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Market Research &

The 5 C’s JENNIFER DEBOER

The Marketing Plan 2

Market Research

Marketing Mix

Marketing Strategy

• Customer• Company• Competition • Context/Climate• Collaboration

• Product• Price• Place• Promotion

Marketing Plan

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Market Research

� Different types of market research:

1. Exploratory Research – to connect to your market; to gain ideas and insights; often qualitative research (e.g. “marketing artist”)

2. Descriptive Research – to provide numerical information; often

quantitative approach (e.g. “marketing scientist”)

3. Causal Research – to establish causality; may be qualitative,

quantitative, or mixed methods

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Marketing Artists v. Marketing Scientists

Recently, technology has driven marketing to become far more accountable, data driven, and innovative.

Ideally, each group will combine/balance marketing artistry with marketing science.

http://www.infographicszone.com/business/marketing-artists-vs-marketing-scientists

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Connecting

the 5 C’s5Context

(social, cultural, technological,

demographics, political, etc.)

Customers’Needs

Competitive Environment

Company’sCapabilities

(including collaboration)

Adapted from http://idea-sandbox.com/blog_images/strategic_sweet_spot.png

Connecting

the 5 C’s6Context

(social, cultural, technological,

demographics, political, etc.)

Customers’Needs

Competitors’

Offerings

Company’sCapabilities

(including collaboration)

Sweet

Spot!

Adapted from http://idea-sandbox.com/blog_images/strategic_sweet_spot.png

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Market Research Sources

� Review relevant websites (e.g. competitor websites, industry websites,

google scholar, etc.), online reports, advertisements, brochures

�Consult experts, managers, sales staff, customers, trade associations

� Speak to people with first-hand technical knowledge (i.e. foresters,

carpenters, builders, architects, developers, renovators, etc.);

conduct surveys, utilize focus groups

� Explore government publications/statistics, forest sector associations

data/media, university data/media, industry/trade publications

� Visit retailers, big box stores, department stores, trade shows, home

shows

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5 C’s of Market Research � 5 C’s of Market Research

� Customer: customer needs, customer segments, target markets, and market positioning

� Company: name, image, strengths, weaknesses, opportunities, and threats

� Competition: market environment, competitive rivalry (e.g. Porter’s Five Forces)

� Context/Climate: political, economic, social, and technological environment

� Collaboration: outside sources that may benefit the company

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1. The Customer

“A customer is the most important visitor on our premises.

He is not dependent on us. We are dependent on him.

He is not an interruption of our work. He is the purpose of it.

He is not an outsider on our business. He is part of it.

We are not doing him a favour by serving him.

He is doing us a favour by giving us an opportunity to do so.”

- Mahatma Gandhi, 1890

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Customer Research

Market Segmentation:

Identify bases for segmenting the market; develop segment profiles

Target Market: Develop measures

of market attractiveness; select target markets

Market Positioning: Develop

positioning for target market; develop a

marketing mix

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Market Segmentation 11

Geographic

•Local

•Cities

•Regions

•Province

•State

•Nation

•Country

•Continent

Demographic

•Age

•Gender

•Family

•Education

•Income

•Religion

Psychographic

•Lifestyle

•Social Class

•Personality

•Hobbies

•Interests

Behavioral

•User Status

•Usage Rate

•Benefits Sought

•Loyalty

•Occasions

•Attitudes

Segmentation Strategies

Target Market

Total Available Market

Potential Market

Target

Market

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Target Market = specific group of

consumers at which a company aims its

products and services.

• Total Available = market population

• Potential Market = how many can you

reach

• Target Market = who will be the most

likely customers?

Businesses must have a clear definition of

their target market as this can help reach

its target consumers and analyze what

their needs and suitability are.

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Market Positioning

� Positioning refers to the place that a brand occupies in the mind of the customer and how it is distinguished from products from competitors.

� In order to position products or brands, companies may emphasize the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.).

� Marketing Myopia:

https://hbr.org/video/3590615227001/the-explainer-marketing-myopia

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Think-Pair-Share #1

Discuss (1) your perceived market segment(s), target market, and market positioning

strategies as well as (2) how/where you will conduct customer research.

Marketing

Segmentation

Strategies

(Choose 1-2):

Target Market = specific group of consumers at which a company aims its products and

services; who will be the most likely customer?

Positioning: emphasize the distinguishing features of their brand (what it is, what it does and

how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or

luxurious, entry-level or high-end, etc.).

