5-1 Copyright ©The McGraw-Hill Companies, Inc. Permission required for reproduction or display.

Slides:



Advertisements
Similar presentations
Segmenting B2B Markets Anand G. Khanna
Advertisements

Assess the Market for Your Business Idea
The Main Idea To ensure success, entrepreneurs need to understand the industry and the market.   They should define areas of analysis and conduct effective.
McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved. 1 CHAPTER 11 Strategic Control and Continuous Improvement.
Target Markets: Segmentation and Evaluation
McGraw-Hill/Irwin © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 4-1.
1- 1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall i t ’s good and good for you Chapter 1 Marketing: Creating and Capturing Customer.
Products and Services for Businesses
Part Two Foundations for Creating Value. 5-2 Part Two Foundations for Creating Value Takes us to the business marketer’s engine room: an overview of how.
The Art and Science of Marketing
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
7 - 1 Copyright © 2009 The McGraw-Hill Companies, Inc., All Rights Reserved. McGraw-Hill/Irwin.
Personal Selling, Relationship Building, and Sales Management
Business Intelligence/ Decision Models Lifetime Value.
McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 7 Market Segmentation and Targeting.
 Marketing is the process used to determine what products or services may be of interest to customers, and the strategy to use in sales, communications.
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin ©2003. The McGraw-Hill Companies. All Rights Reserved Chapter 6 Building Customer Relationships Relationship Marketing Relationship Value.
MKT 346: Marketing of Services Dr. Houston Chapter 12: Managing Relationships and Building Loyalty.
Products and Services for Businesses Chapter 13 McGraw-Hill/Irwin© 2005 The McGraw-Hill Companies, Inc. All rights reserved.
14-1. McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. 14 Customer Relationship Management.
Customer Value & Identifying Opportunities Business Marketing
Demand Analysis & Sales Forecasting Dr. Dawne Martin Business Marketing October 11, 2011.
McGraw-Hill/Irwin Copyright 2006 by The McGraw-Hill Companies, Inc.
Market Segmentation, Targeting, and Positioning
Chapter 10 Target Markets: Segmentation, Evaluation, and Positioning
McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.
Target Markets: Segmentation and Evaluation
10-1 Chapter Fourteen Communicating Customer Value: Integrated Marketing Communic ations Strategy.
Strategic Marketing Chapter 6 Learning Outcomes Describe business marketing Describe the role of the Internet in business marketing Discuss the role of.
Stephen B. Castleberry | John F. Tanner Jr. Copyright © 2014 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior.
Session Outline Differentiation and Positioning Market Segmentation
3.05 Employ Marketing information to develop a Marketing Plan.
Building Customer Relationship “Service is so great an opportunity for the company that our vision for the next century is that GE is a global service.
Chapter 6 Unit 2 Industry and Market Analysis. Researching the Industry A. Trends and Patterns of Change- You can find opportunity in an industry by looking.
1 WEEK 2 – Identifying and Selecting Markets Market Segmentation, Targeting, and Positioning.
Chapter Thirteen Marketing: Helping Buyers Buy Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
8 Identifying Market Segments and Targets
AOF Entrepreneurship Unit 3, Lesson 6 The Role of Marketing Copyright © 2009–2012 National Academy Foundation. All rights reserved.
Copyright ©2009 by Cengage Learning Inc. All rights reserved 1 Designed by Eric Brengle B-books, Ltd. CHAPTER 7 Business Marketing Prepared by Amit Shah.
Copyright © Houghton Mifflin Company. All rights reserved. 7–17–1 What Are Markets? Requirements of a Market –Must need or desire a particular product.
1-1 McGraw-Hill/Irwin ©2008 The McGraw-Hill Companies, All Rights Reserved C H A P T E R SIX Targeting Attractive Market Segments 6.
Chapter 1 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 7 Business Marketing © Sean Gallup/Getty.
Edition Vitale, Giglierano and Pförtsch Chapter 7 Segmenting, Targeting, and Positioning.
5.06B Set Marketing Goals and Select Marketing Metrics (ways to measure) Entrepreneurship 1.
Irwin/McGraw-Hill Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 1-1.
Market Analysis CHAPTER 6 BBUSS 2403 BUSINESS PLANNING 3-1.
Copyright © 2004 by South-Western, a division of Thomson Learning, Inc. All rights reserved. Developed by Cool Pictures and MultiMedia Presentations Copyright.
Presentation made by 3D High School G.B. Bodoni.  What is it? Business Plan is a planning document that describe in detail the business project and allows.
Chapter Fourteen Assessing and Analyzing Markets McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
Chapter 7 Copyright ©2012 by Cengage Learning Inc. All rights reserved 1 Lamb, Hair, McDaniel CHAPTER 7 Business Marketing © iStockphoto.com/YinYang.
© 2009 The McGraw-Hill Companies, Inc. All rights reserved.
PowerPoint Presentation by Charlie Cook The University of West Alabama Copyright © 2006 Thomson Business & Professional Publishing. All rights reserved.
Chapter Thirteen Marketing: Helping Buyers Buy Copyright © 2010 by the McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin.
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
Section 30.1 Product Development Chapter 30 product planning Section 30.2 Sustaining Product Sales.
Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved. Introduction to Marketing.
CHAPTER ONE Consumer Behavior and Marketing Strategy McGraw-Hill/Irwin Copyright © 2004 by The McGraw-Hill Companies, Inc. All rights reserved.
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
Chapter 13 Transportation Demand Analysis. Copyright © The McGraw-Hill Companies, Inc. Permission required for reproduction or display
A Framework for Marketing Management International Edition 2 Developing Marketing Strategies and Plans 1.
McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc., All Rights Reserved. Chapter 12 Marketing Profitability Analysis.
Published by Flat World Knowledge, Inc. © 2014 by Flat World Knowledge, Inc. All rights reserved. Your use of this work is subject to the License Agreement.
1 Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 3 INVESTMENT DECISIONS Forecast cash flows from operations.
Marketing Research Aaker, Kumar, Day and Leone Tenth Edition Instructor’s Presentation Slides 1.
14 -1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall i t ’s good and good for you Chapter Fourteen Communicating Customer Value:
Segmenting The Business Market
The Marketing Plan Part 3 Developing the New Venture Business Plan.
Presentation transcript:

