales. This includes best and worst
case scenario analysis, any intuition or “gut-feelings” you have about new
markets, and compare any results you have seen to date. The final
recommendation in a market opportunity analysis is a simple answer to this
question. Is the project a go? Or a no go?
Sources of Information
As you’re working on the project, what can be most difficult is the
information you need to adequately support your projections, or to help you
make decisions. Especially in emerging markets, much of the time the
information you need either doesn’t exist, or isn’t available. Here’s the types
of information that will help you build your market opportunity analysis
 Published works
 Trade reports from industry associations
 Newspapers and periodicals
 Information service reports that are standardized for an industry
 Government reports
 Annual Company Reports
 Firsthand observations
 Interviews and discussions with customers or suppliers
 Interviews and discussions with competitors (or with customers
about competitors)
 Interviews and discussions with experts
A personal opinion of the macro environmental influences
Reach out to the managers in companies that deal with suppliers, the people
running trade associations, consultants in your industry, as well as sales
people. They’ll all have an idea of the information you need, as well as their
firsthand experience. In doing your research, surveys are another great way
to get more information on a market, especially if you have a means of
reaching the target consumer. Here’s the questions you need to be asking,
whether it’s in a survey, or in an interview
Their estimate of the size of the market
Their estimates of the market potential, and how fast it is growing
Their understanding of your position in the market and your value
proposition
 Their preferred product and why
 What aspect of the product adds the most value to them as an
end-user
 How they see the differences between the top three
competitors in your field
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  Are the differentiators sustainable over time?
 What are the short and long term needs of the market?
List out all the emerging markets that can use the product
As you’re making your conclusions in the market opportunity analysis,
remember that there are four key areas where you can create value for your
clients.
Trapped value. This is empowering your customers, creating greater
efficiency and accessibility of your products.
New value. This is extending your product lines, personalizing products and
using collaboration to build a loyal following of customers.
Horizontal value. This is improving the functionality of your existing
products.
Vertical value. This is improving the industry specific products and
activities your business engages in.
Taking all of the information gathered so far, the final step is to craft it into a
story. You want to build a compelling picture of the target segment, and the
high level value proposition that you are offering. You’ll need to spell out
exactly what the benefits are to the customer, and what’s absolutely critical
to deliver. Run through the resources that are required to take advantage of
this opportunity, and clearly describe how the business will be able to
establish an advantage over the competition. You’ll need to include how you
believe value can be made from this opportunity, and spell out in plain
figures what this opportunity represents in both investment, and expected
returns. By the end of all this, you’ll have a perfect overview of what needs to
be done, so that you can help the decision making process. The next step is to
implement this into your marketing strategy, and build a fantastic value
proposition which is covered in detail in this course for business owners.
Finding opportunities in a market isn’t rocket science, but there is a process
to follow. Do it right and you’ll be surprised at what customer needs are
currently unmet, and how profitable it can be after you build a solution for
them.
Consumer Analysis
Initial steps in the marketing research that identify and collect information
on the target market's needs, profiles, and consumer behaviors in order to
establish market segmentation.
A customer analysis (or customer profile) is a critical section of a company's
business plan or marketing plan. It identifies target customers, ascertains the
needs of these customers, and then specifies how the product satisfies these
needs. A customer analysis can be broken down into a behavioral profile
(why your product matches a customer's lifestyle) and a demographic profile
(describing a customer's demographic attributes).
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Market Opportunity Analysis and Consumer Analysis

A customer profile is a simple tool that can help business better understand
current and potential customers, so they can increase sales and grow their
business. Customer profiles are a collection of information about customers
that help determine why people buy or don't buy a product. Customer
profiles can also help develop targeted marketing plans and help ensure that
products meet the needs of their intended audience.
Behavioral Analysis (Customer Buying Criteria)
A behavioral analysis of customers (or psychographic profile) seeks to
identify and weigh the relative importance of factors consumers use to
choose one product over another. These factors, sometimes called buying
criteria, are key to understanding the reasons that customers choose to buy
your product (or service) versus the products offered by your competitors.
The four major criteria that customers use to distinguish competing products
are: price, quality, convenience and prestige.
In consumer transactions, price and quality tend to be the dominant factors.
However with business-to-business (B2B) transactions (also called industrial
marketing), service issues such as reliability, payment terms, and delivery
schedule become much more important. The sales transaction in an
industrial marketing scenario also differs from consumer marketing in that
the purchase decision is typically made by a group of people instead of one
person, and the selling process can be much more complex (including stages
such as: request for bid, proposal preparation and contract negotiations).
By identifying customer needs through market research and analysis,
companies can develop a clear and concise value proposition which reflects
the tangible benefits that customers can expect from the company's products.
And once the primary buying criteria have been identified, marketing efforts
can influence the customer's perception of the product along the four main
dimensions (price, quality, convenience and prestige), relative to the
competition's product.

