LESSON FIVE NOTES - Market Analysis Market Market...

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Unformatted text preview: Market Analysis Market Market Segmentation Chapters 3 & 4 Assoc Prof Lau Geok Theng Marketing • Product Levels/Categorization ­ Horizontal Markets • Customer Categorization • Geography • Applications • Value Chain ­ • Number of Players and Share Distribution • Differentiation • Market Growth • Exit Barrier & Entry Barrier • Revenue Streams/ Business Model • Cost Structure • Dynamics/ Life Cycle • Key Trends and Key Success Factors • Unit of Demand Driver ­ Firms, individuals, others ­ Derived demand • Penetration • Usage Segment for Exploration Number of paper mills Likely penetration Average production Total production Water usage Total gallon for treatment Chemical requirement Application volume Paper Mills 700 11% (77 firms) 47800 tons 3.68m tons 380 gallons per ton 1398.4 million 0.3 litre per gallon 419.52 litres • Secondary Reports ­ Government ­ Industry ­ Market research firms • Buying Firms • Selling Firms • Distribution Audits • Time Series • Statistical Series ­ Single ­ Multiple • Judgment Method STEP ONE – SELECT SERIES STEP TWO – COMPUTE DEMAND FACTOR 2010 Metal Can Sales 2010 Industry Shipments SIC 2033 $1,079.8m $11,889.5m (Processed fruits and vegatables) SIC 2082 $2722.3m $13,618.6m (Malt beverages) SIC 2086 $2560.9 $22,006.0m (Soft drinks) Demand Factor 0.0908 0.2036 0.1164 STEP THREE – ASSESS CHANGE IN DEMAND FACTOR SIC 2033 2082 2086 Demand Factor Change in 2012 Adjusted Demand Factor 0.0908 -5.0% 0.0863 0.2306 0 0.2306 0.1164 +2.0% 0.1187 STEP FOUR – GET 2012 ESTIMATES OF SERIES SIC 2033 SIC 2082 SIC 2086 2012 Industry Shipments $13,222.7 million $17,367.2 million $26,398.4 million STEP FIVE – DETERMINE MARKET POTENTIAL SIC2012 Shipment Adjusted Demand Factor Market Potential 2033 2082 2086 0.0863 0.2306 0.1187 $1411.12 $4004.88 $3133.49 $13,222.7 $17,367.2 $26,398.4 Potential Demand for Construction Cranes (Industrial Sector) – Affected by Economic Production, Direct Investment and Industrial Construction Project Value Potential Crane Sales = 7,920 + 0.0023 (Economic Production) + 0.012 (Direct Investment) + 0.81 (Industrial Construction Project Volume) Project Data for 2012: Economic Production – US$347 billion Direct Investment – US$5.6 billion Direct Construction Project Value – US$2.3 billion Construction Potential Demand for Crane = 7,920 + 0.023 (347b) + 0.012 Potential (5.6b) + 0.81 (2.3b) = $9.9b Who? Identify Macro-Segments What? How? Target Macro-Segments Who? Identify Micro-Segments Target Micro-Segments and/or Plan Differentiated Strategies What? How? ● Industry – SIC ● Size ● Organization Type ● Ownership Benson Shapiro and Thomas Bonoma, “How to Segment Industrial Markets,” Harvard Business Review, May­June 1984, 103­110. ● Company Technology Type or Level Vertical Scope ● Organization of Purchasing ● Buying Policies & Buying Practices ● ● ● State of Readiness ● Adoption/ Loyalty Status ● Usage Rate/ Size of Order ● Urgency of Order ● Importance of Purchase ● Size ● Composition ● Level of Conflict ● Power Base ● Demographics ● Job Position and Authority ● Professional Affiliations ● Personality ● Decision Making Method ● Decision Duration ● Buying Motives/ Choice Criteria ● Attitude Towards Risk Industry Automotive (Heavy Users) Large BC Team Selling Aerospace (Medium Users) Small BC Individual Selling Key Influencers Design Plant Engineers Managers Technology Focus Delivery and Quality Chapters 5 & 6 “How Companies are Benefiting from Web 2.0,” McKinsey Global Survey Results, 2009. Analyse Case: Global Sources Ltd: The Evolution of B2B. Individual Assignment A. Group Presentation I. ...
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This note was uploaded on 02/29/2012 for the course MARKETING MKT 3418 taught by Professor Lau during the Spring '12 term at National University of Singapore.

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