market analysis - what's your usp?

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If You BUILD It…Will They WANT It?Validating Market Potential & Your USP

WHY Conduct A

Market Analysis? If

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What Is A Market Analysis?Process of collecting/analyzing

informationMarket Size/DemandCompetition - Direct/IndirectCustomer Needs - Filled/UnfulfilledPricing Restrictions

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What Is A Market Analysis?Position firm within market for…

Maximum brand exposure Maximum revenue capture

Litmus TestMarket Validation

Saving time, energy & money

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What Is A Market Analysis?Why Market Validation?

Success in numbers (Ready, Fire, Fire, Aim) No longer adequate

More strategic approach (Ready, Aim Fire)

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Develop Strategy Focus on Target Know Target

What Is A Market Analysis?Why Market Validation?

21st century global market opened up more competitive resourcesIntroducing effective outsourcingProviding more opportunities for smaller

businesses to compete in market

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What Is A Market Analysis?Why Market Validation?

Market insight is new competitive advantage

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Market Validation ProcessLaying a REALISTIC Foundation

Evaluate source of product/serviceWork ExperienceConsumer ExperienceMajor Event

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Market Validation ProcessLaying a REALISTIC Foundation

Underlying source speaks volumes about market potential (Domain Knowledge)Speaks to opportunityAbility to effectively pursue it

Work/Job experience fundamentally best type of opportunity to pursue

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Market Validation ProcessExamining The Market

How BIG is it?Indicates ability to support product/service

How Fast is it Growing?Indicates room and capacity for growth

(scalability)Represents more customers entering

market,,,Also, more competition

What percentage of the Market contains your ideal customer?

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Market Validation ProcessDetermining Market Share Potential

Assess target market’s size using the following criteria:Geographic targeting

Where your customers are and how many are there

Customer targetingBreak down further by customer profiling

Product-oriented targetingCalculate sales history of products in your

market

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Market Validation ProcessDetermining Market Share Target

Use several approaches to calculate targeted market share:Total Sales Volume

Total Revenue/Potential Market Share Dollars = % of market capture needed in dollars to succeed

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Market Validation ProcessDetermining Market Share Target

Use several approaches to calculate targeted market share:Number of Potential Customers

Average Unit Price x Number of Customers Needed = Gross Revenue dollars

Number of Needed Customers/Total Number Potential Customers = % of market capture in customers

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Why is this important?Adds validity to sales/operational

forecastingKnowing targeted market capture provides

basis for strategically planning…Sales staffing needs and targeted

objectivesOperational staffing needs Procurement purchasingService and Quality Control programming

needs

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Why is this important?Provides platform for Marketing

effortsKnowing targeted market provides

starting point for marketing campaignMarketing campaign is designed

specifically to capture target market

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Let’s Recap!You now know…

Who your IDEAL customer is (Determined in Session #2 Marketonomy)

How BIG your potential market isWhat percentage of the overall market

you want to captureWhat’s next?

Uncovering who your competition is!Knowing who else is reaching for the same

Brass Ring!

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Competitive AnalysisWhy do I need to do a Competitive

Analysis?An extensive analysis of your competition will

provide the platform for meeting 4 objectives:Highlighting how your

existing and potential customers rate your competition.

Give you insight into your competitor's strengths and weaknesses

Provides a mechanism to develop effective value strategies within your own marketing campaign

Offers insight into your company’s USP

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Competitive AnalysisBenchmarking

What is Benchmarking?The process of comparing your firm’s

practices and performance to that of your most successful competitor(s) “best” practicesPurpose: to provide best quality and service

to customersThree primary classifications

InternalCompetitiveStrategic

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BenchmarkingInternal Benchmarking

Used when a company already has established and proven best practices in place and they simply need to share themGathers data about the various

departments within an organization and compares the departments to one another

May be necessary if comparable industries are not readily available If

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BenchmarkingCompetitive Benchmarking

Used when a company wants to evaluate its position within its industry and how it measures up to the competitionMay be used when a company needs to

identify industry leadership performance targets

Helps to point out gaps within the market that competition not meeting

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BenchmarkingStrategic Benchmarking

Used used when identifying and analyzing world-class performanceTakes a long-term view of your company’s

direction relative to the future strategies of competing companies

Often used when a company needs to go outside of its own industry If

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BenchmarkingDangers of Benchmarking

Benchmarking process becomes routine…not challenging…pushing boundariesi.e. Xerox – comparing companies overall

performance to those of competitorsIgnoring market benchmarks

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BenchmarkingDangers of Benchmarking

Resistance to ChangeEmployees and managers will not be

receptive to the proposed changes

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BenchmarkingDangers of Benchmarking

Stunting InnovationCannot simply use data to completely

design a plan for market domination or product developmentShortsighted Ignore wants/needs of specific target marketThink Outside the BOX!

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BenchmarkingDangers of Benchmarking

ComplacencyIt’s great to be #1…but keeping blinders

on allows competition to jump aheadRemain on look out for ways …

Do better business Provide better service Introduce better products

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Developing Your USPARMED and READY!

You now have all of the information neededCustomer IdentificationTarget Market (Size and Potential)Market and Competitive Analysis

Piece de Resistance!Developing your USP!

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Developing Your USPWhat is my USP?

Unique Selling PropositionWhat makes your

business stand out from the crowd and tells your customers what is special about youWhat it says about YOU!

You know what your customers want/need Your product/service is better and why You are committed to meeting the needs of

your customers…for the long term If Y

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Developing Your USPHow To Define My USP

List what’s known about target marketList all products/services you provide

All potential USPs for your companyBenchmark these against the

competition and trends in marketLook for gaps within the market not being

metBenchmark these gaps

against what you do well If Y

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Developing Your USPHow To Define My USP

List words/visuals for each USP that brings it to life

Conduct primary research with people within industry to narrow down USP selections and find best oneMonitor reactionsAsk for feedback

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Developing Your USPHow To Define My USP

Double check USPDoes it convey one strong benefit?Is it memorable?Is it clear and unique to your (brand)?Can you deliver what you promise?Is it unique…competition can’t claim

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Developing Your USPHow To Define My USP

Is it something easily communicated?Should drive the development of

companyShould drive your marketing strategy

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ConclusionDevelopment of my USP involves…

Knowing my marketSize, Growth and CompositionChanging/Influencing TrendsHow much I want/need to capture

Knowing Who My IDEAL Customer IsDemographic and Psychographic make-upHow to reach themWhat their wants/needs are

Knowing Who my competitors areWhat are their weaknesses/strengthsHow I can deliver a better product/service

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Questions?

Danna Olivo407-405-6410

dolivo@davna.com

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