Market Analysis and Segmentation Strategies for Businesses

Posted on Dec 9, 2024 in Economy

Supply and Demand: Meeting Market Needs

Meeting market demand for goods and services

Market Research Domain

Market dominance and utilizing well-known market movements.

Geographical Domain

National – Peru
National Urban – Juliaca
National Rural – Taraco
Department – Puno/Sierra
District – Coast
Mountain City
Zone
District

Demographic Domain

Knowing the Interests of a Family

Number of family members
Area of the city where they live
Number of people working
Highest level of schooling of the household head

Knowing the Interests of an Industry

Number of workers and employees
Annual production
Economic sector
Number of professionals employed

Knowing the Interests of a Person

Marital status
Age
Sex
Average income

Demand Analysis

Demand analysis is a study of the factors and events which regulate the consumption of a good or service. It allows one to quantify the existing demand and project future demand. To perform demand analysis, one should determine its characteristics and segmentation by:

Who uses and/or will use the product?
Who uses the product?
Where is it used?
What are their habits?
Where do they buy it?
When do they consume it?
How is the product utilized?

Market Segmentation

Market segment examples: cabins, vests, booths. There are four criteria or bases for segmentation:

Socioeconomic Segmentation

High – residential, professional employees
Middle – employed
Low – glass of milk program

Geographical Segmentation

Region
City
Climate
Altitude

Demographic Segmentation

Age
Sex
Race
Education
Occupation
Nationality

Psychological Segmentation

Personality
Lifestyle
Social class

Behavioral Segmentation

Use and purchase habits

Requirements for Effective Segmentation

Measurable: Volume and characteristics should be measurable.
Accessible: It is necessary to have the physical ability to reach the segment.
Size: The segment should be large enough to generate profits.
Average Purchase: Average for the market segment.

Stages of Market Study

1st Stage: Regarding the demographic, national, and behavioral aspects of the product.
2nd Stage: Identify age, gender, and housing.
3rd Stage: Profile – this is the skeleton, the flowchart of how it is composed.

Evaluate consumer behavior, and consider the educational level of consumers. Evaluate the demographics, behavior, and consumables via ultrasound.

Present and Projected Demand

Determine Current Demand: The National Institute of Statistics and Informatics (INEI) provides data on consumption patterns, such as how many beers have been consumed in a given period.

Taking into account qualitative and quantitative methods:

Qualitative: When consumed, sales force, expert product reviews.
Quantitative: Linear projections for cities where the project will be implemented, non-linear time-series projections, and moving averages.

Supply Analysis

Supply analysis is the study of all companies that provide goods or services to the target market. Analysis also includes the study of companies that offer complementary or substitute products. The following questions should be answered:

How many companies produce? Meet the wholesalers, traders, and retailers.
How many will compete with the project, and who is the leader? Identify the type of leader.
What are the prices of inputs used in production?
How much is sold locally? Nationally? Exported?
What are the pricing structures?

Analysis of Potential Competitors

Potential competitors are all companies or production units that may come to operate in the same industry, adding value to our product.

Is there growth in the industry? Changes in tastes and preferences are important. This allows us to improve our product.
Who has economic and technological capacity?
Are there barriers to entry and exit in the market?
How attractive is the market in which it operates for others?

Market Analysis: Provider Market Structure

Fragmented or Perfect Competition Market

This is a market where there are a large number of producers and buyers, all in similar conditions to offer and demand existing products or services.

Oligopoly Market

This is a market where there are a few bidders and a high number of applicants. Only a handful have market control.

Monopolistic Market

This is a market where one company offers a service or good, such as cement in Juliaca.

Provider Characteristics

How many suppliers are there?
What is their capacity? Do they offer exclusive services?
What volume do they sell? What are the results?
What is the quality of their products?
Where are they located? Do they have a principal subsidiary or branch?
What are their rates? Do they consider my product as a key account?
What are their collection policies? Promissory notes and exchange rates.
What are their distribution channels? Aircraft and road.
Do they have enough financial backing?
What is their response capacity for an urgent request?

Marketing Analysis

The marketing mix, also called the 4 Ps, is the combination of all strategies involved in the marketing operations of an organization. These are:

Product: What product or service is produced?
Place: Where and how is the product offered?
Price: What is the price for the consumer?
Promotion: How is the offer communicated? (e.g., radio, TV, tastings)

Product

Product refers to a product or service that you offer.

Aspect to Consider

Recommendations

– Aspect of the good or service should be based on customer needs.

– Design, packaging, quality assurance, maintenance, and repair service.

– Must have quality in all points of sale.

– Should be available in all commercial areas.

Price

Price is the value that is set for the good or service.