Market Opportunity Analysis - Essay Prowess

Market Opportunity Analysis

  

Market Opportunity Analysis

Once  an organization has conducted an environmental analysis, it is time to  look deeper into the potential of a given population in order to  determine if there is a potential for sales and profits. This is called a  “Market Opportunity Analysis” (Ogden & Ogden, 2014), and it is  conducted for the marketing team to be able to determine if the market  under consideration has the required elements for the organization to  make a profit.

Elements frequently considered on whether or not  to enter into a market are Michael Porter’s (1979) five competitive  strategies. Although Porter’s work was conducted 30 years ago, Porters  five competitive strategies have stood the test of time and are used  today in virtually every industry around the globe (Renko, Sustic, &  Butigan, 2011): Rivalry among existing competitors; bargaining power of  suppliers; bargaining power of buyers; threat of substitute products or  services; and threat of new entrants (Porter). Understanding how each  strategy impacts the organization’s industry as well as the surrounding  members can be key to being able to identify the best markets with the  highest probability of opportunities. Below is a graph of the five  strategies and characteristics within each strategy.

OMM615- Week 2,Lecture Picture


SMART
Being  able to accurately track the organization’s performance against the  expectations is a critical activity. If the marketing strategy is  performing below expectations, slight adjustments can be made in many  cases. In extreme cases, the organization may have to reconsider its  entire marketing strategy. One method for monitoring the marketing  strategy’s progress toward meeting organizational objectives is to use  the SMART metric of measurement. This stands for specific, measurable,  attainable, relevant, and time (Ogden & Ogden, 2014). While the  objectives can be for all the areas within marketing, this metric is  most often used to measure whether or not the overall marketing strategy  is performing according to expectations.

In addition to the five  competitive strategies, another component in the Market Opportunity  Analysis is to identify a specific population group most likely to need  and buy the organization’s goods or services, a target market. There are  three components to identifying a target market: the consumer needs and  will purchase your product; the consumer has enough money to purchase  your product, and there are enough consumers in this targeted market  segment to make it profitable for your organization to sell the product  (Ogden & Ogden, 2014). 

Methods to communicate with the  identified targeted market segment are achieved through the  organizations Integrated Marketing Communications (IMC) strategy and  will be discussed below.

Consistency with IMC

If  the ultimate goal is to positively affect buyer behavior and increase  sales which, in turn, will increase shareholder wealth, how might an  organization set about communicating in such a manner that will attract  and engage its targeted market segment? One method is to use an  Integrated Marketing Communications (IMC) strategy. The American  Association of Advertising Agencies suggests a single voice with a  single message in all marketing communication channels has the greatest  chance of being heard by the organization’s targeted market segment  (Navarro-Bailón, 2012). Repetition on of the single message will also be  effective (Ogden & Ogden, 2014). Although there are many trends and  venues a marketing professional can use including glocalization and  omni-channel marketing, there remains the need for a consistent, single  message to be communicated to the organization’s targeted market segment  in order to increase brand awareness and positively affect buyer  behavior.

Forbes School of Business Faculty

References:

Navarro-Bailón (2012, July). Strategic consistent messages in cross-tool campaigns: Effects on brand image and brand attitude. Journal of Marketing Communications, 18(3), 189-202.

Ogden, J. R., & Ogden, D. T. (2014). Utilizing a strategic marketing approach to managing marketing communications. San Diego, CA: Bridgepoint Education.

Porter, M. E. (1979, July-August). How competitive forces shape strategy. Harvard Business Review, 1-9.

Renko,  N., Sustic, I., & Butigan, R. (2011). Designing marketing strategy  using the five competitive forces model by Michael E. Porter – Case of a  small bakery in Croatia. International Journal of Management Cases, 13(3), 376-385.

——————————————-

discussion1:

Buying Process

What  are the steps a buyer passes through when making a buying decision?  What other factors might influence a purchase? Think about something you  recently purchased and discuss each buying decision step and other  factors that influence your decision to buy. Incorporate concepts and  examples from this week’s lecture in your post. 

discussion 2:

Discussion 2:

Market Opportunity Analysis (MOA)

What  is the outcome of conducting a market opportunity analysis? Examine two  components of the MOA and assess how each contributes to an effective  IMC. Incorporate concepts and examples from this week’s lecture in your  post.