Finally, to extend your product's life cycle, you can modify the product or change its packaging. For example, a toothpaste manufacturer recognized that large-sized toothpaste tubes were difficult for travelers to pack. By offering smaller tubes at reduced prices, the manufacturer effectively created a new product and established the opportunity to attract new customers.
Identifying Target Opportunities
· Identify a target opportunity
Target opportunity
A target opportunity exists when circumstances to enter a particular market match your company's mission statement and core competencies. For example, suppose your organization manufactures razors and shaving cream for men. Target opportunities for your company may include hair or beard coloring gels, disposable or collapsible razors for travel convenience, or razors and lotions for women.
Identify target opportunities with SWOT
One way to identify target opportunities for your organization is to conduct research and analysis, such as a SWOT analysis. By performing a SWOT analysis to evaluate your company's strengths and weaknesses, you can determine how the business' resources, capabilities, and core competencies match the requirements needed to fulfill potential opportunities.
Another method to identify target opportunities is to gather feedback directly from consumers regarding their needs and desires. The information you collect combined with the SWOT analysis will help you identify customers' needs and decide whether your company is able to fulfill them.
Target opportunity considerations:
· Product demand
· Competition
· Environmental forces
When determining target opportunities, you must also consider demand for the product, the competition in the market, and economic, social, and technological environmental forces. Proper research and evaluation of these areas will help you determine the profitability of the opportunity.
Defining Market Segmentation
· Identify the definition of market segmentation
· Identify characteristics to consider when implementing a market segmentation strategy
· Identify steps of the market segmentation process
Market segmentation:
Consumers share characteristics
Market segmentation is the process of dividing an entire market into segments comprised of consumers who share similar characteristics. By evaluating market segments, rather than the entire market, you can produce a marketing mix designed especially for the people or organizations you want to reach.
Identifying Target Opportunities
· Identify a target opportunity
Target opportunity
A target opportunity exists when circumstances to enter a particular market match your company's mission statement and core competencies. For example, suppose your organization manufactures razors and shaving cream for men. Target opportunities for your company may include hair or beard coloring gels, disposable or collapsible razors for travel convenience, or razors and lotions for women.
Identify target opportunities with SWOT
One way to identify target opportunities for your organization is to conduct research and analysis, such as a SWOT analysis. By performing a SWOT analysis to evaluate your company's strengths and weaknesses, you can determine how the business' resources, capabilities, and core competencies match the requirements needed to fulfill potential opportunities.
Another method to identify target opportunities is to gather feedback directly from consumers regarding their needs and desires. The information you collect combined with the SWOT analysis will help you identify customers' needs and decide whether your company is able to fulfill them.
Target opportunity considerations:
· Product demand
· Competition
· Environmental forces
When determining target opportunities, you must also consider demand for the product, the competition in the market, and economic, social, and technological environmental forces. Proper research and evaluation of these areas will help you determine the profitability of the opportunity.
Defining Market Segmentation
· Identify the definition of market segmentation
· Identify characteristics to consider when implementing a market segmentation strategy
· Identify steps of the market segmentation process
Market segmentation:
Consumers share characteristics
Market segmentation is the process of dividing an entire market into segments comprised of consumers who share similar characteristics. By evaluating market segments, rather than the entire market, you can produce a marketing mix designed especially for the people or organizations you want to reach.