Marketing Research: Find Breakthrough Opportunities

The marketing strategy planning process involves careful evaluation of the market opportunities available before narrowing down to focus on the most attractive target market and marketing mix (review Exhibit 2-10). As the HP case illustrates, a manager who develops an understanding of the needs and characteristics of

specific groups of target customers within the broader market may see new, breakthrough opportunities. But it’s not always obvious how to identify the real needs of a target market—or the marketing mix that those customers will see as different from, and better than, what is available from a competitor. This chapter covers

concepts and approaches that will help you to succeed in the search for those opportunities.

What is a company’s market?

Identifying a company’s market is an important but sticky issue. In general, a market is a group of potential customers with similar needs who are willing to exchange something of value with sellers offering various goods or services—that is, ways of satisfying those needs. However, within a general market, marketing oriented managers develop marketing mixes for specific target markets. Getting the firm to focus on specific target markets is vital.

Don’t just focus on

the product

Some production-oriented managers don’t understand this narrowing-down process. They get into trouble because they ignore the tough part of defining markets. To make the narrowing-down process easier, they just describe their markets in terms of products they sell. For example, producers and retailers of greeting

cards might define their market as the “greeting-card” market. But this production oriented approach ignores customers—and customers make a market! This also leads to missed opportunities. Hallmark isn’t missing these opportunities. Instead, Hallmark aims at the “personal-expression” market. Hallmark stores offer all kinds

of products that can be sent as “memory makers”—to express one person’s

1: Name the broad

product-market

First, decide what broad product-market the firm wants to be in. This may be stated in the firm’s objectives. Or if the firm is already successful in some product market, its current position might be a good starting point. Try to build on the firm’s strengths and avoid its weaknesses and competitors’ strengths. Available resources,

both human and financial, will limit the possibilities—especially if the firm is just getting started

There has to be some balance between naming the product-market too narrowly (same old product, same old market) and naming it too broadly (the whole world and all its needs). Here the firm decides on the whole market of motel users in one city—because this is a city where the number of visitors is growing and where the