The Role of Marketing Analysis in Management - Essay Example

? Marketing Analysis of Marketing analysis involves an organized way of acquiring knowledge about a specified market, its structure and composition. Moreover, it intensively involves the study on customers who buy or might buy from a certain seller (Kotler, 2008). Market analysis comprehensively gives unbiased answers to some questions like; Who will buy a certain product, the price to be charged, the size of the market to be served, who else is offering similar product and at what cost, and what market constraints exist. Furthermore, marketing analysis plays a great role in providing reliable, precise, appropriate and current information to the management. Increase in competition and the hike in production costs because of poor decision-making calls for market analysis to provide sound information to evade poor returns. It helps marketing managers to connect various marketing variables with the environment and customers (Kotler, 2008). Failure to have relevant information, consumer’s responses cannot be predicted in a reliable and accurate manner. Marketing research involves various forms like advertising analysis, which entails tracing the effectiveness of advertisements for any medium. This can be assessed by examining the ability of the medium to communicate the message, create a brilliant image for the brand and induce the consumer to buy the product or service. Demand analysis is also a core part in market analysis. It involves determination of the approximate level of demand of a certain product or service. This entails research on the prospective clientele who are enthusiastic and able to purchase the given product at a particular time. Notably, distribution analysis is a key area in marketing analysis at it provides sound information on the distributors and retailers attitudes towards the product or service on offer (Kotler, 2008). It even helps the seller to know the most reliable and cheap distribution channel for his/her products. Moreover, market analysis also involves positioning research. This provides information on how the target market views the product relative to the ones offered by competitors. Positioning analysis enable the seller to know the various strategies to implement for health competition. Product position involves changing the way target consumers view products or services offered relative to the identity of competing products in the market. Effective product positioning is depended upon identification of the product uniqueness, its distinguishing functions and fairness in its price (Kotler, 2008). Product positioning involves various processes, which include, identification of other competitors in the market offering same products, getting knowledge on how competitors position their businesses. This comparison of business positioning enables competitors to know the vital and the most viable areas for differentiation. Additionally, developing positioning statement messages to be used for effective communication is fundamental in any positioning strategy. This study establishes that, in a rapidly changing market, it is advisable to reposition the whole company instead of only repositioning the product line. This does not only involve marketing challenge, but also judging on how a market is adjusting and most critical how firm’s competitors will react. On the other hand, competitive positioning involves coming up with strengths and weaknesses of prevalent and able competitors in the market. This analysis provides room for identification of viable opportunities and threats to the business prosperity (Kotler, 2008). Principally, it is easier for a seller to generate new prospects and direct them to buy his/her products if the market clearly sees how his products are unique as compared to the ones offered by competitors in the market. The key element in positioning strategy involves value proposition. We have three vital types of value, namely Operational excellence, consumer closeness and product leadership. Consumer perception of price, value, quality and quantity of a product is a pivotal determining factor of their shopping behaviour and product choice (Kotler, 2008). In this case, quality may be defined as the customer’s perception about product/service superiority. Products quality will be viewed as low or high depending on the relative quality of substitute products/services. In the evaluation of alternatives, consumers base their ruling on the functional and psychological benefits gained from the consumption of the various commodities. It is then imperative for marketing managers to have knowledge of what benefits consumers are looking for in the products on offer. Additionally, distribution channels play a pivotal role in the moving products from businesses to consumers and other businesses. This channel includes interdependent organizations such as, sales agents, retailers and wholesalers. In general, distribution will entail all the logistics involved in delivering a firm’s product or service to the right place and time and at the lowest cost (Kotler, 2008). Distribution channels range from two to five levels. The two level-structure remains the most appropriate as it involves moving of goods directly from the manufacturer to the final consumer (Kotler, 2008). In a three-level distribution channel, retailers act as intermediaries between manufacturers and consumers. For a four level channel, we have inclusion of wholesalers between retailers and manufacturers. Finally, in order to realise a five-channel distribution, manufacturer agents come in between the manufacturers and wholesalers. Intermediaries help to improve efficiency in product delivery