MARKET IDENTIFICATION & ANALYSIS

What is a market?
it refers to the conditions and commercial relationships facilitating transactions between buyers and
sellers. It signifies any arrangement in which the sale and purchase of goods take.
One of a composition of systems, institutions, procedures, social relations or infrastructures whereby
parties may exchange goods and services by barter.
Most markets rely on sellers offering their goods or services in exchange for money from buyer
Marketing starts with the total population and narrowing down level by level. There are different terms
used to understand these levels:

A.Potential Market.
Includes the demographic groups that are not currently your customers but could become customers in
the future. They might become your customers because you expand your available products or services,
or because you begin marketing your current products and services in a new way and to new groups of
buyers.
●​ Potential markets take one of three forms:
●​ 1.New products you market to your current customers.
●​ 2.New products you market to new customers.
●​ 3.Current products you market to new customers.

How to Get New Potential Markets:

●​ Create a Customer Profile
●​ Use this profile to identify:
●​ The demographic information that people in this group have in common.
●​ The best forms of media to reach them.
●​ How they prefer to shop and make purchases.
●​ The concerns, struggles, or problems you can help them overcome.
●​ What values matter to them, both in everyday life and when shopping.
●​ The language that resonates with them.

B. Available Market
The market that you are able to sell into.
It is an analysis that starts with the total possible market and then systematically eliminates all the areas
you cannot sell into to highlight the market you truly compete in.
Example: If a company manufactures a wireless computer mouse, the total available market is PC
mouse sales worldwide and the served available market is your company's portion of wireless PC mouse
sales relative to total available market

C.Qualified Available Market.

People in the available market who are permitted to buy the available products and services.
It is the overarching term for consumers who are interested in a product, can afford it, and who are not
prevented from purchasing by any access barrier or legal restriction.
Ex.A liquor manufacturing company not only look for the market but also the qualified available market.
The people available may well be willing and capable to pay for the liquor but if their age is not legal to
buy liquor then the companies don't count them as qualified customers.
D.Target Market
A target market is a group of customers within a business's serviceable available market at which a
business aims its marketing efforts and resources.
Markets that are not penetrated
A women's clothing retailer directs its promotional efforts at women. Conversely, a large and tall men's
shop focuses its marketing efforts on tall and heavier men. Similarly, some small companies market to
specific age groups.

E. Penetrated Market.
Refers to the set of customers who is already using a particular product or service.
Users are aware of the product already and most of them are active users. Markets that are not
penetrated are called target markets, potential markets or available markets.
Ex. As a result of its market penetration, Apple has a larger market share than all of its competitors
combined. The company still has opportunities to add to its customer base by targeting its competitors'
clients and woo them over to Apple products and services.

Types of Market:

1.Physical Market
●​ Any physical market is a place where buyers and sellers physically meet that involve both parties
in a transaction in exchange for money. Few good examples are departmental stores, shopping
malls and retail stores
2. Virtual Markets / Internet Markets.
●​ It is a place where the seller offers goods and services via online platform i.e. internet. Buyers
and sellers are not required to physically meet or interact.
●​ Examples are Lazada, Amazon.com.Shopee
3. Auction Market.
●​ An auction market is a place where sellers and buyers indicate the lowest and highest prices they
are willing to exchange. This exchange takes place when both the sellers and buyers agree on a
price.
●​ A good example is the Philippine Stock Exchange ( PSE).
4. Consumer Markets.
●​ This market type means the marketing of consumer goods and services for personal and family
consumption. Consumer market examples are:
●​ fast moving consumer goods are ready to cook meals and newspaper, magazines etc.,
●​ consumer durables goods are fridge, televisions, personal computers etc.,
●​ soft goods are shoes and clothes and
●​ services include hoteling, hairdressing, schools and colleges etc.
5. Industrial Markets.
The industrial market involves business to business sales of goods and services. These marketers do not
target consumer markets.
●​ Finished goods like office furniture,
●​ Selling raw materials for businesses i.e. rattan sticks
●​ Offering services to businesses for example security agencies, auditing and legal services etc.
6. Black Market.
Black market deals in illegal drugs and weapons.
7. Market for Intermediate Goods.
These markets are dealing with the selling of raw materials that need further processing to produce
finished goods.
8. Financial Market.
This is a broad market known as a financial market. This is a place for dealing with liquid assets for
example shares, bonds etc.

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 as a whole.
Promotion of business products or services to a target audience. Examples of marketing at work include
television commercials, billboards on the side of the road, and magazine advertisements

The two main types of marketing strategy are:

●​ Business to business (B2B) marketing.
●​ Business to consumer (B2C) marketing.

Business to business (B2B) marketing.

A marketing practice of individuals or organizations. It allows them to sell products or services to other
companies or organizations that resell them, use them in their products or services or use them to support
their works. It is a way to promote business and improve profit .
Manufacturers, for instance, buy raw materials, components and parts to manufacture their own goods.
4 basic categories of business customers:
●​ producers,
●​ resellers,
●​ governments, and
●​ Institutions.
Business to business (B2B) marketing.
Producers-4 basic categories:
Companies that purchase goods and services that they transform into other products.
They include both manufacturers and service providers.
Examples:
General Motors needs steel and hundreds of thousands of other products to produce cars
McDonald’s needs beef and potatoes.
Delta Airlines needs fuel and planes.
Dentist needs drugs such as Novocain, oral tools, and X-ray machines.
Local tattoo parlor needs special inks and needles and a bright neon sign that flashes “open” in the
middle of the night.

