2. Modul Customer and Market Analysis

8/13/2019 2. Modul Customer and Market Analysis

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Entrepreneurship Education

MODULE 2

Who are the Customers

Market Analysis

GAZİANTEPZİRVE UNIVERSITY



MARKETING PLAN

Includes a precise definition of goods or services

• Current situation of the Market and Externalenvironment,

• The process,

• Potential response of market to the goods and

services provided,• Potential effects of goods and services to the

market,

• Seting up 4P (price, place, promotion, product) for

the goods and services to determine themarketability of that goods and services bycollecting and processing data and information

• These processes form the details of the marketting

plan.



WHAT IS MARKETING?

Marketing is the management function that

directly affects the success of the operatingactivities of the firm.



WHAT IS MARKETING?

Marketing is the whole process starting from

supplying raw materials to production, putting onmarket, Selling, ensuring customer satisfaction,

and attracting the interest of customer to the firm

again and again.



Firm

Production

C

o

ns

u

m

ptio

n

MARKETING

The whole activities and process of delivering goods and

services from the production unit to customers byensuring complete customer satisfaction and delivering

customer feedback to the central unit.

Needs/ Demand

Putting on Market

Customer Feedback



Stages of Marketing Process

Analyze the Environment

Test your business idea by research

After the research edit your business idea

Set up marketing mix (4P: price, place, promotion,

product)

Build your Marketing Plan

Execute the Plan

Review the Plan



Characteristics of Marketing

Marketing is Customer Oriented

Marketing requires knowledge

Marketing is against “trial and error ”

Marketing requires concentration of efforts

Marketing relies on mutual advantages of counter

parties. Marketing cares about forecasting

Marketing must play a central role in the firm.



• Who are them? How old arethey?

Age, Gender, Income?

• How much they need? What

they need? How they aregoing to pay for it?

• Their life style, social classes,Their characteristics?

• What are their shopping

habits? benefits, opportunities• Where are they?

Cities, Regions, Countries

Who are the Customers?



Marketing Segmentation

• A firm cannot meet the needs or demands of alldifferent customers. A trial of this results inineffcient use of valuable resources.

• Marketing segmentation means dividing customerswho are showing same characteristics into smallgroups.

• What can be the same characteristics?




• Demographical Segmentation:Dividing customers regarding their age, genderincome and family life style.

• Age and life cycle Segmentation : SameCustomers have different needs at their differentages.

• Gender Segmentation :

It is feasible to do mostly in cosmetics and clothingsectors.




• Income Segmentation:Many firms use this division in when they positiontheir products.

• Geographic Segmentation:Division considering different geographicalregions.

• Psychological Segmentation

Beside demographical division, it is possible tomake division regarding life styles, social class andcharacteristics of humans.




• Life Style Segmentation• It is possible to make divison considering thoughts,

beliefs, daily life styles and interests of humans.

• Segmentation Considering Characteristics

• For instance, consumption habits of extrovert andintrovert humans differ.




• Social Class Segmentation6 Divisions regarding the business status ,

A.Upper Middle B.Middle C1. Lower Middle(Officiers) C2.Skilled Workers D.Workers (Semi

Skilled/Unskilled Workers E.Unemployed

• Behavioral Segmentation

What are the psychological factors that results in

customers to buy ? Is it because of a necessity? Isit for a benefit? or Is it just to feel better?



What is your the Target Market?

Population

The ones who have purchasing power

The ones who are willing to buy

Available Group

Customers



Nazlı Women Clothing, a firm that intends to produce clothes for

short women in Tekirdağ, searched for the average height of thewomen

Below 1.65 Above 1.65



Nazlı Women Clothing, a firm that intends to produce clothes

for short women in Tekirdağ, searched for the average height

of the women

Internet

Stores Selling Expensive Products

Tailors



Nazlı Women Clothing, a firm that intends to produce clothes for

short women in Tekirdağ, searched for the average height of

women

Yes

No



What is the Market?

The place where products and services are exchanged in other

words, where supply meets demand.

• A Store,

• Shopping Mall,

• Internet or even on the street

or may be in a house.

Where should I sell

my products?