as well as in searching of goods and customers. Strengths and weaknesses of different analysis used by marketers Product Positioning Product positioning helps marketers design a picture and value of its product so that consumers in its target division comprehend what the firm or brand stands for in comparison its competitors (Kotler, 2008). In doing this, the firm sends a clear message to consumers and establishes a competitive benefit that will draw the intended segment. In essence, therefore, the marketing mix can be seen as a calculated firm strategy on a product. For a firm to achieve a high quality position it not only looks at the quality of a product or service, rather it has to look at each element of the product mix like price, distribution, advertising patterns and after sales services all done consistently. Product positioning will unearth both quantitative and qualitative information that can be efficiently used to the gain of the marketer. On the other hand, a few disadvantages emanate from the strategy, like depending on subjects whose courses and actions are not known from market surveys that are well researched (Kotler, 2008). Such surveys may not give the full picture of making the analysis superior. Besides structured surveys may have validity issues. This strategy requires marketers to be consistent in keeping the consumers in mind rather than developing the product. It relates on how consumers perceive a product a fact that gives marketers a delicate balance between a product and consumers needs and perception. Competitive positioning Competitive positioning strategy emphasizes the design of strategic fit between the firm and the environment to position itself to an advantage. It entails a potential market distinguishing clearly how products offered by the firm are different from those of other competing firms for the market segment (Kotler, 2008). The value proposition if this strategy is to differentiate a product as a guide to consumer purchase of the product. To analyze competitor positioning, marketers can use a two dimensional matrix that indicates a list of competitors consumers and ascertaining the overall advantage presented by each competitor and getting a total factor rating based on key success factors. Additionally, contender profiling is a practice that can enhance provision of sufficient facts about firms and their competitor (Kotler, 2008). Knowledge about competitors is a critical part of corporate strategy in understanding how competitors value consumers of the products on offer. Similarly, the media scanning can also give a firm an insight about its competitor’s strategy with regard to price, branding, problems and upcoming offerings. Besides analyzing present competitors, it is prudent to approximate future competitor’s threats by monitoring the market performance of firms in the same industry. Customers’ Perceptions Perception is the image or picture that a customer develops by bearing in mind various types of advertisement and other promotional inputs about a services or products of a given company. Evaluating a customers' perception is critical because consumers buy products offered by different and competing firms based on individual expectations derived from the utilities they intend to get from a product or service (Kotler, 2008). Expectations are pinched from perceptions after careful considerations. Firms will need to appreciate the perceptions of their own consumers in order to work towards appealing the customers. To determine customers' perceptions marketers may use a questionnaire survey to collect specific information. An MDS approach can be used as alternative to gauge customer perception when the marketer needs to identify the fundamental approach that compares expectations and what is offered (Kotler, 2008). It is however, crucial for a firm to assess their customers' service quality requirements first and then make its staff internalize in relation to customer perception of what they consider being superior service quality and to align the realized perceptions to those of the firm to have a perfect fit. Distribution Channels Distribution channels are avenues through which products reach their end users. Established intermediaries may dominate well-developed existing channels while new channels may benefit from promoting their emerging channels as being effective and more efficient than the existing ones.  A product or service must get to its consumers to their place of need and in time. The marketer needs to determine the target market as well as studying the consuming patterns to satisfy maximum satisfaction. The marketer should establish the level of service required, and the implications to bear in mind with regard to the importance of the product for the firm and its market share in determining the channels to be used. Distribution channels need to be designed carefully bearing in mind a number of variations as level of the channel as well as creating own channels transportation systems. Conclusion Product positioning is a prudent way of creating an impact in the market by positioning the offerings of a firm to appeal to target consumers and match their perception to help them make a buying decision (Kotler, 2008). Competitive positioning and product positioning show how a product differentiates compares with that of competitors. Consumer perception and distribution channels are crucial in helping the firm appreciating the required quality by consumers reacting by creating a matching impression and delivering products in time and maintaining quality. References Kotler, P. (2008). Marketing management: Analysis, planning, and control. Englewood Cliffs, N.J: Prentice-Hall. Read More