Group-4-Market-Analysis-and-Marketing-Concept-part-AandB

III. Market Analysis and Marketing Concept

Page 2: Objective of Industrial Investment Project

  • The main goal of industrial investment: benefit from resources or meet demand.

  • Additional aims: strengthen market position and secure resource supply.

  • Importance of market analysis for:

    • Determining investment scope.

    • Establishing production programs.

    • Identifying required technology and location.

  • Feasibility studies involve iterative processes to:

    • Understand product quantities and qualities.

    • Explore alternatives based on:

      • Economic size.

      • Input availability.

      • Constraints.

Page 3: Marketing Overview

  • Key components include:

    • Marketing Research.

    • Project Strategy Outline.

    • Marketing Concept Outline.

    • Assessment of Marketing Costs and Revenues.

Page 4: Definition of Marketing

  • Marketing as a market-oriented management philosophy.

  • Must integrate design of marketing concept based on research.

  • Four key elements of Marketing:

    • Business Philosophy: Focusing on consumer needs.

    • Marketing Research: Essential for informed decisions.

    • Marketing Instruments: Tools to implement strategies.

    • Marketing Plan and Budget: Execution strategy and financial outline.

Page 5: Business Philosophy in Marketing

  • Marketing shifts focus from products to consumer needs.

  • Requires all decision-makers to align with market orientation.

Page 6: Importance of Marketing Research

  • Systematic research is essential for market-oriented decisions.

  • Enables development of marketing strategies based on assessed:

    • Potential market.

    • Available resources.

  • Analysis should also consider supply markets for project inputs.

Page 7: Marketing Instruments

  • Successful marketing strategies depend on appropriate use of instruments.

  • Planning essential to influence and shape the market effectively.

Page 8: Marketing Plan and Budget

  • Action planning based on marketing research findings.

  • Marketing budget summarizes necessary costs for evaluation and control.

Page 9: Marketing Research

  • Concise assessment of market and environment.

Page 10: Objectives and Organization of Research

  • Analyze market structure, competition, and distribution methods.

  • Evaluate both external environments and internal resources.

Page 11: Organization of Marketing Research

  • Start with demand and market analysis:

    • Identify and describe target market.

    • Conduct customer analysis and market segmentation.

Page 12: Analysis of Distribution Channels

  • Sales channels connect producers with end-users via:

    • Wholesalers,

    • Retailers,

    • Direct sales to consumers.

Page 13: Competition Analysis

  • Essential to assess intentions and positions of competitors.

  • Focus on key individual competitors or similar groups.

Page 14: Socio-Economic Environment Analysis

  • Research should include the industrial subsector and broader socio-economic factors.

Page 15: Corporate Analysis and Projections

  • Corporate analysis applies to existing enterprises:

    • Relevant for expansion or modernization projects.

  • Projections of future developments are critical for:

    • Scope and resource planning of the project.

Page 16: Marketing Strategy Outline

  • A project strategy identifies key strategic issues.

  • Importance of analyzing project significance varies per project.

Page 17: Geographical Area of Strategy

  • Identifying relevant market areas and competitive positions is essential.

  • Example: International competition in consumer goods.

Page 18: Market Share and Basic Strategies

  • Define long-term market position and target shares for investment projects.

  • Profitability usually correlates with market share.

Page 19: Cost Leadership Strategy

  • Focus on achieving lower costs than competitors to secure market position.

  • Requires large market share and cost advantages.

  • Key assets include:

    • High investment capacity.

    • Efficiency in processes and operations.

Page 20: Differentiation Strategy

  • Aims to create unique offerings that bind customers to the brand.

  • Protects against competition by reducing price sensitivity.

Page 21: Niche Strategy

  • Focus on a limited market segment or product line improves efficiency.

  • Skills derived from focusing on specific strategic aims.

Page 22: Product-Market Relations

  • Market penetration strategy: Enhance market efforts with existing products.

  • Market development strategy: Expanding into new areas/customers with existing products.

  • Product development strategy: Innovate to serve future customer needs.

  • Diversification: Entering new markets with new products.

Page 23: Competition vs. Market Expansion Strategy

  • Competition Strategy: Focus on winning market shares from rivals.

  • Market Expansion Strategy: Innovate to create or enlarge market volume.

Page 24: Outline of the Marketing Concept

  • Focus on target markets and customer needs through coordinated efforts.

  • Incorporates strategic long-term planning and operative management of marketing tools.

Page 25: Strategic Dimensions of Marketing Concept

  • Identify target groups for products to shape market relationships.

  • Important factors:

    • Market structure and volume,

    • Consumer behavior,

    • Competition and prices.

Page 26: Determining Marketing Objectives

  • Set clear goals for market reach, sales, and customer engagement:

    • Sales targets.

    • Brand awareness.

    • Customer satisfaction metrics.

Page 27: Marketing Strategy Determination

  • Establish clear plans to engage target customers and achieve business goals through:

    • Competitive positioning,

    • Market expansion tactics.

Page 28: Operative Dimensions of Marketing Concept

  • The marketing mix should align with consumer needs:

    • Product policy.

    • Pricing strategy.

    • Promotional activities.

    • Distribution channels.

Page 29: Determination of Marketing Measures

  • Involves selecting strategies such as advertising and promotions to meet business goals.

Page 30: Marketing Costs and Revenues

  • Marketing costs include:

    • Direct marketing costs tied to specific products,

    • Indirect costs related to overall marketing strategies.

  • Sales revenues represent total earnings from products before expenses; calculated using units sold x price per unit.

Page 31: Types of Costs in Marketing

  • Direct Costs: Specific to a product or service.

  • Indirect Costs: General marketing expenses, including overhead.

Page 32: Projection of Sales Revenues

  • Estimating future sales based on historical data, market trends, and production capacity.

Page 33: Factors Influencing Projections

  • Plant capacity and technology need to align with sales targets.

  • Forecast duration varies for different product types:

    • Long-term (15-20 years for machinery).

    • Short-term (5-10 years for short-life products).

Page 34: The Production Programme

  • A detailed plan aligning production targets with sales forecasts.

  • Ensures proper resource and technology management to meet market demand effectively.

Page 35: Final Notes

  • The importance of comprehensive market analysis and strategic marketing planning for successful investment projects.

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