Download Economic Situation of Target Market

Contemporary Marketing, Second Canadian Edition
Boone/Kurtz/MacKenzie/Snow
PART TWO OF THE MARKETING PLAN
Market Analysis
In this section of the marketing plan, your objective is to communicate to the reader a
general understanding of the environment in which your product will be sold, and those
forces outside of your organization that will have an effect on the development and execution
of your strategies. The key points to address include: the definition of the market space in
which you operate; your competitors; trends that will affect your market; and how the
consumers are segmented.
1.1. Market Definition
Define the market in which your product will be sold. It is best to start with a broad
description of the potential market, so as to include the most likely current consumer
segments who purchase your type of products, as well as potential untapped market segments
(i.e., that have a need/want your product can fulfill) who may want to buy your type of
product if targeted accordingly. In addition, this broad classification will help to identify
more organizations/products that will compete for your share of the market. Be sure to
include substitute products (i.e., those that are not exactly the same type of product, but
consumers may consider as a means to fulfill the same need/want as your product) and
potential new entrants into the market. As you work your way through this process, you can
then narrow the definition of the market as necessary to make it more and more relevant,
measurable, and manageable. The importance of this section is to identify the external
opportunities and threats in which your organization will be confronted. Listed immediately
below are some questions to consider for this section. (Keep in mind that you can include
other information you deem relevant and beneficial for the reader.)
o How would you describe the market in which your product exists?
o What are the basic needs/wants the market’s consumers want fulfilled?
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
o In which NAICS (North American Industry Classification System) category is your
product?

What is the description of products classified in this category?

What is the size (total sales $ and number of units) of the market?

What is your market share of this market?

What is the recent, current and projected rate of growth in this market?
o What products (direct and indirect/substitutes) do the market’s consumers consider to
fulfill their needs/wants?
o Who are the key suppliers in the industry?

What type of power and/or threats of forward integration, if any, do they
possess that will make it difficult or easy for you to compete and execute your
marketing plans?
1.2. Competitors
List and describe the organizations that will compete in your market for a share of the
consumer’s purchasing dollar that could be spent on your product. The description should
address the types of products the competitors sell, sales revenues, key features and
positioning characteristics (note: To begin with, these description may be general in nature
and for many or all of the competitors; however, as you address your marketing strategies in
the next section of this framework outline, you may need to revisit this section to modify
your description in more detail for your main competitors, depending on the implications of
the selected marketing strategies for your product). In addition, you should also prioritize the
main competitors (i.e., those that will pose the most threat to your market share). Listed
immediately below are some questions to consider for this section. (Keep in mind that you
can include other information you deem relevant and beneficial for the reader.)
o Which companies sell products in your market?
o What are their sales revenues?
o What are the unique features of their products?
2 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
o What competitive advantages do they possess?

Why do they have this competitive advantage?

What conditions would have to change that would enhance or eliminate these
advantages? How likely are these changes?
o How would you compare your product to their? How do consumers view them as
compared to yours (include market research data if available)?
o Discuss any significant information about your competitors that may impact how they
operate now and in the near future.
1.3. Environmental Forces
The environment in which your product is sold can have a major effect on how you
develop and execute your marketing strategies. The process begins by scanning the political,
economic, social, and technological environments for current and future trends that will
affect the marketplace, both yours and your competitors’ strategies.
Listed immediately
below are some questions to consider for this section. (Keep in mind that you can include
other information you deem relevant and beneficial for the reader.)
o Political Environment

Are there current policies, laws and regulations effecting the supply, demand,
design, promotion and distribution of your product?

What current or future political/legal trends will likely have a positive or
negative effect on the marketing of your product?
o Economic Environment

What are the current conditions of the economy that effect the supply,
demand, design, promotion and distribution of your product?

What current or future economic trends will likely have a positive or negative
effect on the marketing of your product?

Include any relevant economic statistics that might potentially affect the
ability of the market place to support the sale of your product (e.g., GDP, Per
3 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
capita income, savings rates, exchange rates, tax policies, inflation rates,
credit/borrowing rates).
o Social Environment

What current demographic statistics and cultural mores have an effect on the
attitudes and lifestyles of consumers in your market?

