10/11/2016. Managers can classify competing alternatives at three levels: Generic Need: Breakfast foods. Basic Types of Market Measurement

Transcription

1 Sales (in units) 10/11/2016 Managers can classify competing alternatives at three levels: Generic Need: Breakfast foods Primary Demand is the demand for the product form or product class that has been defined as the relevant market. Product Classes: Cereals, Pastries, Eggs Competing brands within a product form. Product Forms: Nutritional cereals and presweetened cereals Brands: Kellogs, Nestle Competing product forms within a product class. Competing product classes serving a generic need. By analyzing primary demand managers can learn Why and how do customer buy a product form or class? Who are the buyers in the relevant market? Selective demand is the demand for a specific brand or supplier within the relevant market. In analyzing selective demand, managers are primarily interested in understandig how buyers make choice from the alternative brands. Basic Types of Market Measurement Basic Kinds of Market Measurements Actual Sales Company demand: Amount of sales for a company s product Industry sales: Sales for all the other companies in the market Sales Forecast Industry sales forecast: Level of sales expected to be achieved by all firms Company sales forecast: Expected level of sales that will be met by individual company Market Potential: The upper limit of demand for a product within a defined period of time. Current market potential: Max. sales opportunity that can be achieved by all sellers at the present time Future market potential: Max. sales opportunity that can be achieved during the some future period of time Primary Demand Gap Selective Demand Gap Current Time Period Market Potential Industry Sales Company Sales Actual Forecast 1

2 MARKETING ENVIRONMENT Assist. Prof. Dr. Özge Özgen 2016 Dokuz Eylül University, Faculty of Business Marketing Environment The Marketing Environment The actors and forces outside marketing that affect marketing management ability to develop and maintain successful transactions with its target customers. o Includes: o Microenvironment - forces close to the company that affect its ability to serve its customers. o Macroenvironment - larger societal forces that affect the whole microenvironment. Demographic Company Cultural Economic Publics Suppliers Company Customers Competitors Political Natural Intermediaries Technological 2

3 Actors in the Microenvironment The Company o Company s Internal Environment o functional areas such as top management, finance, and manufacturing, etc. o All departments must think consumer and work together to provide superior customer value and satisfaction. Suppliers Marketing Intermediaries Suppliers: Provide resources needed to produce goods and services. Important link in the value delivery system. Most marketers treat suppliers like partners. Help the company to promote, sell, and distribute its goods to final buyers Resellers: Distribution channel firms that help the company find customers make sales to them (Wholesalers, retailers etc.) Physical distribution firms: help the company to stock and move goods from their points origin to their destination (Warehouse and transportation firms etc) Marketing services agencies: (Marketing research firms, advertising agencies, media firms etc.) Financial intermediaries: (Banks, credit companies etc. that help finance transactions or insure aginst the risks associated with the buying and selling of goods.) 3

4 Customer Markets Competitors and Publics Competitors: Government Markets International Markets Company Reseller Markets Consumer Markets Business Markets Those who serve a target market with products and services that are viewed by consumers as being reasonable substitutes Company must gain strategic advantage against these organizations Publics: Group that has an interest in or impact on an organization's ability to achieve its objectives Types of Publics The Company s Macroenvironment 4

5 Demographic The study of human populations in terms of size, density, location, age, gender, race, occupation, and other statistics. Marketers track changing age and family structures, geographic population shifts, educational characteristics, and population diversity. The most important demographic targets/clusters Boomers ( ) Generation X ( ) Generation Y ( ) Generation Z Digital Natives Urban/Females etc. 5

6 Key Demographic Trends Interactive Class Discussion Changing Age Structure Changing Family Structure Geographic Shifts Pair with another student to discuss the following questions: In what ways does the buying behavior of you and your parents differ? In what ways will the buying behavior of you and your children differ? What selling strategies would work best for: Education Ethnic and Racial Diversity You Your parents Your children Economic Environment Economic Environment Consists of factors that affect consumer purchasing power and spending patterns. Changes in Income 1980 s consumption frenzy 1990 s squeezed consumer 2000 s value marketing Income Distribution Upper class Middle class Working class Underclass Economic Development Key Economic Concerns for Marketers Changes in Consumer Spending Patterns Changes in Income 6

7 Bottom of Pyramid (BOP) The Fortune at the Bottom of the Pyramid, was published in 2004 by Prahalad The concept of serving the world's poorest four billion or so people has been popular since CK Prahalad introduced the idea a decade ago. Natural Environment Volkswagen Scandal Involves the natural resources that are needed as inputs by marketers or that are affected by marketing activities. Factors Impacting the Natural Environment: cheating emissions tests in the US Shortages of Raw Materials Increased Pollution Increased Government Intervention Environmentally Sustainable Strategies 7

8 Technological Environment Changes rapidly. Creates new markets and opportunities. Challenge is to make practical, affordable products. Safety regulations result in higher research costs and longer time between conceptualization and introduction of product. What is The Internet of Things (IoT)? the network of physical objects that contain embedded technology to communicate and sense or interact with their internal states or the external environment. It is increasing the connectedness of people and things on a scale that once was unimaginable. AIM to connect every possible electronic device to the existing internet infrastructure making them smarter and more useful Smart Fridge South Korea LG has demonstrated a fridge that is aware of its contents and their freshness, so the fridge itself can help plan shopping or even communicate with a smartphone while a customer is in store. Smart Cup: Vessyl a cup that is both internet connected and aware of its content: sugar, caffeine, even the brand and flavour. the screen will display your consumption data The spill-proof lid, nonstick interior, and durable build 8

9 Political Environment Includes Laws, Government Agencies, and Pressure Groups that Influence or Limit Various Organizations and Individuals In a Given Society. Increasing Legislation Changing Government Agency Enforcement Increased Emphasis on Ethics & Socially Responsible Actions Against Counterfeit Cultural Environment A system of values and norms that are shared among a group of people and that when taken together constitute a design for living ELEMENTS OF THE CULTURE Language Beliefs and Values Nonverbal Communication Body Language Time Esthetic Religion Social Institution Material Culture Education 9

10 Surface Culture Symbols, Language, Customs, Arts, Music, Fashions Religion and Global Marketing Coca Cola and Adaptation of advertisements based on religion Deep Culture Expectations Traditions Attitudes Norms, Values Beliefs Perceptions Religion and Global Marketing In 2006, after a publication of cartoon images of the Prophet Muhammed in a Danish newspaper Carrefour removed Danish products from their shelves Ten American enduring Core Values (Yankelovich) Freedom, free speech and freedom from constraint to the pursuit of private happiness Equality before the law Equality of opportunity: 'freedom & individuality in the marketplace' Fairness: 'get what you deserve' Achievement: 'individual effort will pay off' Patriotism Democracy American exceptionalism: special moral status Religion Luck 10

11 Jack Daniel s is a brand of Tennessee whiskey that is the highest selling American whiskey in the world Patriotic Ad: Turkish values??? Such as BENEVOLENCE Turkish TV Series vs. British TV Series Turkish TV Series vs. American TV Series 11

12 Campbell soup company is a global manufacturer and their products are sold in more than 100 countries Campbell soup failed in South America because mother s behavior was judged as not caring enough about family. 12