MINGGU KE 5: KONSEP PENENTUAN PASAR

DESIRABLE CHARACTERISTICS OF MARKETS (1) (URBAN, 1993) GENERAL CHARACTERISTICS MEASURE GROWTH POTENTIAL SIZE OF MARKET LIFE CYCLE EARLY ENTRY ORDER OF ENTRY PRODUCT AND MARKETING ADVANTAGE ECONOMIC OF SCALE CUMULATIVE SALES VOLUME LEARNING COMPETITIVE ATTRACTIVENESS SHARE OF MARKET POTENTIAL RIVALRY INTENSITY INVESTMENT INVESTMENT IN $, TECHNO- LOGY AND MANAGERIAL TALENT

DESIRABLE CHARACTERISTICS OF MARKETS (2) (URBAN, 1993) GENERAL CHARACTERISTICS MEASURE REWARD PROFITS LIFE CYCLE ROI RISK STABILITY PROFITABILITY OF LOSSES

MARKET PROFILE ANALYSIS (Urban, 1993) ENUMERATE AND WEIGHT THE MARKET SELECTION CRITERIA FOR YOUR ORGANIZATION RATE EACH MARKET ON EACH CRITERION CALCULATE THE OVERALL WEIGHTED SUM OF THE RATINGS FOR EACH MARKET EVALUATE THE RATINGS TO IDENTIFY THE MARKET WITH THE BEST OPPORTUNITIES FOR CONTINUED INVESTIGATION. THOSE WITH VERY LOW RATINGS ARE ELIMINATED.

MARKET DEFINITION (Urban, 1993) ONE CRITICAL ISSUE IN MARKET DEFINITION IS THE MEASURES WE USE TO SPECIFY OUR MARKET. IT COULD BE BASED ON THE PRODUCTS THAT COMPETE WITH EACH OTHER, CUSTOMER NEEDS, DEMOGRAPHICS, ATTITUDES OR OTHER CRITERIA. ANOTHER KEY ASPECT OF MARKET DEFINITION RELATES TO NEW PRODUCT’S RELATIONSHIP TO EXISTING PRODUCTS OF THE FIRM. IF THE NEW PRODUCT WILL BE IN THE SAME MARKET AS AN EXISTING PRODUCT, CANNIBALIZATION MAY RESULT. IDEALLY, THE ORGANIZATION WOULD LIKE TO HAVE A PRODUCT LINE THAT SPANS THE TOTAL SET OF OPPORTUNITIES, BUT HAS LITTLE OVERLAP AND SELF- COMPETITION.

BASES FOR DEFINING MARKETS (1) (Urban, 1993) DEMOGRAPHICS DEMOGRAPHIC SEGMENTATION CAN BE A SURROGATE FOR MARKET DEFINI- TION IF CHARACTERISTICS SUCH AS SEX, AGE, MARITAL STATUS, FAMILY SIZE, AGE OF CHILDREN, INCOME, OCCUPATION, GEOGRAPHICAL LOCATION, MOBILITY, HOME OWNERSHIP, EDUCATION, NATIONALITY. ATTITUDES PREFERENCE WITH RESPECT TO PRODUCT BENEFITS PRICE SENSITIVITY DECISION RULES

BASES FOR DEFINING MARKETS (2) (Urban, 1993) 6. USAGE BEHAVIOR 7. PRODUCT FORM 8. COMPETITIVE PRODUCTS 9. MULTIPLE PERSPECTIVES

METHODS FOR MARKET DEFINITION AND SEGMENTATION (Urban, 1993) CLUSTER ANALYSIS THIS METHOD AIMS TO FIND A GROUP OF OF CUSTOMERS WHO, WITH RESPECT TO SOME SET OF CHARACTERISTICS, ARE SIMILAR WITHIN GROUPS BUT DIFFERENT AMONG GROUPS. PRODUCT-SUBSTITUTION THIS METHOD AIMS TO FIND A SET OF PRODUCTS THAT ARE SUBSTITUTES FOR ONE ANOTHER

MARKET SELECTION (1) (Urban, 1993) THIS PART AIMS TO SET PRIORITIES EXPLICITLY AND TO SELECT THE ONE OR TWO BEST MARKETS. THESE “BEST” MARKETS THEN PASS TO THE IDEA GENERA- TION PHASE. MANAGERIAL STRATEGIES AN IMPORTANT STRATEGIC CONCEPT IS THAT WHEN MARKET PRIORITIES ARE SET, THE NEW PRODUCT IS PART OF THE FIRM’S COMPLETE PRODUCT PORTOFOLIO. THE STATUS OF THE SET OF CURRENT PRODUCTS MUST BE UNDERSTOOD BEFORE RESOURCES ARE ALLOCATED TO A NEW PRODUCT IN A GIVEN MARKET. ONE APPROACH TO ASSESING THE PRODUCT PORTFOLIO IS TO ARRAY THE FIRM’S OFFERINGS IN TERMS OF MARKET ATTRACTIVENESS AND THE STRENGTH OF THE COMPETITIVE ADVANTAGE THE FIRM HAS IN MARKET.

MARKET SELECTION (2) (Urban, 1993) MARKET ATTRACTIVENESS REFLECTS MANY OF THE FACTORS WE IDENTIFIED IN PROFILE ANALYSIS (GROWTH RATE, EARLY ENTRY, ECONOMIES OF SCALE, PROFITABILITY, AND RISK). COMPETITIVE ADVANTAGE REFLECTS THE SUSTANAIBLE BENEFITS WE CAN DELIVER UNIQUELY TO OUR CONSUMERS (E.G TECHNOLOGY, DISTRIBUTION, RAW MATERIAL, SERVICE, MARKET SHARE AND CUSTOMER LOYALTY BASED ADVANTAGES). IT IS BASED ON THE CORE COMPETENCIES OF OUR FIRM.

MARKET SELECTION (3) (Urban, 1993) MARKET ENTRY OPPORTUNITIES AND THE EXISTING PORTOFOLIO VERY STRONG STRONG WEAK VERY WEAK VERY ATTRACTIVE UNATTRACTIVE * X X X MARKET ATTRACTIVENESS X X X X X X X COMPETITIVE ADVANTAGE

MARKET SELECTION (3) (Urban, 1993) * EXISTING MARKET – MAINTAIN POSITION EXISTING MARKET – EXPAND INDUSTRY OR MOVE TO MORE ATTRACTIVE SEGMENT EXISTING MARKET – BUILD COMPETITIVE ADVANTAGE EXISTING MARKET – EXIT, DIVEST, OR FOCUS ON SEGMENT THAT IS ATTRACTIVE PRIORITY NEW MARKETS TO ENTER NEW MARKETS LOW PRIORITY DIRECTION TO MOVE PORTOFOLIO X