(Updating) Consulting Cases - Market Share

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Use for marketing and new product development



  1. Must fit within positioning decision and market segmentation (e.g. high end, low end; consumer, industry)
  2. Differentiated good vs. commodity
  3. Features and capabilities
  4. Reliability, quality
  5. Image of product: brand name, reputation
  6. Packaging, size
  7. Service, warranties
  8. Future strategy for the product



  1. Channel (decision based on product specifics, level of control desired and margins desired)
  2. Coverage - tradeoff between coverage levels and costs
  3. Inventory - levels, turnover, carrying costs
  4. Transportation - alternatives, efficiencies, costs



The Buying Process:
  1. Consumer awareness for the product
  2. Interest for the product
  3. Trial
  4. Repurchase
  5. Loyalty

Select sales method: Pull (advertising...) or Push (discount to distributor...)

5 categories of promotional efforts

  1. Advertising: medium, reach (share of target market reached) and frequency (number of times reached).
  2. Personal Selling: when direct contact with buyer is needed.
  3. Sales Promotion: Incentives to consumer, sales force and channel members. ⇒ Consumer incentives: coupons, refunds, samples, premiums, and contests. ⇒ Trading force incentives: Sales contest, Point of purchase displays, spiffs (payments to dealers), trade shows, franchise reputation, in-store demonstrations.
  4. Public Relations and Publicity.
  5. Direct sales.



  1. Considers both retail price and discounts.
  2. What strategy? MC=MR? Skim (high price, make profits now)? Penetrate (low price, gain market share)?
  3. Seek volume or profits?
  4. Perceived value, cost-plus-margin pricing?
  5. How does price relate to the market, size, product life cycle, and competition?
  6. Economic incentives to channel (commissions, margin).
  7. Establishes barriers to entry


  1. 一种是企业不能够控制的,如社会/人口(Social/demographic)、技术(Technological)、经济(Economic)、环境/自然(Environmental/Natural)、政治(Political)、法律(Legal)、道德(Ethical)、地理因素(Geographical Factor)等环境因素,称之为不可控因素,这也是企业所面临的外部环境;

  2. 一种是企业可以控制的,如产品、价格、分销、促销等营销因素,称之为企业可控因素。企业营销活动的实质是一个利用内部可控因素适应外部环境的过程,即通过对产品、价格、分销、促销的计划和实施,对外部不可控因素做出积极动态的反应,从而促成交易的实现和满足个人与组织的目标,所以市场营销活动的核心就在于制定并实施有效的市场营销组合。

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