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    MKT500 Ch3c

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    monel_24671
    The document discusses targeting in marketing management. It defines targeting as selecting a market or markets to pursue. There are two main considerations for choosing a target market: 1) fit with the firm's capabilities in terms of satisfying customers and utilizing strengths and 2) profitability potential by analyzing market size, growth, competition, and estimating costs and profits. The document provides examples of techniques for analyzing these factors such as SWOT analysis, perceptual mapping, and estimating market size for business-to-business markets.

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    MKT500 Ch3c

    Uploaded by

    monel_24671
    19 views14 pages
    The document discusses targeting in marketing management. It defines targeting as selecting a market or markets to pursue. There are two main considerations for choosing a target market: 1) fit with the firm's capabilities in terms of satisfying customers and utilizing strengths and 2) profitability potential by analyzing market size, growth, competition, and estimating costs and profits. The document provides examples of techniques for analyzing these factors such as SWOT analysis, perceptual mapping, and estimating market size for business-to-business markets.

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    MKT500-Ch3c

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    The document discusses targeting in marketing management. It defines targeting as selecting a market or markets to pursue. There are two main considerations for choosing a target market: 1) fit with the firm's capabilities in terms of satisfying customers and utilizing strengths and 2) profitability potential by analyzing market size, growth, competition, and estimating costs and profits. The document provides examples of techniques for analyzing these factors such as SWOT analysis, perceptual mapping, and estimating market size for business-to-business markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    19 views14 pages

    MKT500 Ch3c

    Uploaded by

    monel_24671
    The document discusses targeting in marketing management. It defines targeting as selecting a market or markets to pursue. There are two main considerations for choosing a target market: 1) fit with the firm's capabilities in terms of satisfying customers and utilizing strengths and 2) profitability potential by analyzing market size, growth, competition, and estimating costs and profits. The document provides examples of techniques for analyzing these factors such as SWOT analysis, perceptual mapping, and estimating market size for business-to-business markets.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 14

    Marketing Management

    Targeting

    Chapter 3

    What Is Targeting & Why Do It?


    What is Targeting?
    Selecting a market(s) to pursue

    Why do it?
    Its difficult to be all things to all people

    How to Choose a Target


    When choosing target market(s), marketers should consider
    1. The markets fit with the firms capabilities

    More subjective/challenging to assess


    More objective

    2. The profitability potential of the market

    1. Fit with Firms Capabilities


    Does this market fit with what we are?
    Questions
    Can we satisfy this market? What are our strengths? What resources do we have? What is our experience? What is our corporate culture? What are our current brand personalities, etc.?

    SWOT Analysis
    Internal
    Strengths
    What do we do well?

    Weaknesses
    What do we not do well?

    Assess firm relative to competitors Utilize the customer point of view

    SWOT Analysis
    External
    Opportunities
    What is occurring in the external world that is favorable to us?

    Threats
    What is occurring in the external world that is unfavorable to us?

    Created by changes in the 5 Cs

    Competitive Analysis
    Perceptual Map
    Shows how customers perceive firm relative to competitors

    Most attributes and benefits can be represented by Price & Quality


    Dimensions for quality will vary by industry

    2. Profitability Potential
    How likely is it that the market will be profitable?
    Function of
    market size anticipated market growth current and anticipated levels of competition customer behavior and expectations

    Market Size
    Project the size of various segments
    Considerations
    The more precisely defined the target, the easier it is to estimate Be as precise as possible in estimating Determine upper and lower bounds of estimates Run scenarios to determine sensitivity of estimates

    Compare the size of each segment

    Market Growth
    Project the market growth for various segments
    Projecting market growth is risky One technique
    Obtain industry sales data for previous years Compute a moving average mean years 1, 2 and 3; years 3, 4 and 5; etc. Utilize regression to fit a curve to these data

    Compare growth rates for each market

    Identify Competitive Threat


    Identify the number of competitors in each market
    Look in the yellow pages Conduct an on-line search
    Utilize various terms to ensure thoroughness
    e.g., hair salon, beauty shop, etc.

    Compare the competitive threat in each market

    Estimate Profitability
    Estimate profitability of each segment
    Estimate price for each segment Estimate costs for each segment
    variable costs: product material, etc. fixed costs: insurance, rent, etc.

    Compare profitability of each segment

    B2B Market Size


    One approach
    Start with the total population Break it down into relevant proportions Example:
    (population x %aware x %trial x %repeat) x per annum purchase Census.gov cross-classifies businesses by sector (e.g., NAICS codes) and size (e.g., by sales or number of employees)

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