chapter 2 Framing the Market Opportunity Mc GrawHillIrwin
- Slides: 37
chapter 2 Framing the Market Opportunity Mc. Graw-Hill/Irwin © 2004 The Mc. Graw-Hill Companies, Inc. , All Rights Reserved.
Framing the Market Opportunity — Today’s Objectives will be to: Introduce the framework for market opportunity analysis Examine three basic “value-types” Discuss the identification of unmet and under-served needs Explore how customers are segmented and targeted Examine the role of resources in evaluating market opportunities Discuss how to assess the attractiveness of a market opportunity Examine e. Bay’s market opportunity
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Framework for Market Opportunity Seed Opportunity in Existing New Value System Influenced by the New Economy Identify Unmet and Underserved Need(s) Identify Target Segment(s) Declare Company’s Resource-Based Opportunity for Advantage Assess Competitive, Technical, and Financial Opportunity Attractiveness Make “Go / No Go” Assessment • Competition occurs across industries rather than within industries • Competitive behavior occurs at unprecedented speed • Competition occurs between alliances of companies rather than between individual companies • Easier to influence customer behavior because still in early stages of being defined • Industry value chains are being reconfigured
Exhibit 2. 1: Framework for Market Opportunity
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Exhibit 2. 2: Three Types of Basic Value Trapped Value More Efficient Markets More Efficient Value Systems New-to-the-World Value Disrupt Pricing Customize Offerings Ease Access Build Community Radically Extend Reach Introduce New Functionality or Experience Hybrid Value
Exploring Basic Value Trapped Value New-to-the-World Value More efficient markets lower search and transaction costs Customizing offerings allows customers to add and remove features • Bizbuyer. com • Yahoo • Lending Tree Inc. • Quicken. com • Off. Road Capital Corp. Build communities to leverage customers’ participation More efficient value systems compress or eliminate steps in an existing value system • Zeal. com • Amazon. com Hybrid Value Disrupt pricing and change pricing-power relationships • My. Simon. com Enable ease of access and help customers find products • Abebooks. com Extend reach and welcome distant customers • Distance education Introduce new functionality to transform all or part of an industry value chain • e-books • Internet telephony
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Customer Decision Process A framework to look systematically for unmet or underserved needs Prepurchase Origination What prompts the customer to action? Information Gathering What factors influence the customer’s decision? Evaluation What attributes of the product does the customer consider? Purchase Decision What options does the customer identify? What decision(s) does he make? Postpurchase Evaluation and Behavior What does the customer do about his decision? Because value creation is based on understanding and meeting customer needs.
Exhibit 2. 3: Decision for Purchasing a Camera Personal use Origination Prepurchase Information Gathering Evaluation Purchase Type (digital/film) Features Brand/ manufacturer Cost Complexity Usage occasions Reviews Past Experiences Budget constraints Film Digital Instant Body Type Lens Purchase Decision 35 mm Postpurchase Gift Postpurchase Evaluation and Behavior APS Print quality Basic Fully loaded Throwaway Reliability Standard SLR Learning curve/ ease of use Likelihood of repeat purchase or recommendation Point & shoot Zoom Range of accessories Fixed
Vacation Travel Destination Decision Event Break Origination Holiday Prepurchase Information Gathering Number and Relationship of Travelers Honeymoon Reunion Duration and Distance Budget Travel Agent Activities Weather Past Experiences Travel Guides Evaluation Books Brochures Chat rooms Vacation Package Purchase Decision World Tour Comfort Postpurchase Independently Planned Small-Town Discovery Cruise Style Beach Escape Photos Postpurchase Evaluation and Behavior Likelihood of Repeat or Referral Outdoor Adventure Degree of Memorability
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Exhibit 2. 4: Segmentation Approaches
Effective Segmentation Requirements Customers must demonstrate needs, aspirations or behavioral patterns that are similar within a segment and different across segments – A distinction between a price-sensitive and a quality-seeking segment is meaningful, since the two segments demonstrate distinguishable sets of needs A company must be able to reach customers within each segment through effective and targeted marketing programs – A customer segment consisting of customers with blue eyes is not actionable, since it is very hard to identify and reach only customers with blue eyes Segments must be large and profitable enough to make the investment in serving them worthwhile – My. CFO. com is targeted toward high-net-worth individuals, helping them manage their portfolios; even though the number of those individuals is small, the dollar amount managed is sizeable, thus constituting a substantial segment Key characteristics of the segments (e. g. , size and spending patterns) must be easy to measure Meaningful Actionable Substantial Measurable Source: Philip Kotler, Marketing Management (1997), p. 269
Exhibit 2. 6: Consumer Digital Camera Purchasing Segmentation
Consumer E-Books Purchasing Segmentation Purchase Occasion Self-Consumption Gift Institutional By Request Reader College Education Hobby or Special Interest In-Depth Topical Insights and Discussion Reference and Research Materials Moderate Education Required Reading For Display Entertainment Limited Education How-To Information Compendium by Topic How-To Information Advice and Recommendations
Number of E-Books Purchased Purchase Occasion Self-Consumption Gift Institutional By Request Reader College Education Hobby or Special Interest In-Depth Topical Insights and Discussion Reference and Research Materials Moderate Education Required Reading For Display Entertainment Limited Education High How-To Information Moderate Low Compendium by Topic How-To Information Advice and Recommendations