Understanding the features of the market

• Features of potential customers

• The size of the market

• Purchasing Power

• Rivals (Products and Firms)

After defining these, you should set goals and start marketing andproduction activities.

Who will sell my

products?

You should know about the market very well to create a

unique product.



Understanding the features of the market

Understanding the features of the market andidentifying the needs of that market are verycrucial for the entrepreneur.

To establish a profitable business, you should knoweverything about the market and set up your roadmap. These steps will lower your risk.



How to make market research?

• Studies to understand the features of the market aredefined as marketing research.

• Observations, surveys and analysis of existing studies.

I should ask more

Talk moreRead more

and learn more!!!



Marketing Research

The most important factor linking the outside and market withfirm. To have a power on market and to be able to start in the

right place at the right time;

1.How the needs of the customers change? Can you satisfy

these changing needs?

2.What do customers think about your product and services?

3. How the rivals act? Are they stay one step ahead or Are they

following your strategies? What should you do?

4.How changes in general economic conditions and changes inregional factors affect your firm? How are you going to respond

to these changes?



An Exercise for a Marketing Research

• Define your market and your potentialcustomers.

• Characteristics of Costomers,

Estimated Price, Features of the Market

and etc..

•Where is myMarket?

•

Who are myCustomers?

Arguments, Questions and Answers

Group Work



• Information Sources

– Main Resources (Customer – Suppliers – Rivals)

– Seconday Reseources (Union of chambers,

Tradesmen, Banks, Organizations, Advisors,Universities, Newspaper, Internet..)

• 5P

– What - Product

– To whom - Purchaser

– How much - Price

– Where - Place

– How - Promotion

For a Detailed Market Research



1. Who are your rivals?

2. What they do, what aretheir goals?

3. What are the strenghtsand weakness of yourrivals?

4. Which weakness makethem indefensible?

5. What are the possibechanges they can do inthe future?

Do you know your Rivals?



Competitive Analysis

Strengths : what can we do better than our rivals?

Weakness: what the others can do better than us?

Opportunities: What are the favorable factors in the

market?

Threats: What are the unfavorable factors in the

market?



MARKETING MIX

A method used by firms to reach their marketing

goals.



Marketing Mix

Product

Price Place

Promotion



Marketing Mix – 4P

ProductAbout the Product;

What are my products?Features of the product and its benefits tothe customersBrand,Quality,History of the products, Current state of the

marketUnique Selling PointsIdeas of customers?What is your difference?




Price

Designing, Production, delivery and promotionactivites are the costs and price should be set up

such that it covers all of these costs.Setting price is a hard task and market demand andsupply should be considered in this stage.



Price

Settled by Demand;

• It considers the responseof market. Do not takecosts into account. The

value of the product in themarket set the price.

Settled by Costs;

• A fixed amount of profit is addedto the costs.



Price Strategies

• The factors that should be taken intoaccount when pricing:

• Fixed and Variable Costs.

• Competition• Goals of the Firm• Positinioning Strategies.• Target Group and demand for payment.



Price Strategies

• The pricing stratgies can differ regarding the goals of thefirms:

• Market share Pricing: Low price to gain a market share.• Skimming Price Strategy: Higher price at the beginning and

then start to decrease the price to increase the market share.

• Competetive Pricing: Setting Price considering your rivals. • Product Group Pricing: The products that have differentfeatures but in the same product group are priced similarly.

• Bundle Pricing: Combining different products to have lowerprice.

• Psychological Pricing : Perception of customers areconsidered. For instance, rather than TL 1000, TL 999 is

preffered.• Premium Pricing : Royalty of the product is considered inpricing and prices are set at higher levels Ferrari,Channeletc….



Marketing Mix – 4PPromotion

Advertisement/Sales Promotion/Selling/e-business/public relations,etc..

It does not make sense if you dont promote theproducts even that product is highly attractive andsuccesful.



• Promotion Sale: To increase sales in the shortrun.

• Personal Sale: Selling directly to the customer.

• Advertisement:Selling using TV, newspaper,

journals

• Public Relations: positive relations with public.

How can you sell If nobody knows about your product?

