Page 39 - DMGT408DMGT203_Marketing Management

Marketing Management/Essentials of Marketing

Notes Market

The market is to be studied in terms of its actual and potential size, its growth prospect and also
its attractiveness. The marketer should study the trends and development and the key success
factors of the market he is operating. Important issues are:
1. Cost structure of the market
2. The price sensitivity of the market
3. Technological structure of the market

4. The existing distribution system of the market
5. Is the market matured?

Suppliers

Suppliers form an important component of the microenvironment. With their own bargaining
power they affect the cost structure of the industry. They constitute a major force, which shapes
competition in the industry. Also organisations have to take a major decision on “outsourcing”
or “in-house” production depending on this supplier environment.

Intermediaries

Intermediaries exert a considerable influence in the marketing environment. They can also be
considered as the major determining force in the business. In many cases the consumers are not
aware of the manufacturer and buy the product from the renowned intermediaries as for example
Wal-Mart in US, Pantaloons in India.

Public

Public constitute a major force in the micro environment and marketers have to very carefully
study their opinion, values, beliefs and attitudes in order to design a proper marketing strategy
for goods carefully tailored to meet the needs of the target consumer segment. In a sort of
reverse engineering, marketers also use the media to shape consumer tastes and preferences.

2.2.2 Customer Analysis

The important question for a firm is “Who are our customers?”

1. Existing
2. Potential
Hence, the first logical step in strategic market planning is to analyse the customer, i.e., to
understand customer motivation, their unmet needs and how they can be segmented.

Customer Segmentation

1. Who are the biggest customers?
2. Who are the most profitable customers?
3. Who are the potential customers?

4. How could we segment the customers into unique strategic business groups?

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