Ideal E-Book Delivery Mechanisms Purchase Occasion Self-Consumption Gift Institutional By Request Reader College Education Hobby or Special Interest In-Depth Topical Insights and Discussion Reference and Research Materials Moderate Education Required Reading For Display Entertainment Limited Education New Economy How-To Information Either How-To Information Traditional Compendium by Topic Advice and Recommendations
Amazon. com Homepage for Two Different Customers
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Specifying a Resource System Identify core benefits in the value proposition or cluster Identify capabilities that relate to each benefit Link resources to each capability Identify to what extent the firm can deliver each capability Identify partners who can complete capabilities
Assessing the Quality of a Resource System Uniqueness Links Sustainability Good resource systems provide benefits, capabilities and activities that are different from those of competitors Good resource systems have links between capabilities and benefits, among capabilities, among resources, and between virtual-world and physical-world business systems Good resource systems are difficult for competitors to replicate Source: Philip Kotler, Marketing Management (1997), p. 269
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Exhibit 2. 8: Competitor Profiling — Eastman Kodak
Exhibit 2. 12: Kodak’s Overall Opportunity Assessment Positive Factor Neutral Factor Negative Factor Competitive Vulnerability Technical Vulnerability Magnitude of Unmet Need Interaction Between Segments Likely Rate of Growth Technological Vulnerability Market Size Level of Profitability
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Exhibit 2. 13: EBay’s Financial Growth
Exhibit 2. 14: Market Share — EBay Yahoo 3% Amazon 2% Egghead 5% u. Bid 17% e. Bay 73%
Exhibit 2. 15: EBay — Defining the Value System Trapped
Exhibit 2. 16: EBay — Unmet and Underserved Needs Auction House / Dealer Buyer Realize he or she would like to sell something Like to browse or have a specific interest or need Research the value of the item and a possible channel for exchange Research venues / channels for procurement Choose exchange agent and negotiate terms Establish and agree to selling / buying process Deliver merchandise Set auction schedule and choose venue Determine appropriate schedules and locations Hold auction Attend auction Choose procurement channel Notification of when specific items are being sold Easy channel / venue access Objective listing agent Purchase Pre-Purchase Seller Passive search and decision process Easy listing process and objectives Ability to list modestly priced items Improved availability and access Simplified shipping; elimination of two-stage process Conduct preliminary research on items Time to conduct due diligence research on items Bid Time to think about purchase Post-Purchase Win? Receive payment Pay Ease of payment Take commission Receive merchandise Reasonable agent fees Minimized time lag between merchandise surrender and compensation Pass a percentage of proceeds to seller
Exhibit 2. 17: Potential EBay Customers History of Responding to Promotions High Income Active Deal-Makers with Means Active Frugal Collectors Passive Collectors Ease Convenience Moderate Income Active Frugal Collectors Limited Income Price-Sensitive Limited Accessibility or Options
Exhibit 2. 18: EBay Overall Opportunity Assessment Positive Factor Neutral Factor Negative Factor Competitive Vulnerability Magnitude of Unmet Need Interaction Between Segments Likely Rate of Growth Technological Vulnerability Market Size Level of Profitability
Chapter 2: Framing the Market Opportunity Analytic Framework Three Basic “Value Types” Use of the Customer Decision Process to Identify Unmet and Underserved Needs Segmentation and Targeting The Role of Resources in Evaluating Market Opportunity Assessing the Attractiveness of a Market Opportunity EBay’s Market Opportunity Conclusion
Framing the Market Opportunity — Conclusion A firm needs to follow a rigorous approach to correctly isolate market opportunities — the market opportunity analysis framework is a sixstage process that addresses this need The six stages of the framework are: 1) seed opportunity in an existing new value system, 2) identify unmet and underserved need(s), 3) identify and choose target segments, 4) declare the company’s resource-based opportunity for advantage, 5) assess competitive, technological and financial opportunity attractiveness and 6) conduct a “go/no-go” assessment In assessing the attractiveness of an opportunity, four dimensions should also be considered: 1) competitive intensity, 2) customer dynamics (e. g. , unmet needs, likely rate of growth, etc. ), 3) technological vulnerability and 4) microeconomics (industry size and profitability)
- Framing the market opportunity
- Combination framing system
- Tail joist definition
- Longitudinal framing system
- Opportunity recognition and opportunity assessment plan
- Market leader market challenger market follower
- Segmentation, targeting, positioning
- Global market opportunity assessment
- Market opportunity analysis framework
- Floor framing unit 42
- Entrepreneurial trends
- Chapter 3 recognizing opportunity
- Equal opportunity and the law chapter 2
- Chapter 3 recognizing opportunity
- Recognizing opportunity
- Hình ảnh bộ gõ cơ thể búng tay
- Frameset trong html5
- Bổ thể
- Tỉ lệ cơ thể trẻ em
- Voi kéo gỗ như thế nào
- Tư thế worms-breton
- Chúa yêu trần thế alleluia
- Môn thể thao bắt đầu bằng chữ f
- Thế nào là hệ số cao nhất
- Các châu lục và đại dương trên thế giới
- Công thức tính thế năng
- Trời xanh đây là của chúng ta thể thơ
- Mật thư anh em như thể tay chân
- Phép trừ bù
- Phản ứng thế ankan
- Các châu lục và đại dương trên thế giới
- Thơ thất ngôn tứ tuyệt đường luật
- Quá trình desamine hóa có thể tạo ra
- Một số thể thơ truyền thống
- Cái miệng nó xinh thế chỉ nói điều hay thôi
- Vẽ hình chiếu vuông góc của vật thể sau
- Nguyên nhân của sự mỏi cơ sinh 8
- đặc điểm cơ thể của người tối cổ