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Market Potential, Market Demand, and Market Share

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Presentation on theme: "Market Potential, Market Demand, and Market Share"— Presentation transcript:

1 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

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

3 Market Opportunities Vertical vs. Lateral Market Demand

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

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

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

7 Accelerating Market Growth

8 Product Life Cycle and Marketing Profitability

9 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

10 Market Share Development Tree

11 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

12 Market Development vs. Market Share

13 Marketing Performance Tools
Market Demand and Unit Sales Volume

14 Marketing Performance Tools
Customer Adoption and Product Adoption

15 Marketing Performance Tools
Customer Adoption and Product Adoption Forces

16 Marketing Performance Tools
Market Share Index and Share Development Index

17 Marketing Performance Tools
Market Share Index and Share Development Index

18 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

19 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

20 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

21 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

22 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

23 Price Performance and Value Creation

24 Customer Value and Relative Performance

25 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?

26 Value Of Perceived Benefits

27 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

28 Conjoint Analysis and Value Drivers
4-12

29 Conjoint Analysis and Value Drivers

30 Value Drivers and Positioning

31 Customer Analysis Tools
How do we Evaluate Customer Benefits?

32 Marketing Performance Tools
Lifecycle Cost Analysis

33 Marketing Performance Tools
Lifecycle Cost Analysis and Economic Value

34 Marketing Performance Tools
Customer Benefits

35 Marketing Performance Tools
Customer Benefits

36 Marketing Performance Tools
Customer Cost Total Cost of Purchase

37 Marketing Performance Tools
Customer Value and Value Map


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