Unit 1 Market Analysis: Factors and Customer Decision Process

MARKET ANALYSIS

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UNIT 1

MARKET ANALYSIS

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MARKET ANALYSIS DEFINITION

The process of assessing a market based on its internal and external factors along with the
conditions and dynamics of this market to function. The analysis can be perfomed for a given
broad market or a niche market.

It is the previous step to design a marketing strategy.

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MARKET ANALYSIS OUTCOMES

The following information should be obtained:

QUANTITATIVE

QUALITATIVE

Size of the market
Distribution of market share
Market demographics
Main competitors

OPORTUNITIES

RISKS

GOALS

Major trends
Potential market challenges
Customer behavior patterns
Competitor's strategies

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MARKET ANALYSIS FRAMEWORKS

#1: CSF (*) framework

• Industry.
• Competitors,
• Temporary.
• Environmental

#2: Market size

• Industry
  reports
• Internal reports
  (semrush)

(*) Critical success factors: strategic tool used to identify the
essential elements or areas that must be successfully addressed
for an organization, project, or initiative to achieve its goals

#3: Market trends & Growth rate

• Growth analysis
• BCG Matrix
• Marketing mix analysis

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MARKET ANALYSIS COMPETITORS & AUDIENCE

#4: Competitors landscape

I

• Porter's Five
  Forces
• Perceptual
  mapping
• Voice of
  customer
  research

#5: Audience

• Customer
  segmentation
  criteria
• Buyer Persona

#6: Gathering insights:

• Internal &
  External
  factors
• SWOT Analysis

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MARKET ANALYSIS INSIGHTS

• Target market present and future profile
• Target market products & services' preference
• Marketing mixes best practices
• Gaps, opportunities, & risks

IMPACTFUL, REALISTIC, EFFICIENT AND INNOVATIVE MARKETING STRATEGY & PLAN

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CRITICAL SUCCESS FACTORS

#1: CRITICAL SUCCESS FACTORS

#
Industry: Current and future factors of your company's industry (e.g., digitalization)
Competitive: Internal success factors (VRIO) against industry and competitors
O
Temporary: One-time factors (e.g., COVID-19)
0
External factors: PESTLE

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MARKET SIZE ANALYSIS

#2: MARKET SIZE

Industry or Government reports (e.g., statista)
Other sources (e.g., semrush)

• Market Scope:
• TOTAL ADDRESSABLE MARKET (TAM)
• SERVICEABLE ADDRESABLE MARKET (SAM)
• SHARE OF MARKET (SOM)

#2
TAM
SAM
SOM

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MARKET SIZE COMPONENTS

#2: MARKET SIZE

#2
N
TAM
SAM
SOM

1. TAM (Total Addressable Market):

• The global market for streaming services, including all potential customers
  worldwide who consume video content online.
• Example: All internet users who could access streaming platforms (~5 billion
  people globally).

1. SAM (Serviceable Addressable Market):

• The portion of the TAM that Netflix can realistically serve based on its offerings
  and availability.
• Example: Internet users in countries where Netflix operates (~1 billion people).

1. SOM (Share of Market):

• The current share Netflix has in the SAM.
• Example: Active Netflix subscribers (~230 million subscribers in 2023).

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GROWTH & TRENDS

#3: GROWTH & TRENDS

#3
MARKET SHARE
High
Low
Star
Question mark
High
$
X
GROWTH
Cash cow
Pet
Low
semrush.com
SEMRUSH

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GROWTH & TRENDS: APPLE EXAMPLE

#3: GROWTH & TRENDS

#3
MARKET SHARE
High
Low
?
iPhone
Apple TV 4K
Question mark
High
Mac
HomePod
GROWTH
Pet
Low
semrush.com
SEMRUSH

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MARKETING-MIX ANALYSIS

#3: GROWTH & TRENDS

#3
Marketing-mix
analysis
Product
Price
Promotion
Place
People
Process
Physical Evidence
MAIN CONCLUSIONS

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MARKETING MIX ANALYSIS: THE 7 PS

MARKETING MIX ANALYSIS

#3
The 7 Ps
Product
Price
Place
Promotion
People
Process
Physical Evidence
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MARKETING MIX ANALYSIS: THE 4 PS

MARKETING MIX ANALYSIS

The 4 Ps
Product
The concept of product / service
The levels of a product (Kotler et al., 2008) and product dimensions
The product attributes: physical, functional, psychological
Product-mix decisions = product portfolio
New Product's development
Brands
Place
The concept of distribution
Distribution retailer formats
Levels of integration
Price
The concept of price
Pricing strategies
Strategies based on product-portfolio
Promotion
The marketing communication mix
POEM framework

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MARKETING MIX ANALYSIS: PEOPLE, PROCESS, PHYSICAL EVIDENCE

MARKETING MIX ANALYSIS

The 7 Ps
People
The concept of people
Process
Purchase decision process
Physical evidence
The concept of physical evidence
Ownership
Point of purchase
Product design
Packaging
Corporate identity

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MARKETING MIX ANALYSIS: THE 7 CS

MARKETING MIX ANALYSIS

The 7 Ps
The 7 Cs
Company oriented
Customers oriented
Product
Customer value
Price
Cost
Place
Convenience
Promotion
Communication
People
Caring
Process
Frictionless
Physical Evidence
Reassurance
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PRODUCTS: CORE BENEFIT

PRODUCTS

Finding the core benefit by
reaching out to the levels of your
product/service
potential product
augmented product
expected product
generic product
core benefit

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PEOPLE: CUSTOMER EXPERIENCE

PEOPLE

"Everyone within your company involved in providing the experience
A great product or service can be ruined by how it is offered to
customers. A sense of caring is key for building relationships.
Hiring, training and nurturing talent is key to keep a high level of
engagement of employees that take part in this process.
It also involves building an internalized customer-centric corporate
culture by which everybody feels part of it.