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Geographic

•Local

•Cities

•Regions

•Province/State

•Nation/Country

•Continent

Demographic

•Age

•Gender

•Family

•Education

•Income

•Religion

Psychographic

•Lifestyle

•Social Class

•Personality

•Hobbies

•Interests

Behavioral

•User Status

•Usage Rate

•Benefits Sought

•Loyalty

•Occasions

•Attitudes

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2. The Company

� The company analysis studies an organization’s mission, vision, strategies,

capabilities, product line, technology, culture, and objectives. It is useful in

understanding the existing and potential problems with the company’s

business.

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SWOT Analysis 16

Strengths:

What do you do well?

How do you stand apart

from you competitors?

What tangible and

intangible

assets/resources do you

have?

Opportunities:

What opportunities exist in

your market?

How can these

opportunities benefit your

business?

What market changes

might you anticipate?

Weaknesses:

Which areas need

improvement to compete

with competitors?

What does your business

lack?

Are resources limited?

Threats:

Who are your potential

competitors?

Which risks are associated

with your business/market?

What threatens your

marketing efforts?

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Internal SWOT Example 17

STRENGTHS WEAKNESSES

� Good log supply

� Lower log costs

� Part of financially strong group

with a long history

� Sawmills are well invested

� Large scale production capacity

– with a wide product range

� Lack of a clear strategic plan

o Management is currently done ad hoc

(“fighting fires”)

o No clear market strategy

� Too operationally focused

� Too little management capacity

� Lack of entrepreneurship

� There are no synergies between divisions

� Low yield compared to competitors Slow

decision making and implementation

� Limited value-added production capacity

External SWOT Example OPPORTUNITIES THREATS

� Develop a strategy based upon control of

the whole supply chain (forest to market)

� Consolidation of sawmills

� Follow through with development of

internal distribution organization

� Enhance value-added capacities that

match raw materials

� More selective production – matching

sales with individual mill’s capabilities

� Efficiency gains – improve yield

� Owners lose faith / patience

� Raw material supply declines if prices

drop

� Increased competition for small logs from

the fiber industry

� Competent people leave the

organization

� Rationalization would result in being

unable to supply the assortment that

merchants desire

� Knowledge gap – don’t have the in-

house capacity to develop a value-

added market strategy

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Think-Pair-Share #2

Work with your partner or

group to develop 1-2

strengths, weaknesses,

opportunities, and threats

facing your business.

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3. The Competition

Determine not only who competes with your company in meeting the

customer’s needs, but how competitive the market/environment is.

Is the competition active competitors or is potential threats?

What are competing products?

What are competitors’ strengths and weaknesses?

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Porter’s Five Forces 21

Porter's five forces analysis is a framework that attempts to analyze the level of competition within an industry and business strategy development.

Group Exercise 3

Work with your group to discuss and assign levels of low, medium, or high to each of the five forces (threat of new entry, competitive rivalry, supplier power, threat of substitution, and buyer power).

Then, assign a level of low, medium, or high to your overall competitive rivalry.

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Low-Medium?

Low High

Medium

Low

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4. The Context/Climate

� The context/climate analysis is the evaluation of the macro-

environmental factors affecting the business. The primary factors to

consider include political, economic, social/cultural, technological (PEST),

however, some models add legal and environmental (PESTLE).

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PEST Research

� Political = legislation (current and future), taxes, subsidies, grants, and general political climate

� Economic = industry factors, interest and exchange rates, local economic climate, global economic climate, market and trade cycles

� Social = consumer attitudes and opinions, ethical issues, lifestyle trends, demographics, media views, customer spending patterns, major events and influences

� Technological = competing technologies, innovation potential, research funding opportunities, maturity of technology, intellectual property issues

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Think-Pair-Share #4

Work with your group

to discuss one relevant

macro-environmental

factor from each PEST

category.

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Political = legislation (current and future), taxes, subsidies,

grants, and general political climate

Economic = industry factors, interest and exchange rates,

local economic climate, global economic climate,

market and trade cycles

Social = consumer attitudes and opinions, ethical issues,

lifestyle trends, demographics, media views, customer

spending patterns, major events and influences

Technological = competing technologies, innovation

potential, research funding opportunities, maturity of

technology, intellectual property issues

5. The Collaborator

� Collaborators are the external

stakeholders who team up with the

organization in a mutually beneficial

partnership.

� Agencies, suppliers, distributors,

referrals, and business partners are

typical collaborators; it is important to

understand their capabilities,

performances, and issues to better

identify business opportunities and

problems.

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Think-Pair-Share #5 27

Discuss a

potential,

beneficial

collaboration

relevant to

your product

or business.

Questions?

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Quiz!

Describe one method of market research:

(1) identify one specific method and

(2) describe how you could use this method to conduct

market research relevant to your Dragon’s Den

assignment.

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