Fluent Essays

Reflect on the assigned readings for the week. Identify what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding. Also, provide a graduate-level response to each of the following questions:This question gives you more market sizing practice (it’s a skill you’ll need). Using the logic from the chapter, try to estimate the possible market for the number of pairs of football pants a manufacturer could sell in your city. Hints: Go online and find the number of high schools in your city’s school districts. If you live in a large city, focus on only the largest school district.Assume that 90\% of those high schools have both a varsity football team (with 40 players) and a junior varsity team (35).Assume also that each player gets 2 pairs of game pants (one in the dark school colors, and one in the light), and on average, 1.5 pairs of white pants for practice [Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion]. [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review][Your initial posting should be completed by Thursday at 11:59 p.m. EST. All peer replies must be completed by Sunday at 11:59 p.m. EST]Attached PPT document with the question chapter_4._targeting.pptx Unformatted Attachment Preview © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. © 2018 Cengage Learning®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4 Targeting © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 2 Marketing Framework © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 3 Discussion Questions #1 1. Which segment does Mountain Dew target? 2. Why do you think it is pursuing this target? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 4 What Is Targeting and Why Do It? • Targeting is selecting one or more market segments to pursue • Why? It is hard to be all things to all people © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 5 How to Choose a Target (slide 1 of 2) • Bottom up: profitability • How profitable will this segment be? • Function of the current market size, its anticipated growth, current and anticipated levels of competition, customer behavior and expectations • Top down: strategic fit • Does this market fit with who we are? • Understand firm’s resources, strengths, weaknesses, brand personalities, etc. © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 6 Strategic Criteria for Targeting • “Go for it” and “avoid” are easy decisions © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 7 How to Choose a Target (slide 2 of 2) • “Hmms” are dilemma scenarios • The video game market is attractive but you have no strength in this market • Can you develop a strength in video games? How much will this cost? etc. • Your strength is in thumb drives but the market is unattractive • Is there any segment that sees value in thumb drives? Can we redesign the product to give it value? How much will this cost? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 8 SWOT (slide 1 of 3) © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 9 SWOT (slide 2 of 3) • Strengths and weaknesses are relative to competitors • Should include customers’ perspectives • Requires market research • Strategies: • Leverage firm’s strengths • Improve or design around firm’s weaknesses © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 10 Discussion Questions #2 1. Assume you want to start your own business. What are your strengths and weaknesses? 2. How might you leverage your strengths and address your weaknesses? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 11 SWOT (slide 3 of 3) • Opportunities and threats are usually driven by changes in one of the 5Cs For example: • The rise in Internet access • Growing Hispanic population in United States • New competitors • New offerings from existing competitors • Lack of competitors within a market • Aging baby boomers © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 12 Competitive Analysis • Companies typically assess their strengths relative to their competitors © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 13 Competitive Comparisons • Perceptual maps show customers’ perceptions of firm’s strengths/ weaknesses relative to competitors • In many product categories, price and quality are key • Quality is defined by the industry © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 14 Competitive Comparisons Questions #1 • Which competitors do we dominate on price? Quality? • If we pursue a price-sensitive target, which competitor would be most challenging? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 15 Competitive Comparisons Questions #2 • Which segment would you pursue? Why? • Why are the largest segments less attractive to the firm? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 16 Sizing Markets Considerations • Some estimates are less firm than others • Give intervals and “what if” scenarios • Each estimate should be as precise as possible • The more precisely defined the segment, the easier the numbers are to estimate © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 17 Anatomy of a Market Segment © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 18 Concept in Action: Market Sizing (slide 1 of 2) • How much advice can I sell? • Use Factfinder.census.gov to estimate © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 19 Concept in Action: Market Sizing (slide 2 of 2) • 28,000 is the market potential • Segments that refine total U.S. population • Age 25–44 • Assume 26.6\% of total population • Professional careers • Assume 18\% professionals • Local population • Assume 580,000 in Las Vegas © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 20 Concept in Action: Discussion Questions 1. Is the market attractive? 2. Which numbers do you have the least confidence in? © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 21 Concept in Action: Sensitivity Analyses • Conduct sensitivity analyses on the harder to verify numbers • Increase and decrease the numbers and determine the impact on market size • This process will determine – Which numbers have the biggest impact » Conduct more research to ensure accuracy – The upper and lower bounds of the market, which will help planning © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 22 Concept in Action: Additional Factors (slide 1 of 2) • Additional factors—estimate growth • Use census to determine size of additional cohorts • Obtain sales data for previous years and extrapolate using a moving average • e.g., 3-year moving average would average years 1, 2, 3; then average years 2, 3, 4; then average years 3, 4, 5; then fit a curve to the data (regression) © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 23 Concept in Action: Additional Factors (slide 2 of 2) • Additional factors—profitability • Profitability per customer likely depends on their segment • Quality of employees affects costs • Additional factors—competition • How fierce is the competition? Is there one firm or 30 firms? Does the one firm dominate the market? • Search Yellowpages.com for competitors © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 24 Concept in Action: B2B Market Sizing • Census.gov cross-classifies businesses by sector (e.g., NAICS codes) and size (e.g., by sales or number of employees) • Markets for some products or services might be limited only by imagination © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 25 Market Sizing • Use the purchase decision-making process: Awareness, trial, repeat, etc. • Population × \%aware× \%trial× \%repeat • Multiply by how much & how often buy • (Population× \%aware× \%trial× \%repeat)× Per annum purchase • Multiply by average retail price paid to translate numbers into money © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 26 Managerial Recap • Targeting is important but not difficult • Choose target by iterating between • Corporate fit • Utilize SWOT to help clarify corporate fit • Segment sizing • Use secondary data (e.g., demographics) • Use customer survey data on attitudes and preferences and use behavioral data to smooth out the size estimation © 2018 Cengage Learning.® May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 4. 27 ... Purchase answer to see full attachment