5-1 Copyright ©The McGraw-Hill Companies, Inc. Permission required for reproduction or display

5-2 Foundations for Creating Value Part Two McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-3 Part Two Foundations for Creating Value Chapter 5 Market Opportunities Chapter 6 Marketing Strategy Chapter 7 Weaving Marketing into the Fabric of the Firm McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-4 Chapter 5 Market Opportunities: Current and Potential Customers McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-5 Finding Business to Business Opportunities McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. NEW MARKET OPPORTUNITIES ACQUIRE NEW CUSTOMERS DEVELOP A RESEARCH PROGRAM FIND OPPORTUNITIES WITH EXISTING CUSTOMERS DEVELOP MARKETS AMONG CURRENT CUSTOMERS

5-6 McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. DEVELOP MARKETS AMONG CURRENT CUSTOMERS FOUR STEP PROCESS 1.RANK YOUR BEST CUSTOMERS 2.MAXIMIZE REVENUES THROUGH COLLABORATION EFFORTS 3.DEVELOP SPECIFIC PRODUCTS FOR EACH CUSTOMER 4.LEARN OF SPECIAL NEEDS FROM YOUR CUSTOMER’S CUSTOMERS

5-7 McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. FIND OPPORTUNITIES WITH EXISTING CUSTOMERS 1.ESTABLISH A FORMAL FEEDBACK PROGRAM WITH CUSTOMER CONTACT POINTS (SALES, SUPPORT) 2.DEVELOP DATABASES 3.COMPILE DECILE REPORTS 4.DEVELOP CUSTOMER RESEARCH ASSISTANCE PROGRAM FOUR STEP APPROACH