What demographic and cultural changes will likely occur that could have a
positive or negative effect on the marketing of your product?
1.4. Segmentation
The process of segmenting your market has two goals: 1) identify homogenous groups of
consumers that think, feel, and/or act in a similar manner, with respect to the purchasing of
your type of product, and are significantly different from other groups; and 2) identify
groups of consumers that are large enough to justify a separate marketing approach. While
these groups can be characterized by a variety of dimensions, the main goal here is to
provide the reader with an understanding of the consumers in the market via profiles that
depict who they are, and why and how they buy your type of product. Listed immediately
below are some questions to consider for this section. (Keep in mind that you can include
other information you deem relevant and beneficial for the reader.):
o How can you best describe the consumers that buy this type of product?
o Demographics

Behaviours

Benefits sought

Psychographics

Attitudes

Lifestyles

Other characteristics
4 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
o How can these consumers be categorized into groups with similar characteristics such
that it would be beneficial to construct different market strategies to get their
attention, generate interest, and motivate them to buy your product?
Whenever
possible, use research data to support these distinctions.
o Create a profile of each segment by giving each one a descriptive label and then
listing the main characteristics that distinguish it from the other segments?
o What are the population sizes of these segments? At what rate are they growing?
5 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
Marketing Plan Worksheets
A. Target Market
1.
Who is your target market and why?
2.
What are the basic wants/needs your consumers want fulfilled?
3.
In which NAICS (North American Industry Classification System)
category is your product?
a. What is the description of products classified in this
category?
b. What is the size (total sales $ and number of units) of the
market?
c. What is your market share of this market?
6 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
d. What are the recent, current, and projected rates of growth
for this market?
e. What products (direct and indirect/substitutes) do the
market’s consumers look for to fulfill their needs/wants?
f. Who are the key suppliers in the industry?
4.
B.
What type of power and/or threats of forward integration, if any,
do they possess that will make it difficult or easy for you to
compete and execute your marketing plans?
Competitive Analysis
1. The Competition
Who are the key competitors in your industry?







7 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
Identify companies working in the same market as yours:






2. SWOT Analysis
Will you hire an outside consultant for SWOT analysis?
Yes
No
Identify the strengths of your business offering:






List keys to success:
1.
2.
3.
4.
5.
6.
Describe the competitive advantage(s) of your business offering:
8 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
Identify weaknesses of your business offering:






List potential red flag issues:
1.
2.
3.
4.
Identify opportunities in your target market and with your business
offering:






List ways of leveraging these opportunities:
1.
2.
3.
4.
9 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
Identify threats to your business offering:





List potential threats that may become important in the future:
1.
2.
3.
4.
3. Is the Internet important to your company and its objectives?
Yes
No
Size of Internet reachability
Usage rate of Internet in your market
Identify segments of your market wherein Internet usage is growing the fastest:






List emerging technologies affecting your business offering:
1.
2.
3.
4.
5.
6.
10 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
List laws regulating your business offering:
1.
2.
3.
4.
C. Environment
1. Political Environment
 Are there current policies, laws and regulations effecting the supply,
demand, design, promotion and distribution of your product?

What current or future political/legal trends will likely have a positive
or negative effect on the marketing of your product?
2. Economic Environment
 What current economic conditions might affect the supply, demand,
design, promotion and distribution of your product?
 What current or future economic trends will likely have a positive or
negative effect on the marketing of your product?
Include any relevant economic statistics that might potentially affect the
ability of the market place to support the sale of your product (e.g., GDP,
per capita income, savings rates, exchange rates, tax policies, inflation
rates, credit/borrowing rates, etc.).
11 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
3. Social Environment
 What current demographic statistics and cultural mores have an
effect on the attitudes and lifestyles of consumers in your market?
 What demographic and cultural changes will likely occur that can
have a positive or negative effect on the marketing of your product?
D. Market Segmentation
1.
What are the demographics of your target market?
(Circle all that apply.):
Female
Male
Adult
Child
Married
Single
Divorced
Widowed
College-degree
High school diploma
Business Professional
Blue-Collar Worker
Belong to a Social Club
Belong to an Athletic organization
Own home
Rent home or apartment
2. Other Demographic Information:
12 of 13
Boone /Kurtz/MacKenzie/Snow ~ Contemporary Marketing, Second Canadian Edition
Part Two of the Marketing Plan
Ethnicity of Potential Target Market:
Economic Situation of Target Market:
Legislative or Political Issues to Contend with:
E. Product Offering
Product Name:
Product Logo:
Primary Points of Differentiation:



13 of 13