MARKET DEMAND

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MARKET NEED
Market need analysis:
 enables you to meet the current needs of your

markets and to anticipate and prepare for

future demands.
 reveals risks and opportunities, buying habits,

challenges, and adoption rates while providing

information about those who evaluate
products and make the purchasing decisions
and generating valuable prospect lists.
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 By implementing our Market Needs Analysis solution
we can expect to:
 Reduce financial risk
 Correctly position your products for optimal
performance
 Identify your target markets’ demographic makeup
 Identify optimal product and company positioning
 Measure the effectiveness of your marketing and
advertising messages
 Identify new qualified leads for your sales executives

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Niche Market
 A focused, targetable portion of a
market
 Addressing a need for a product or
service that is not being addressed by
mainstream providers

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 Why should we bother to
establish a niche market?
**Great advantage of being alone
as service or product provider**

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 Market Size

 The number of buyers and sellers in a particular

market.
 Market Size is measured by the total volume and
or value of all sales in the market.
 Sales volume is measured in terms of the
number of units of goods purchased, whilst sales
value measures the total amount spent by
customers on the volume of goods sold.

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Market Growth
 An increase in the demand for a particular
product or service over time.
 Market growth can be slow if consumers do not
adopt a high demand or rapid if consumers find
the product or service useful for the price level.
 For example, a new technology might only be
marketable to a small set of consumers, but as
the price of the technology decreases and its
usefulness in every day life increases, more
consumers could increase demand.

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Target Market
 The specific group of customers that a company aims to
capture.

 Group of persons for whom a firm creates and maintains

a product mix that specifically fits the needs and
preferences of that group.

 Those who are most likely to buy from the company.

 They have been identified as people with needs or wants

that can be met with the products or services from the
company.

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Marketing Strategy
 It determines the choice of target
market segment, positioning, marketing
mix, and allocation of resources.

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Marketing Mix

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Process of Marketing Plan

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Price Competitiveness

 Price lower than that offered by the

competitors.
Or
 The same price but more attractive

because of added incentive, such as

longer payment terms.

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Pricing Strategies

There are many ways to price a product

 Premium Pricing.
 Use a high price where there is a
uniqueness about the product or service. This
approach is used where a substantial
competitive advantage exists. Such high
prices are charge for luxuries such as Cunard
Cruises, Savoy Hotel rooms, and Concorde
flights.
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Pricing Strategies
 Penetration Pricing.
 The price charged for products and
services is set artificially low in order to
gain market share. Once this is
achieved, the price is increased. This
approach was used by France Telecom
and Sky TV.

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Pricing Strategies
 Economy Pricing.
 This is a no frills low price. The cost of
marketing and manufacture are kept at
a minimum. Supermarkets often have
economy brands for soups, spaghetti,
etc.

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Pricing Strategies
 Price Skimming.
 Charge a high price because the company have a
substantial competitive advantage. However, the
advantage is not sustainable.
 The high price tends to attract new competitors into
the market, and the price inevitably falls due to
increased supply.
 Example:Manufacturers of digital watches used a
skimming approach in the 1970s. Once other
manufacturers were tempted into the market and the
watches were produced at a lower unit cost, other
marketing strategies and pricing approaches are
implemented.

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Pricing Strategies

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Pricing Strategies
 Wall-Mart launch a new range of own-label soups. This is an
economy brand.
 Cunard launch two new cruise ships. The service is high price
and high quality with a premium price.
 A cable TV provider moves into a new area and needs to
achieve a market share. The company uses a penetration
approach to gain market share. Prices could be increased at a
later date.
 Holiday Inns try to fill hotels during winter weekends. This is an
example of 'off peak' pricing.
 Burger King introduces a new range of value meals. There is a
lot of price competition in the fast food market, hence the value
approach.
 Nokia launch a new videophone. This is a new, innovative
product that can claim a higher price. Skimming is only an
option in the short-term since competition will be inevitable.
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Place

 Another element of Marketing Mix is

Place. Place is also known as channel,
distribution, or intermediary.
 It is the mechanism through which
goods and/or services are moved from
the manufacturer/ service provider to
the user or consumer.

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 Place
 Channels of distribution Industrial Goods

Manufacturer Industrial User

Manufacturer Wholesaler Industrial User

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 Place
 Channels of distribution Consumer Goods

Manufacturer Consumer

Manufacturer Retailer Consumer

Manufacturer Wholesaler Retailer Consumer

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Product
Three Levels of a Product:
1. Core
2. Actual
3. Augmented

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Product
The CORE product:
 NOT the tangible, physical product. We can't

touch it.
 The core product is the BENEFIT of the

product that makes it valuable to us. So with

the car example, the benefit is convenience
i.e. the ease at which we can go where we
like, when we want to. Another core benefit is
speed since we can travel around relatively
quickly
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Product
The ACTUAL product:
 is the tangible, physical product. We

can get some use out of it. Again with

the car example, it is the vehicle that
we test drive, buy and then collect.

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Product
The AUGMENTED product:
 is the non-physical part of the product.

 It usually consists of lots of added value, for

which we may or may not pay a premium.

 For example when we buy a car, part of the

augmented product would be the warranty,

the customer service support offered by the
car's manufacture, and any after-sales
service.

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Product Positioning Strategy
 Positioning is what the customer believes
about our product's value, features, and
benefit
 it is a comparison to the other available
alternatives offered by the competition.
 These beliefs tend to based on customer
experiences and evidence, rather than
awareness created by advertising or
promotion.
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Product Positioning Strategy
 Marketers manage product positioning
by focusing their marketing activities on
a positioning strategy. Pricing,
promotion, channels of distribution, and
advertising all are geared to maximize
the chosen positioning strategy.

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Promotion
 Promotional mix – promotion by
marketers that informs, persuades and
reminds potential buyers.
 Promotion objectives:
A = AWARENESS
I = INTEREST
D = DESIRE
A = ACTION
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Promotion
 Promotion includes:
 Publicity - any commercial news covered by
media that boosts sales but for which the
company does not pay
 Personal selling - personal contact between
sales personnel and potential customers
resulting from sales efforts
 Advertising - any sales presentation that is
non personal in nature and is paid
 Sales Promotion – to stimulate consumer
buying

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