Market Analysis

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 Marketing
• Is the activity, set of institutions, and processes for
creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners,
and society at large
• The process of planning and executing the conception,
pricing, and services to create exchanges that satisfy the
individual and organizations.
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 Marketing functions
Environmental analysis and marketing research: Monitoring and adapting to
external factors that affect success or failure, such as the economy and
competition; and collecting data to resolve specific marketing issues.
Broadening the Scope of Marketing: Deciding on the emphasis to place, as well as
the approach to take, on societal issues, global marketing, and the Web.
Consumer analysis: Examining and evaluating consumer characteristics, needs and
purchase processes; and selecting the group(s) of consumers at which to aim
marketing efforts.
Product planning (including goods, services, organizations, people, places, ideas):
Developing and maintaining products, product assortments, product images,
brands, packaging, and optional features, and deleting faltering products. 3
Distribution planning: Forming logistical relationships with intermediaries, physical

distribution, inventory management, warehousing, transportation, allocating goods

and services, wholesaling, and retailing.

Promotion planning: Communicating with customers, the general public, and others

through some type of advertising, public relations, personal selling, and/or sales

promotion

Price planning: Determining price levels and ranges, pricing techniques, terms of

purchase, price adjustments, and the use of price as an active or passive factor.

Marketing management: Planning, implementing, and controlling the marketing

program (strategy) and individual marketing functions; appraising the risks and

benefits in decision making; and focusing on total quality. 4

 Market Analysis
• To be successful your business needs
customers
– All the people who might want to buy
your products or services are called your
market.
– Your market consists of all your customers
(the people who buy from your business)
as well as all the other people who might
potentially become your customers.
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 Market Analysis
• Your business must attract the attention of people who need or want to buy your
products or services.

• There will be other businesses that will be trying to sell products or services that
are similar to yours.

• They are already in the market you want to get a share of.

• These other businesses are your competitors. Before you decide to start your own
business you need to understand the characteristics of your

– Customers

– your competitors and

– the size of the market. 6

 KNOW YOUR CUSTOMERS
• Customers are the most important people for your business.
If you do not provide what they want, at prices they are
willing to pay, and treat them with respect, they will buy
somewhere else.
• Satisfied customers will come back and buy more from your
business.
• They will tell their friends and others about your business.
More satisfied customers mean larger sales and higher
profits.
• Always remember that without customers there will be no
sales and your business will fail. 7
 Cont…
• Customers buy products and services to satisfy different kinds of
needs and wants. For example, customers buy:
– bicycles because they need transport
– nice clothes because they want to look attractive
– radios because they want information and entertainment
– haircuts because they want to look attractive
– repairs to their cars, bicycles or electrical appliances
– Why customers buy your product/service?
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 Market Research
• Getting information about your customers is called market
research. Market research is very important when you are
thinking of starting your own business entrepreneur .
• There are many questions to be asked about your customers:
– Who are the different types of customers for your business?
• Make a list of the products or services you will provide and
write down who are the customers for each product or
service. 9
 Cont.
– What products or services do these customers want? What is
important about each product – the size, the color, the quality,
the price?
– What prices are customers willing to pay for each product or
service
– Where are the customers and where do they usually buy?
When do they buy?
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 Market Research
– How often and how much do they buy – once a year, once a
month, every day?
– Is the number of customers growing?
– Has the number been growing in the past and is it likely now to
be stable or will it continue to grow?
– Why do customers buy particular products or services?
– Are people looking for something different?
– Are there products and services which are not available nearby?
• The questions should be properly structured or grouped.
(government officials , village administrators, inhabitants etc.)
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 Market Analysis
• If you think about these questions and find answers by doing market research, you will
be in a better position to decide if you have a good business idea.

• Market research can be done in many practical ways. Here are some examples of how
you can find out about your potential customers:
– Conduct a survey.

– Talk to people that you think will buy from your business

– Listen to what customers say in your competitors’ businesses – what do they ask for?

– Ask people why they buy from some businesses and not from others – is it a better price, better
service or because the business is in a convenient place?

– Ask your potential suppliers which goods sell well.