Resellers
Companies that sell goods and services produced by other firms without materially changing them. They
include wholesalers, brokers, and retailers. Large wholesalers, brokers, and retailers have a great deal of
market power. If you can get them to buy your products, your sales can exponentially increase.
Examples:
1.SM
2.Robinson’s
3.Gaisano
4.Mercury Drug
Reseller Organization
1.On-line reseller
●​ Online resellers work much like retail stores, except they usually do not have traditional
brick-and-mortar locations. Resellers that conduct business exclusively online, such as
Shopee,Lazada
2.Mail-order
●​ Mail-order resellers offer customers catalogs that list the merchandise they have for sale.
Mail-order organizations purchase products wholesale and sell them at a higher price. SkyMall
was a popular mail-order reseller that stocks their catalogs on commercial flights until recently.
With the internet so common, physical mail-order catalogs are dwindling.
3.Reselling via Distributors
●​ Distributors have agreements with manufacturers to sell products or services to retail, online and
mail-order organizations, as well as direct to customers.
●​ Distributors that sell directly to consumers take care of customer needs, including exchanges,
returns and repair service.
●​ Ex. Del Monte,Phil
●​ BS Philippines Corporation is one of the leading chemical trader-distributor .It offers a
comprehensive selection of chemical products

Government:
It purchases everything one can imagine, from paper and fax machines to tanks and weapons, buildings,
highway construction services, and medical and security services.
State and local governments buy enormous amounts of products.They contract with companies that
provide citizens with all kinds of services from transportation to garbage collection
This happens when this is an urgent need to distribute relief goods during pandemic and after the rage of
natural disasters.

Institutional markets include nonprofit organizations such as the Phil Red Cross, churches, hospitals,
charitable organizations, private colleges, civic clubs.
They buy a huge quantity of products and services. The lower their costs are, the more people they can
provide their services to.
Businesses buy huge quantities of inexpensive products, too. McDonald’s, for example, buys a lot of
toilet paper, napkins, bags, employee uniforms.

Business to customer marketing, commonly known as B2C marketing, is a set of strategies, practices,
and tactics that a company uses to push its products or services to customers.
B2C campaigns don’t just focus on the benefit or value that a product offers, but also on invoking an
emotional response from the customer

Some B2C marketing features:

A short sales cycle.
●​ B2C customers usually buy products that were advised by their friends so the entire process is
less intimidating for clients and sellers.
Domination of an emotional element over the rational one.
●​ B2C customers look for instant solutions to their problems based on their desires. They rarely
think strategically over the purchase.
●​ They are just looking for a fast solution that will satisfy their needs here and now.
●​ So if a brand manages to provide them with this solution, they will definitely return to for the same
emotional experience.
Working with the end-user.
●​ B2C companies usually deal directly with the consumers of their products. This makes it easier to
convince a person, find the right words, and use special techniques. While in B2B, a salesperson
needs to negotiate with multiple influencers who make decisions on behalf of the entire company.

The high importance of social media.

●​ While choosing a product, people desperately look for customer feedback. They investigate each
channel they know to make the right decision. They not only look for reviews but prefer Facebook
and Instagram to talk to the brand via chatbots.
●​ So, brands create chatbots to provide clients with 24/7 support, collect reviews, share updates,
and run retargeting campaigns to bring in new customers and maintain relationships with them

Marketing strategy
A long-term, forward-looking approach and an overall game plan of any organization or any business
with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs
and wants of customers

Types Of Marketing Plans And Strategies

●​ Market Penetration Strategy.
●​ Market Development Strategy.
●​ Product Development Strategy.
●​ Diversification Strategy.

1. Market Penetration Strategy.

A firm focuses on selling its current products to existing customers, it is pursuing a market penetration
strategy. The marketing activities that will dominate in this type of marketing plan are those that
emphasize increasing the loyalty of existing customers so that they are not vulnerable to loss to
competitors, attracting competitors’ customers, increasing the frequency of product use, and converting
nonusers into users.
Identifying new use occasions and new uses for a product may increase usage frequency or convert
current nonusers into users.
Ex. , the advertising campaign for orange juice that has the tagline “It’s not just for breakfast anymore”
was an effort to expand usage

2. Market Development Strategy

Efforts to expand sales by selling current products in new markets are referred to as a market
development strategy. Such efforts may involve entering new geographic markets, such as international
markets.
For example, as fast food restaurants have moved into international markets, they have often changed
their menus to better match the food preferences of customers in local markets. Expanding into a new
market with an existing product carries some risks.
What are those risks?

3. Product Development Strategy

Creating new products to sell to existing customers, a product development strategy, is a common
marketing strategy among firms that can have leverage with existing customers.
Cable television companies have expanded their offerings into Internet and telephone services. E.g.
PLDT
BDO has been able to leverage its relationships with its credit card customers to also sell travel-related
services.
. A product development strategy is also riskier than a market penetration strategy because the necessary
product may not be possible to develop, at least at a cost acceptable to customers, or the product
developed does not match the needs of customers.

3. Product Development Strategy

●​ Creating new products to sell to existing customers, a product development strategy, is a
common marketing strategy among firms that can have leverage with existing customers.
●​ Cable television companies have expanded their offerings into Internet and telephone services.
E.g. PLDT
●​ BDO has been able to leverage its relationships with its credit card customers to also sell
travel-related services.
●​ . A product development strategy is also riskier than a market penetration strategy because the
necessary product may not be possible to develop, at least at a cost acceptable to customers, or
the product developed does not match the needs of customers.