Understanding Markets

Analyzing Markets

 Toyota
 teenagers and
20 somethings
already
account for
6% of sales.
How to reach
them?
 Scion?
1. 2. 3.
 What is the
potential size
of the cell
phone market
in Tanzania
 6 methods

 Statistical methods
 Regression analysis (Michelin Asia)
 Averages
 Exponential Smoothing
 Models
 Conjoint Analysis

 Observation
 How many minutes per day the typical pay
phone was used
 Surveys
 Survey of buyers’ intention
 Survey of Salesforce opinion
 Focus Groups

 Analogy
 Danone new flavor
 HDTV

 Judgment
 Executive Judgment
 Delphi Technique
 Market tests
 Experimental
 Live
 Discussion Question

3. How does one go from

methods to math?

 Chain ratio method

 Brand or category indices
 Ideas for new products or new
ventures: How do we know how fast
customers will adopt?

Source: Adapted with permission from Marketing, 11/e, Acetate 8-8, by Michael J. Etzel, Bruce J. Walker, and William J. Stanton. The McGraw-Hill Companies, Inc. © 1997.
All rights reserved.
 The risk
 Relative advantage
 Relative simplicity
 Compatibility
 The ease of Trial
 The ease of communication
 Analyzing Customer Needs,
Behavior, and Influences
 Cultural considerations
 Sub-cultures
 Social considerations
 Family
 Personal Factors
 Lifestyle (Psychographics) 973
 97330
 Motivation
 Perception
 Attitudes
 Sources for consumer research

 www.census.gov Census
 www.crc-conquest.org Conference
Board Consumer Research Center
 Http://sosig.ac.uk Social Science
information gateway
 http://cyberatlas.internet.com
Cyberatlas Web usage
 www.geohive.com Global statistics
 Business Markets

 Organizational connections
 Buying Center
 Organizational Considerations
 Derived Demand
 Business sources

 www.census.gov/epcd/www./naics.htm
l (NAICS industrial classification data)
 www.ceoexpress.com
 www.inc.com
 www.industryweek.com
 www.ecommercetimes.com
 Monmouth/Independence

 Chamber of Commerce
 Polk County
 Willamette Valley Wines
 Monmouth
 Corvallis

 Chamber of Commerce
 Welcome to Corvallis
 Visit Corvallis
 Slide show
 More pictures
Generation Y Trendsetters top 15
brands
15. Red Stripe Jamaican beer
14. Vitamin Water
13. Converse
12. Volkswagen
11. Levi’s
10. H&M clothing stores
9. Target
8. American Apparel
7. Adidas
6. Whole Foods
5. Ben & Jerry’s
4. In-N-Out Burger
starts their employees out at $10 an hour -- which
made the trendsetters happier to eat there, as
opposed to some fast-food chains where all the
workers look miserable."
3. Jet Blue
"They loved everything about Jet Blue, noting that the
airline is much easier to navigate, the flights are
always cheap, always one-way and don't have a lot of
weird special prices and restrictions,"
2. Trader Joe’s
 They liked that the company has a dorky
newsletter and makes their employees wear
silly Hawaiian shirts.
1. Apple
Outlaw Consulting, a San Francisco
research firm, concluded that
Generation Y trendsetters are more
drawn to brands that speak to them
in a "straightforward and stripped-
down way, use plain packaging, and
avoid excess
 Outlaw surveyed 100 of what it calls its "most forward
trendsetter panelists" in New York City, Los Angeles,
San Francisco and Miami, asking them which
companies they most respected, and why.
 the preference for simplification, lean-and-clean
styling and all-in-one convenience could be motivated
by environmental concerns. In other words, as the
"green lifestyle" is something more and more people
aspire to, the notion of excess has fallen into disfavor