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PROCESS: CUSTOMER JOURNEY

PROCESS

"Everything involved in the delivering of your product or service to customers
From a customer's point of view, the best analysis is done by looking
to the purchasing decision process (customer journey).
It must be ensured a consistent, smooth, frictionless journey
experience.
Many company departments are involved to guarantee an efficient and
customer-centric process.

THE STAGES OF THE PURCHASING PROCESS

Need Recognition &
Problem Awareness
Information
Search
Evaluation of
Alternatives
Purchase
Post-Purchase
Evaluation
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PHYSICAL EVIDENCE: CUSTOMER EXPECTATIONS

PHYSICAL EVIDENCE

"Everything your customers see when interacting with your business
„"*
Its role is to reassure consumer's expectations. It has special relevance in service marketing for its value of intangibles to fulfill
customers' needs.
Therefore, it comprises tangible and intangible assets that help customers to better experienced your producto or service such
as:

• Corporate identity: Brand name, slogans, Brand content, website ...
• Points of purchase factors: Furniture, fittings, window displays ...
• Product design: Size, materials, touch ....
• Packaging: Its conveys multiple brand messages, the design, quality ...
• Ownership elements: The leave behinds such ammenities.

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*https://squareup.com/au/en/townsquare/how-to-use-7ps-of-marketing# :~: text=Physical%20evidence%20is%20everything%20your,social%20media%20presence%20and%20more.
20Interno

EXERCISE: MARKETING MIX ANALYSIS

EXERCISE: MARKETING MIX ANALYSIS

Build your own marketing-mix analysis by using
a Miro Canvas (click here).
Use this check list for help.

The 7 Ps

Description
Analysis
The product attributes: physical, functional,
Product
psychological. Points of differentiation.
Place
Distribution channels
Price
Pricing strategy
Promotion Marketing communication mix (POEM framework)
Post-sales services, referrals, and other
People
touchpoints
Purchase decision process' factors (moments of
Process
truth)
Physical
Ownership, Point of purchase, Product design,
evidence
Packaging, Corporate identity
Product
Price
Promotion
Place
People
Process
Physical Evidence
MAIN CONCLUSIONS
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MARKETING MIX ANALYSIS: COFFEE EXAMPLE

MARKETING MIX ANALYSIS

The 7 Ps
#3
TM
Product - Coffee
Price - mid high
Place - owned stores
Promotion - social, seasonal promos, loyalty programs
People - customer first culture
Process - ordering systems, efficient workflows, mobile app
Physical Evidence - cozy interiors, free wi-fi, consistent branding
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MARKETING MIX ANALYSIS: THE 7 CS EXAMPLE

MARKETING MIX ANALYSIS

#3
TM
The 7 Cs
Customer Value - premium quality, taste, customization
Cost - perceived value justification
Convenience - online ordering, delivery, time saving
Communication - personalization
Caring - welcoming approach
Frictionless - seamless ordering and pay
Reassurance - coffee quality + familiar store layout
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COMPETITORS: PORTER'S FIVE FORCES

#4: COMPETITORS

#4
Porter's Five Forces
They are a strategic model
developed by Michael E. Porter
to analyze the competition
and dynamics of an industry.
This framework helps
companies identify key
factors that affect their
profitability and develop
strategies to improve their
competitive position.
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Access
to the market
or new entrants
Intensity
of the competitive
landscape
Threat
of substitute
products
Five Forces
Model
Level
of supplier
power
Buyer's
entry/exit costs
semrush.com
SEMRUSHInterno

COMPETITORS: SUPPLIER POWER

#4: COMPETITORS

LEVEL OF SUPPLIER POWER

• Analyzes the ability of suppliers to influence
  prices, quality, and terms of supply.
• Impact: High supplier power can increase
  costs and reduce profitability.
  Example: In the tech industry, chip suppliers
  have high power due to global shortages.

#4
Access
to the market
or new entrants
Intensity
of the competitive
landscape
Threat
of substitute
products
Five Forces
Model
Level
of supplier
power
Buyer's
entry/exit costs
semrush.com
SEMRUSH
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COMPETITORS: COMPETITIVE LANDSCAPE INTENSITY

#4: COMPETITORS

INTENSITY OF THE COMPETITIVE LANDSCAPE

• Evaluate the possibility that products or
  services from another industry can replace
  current ones.

"Impact: A high threat of substitutes can limit
prices and reduce profitability.
Example: In the transportation industry, cars
face substitutes such as bicycles, public
transportation, or services such as Uber.

#4
Access
to the market
or new entrants
Intensity
of the competitive
landscape
Threat
of substitute
products
Five Forces
Model
Level
of supplier
power
Buyer's
entry/exit costs
semrush.com
SEMRUSH
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