– Read business manuals, newspapers, trade journals and magazines to get information and ideas on
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 KNOW YOUR COMPETITORS
• You will probably have to compete with other existing
businesses that provide the same or similar products or
services. These businesses will be your competitors.
• You can learn something from each of your likely competitors.
When you know about your competitors you will be able to
think about how you can make your business idea successful.
You should find answers to the following questions:
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 KNOW YOUR COMPETITORS BY THOSE
TERMS
– What prices do they charge?
– What quality of goods or services do they offer?
– How do they promote their goods or services?
– What extra services do they offer?
– Is their location expensive or cheap?
– Is their equipment modern?
– Are their employees well trained and well paid?
– Do they advertise?
– How do they distribute their products or services?
– What is their market strategy?
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 KNOW THE SIZE OF YOUR MARKET
• When you have found out the products or services, qualities and
prices that your customers want, you need to think about the area
your business will serve. Will your business provide for customers
in:
– your neighborhood
– your whole village
– your village and some surrounding villages
– a quarter of your town
– the whole town
– several towns and villages?
• When you have decided what area your business will cover, you can 15
 Market Analysis
• Size of market can be calculated as
Q= NH*P*MS

Where

Q= quantity of system

NH = number of house hold/users

P= percentage of people who can offer for the system

MS = market share of you company

Market may need about three years to develop , thus the annual quantity will be 1/3 of

Q 16
 What is next
• After that time the main business will be
– Increase of system because of growing demand
– Repair of existing systems
• Extend or repair the installation

– Replacement of the system

• long run about 10% of the quantity Q will come for replacement.

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 PREPARE A MARKETING PLAN
• Now that you have factual information about your
customers and competitors, you can use it to prepare a
Marketing Plan. One way of preparing a Marketing Plan
is to follow the four P’s of marketing.
• A good Marketing Plan will include sections on each of
the four Ps. The four Ps are:
– Product
– Price
– Place
– Promotion
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 Product – The First ‘P’
• Product means what products or services you are going
to sell to your customers.
• You have to decide what kind of products or services to
offer, and also what quality, what color, what size and so
on. For retailers and wholesalers, product can mean a
– range of products such as tools
– how each product will be packaged
– if you are going to include an instruction manual
– what service you will offer
– what repairs and spare parts you will provide.
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 Price – The Second ‘P’
• Price means what you are going to charge your
customers for the products or services. It also includes
the discounts you will give and any terms of credit you
will offer your customers.
• To set your prices you must:
– know your costs
– know how much customers are willing to pay
– know your competitors’ prices.

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 Place – The Third ‘P’
• Place means where your business is going to be located. If you plan to start a retail or
service business, the location is very important because you need to locate your
business close to your customers.
• Your business must be easy to reach or people will buy from more conveniently located
competitors.
• Being close to customers is normally not the most important aspect of the location of a
manufacturer. Easy access to raw materials might be more important, in which case you
would locate your factory or workshop close to your suppliers.
• Low rent can also be important for a manufacturer.
• There are different ways to distribute your products to your customers:
– You can sell directly to the customers who use your products. This is called direct
Distribution
– You can get retailers to sell your goods to the final customers.
– You can get wholesalers to sell your goods to the retailers.

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 Promotion – The Fourth ‘P’
• Promotion means informing and attracting the customers to buy your products or
services. Three common methods are:
– advertising – giving information to your customers to make them more interested in
buying your products or services. You can place advertisements in newspapers or on
radio
– publicity – free promotion which you can get through an article being written about
your new business in the local newspapers or magazines.
– sales promotion – everything you do to make customers buy, or buy more when they
have come to your business or when you have established contact with them in some
other way. For example, attractive displays, giving demonstrations, holding
competitions, giving samples or try-outs and selling products that go together are all
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ways of promoting sales.
 Marketing mix for country side
• Some methods and ideas how to reach local people are listed

1. Visit of village: visit to the target area to demonstrate the product .

• Administrative people, village elders , respected persons
• Demonstration of product
2. Setup Demonstration facility
 A very good method is to set up one demonstration center in village

3. Using local agent

4. Using local markets and festival
5. Mouth to mouth propaganda 23
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 Assignment Two
• Use the problem solving method to prioritize you
problems
• Make the market analysis for your business idea
– Customer
– Competitor
– Market share
• Data collection
– Questionnaire
– Interview
– Observation
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