Behavioral Analysis (Purchase Process and Patterns)

Occasionally, customer behavior analysis requires a more in-depth
understanding of the actual decision-making process of the customer
purchase. This may be especially true in an industrial marketing scenario.
Examples of purchase process questions to be answered here include:
* What steps are involved in the decision-making process?
* What sources of information are sought?
* What is a timeline for a purchase (e.g., impulse vs. extended decision-
making)?

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 Will the customer consult others in their organization/family before making
a decision?
* Who has the authority to make the final decision?
* Will the customer seek multiple bids?
* Will the product/service require significant modifications?
Behavior profiles can also focus on actions, such as: which types of items
were purchased, how frequently items are purchased, the average
transaction value, or which items were purchased in conjunction with other
items. To understand the buying habits and patterns of your customers,
answer the following questions:
* Reason/occasion for purchase?
* Number of times they'll purchase?
* Timetable of purchase, every week, month, quarter, etc.?
* Amount of product/service purchased?
* How long to make a decision to purchase?
* Where does the customer purchase and/or use the product/service?

Customer Demographics
The second major component in customer analysis is identifying target
market segments that are predisposed to preferring your products over
those of your competitors. A market segment is a sub-set of a market made
up of people or organizations with one or more characteristics that cause
them to demand similar product and/or services based on qualities of those
products such as price or function. A marketing program aimed at individual
segments needs to understand and capitalize on the group's differences and
use them strategically in all advertising campaigns.
Gender, age, ethnicity, geography and income are all market-segmenting
criteria based on demographics.
Typical questions to ask when determining the demographics of the target
market include:
* What is the age range of the customer who wants my product or service?
* Which gender would be most interested in this product or service?
* What is the income level of my potential customers?
* What level of education do they have?
* What is their marital or family status: Are they married, single, divorced?
Do they have kids, grandkids?
* What are the hobbies of my target customers?
The target market segments are specified by demographic factors: age,
income, education, ethnicity, geography, etc. Then by having a well defined
set of demographic factors, marketing will be able to identify the best
channels to reach these specific demographic segments.
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Market Opportunity Analysis and Consumer Analysis

References
a. https://www.sba.gov/starting-business/write-your-business-
plan/market-analysis
b. https://www.coursehero.com/file/10185727/Market-Analysis/
c. https://en.wikipedia.org/wiki/Marketing_plan
d. Jump up^ Staff, Entrepreneur. "Marketing Plan". Entrepreneur.
Retrieved 2016-04-01.
e. Jump up^ "What is a marketing plan? definition and
meaning". BusinessDictionary.com. Retrieved 2016-04-01.
f. ^ Jump up to:a b c Westwood, John (2002-01-01). The Marketing Plan: A
Step-by-step Guide. Kogan Page Publishers. ISBN 9780749437480.
g. ^ Jump up to:a b c d e f g "What is a Marketing Plan? - Definition &
Sample - Video & Lesson Transcript | Study.com". Study.com.
Retrieved 2016-04-01.
h. ^ Jump up to:a b c "Purposes of a Marketing
Plan". smallbusiness.chron.com. Retrieved 2016-04-01.
i. Jump up^ "Purpose of the Marketing Plan - Boundless Open
Textbook". Boundless. Retrieved 2016-04-01.
j. Jump up^ Abell, "Defining the Business: The Starting Point of
Strategic Planning"
k. Jump up^ "The Marketing Imagination"
l. Jump up^ J. B. Quinn, "Strategies for Change: Logical Incrementalism"
(Richard D. Irwin, 1980)
m. ^ Jump up to:a b Baker, Michael The Strategic Marketing Plan
Audit 2008. ISBN 1-902433-99-8
n. Jump up^ Quick MBA Marketing plan based on consumer and
competitor analyses
o. Jump up^ Marketing Padawan How to Write a Compelling Marketing
Plan in 8 Steps
p. Jump up^ Marketing plan basics Table of marketing targets, actions,
means and results
q. Jump up^ "How to Conduct a Revenue & Expense Account
Analysis". smallbusiness.chron.com. Retrieved 2016-04-01.
r. Jump up^ "Marketing Expense-to-Sales
Analysis". smallbusiness.chron.com. Retrieved 2016-04-01.

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