Promotion



Benefits of Promotion

Show people that you are in the game

Ensure that your offers are recognized by others

Cause an increase in sales Help to find out niches in the market

Make you more competetive

Create firm value and brand name

Support customers’ loyalty

Help to protect your market share Create positive public oppinion about your firm







Promotion Campaign

Set up the main goal of the firm

Define promotion goals

Research expenditures, efficiency and time plan

Design Promotion Campaign

Test it, and Edit

Execute the Promotion Campaign



ANNUAL PROMOTION PLAN

ANNUAL PROMOTION PLAN

No Yapılacak İşler

1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 M 10 M 11 M 12 M

1 Catologs

2 Exhibitions

3 Newpaper Adv.

4 Local TV Adv.

5 National TV. Adv.

6 Promotion

7

Corporate

Identification

Establisment




Place

Selling Points that the customers/consumers can findsomething to buy.



Place

• Customer shouldmeet products andservices at the rightplace at the righttime.

• Which distributionchannel are you

going to use todeliver your productand services to yourcustomers?





How can we introduce our products that are

distributed ?

Distribution (Delivering products to the customer)

Producer

Producer

Producer

Producer Agency

wholesale

wholesale

Retailer

Retailer

Retailer

Consumer

Consumer

Consumer

Consumer



Now You can set up your marketing

strategy

Price

Product

PlacePromotion

Group work;Create a marketing mix.



Selling/Sale

Selling activities should in line

with operating and marketing

strategies of the firm.

It is to help consumers to satisfytheir needs by offering a product



Steps of Selling

• Attention: Attractattention of yourcustomer using differentmethods.

• Interest: Draw theinterest of your customersby addressing theirneeds.

• Desire: Create a desire

to buy.• Action: Ensure that yourcustomer is going to buy.



• What are the values you are offering?

• Focus on the benefits and values that your product offers.

• Do not focus on sale, focus on satisfying the need of your

customers.

•

If you are not offering any benefit or value, you will have todecrease the price (and profit).

The Value of your product through the

eyes of the customers

i f i l



Value

Price

The reason that the customer choose a productis not about the product itself but about the

benefit and uniqueness of that product.

Comparison of Price-Value



Network for Sale

Get in contact with the ones who can help your business,• You will have a larger network

• You can meet new customers

• Your sales increase

Who knows you is more important than Whom you

know.



A Sample Network



A Sample Network

HAIR DRESSER

Stores

Around

Customers

FriendsMechanics

Women working

in supermarkets

Fitness

Center

Teachers of

Your children

FamilyRelations

Suppliers



Criticize product/service through the eyes of the customers

• Is there any possibility that your

products and services cannot

satisfy your customers?

• How can you reduce this

possibility?•Compare the risks that you cannot

eliminate with benefits that your

product offers.

• Make sure that your customers

evaluate this risk with the benefits

of your product.



Which one sells best: Your Product or Your Customer?

The feedback from your

customers is more important than

everything you tell about your

product.

Advertisement promotes your

business whereas feedback from

your customers promotes your

product.

Your best salesman is a happy

customer.



Customers Come First….

• Find the motivating factors that attract

your customers to your firm.

• Focus on the needs of your customers .

• Use the «language» of your customers.

• Pay attention to the priorities of yourcustomers.



• Focus on goals of customers.

• Sell the benefits of your product.

• Be aware of your product and the

environment.

• Keep up your promises

• Customer satisfaction comes

first!

• Create Solutions.

• Be positive.

To have a «Loyal Customer»



Selling Plan

These Questions should be answered When making aSelling Plan:

• 1. What is the product?

• 2. How many can be sold in a day/month/year?

• 3. What raw materials and services do I need?• 4. Where should I sell? (Target Market)

• 5. Who are the target customers?

• 6. How many customers are there in my target market?

• 7. What should be the Price?• 8. How much money do I need, How much profit should I

make?



SATIŞ PLANIMarketing/Selling Goals

Product/

Service

1 M 2 M 3 M 4 M 5 M 6 M 7 M 8 M 9 M 10 M 11 M 12 M Total

Total



Selling; Last Point

You can earn money by selling,

But can build a fortune by making friends.



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2. Modul Customer and Market Analysis