Please enable JavaScript.
Coggle requires JavaScript to display documents.
Analysis of Marketing Environment - Coggle Diagram
Analysis of Marketing Environment
Segmentation, Targeting, Positioning
Segmentation
Dividing
a market into
distinct group of buyers
with
different needs, characteristics, or behaviours
Targeting
Evaluating
each
market segment's attractiveness
& select one or more
segments to enter
Positioning
Arranging
for a product to
occupy a clear, distinctive, and desirable place
relative to
competing products in the minds of target customers
Marketing Mix
Set of
controllable tactical marketing tools
(4Ps) that the firm blends to
produce the response it wants in the target market
Product
Combination of
physical goods & services the company offers
to the target market
Price
Amount of money
customers pays to obtain the product
Place (or Channels)
Activities that make the products
available to consumer
Promotion
Activities that
communicate the merit (USPs)
of product &
persuade consumers to buy
Customer Lifetime Value (CLV)
CLV =
Purchase Frequency
x
Average Order Value
x
Gross Margin
x
Customer Lifespan
Profitability = CLV / Customer acquisition costs
Return to marketing efforts = change in CLV / Marketing costs
5C Analysis
Company (Internal)
Resources & capabilities: identify the
sustainable competitive advantages
that can leveraged into other activities
Example:
Strong brand awareness
price leadership
Access to natural resources not available to competitors
Highly skilled labour
Access to new/proprietary technology
Customers (Micro)
Market size, Segments & Growth
current customer, target customers, ideal customers
Purchasing habits, trends & buying process
Factors influence (Quality, price, convenience), Impulse or planned purchase, Repeated purchase (or 1 time), Preferred channel (Online/Physical)
Overall customer satisfaction
Perceived value
Competitors (Micro)
Overall industry competition level (Willingness to spend on R&D)
Concentration ratio & Advertising spending
Key Competitors
Competitive strategy
Cost-based or differentiation-based
Emerging competition
Buyer's switching cost, Barriers to entry
Collaborators (Micro)
Suppliers & Distributors
Context (Macro)
Political, Economic, Social, Technological, Environmental, legal
Porter's Five Forces
Access to the market or new entrants
Intensity of the competitive landscape
Threat of substitute products
Level of supplier power
Buyer's entry/exit costs
Pros
Focus on competition in industry
Helpful for STP
Showcases strength & weakness
Display opportunities to expand
Cons
Limitation (missing other factors)
Impractical on companies with multiple production line
Strength, Weakness, Opportunities & Threats
Pro
Easy to use
Analyzes internal, micro & macro environment
Cons
Oversimplification (sometimes)
Market Segmentation
Mass Marketing:
Offering same product to everyone (wide audience)
Segment-based Marketing
: Offering different type of product to different segments of consumers
One-to-One Marketing:
Offers different products to different consumers
Geographic
(eg: Countries, Cities, Regions)
Demographic
(eg: Age, Gender, Occupation, Income)
Behavioural
(eg: Occasions, Benefit sought, Usage rate
Psychographic
: (eg: Social class, lifestyle, personal characteristics
Strategy
Red Ocean Strategy
Focus on existing markets
Beat competition
Exploit existing demand
Either differentiate or lower costs
Blue Ocean Strategy
Focus on new markets
Avoid competition
Find unsatisfied demand
Pursue several strategies together to create value