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Opportunity Search
Asia-Pacific Marketing Federation
Certified Professional Marketer
Copyright
Marketing Institute of Singapore
Outline
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Introduction
Analyzing Consumer Trends
Marketing Intelligence System
Segmenting, Targeting &
Positioning
Introduction
 Scanning the environment is the first step in
the search for opportunities
 Next, identify and determine relevance of
the trends from the environmental scan
 Then forecast the direction and impact of
each trend
 Finally, evaluate the opportunity
 What can we do?
 What do we do best?
 Success Requirements—What must we do?
Gathering External Information
 Structural changes
 e.g. Increase online purchases
 Mergers, acquisition, JV
 e.g. Hong Kong i-Cable in talks to acquire
NetEase.com (Channel News Asia Interactive; 11
June 2001)
 AOL, the world's biggest Internet service
provider, joint venture with Legend, China's
largest PC manufacturer
Gathering External Information
(cont’d)
 Technical trends
 e.g. Convergence of consumer and computer
electronics
 Broad government actions & policies
 e.g. Increasingly strong link between
governance and social issues in East Asia
 Imminent entry of China into WTO
 Others
 e.g. Suppliers & raw materials changes
Examples of Consumer Trends in
ASPAC
 Convenience
 Leading to the establishment of round-the-clock minisupermarkets “Woolworths at Gulf” in New Zealand
(Source: Retail Asia, May 2001)
 Proliferation of convenience products such as 3-in-1
beverages
 Assessability
 Preference for one-stop stores resulting in the growth
of supermarkets, hypermarkets and mass
merchandisers in Asia Pacific countries
Examples of Consumer Trends in ASPAC
(cont’d)
 Face
 Individuals upgrading of their condominiums;
educational level; autormobile; private clubs
 Proliferation of counterfeit or look-alike consumer
products of well-known brands
 Health Consciousness
 Business people in Hong Kong, Korea, Taiwan,
Malaysia, Singapore are taking less alcohol when
entertaining clients
 Growing consumption of organic foodstuff
Marketing Intelligence
 The Intelligence Process
 Intelligence Systems
 Gathering marketing intelligence
Core Requirement of Intelligence
Process
 Know what to do with the information
 What is important?
 What can be discarded or preserved?
 How to ensure accessibility?
 Timeliness
 Deciding, gathering and understanding is time
consuming
 “Knowledge a week too late is the same as ignorance”1
(Source: George Friedman et al.; “The Intelligence Edge: How to Profit in the Information
Age”; 1997 ed.)
Intelligence Systems
 Informal (intuitive) versus formal
intelligence systems
 Asian executives are more incline towards
informal gathering of intelligence through close
relationship and networking
 Passive versus active intelligence
 Intelligence techniques and technology
 Managing the public domain e.g. Lexis, Nexis
Gathering Marketing Intelligence
 Space
 Where can information be found?
 Time
 How long will it take to find it?
 Money
 What is the value of the information?
It depends on how much information is enough
Market Segmentation
“Market Segmentation is the subdividing of
a market into distinct subsets of
customers, where any subset may
conceivably be selected as a market
target to be reached with a distinct
marketing mix.”
-- Philip Kotler
Major Segmentation Variables
 Geographic
 Demographic
 Psychographics
 Behaviorist
Geographic Segmentation
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Region
County size
City
Density
Climate
Demographic Segmentation
Most popular because consumer wants,
preferences, and usage rates are usually
associated with demographic variables that
are easily measured
Age
Family size
Income
Education
Nationality
Sex
Family life cycle
Occupation
Race
Social class
Psychographics
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Social Class
 From six American Social Classes to >40 classes
now in the West
 In more developed ASPAC countries, generally 3
classes—Upper, middle and lower
 In less developed ASPAC countries, only 2
classes—the Haves and the Have-nots
Life style
 Expressed through goods consumed e.g. Rolex
 Personality
 Give products brand personalities to correspond
to consumer personalities
Behavior Segmentation
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Purchase occasion
Benefits sought
User status
Usage rate
Loyalty status
Readiness stage
Attitude
Requirements for effective
Segmentation
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Measurability
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Accessibility
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Substantiality
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How well can we measure the size & purchasing
power of the segment?
How well can the segment be reached & served?
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Is segment large or profitable enough?
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Can we formulate an effective program?
 Actionability
Market Targeting
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How many segments to cover ?
 Undifferentiated Marketing
 Differentiated Marketing
 Concentrated Marketing
How to identify the best segment ?
 Product - Market Matrix
Market Targeting (Pictorial
Presentation)
Company
Marketing
Mix
Market
Mkg Mix 1
Segment 1
Mkg Mix 2
Segment 2
Mkg Mix 3
Segment 3
Company
Marketing
Mix
Market Positioning
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A product’s position is the place the
position occupies in consumers’ minds
relative to competing products
-- Philip Kotler
 “Positioning is the first body of thought
to come to grips with the problems of
communicating in an overcommunicated society”
-- Al Ries & Jack Trout
Getting Into the Consumer Mind
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The easy way to get into a person’s
mind is to be first
 In communication, less is more
 The product ladder
 The F.W.M.T.S. (Forget What Makes
Them Successful) Trap
(Source: Al Ries & Jack Trout; “Positioning: The
Battle for your Mind”)
Positioning Strategies
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Product Attributes Position
Needs or Benefits Position
Usage Occasions
Against-the-Competitor Position
Away-from-Competitor Position
Product Class Position
Combination Position