5-8 RESEARCHING CUSTOMERS FIND OUT YOUR CUSTOMER’S NEEDS THROUGH: 1.FOCUS GROUPS – best for generating ideas and gaining customer insights 2.SURVEYS – asking questions by personal interview, mail, telephone, internet 3.JOINT DEVELOPMENT AND TESTING – use to adjust and adapt products after purchase 4.CUSTOMER VISITS – use on-site meetings for problem identification McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-9 ACQUIRE NEW CUSTOMERS 1.Calculate your current customer’s lifetime value (CLV) to serve as yardstick for planning 2.Find customers in a new segment who “look like” your existing customers 3.Expand into new geographic territory 4.Transfer/modify existing products for other industries McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

$4,686$5,119$5,627 LTV/100 customers $ 649$ 769$ 919Acq+4 $ 881$1,002$1,144Acq+3 $1,222$1.331$1,455Acq+2 $1,933$2.017$2,109Acq Discounting profits Profit forecasts Acq+1 [60 buyers ($90)]×.8 gr. profit–[100 accts×$20 service/acct] = Acq+2 [36 buyers ($90)+16 buyers ($60)].8 gr. profit- [60 accts×$20+40 accts×$10] = Acq+3 [31.2 buyers($90)+9.6 buyers($60)+4.8 buyers($50)].8 gr. profit- [52 accts×$20+24×$10+$24×$4] = Acq+4 [27.4 buyers ($90)+8.3 buyers ($60)+2.9 buyers ($50)+1.9 buyers ($50)]- ScheduTrax Lifetime Value Analysis Customers $ 2$ $ 4$ $10$ $20$ th Yr. after acquisition 3 rd Yr. after acquisition 2 nd Yr. after acquisition 1 st Yr. after acquisition Acquisition Period Account Service Costs Expected $ Purchases Purchase Probability Yrs. since the Last Purchase [45.6×$ ×$ ×$4+19.2×$2] = Expected customer migrations following acquisition McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 5-4

5-11 DEVELOPING OPPORTUNITIES THROUGH MARKETING RESEARCH PURPOSE OF RESEARCH 1 CUTOMER MANAGEMENT 2 ACQUIRE NEW CUTOMERS McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. ACHIEVED BY 1.CUSTOMER RESEARCH – through focus groups and surveys 2.INTERACTING WITH CUSTOMERS – through joint product development and product testing 3.DEVELOPING ON-SITE VISITATION PROGRAMS

5-12 FINDING SEGMENTS 1.USE NAICS CODES TO ASSESS INDUSTRIES’ SIZE AND NEEDS 2.EVALUATE COMPANY CHARACTERISTICS SUCH AS SALES, NUMBER OF EMPLOYEES 3.DETERMINE A COMPANY’S BUYING PROCESSES AND HOW THEY BUY 4.MATCH PRODUCT OFFERINGS TO COMPANIES SEEKING WHAT PRODUCT DOES BEST McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-13 Helpful / informative BRAND D BRAND C BRAND A BRAND B Order process efficiency & accuracy Reasonable price After-sale service Rapid delivery Technical performance McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved. Exhibit 5-10 PERCEPTUAL MAP

5-14 SEGMENTATION AND OPPORTUNITY ANALYSIS IDENTIFY SEGMENTS THROUGH INDUSTRY CLASSIFICATION (SIC / NAICS) CHOOSE YOUR INDUSTRY TARGETS CHOOSE YOUR SPECIFIC COMPANY TARGETS BY: 1.HOW THEY BUY 2.THE BENEFITS THEY SEEK 3.MEMBERSHIPS IN PROFESSIONAL / TRADE ORGANIZATIONS McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-15 CRITERIA FOR SUCCESSFUL SEGMENTATION SEGMENT MUST BE IDENTIFIABLE- enumerated and evaluated + SEGMENT MUST BE ACCESSIBLE- can be reached by marketing activity + SEGMENT MUST BE SUBSTANTIAL- enough to justify efforts McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.

5-16 ESTIMATING SEGMENT SIZE ANALYTICAL TOOLS FOR SEGMENT EVALUATION : 1.USE OF SCENARIOS - Articulate events and futures 2.BUILDUP APPROACH/FACTORING – Estimate product use in its applications 3.STATISTICAL SERIES – Use correlation between demand and economic activities McGraw-Hill/Irwin Business Marketing, 4/e Copyright © 2009 The McGraw-Hill Companies, Inc. All rights reserved.