Table of Contents
2 - External Analysis: Market..............................................................................................2
2.1 Purpose, Use and Sources.......................................................................................................2
2.2 Market and Market Development...........................................................................................2
2.2.1 Definitions...............................................................................................................................................2
2.2.2 Market Development: The Product Life Cycle (PLC)..............................................................................3
2.2.3 Classification of Demand: Initial, Additional, Replacement and Potential Demand..............................3
2.2.4 Different Demand Levels and Their Relation to the Definitions............................................................3
3 - Market Analysis: Segmentation.....................................................................................5
Why Segmentation? .....................................................................................................................5
Requirements for Effective Segmentation......................................................................................................6
Segmentation Criteria (customer profiles)......................................................................................................6
Method 1: Segmentation Based on Category Development Index (CDI).......................................7
Method 2: Brand Development Index...........................................................................................7
Brand Opportunity Index.................................................................................................................................8
Segment > Differentiation...............................................................................................................................8
Segment > Differentiation > Budget allocating...............................................................................................8
Method 3: Segmentation based on Consumer panels...................................................................9
4 - Statistics......................................................................................................................10
Part 1..........................................................................................................................................10
04 460 theory Q MA v2..................................................................................................................................10
Part 2 - Regression......................................................................................................................11
5 - Digital Marketing........................................................................................................12
Digital Metrics.............................................................................................................................12
05_ex01_keywords - with help.....................................................................................................................12
05_ex02_fashionblog....................................................................................................................................12
05_ex03_Dell.................................................................................................................................................12
Email Marketing..........................................................................................................................13
05_ex04_ShoesOnline...................................................................................................................................13
05_ex05_barnesnoble...................................................................................................................................13
7 - Cost Calculation Margins.............................................................................................14
, 2 - External Analysis: Market
2.1 Purpose, Use and Sources
It's important that you can make a correct estimate of the market demand.
Market demand determines potential sales.
2.2 Market and Market Development
2.2.1 Definitions
Market = a place (physical or virtual) where (potential) customers (=demand) and suppliers (=supply)
meet each other
Market potential = a theoretical quantity, e.g. the maximum sales of a certain product that all
suppliers jointly could obtain with maximum effort, in a certain period in a certain market. It can not
be influenced by single company.
Market potential = # consuming units * quantity purchased per unit * purchasing frequency
basis * intentensity * frequency
Market potential should be compared with the market forecast.
If the market potential is greater → then an effective sales and marketing campaign can fill up this
'gap' which is called potential demand.
Market forecast = a realistic estimate or prediction of the total sales by all suppliers in a certain
period. It is a part of the market potential.
Potential demand = market potential - market forecast
¿ customers that purchased the product ∈a certain category
Market penetration rate % =
¿ total population
¿ customers that purchased the product of a certain brand
Brand penetration rate % =
¿ total population
The penetration rate rives an indication of the popularity of a brand (brand penetration) or
category/product form (market penetration).
Sales potential = an estimate of the optimum sales of a certain product that an individual
organization can achieve, in a certain period. It can be influenced by the company.
Sales forecast = an organization's expected turnover of a product, in a certain period. It is influenced
by marketing and sales department of the organization itself, but also by sales potential and market
forecast.
Primary demand = the total sales volume effectively purchased in a certain period. This means that
it is not a prediction nor an estimate.
e.g. According to the market research company Nielsen there were 25 million bottles of health
drinks sold in the province of Leicestershire last year.
2 - External Analysis: Market..............................................................................................2
2.1 Purpose, Use and Sources.......................................................................................................2
2.2 Market and Market Development...........................................................................................2
2.2.1 Definitions...............................................................................................................................................2
2.2.2 Market Development: The Product Life Cycle (PLC)..............................................................................3
2.2.3 Classification of Demand: Initial, Additional, Replacement and Potential Demand..............................3
2.2.4 Different Demand Levels and Their Relation to the Definitions............................................................3
3 - Market Analysis: Segmentation.....................................................................................5
Why Segmentation? .....................................................................................................................5
Requirements for Effective Segmentation......................................................................................................6
Segmentation Criteria (customer profiles)......................................................................................................6
Method 1: Segmentation Based on Category Development Index (CDI).......................................7
Method 2: Brand Development Index...........................................................................................7
Brand Opportunity Index.................................................................................................................................8
Segment > Differentiation...............................................................................................................................8
Segment > Differentiation > Budget allocating...............................................................................................8
Method 3: Segmentation based on Consumer panels...................................................................9
4 - Statistics......................................................................................................................10
Part 1..........................................................................................................................................10
04 460 theory Q MA v2..................................................................................................................................10
Part 2 - Regression......................................................................................................................11
5 - Digital Marketing........................................................................................................12
Digital Metrics.............................................................................................................................12
05_ex01_keywords - with help.....................................................................................................................12
05_ex02_fashionblog....................................................................................................................................12
05_ex03_Dell.................................................................................................................................................12
Email Marketing..........................................................................................................................13
05_ex04_ShoesOnline...................................................................................................................................13
05_ex05_barnesnoble...................................................................................................................................13
7 - Cost Calculation Margins.............................................................................................14
, 2 - External Analysis: Market
2.1 Purpose, Use and Sources
It's important that you can make a correct estimate of the market demand.
Market demand determines potential sales.
2.2 Market and Market Development
2.2.1 Definitions
Market = a place (physical or virtual) where (potential) customers (=demand) and suppliers (=supply)
meet each other
Market potential = a theoretical quantity, e.g. the maximum sales of a certain product that all
suppliers jointly could obtain with maximum effort, in a certain period in a certain market. It can not
be influenced by single company.
Market potential = # consuming units * quantity purchased per unit * purchasing frequency
basis * intentensity * frequency
Market potential should be compared with the market forecast.
If the market potential is greater → then an effective sales and marketing campaign can fill up this
'gap' which is called potential demand.
Market forecast = a realistic estimate or prediction of the total sales by all suppliers in a certain
period. It is a part of the market potential.
Potential demand = market potential - market forecast
¿ customers that purchased the product ∈a certain category
Market penetration rate % =
¿ total population
¿ customers that purchased the product of a certain brand
Brand penetration rate % =
¿ total population
The penetration rate rives an indication of the popularity of a brand (brand penetration) or
category/product form (market penetration).
Sales potential = an estimate of the optimum sales of a certain product that an individual
organization can achieve, in a certain period. It can be influenced by the company.
Sales forecast = an organization's expected turnover of a product, in a certain period. It is influenced
by marketing and sales department of the organization itself, but also by sales potential and market
forecast.
Primary demand = the total sales volume effectively purchased in a certain period. This means that
it is not a prediction nor an estimate.
e.g. According to the market research company Nielsen there were 25 million bottles of health
drinks sold in the province of Leicestershire last year.
