Market Analysis

In the last class, we began with an exercise of pronunciation where we have to pronunciate the different letter sounds to understand the differences between longer or shorter sounds.

Then, the teacher has explained the market analysis theme.

Market Position: The questions are:

Market niche?
Market leader?
Market follower?
Market Challenger?


Market Position

- Market Niche – small part of an existing market
- Market Leader – maintain dominant position in the market?
- Market Follower – Follow the lead of the market leader – pricing, product development etc
- Market Challenger – Seek to adopt strategies to challenge market leader’s position


Market Objectives

- National Growth
- International Growth
- Ethical Objectives
- Market Share
- Consumer Focus
- Product Focus
- Image
- Social Responsibility
- Revenue Maximisation
- Shareholder Value
- Overcome Competitors

Will involve/determine some or all of the following:

– Market Penetration
– New Product Development
– Branding
– Diversification
– SWOT Analysis


Market Segments

- Age
- Religion
- Gender
- Incomer Level
- Lifestyle
- Ethnic Grouping
- Social Class
- Geographical region
- Family Circumstances
- Behaviouristic


Social Class

Institute of Practitioners in Advertising (IPA) Grouping

A – Higher managerial, professional and administrative
B – Middle management, professional and administrative
C1 – Supervisory, clerical and junior management
C2 – Skilled Manual Workers
D – Semi and unskilled manual workers
E – Pensioners, casual workers, unemployed


Which Segment?

Mass Markets – high volume, low margin goods – confectionary, cars, clothing, food stuffs

Multiple Segments – appealing to wider range of groups – e.g. 4x4 vehicles – town, country, gender, lifestyle, social class?

Single Segment – often a specialised product, e.g. machinery, exclusive goods


Market Structure

- Highly Competitive
- Impefect Competition
- Oligopoly
- Duopoly
- Monopoly


Nature of the market structure determines marketing strategy:

–Pricing strategy
–Branding?
–Product Differentiation?
–Market Penetration?
–Direct Selling?