Market Potential, Market Demand, and Market Share

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Presentation transcript:

Market Potential, Market Demand, and Market Share Chapter Three Various forms of Market Demand and Opportunities Market Potential and Growth Product Life Cycle Marketing Mix and Market Share Performance Market Share and Development Metrics

Narrow vs. Broad Market Focus Market Definition Narrow vs. Broad Market Focus

Market Opportunities Vertical vs. Lateral Market Demand

Market Potential Market Penetration vs. Market Demand = Current Market Demand Market Development Index (MDI) = Maximum Market Demand

Five Forces of Market Potential Awareness Availability Affordability Ability to Use Benefit Deficiency

Market Growth Three Forces of Market Growth 1. Market Potential 2. Market Penetration 3. Rate of Entry

Accelerating Market Growth

Product Life Cycle and Marketing Profitability

The Marketing Mix Product Awareness Product Attractiveness Promotion and Advertising Channels Product Attractiveness Effect of Substitutes Price Acceptability Product Availability Distribution and Location Service Experience

Market Share Development Tree

Market Share Metrics Market Share Market Share Index (MSI) Market Demand X Volume Market Share Index (MSI) Awareness X Preference X Intent to Buy X Availability X Purchase Three Important Benefits of MSI Share Development Index (SDI) Actual Market Share/Potential Market Share

Market Development vs. Market Share

Marketing Performance Tools Market Demand and Unit Sales Volume

Marketing Performance Tools Customer Adoption and Product Adoption

Marketing Performance Tools Customer Adoption and Product Adoption Forces

Marketing Performance Tools Market Share Index and Share Development Index

Marketing Performance Tools Market Share Index and Share Development Index

Customer Analysis and Value Creation Chapter Four Customer Value and Benefits Value Creation Various Types of Value Price and Associated Costs of Purchase Customer Analysis Tools

Customer Value And Benefits What is Customer Value (CV)? CV =Benefits – Cost What are Customer Benefits? How do we Create Value? Value Creation Process Product Benefits Customer Value Service Benefits Price & Other Costs Brand Benefits

Discovering Customer Benefits Why is it important? Methods: A Day in the Life of a Customer Empathic Design Lead User Analysis Staple Yourself to an Order The Kano Method

Life Cycle Costs and Value Creation How do we Create Customer Value? Reduce Lifecycle Costs…Price Paid, Acquisition Costs, Usage Costs, Ownership Costs, Maintenance Costs, Disposal Costs

Price Performance and Value Creation How do we quantify the performance of products? Relative Performance Relative Price Relative Customer Value Product Performance Average Performance Product Price Average Price Relative Performance – Relative Price

Price Performance and Value Creation

Customer Value and Relative Performance

Perceived Benefits and Value Creation Types of Perceived Benefits Product Benefits Service Benefits Brand/Company Benefits How Do We Measure Perceived Benefits? What is the Value of Perceived Benefits?

Value Of Perceived Benefits

Transaction Costs and Value Creation What are Channel Intermediaries? How do they Create Value? Use of Space Inventory Turnover M&S Expenses Quantifying Space Value and Transaction Value Manufacturer Products Services Intermediary Manufacturer Benefits Costs

Conjoint Analysis and Value Drivers 4-12

Conjoint Analysis and Value Drivers

Value Drivers and Positioning

Customer Analysis Tools How do we Evaluate Customer Benefits?

Marketing Performance Tools Lifecycle Cost Analysis

Marketing Performance Tools Lifecycle Cost Analysis and Economic Value

Marketing Performance Tools Customer Benefits

Marketing Performance Tools Customer Benefits

Marketing Performance Tools Customer Cost Total Cost of Purchase

Marketing Performance Tools Customer Value and Value Map

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