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Market Definition,Ex Market,Ex Segmentation And Ex Brand Positioning

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Market Definition,Ex Market,Ex Segmentation And Ex Brand Positioning
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  • Added: April, 26th 2011
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Market Definition, Market Segmentation and Brand PositioningGreg AllenbyOhio State UniversityMarketing ConceptOffer goods and services that fit into the lives of individuals. Don’t attempt to change the lives of individuals so that they fit the offering.The Marketing Concept and Return on Investment (ROI)The consumer side of the market:Good return is obtained with offerings that are relevant to the existing activities of individuals, made at a general price they find acceptable, made available at outlets they already frequent.At the heart of successful market definition is the concept of a prospect – a person who might conceivably part with their money for the right to acquire and use some version of your product category.For the planning period, some people are in your market and others are not.People whose present and planned pursuits have no place for someversion of your product category are best left out of your calculations.How Useful is a Regression Model? A factor analysis model? What model should you use? What is the likelihood?The Marketing Concept and Return on Investment (ROI)The producer side of the market:Firms more likely make money by building on their existing competencies and expertise.While core competencies can be developed over the long-term, the analysis and evaluation of a specific venture is better made in terms of a firm’s existing expertise.What Model?Kinds of ExchangeAt any time, in any geographic region, buyers and seller engage in countless exchanges …… most of which are irrelevant to any single venture!Defining a market involves stating the kinds of exchange that are relevant to your venture.Elements of a universe that are of interest.Boundaries of analysis.Rules of the GameObjective: to make a satisfactory return on investment by engaging in exchange. Therefore, prospects must be:Notified of the offering’s existence (e.g., national media, direct mail, etc.).Able to engage in physical exchange.Implication: Existing competencies and expertise in the firms make some options more attractive than others. Key Decisions for Marketing StrategyWhat geographic area will we operate in?What timeframe do we have in mind?Who are our prospects?What will we offer? In what broad range of price?To whom will we offer it?How will we let them know about our offering?How/where will we engage in exchange with them?Whom will we compete with?How Best to Answer?A Method for Market DefinitionIdentify the product domain for the venture, the intended geographic location, planning horizon and general price level.Select a domain of consumer activity corresponding to management’s product category.A Method for Market DefinitionEvaluate the locatability of persons who perform the focal behavior. Study their media exposure and exchange vehicle patronage for the purpose of:Communication from them.Communication to them.Exchange with them.Specify the competitive marketers/ technologies implicated by steps 1-3.Market DefinitionSpecific answers to some strategic questions:What geographic area will we operate in?What timeframe do we have in mind?Who are our prospects?Partial answers to the others:What will we offer? In what broad range of price?To whom will we offer it?How will we let them know about our offering?How/where will we engage in exchange with them?Whom will we compete with?Can you conceive of a model with partial answers? How would you write the likelihood?

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