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.