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Lecture 10 Market Analysis
Lecture 10 Market Analysis
Background
• Marketing plans can’t but put together without
some form of analysis
• How do I match my company’s assets with good
business opportunities?
• Possibilities = markets
• market analysis:
– finding and measuring business opportunities
– targeting and dividing market into niches
– suggesting product placement and position in mind of
consumer
Market Analysis
• marketing requires a great deal of information
about consumer needs
• marketing research gives the marketing manager
data needed to make decisions
• required because managers are often hundreds or
thousands of miles distant from end users
• market analysis is the only way firms can stay in
touch with customers and their needs
Discovering Opportunities
• most large firms are moving away from
“mass” marketing to “target” marketing
• mass marketing = production approach of
looking at what most consumers want,
assumes actions of all consumers are equal
• mass marketing = mass production (low-
cost, effective, easy), disposal of production
• problem: always leaves someone unhappy
Discovering Opportunities
• target marketing: consumer needs set the product
characteristics and marketing programs
• production efforts change to meet needs of
targeted groups of consumers
• example: you grow grouper, but find out that
processers want a variety of different sizes,
species. You then become flexible to meet their
needs (same holds true for processors, their
market)
• special needs = more sales, higher sales prices
Discovering Opportunities
• target marketing more costs, difficult to manage,
but profitable to producer and pleasing to
customer
• goal: market edge because you offer what others
can’t
• from the market analysis standpoint, a market is:
group of current or possible consumers with
similar unmet needs and buying power
• defined in terms of consumer needs and not the
product being sold!
Discovering Opportunities
• problem: consumer needs change slowly, products
come and go
• example: old-style TV dinners vs microwaveable
grouper Florentine
• problem: can’t please everyone on a global basis
think regionally or locally!
• target marketing recognizes differences in needs:
for seafood, there are well-defined regional likes
and dislikes
• how can you possibly fill all the different needs in
a profitable manner (you can’t)
Consumer Demographics
• within a defined area, the needs of consumers are
often found to be similar
• that is, after having divided them into groups
according to common descriptions (e.g., age, sex,
household size, level of income, level of
education, marriage status)
• demographics: dividing consumers into groups
for easy identification
– helps establish more specific consumer needs
– information easily obtain for smaller vs. larger areas
Consumer Demographics
• by tying consumer needs to
demographic info it is
possible to find special
groups of consumers
SEAFOOD
MARKETING