Download Commercialisation Challenge

Understanding Your Market
IG N IT IN G YO U R B U S IN ES S ID EA S
Marketing
 What is it?
 “The management process responsible for identifying,
anticipating and satisfying customer requirements
profitably.” – Chartered Institute of Marketing
 What does it involve?
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Market Research
Linking product/service features & benefits to customer needs
Promoting products/services to customers
Branding
 A Market is a group of people with needs
Why is Marketing important?
 Discovering a need or problem a customer has
 Researching markets with potential customers
 Discovering channels to sell to customers
 Creating or stimulating demand for your product
 Promoting the product in the eyes of your customer
 Good marketing is needed by all businesses
 Marketing is not something you ‘bolt-on’ later
Marketing – who to?
 Who is your market anyway?
 Who are they?
 Where are they?
 What are they? What are they motivated by?
 When is the best time to reach them?
 How do we reach them most effectively?
 Market research is critical
 How big is the Market? (TAM – Total Available Market)
 How do you secure your share? (SAM – Share of
Accessible Market)
Market Segmentation
Low Value
Value of
Products &
Services
within
Category
Target
segment of
the market
High Value
Locations, Regions, Populations of Market
Too Large
Too Small
Market attractiveness
• Number of customers in the market
• State of market, mature, growing, declining
• Are these customers the ‘early adopters’ or the ‘late majority’?
• Customers disposable income
• The amount of money spent, min/max criteria
• Number of times they spend that money, renewals/replacements
• How these have changed over time (trends)
SWOT
Strengths
Weaknesses
Opportunities
Threats
PESTLE analysis
 Political
 Economic
 Social
 Technological
 Legal
 Environmental
Market Research
 Ask/survey potential customers
 Research the web, press articles
 Announcements from potential competitors
 Run trials, tests, sampling
 Gather information from independent sources, analysts,
market research companies, government reports,
industry pundits and influencers
 Your experience
Market Research
 Qualitative exploratory research – focus groups,
interviews
 Quantitative testing of a hypothesis – surveying
responses
 Observations in natural setting – usage, patterns, analysis
 Experimentation in artificial setting – user testing
Price Point
 Formulation of price positioning:
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Examine similar products
Look at competition
Look at customers behaviour and buying power
 Levels of distribution:
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Distributors
Wholesalers
Retailers
Direct sales
 Who appropriates value out of the chain…
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Assess value to end customer
Value added by others
The Marketing Mix
 Product
 Price
 People
 Process
 Placing
 Promotion
What are we selling?
What is the cost of our Product?
Who are we trying to reach?
How do feel get hold of or engage with us?
How do we distribute it? Placement in
the Market?
How are we selling it? Brand?
 And you need to maintain market presence or interest will
wane!