Cal Poly Pomona MHR 423 - How to do a Market Analysis and Environmental-Trend Analysis

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How to do a Market Analysis and Environmental-Trend AnalysisWhat’s Involved in a Market AnalysisTarget MarketCollecting Data on the Target MarketBehavior of the Target MarketNeeds of the Target MarketTwo External EnvironmentsWhy Must We Do This?How Is the Analysis Done?Suggested Five Subtopics for External Analysis PaperGot Questions?Writing the PaperGradingQuestions?How to do a Market Analysis and Environmental-Trend AnalysisDr. Stan AbrahamMHR 423Fall 2003What’s Involved in a Market AnalysisDecide on your target marketHow many of them, how fast growing (or declining), how dispersed?How do they buy and use the product, where do they buy, how respond to various advertising and promotion, how price-sensitive?What are their needs (basis for your value proposition), and are these changing over time?Target MarketCan be defined…Geographically—global, national, local, etc.Demographically—using variables such as age, income, sex, householdsBusiness type or size—“middle-market banks,” “businesses employing >100 people”By need—two-income families need convenience, Internet companies need exposure, people on low-carb dietsCollecting Data on the Target MarketHave to do a lot of researchThe research pays off in your greater knowledge about your marketFor consumer marketsCensus dataState and local government dataFor business marketsResearch the industry segment that comprises your marketBehavior of the Target MarketFind out everything you can about these customersHow do they buy?Where do they buy?How do they use the product?How do they respond to stimuli?How price-sensitive are they?How often do they buy?Is the user the buyer?Needs of the Target MarketWhat needs, desires, or wants do these customers have that your product satisfies?Are these needs changing?What is the (customer) value proposition for your company?Why should customers buy your product and not competitors’ products?Remember, people buy benefits, not productsThey buy vision, not glassesThey buy heat, not firewoodThey buy the ability to communicate anywhere, not a cell phoneTwo External EnvironmentsThe Task EnvironmentIndustry analysisCompetitors and competitive analysisMarket analysis (customers)General EnvironmentDemographicEconomicPolitical/legalRegulatory/legislativeTechnologicalSocio-culturalLifestyles, attitudesWhy Must We Do This?Businesses don’t exist in a vacuumWhat’s changing out there could affect usUnforeseen competition could wipe us outUnforeseen costs could cripple usSo could a downturn in the economyLet’s not talk about a new regulation to comply withWe need to get a sense of changes that might occur in the next five yearsHow Is the Analysis Done?Through doing researchThe InternetArticles in the Business Press (Internet again)Trade publications and people in the industryHiring competitive-intelligence professionals (not you)Don’t forget to cite your sources, and don’t cut and paste—that’s plagiarismFor information you simply cannot getMake informed/educated guessesMake inferencesGo to the next topic…Suggested Five Subtopics for External Analysis PaperIndustry analysisCompetitors and competitive comparisons(Target) Market analysisEconomic and Technological trendsAll the other trendsGot Questions?Ask meI may not know the answer but may know where to lookI have many books and resources in my officeI may know other profs that could help (so might you)Ask other profs or knowledgeable people you may knowWriting the PaperUse an outline (keeps your research relevant)If you have nothing to say under a particular heading, omit itUse only those headings where you can show data or analysis that will be useful in planning for your businessDon’t forget that “data” is a plural wordRemember to reserve a fair amount of time for editing, editing, editingGradingThis is the only paper where each person in the group should contribute one of the needed topics (should be that person’s work, not a group effort)Divide the topics up among you as equally as you canClearly state which person did which


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Cal Poly Pomona MHR 423 - How to do a Market Analysis and Environmental-Trend Analysis

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