Market Analysis

Market structure, Market position, Market objectives, Which segment--Market segments

Market Position Market Niche?---small part of an existing market
Market Leader?--- maintain dominant position in the market?
Market Follower?---Follow the lead of the market leader – pricing, product development etc Market Challenger?--- Seek to adopt strategies to challenge market leader’s position

Market Objectives
National growth
International growth
Ethical objectives
Market share
Consumer focus
Product focus
Image Social responsibility
Revenue maximisation
Share holder value

Overcome competitors Will involve/determine some or all of the following:
–Market Penetration
–New Product Development
–Branding
–Diversification
–SWOT Analysis

Market Segments

Age Religion Gender
Income level Lifestyle
Ethcnic grouping
Social class
Geographical region
Family circumstances
Behaviouristic

Social Class
Institute of Practitioners in Advertising (IPA) Grouping
–A – Higher managerial, professional and administrative
–B – Middle management, professional and administrative
–C1 – Supervisory, clerical and junior management
–C2 – Skilled Manual Workers
–D – Semi and unskilled manual workers
–E – Pensioners, casual workers, unemployed

Which Segment

Mass Markets
Multible Segment
Single Segment

-Mass Markets – high volume, low margin goods– confectionary, cars, clothing, food stuffs
-Multiple Segments – appealing to wider range of groups – e.g. 4x4 vehicles – town, country, gender, lifestyle, social class?
-Single Segment – often a specialised product, e.g. machinery, exclusive goods

Market Structure
Highly Competitive
Imperfect Competition
Oligopoly
Duopoly
Monopoly

Nature of the market structure determines marketing strategy:
–Pricing strategy
–Branding?
–Product Differentiation?
–Market Penetration?
–Direct Selling?