Quantitative Marketing (Subject) / 5. Strategic Market Analysis (Lesson)

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• Definition: Corporate Mission Definition: Corporate Strategy The corporate mission is a firm's statement of the scope of its activities. The misstion has to be translated into a set of directly measurable objectives (financial, engineering, marketing, ..) to make that mission operational.   In its corporate strategy, the firm sets forth the actions it intends to undertake to secure a sustainable advantage while meeting its corporate objectives.  
• Definition: Marketing Strategy The firm develops marketing strategies to specify how it will achieve its marketing objectives. It depends on defining the market and the market's evolution and dynamics (demands & trends).
• Possible levels of Market Definitions (5) Set of all customers who show interest in a product/service = 1. Potential Market + have sufficient income and access to the product/service = 2. Available Market + are qualified to buy (eg. drinking age) = 3. Qualified Available Market part of the qualified market the company decides to persue = 4. Served or Target Market all customers who have already bought the product/service =  5. Penetrated Market
• Definition: Product Life Cycle Using the concept of life cycle, the firm tries to recognize distinct phases in the sales history of the product and its market and to develop strategies appropriate to those stages.    > Anticipate how sales might evolve and develop strategies to influence those sales
• Product Life Cycle Phases (4) Introduction: slow growth; profit low / negative Growth: rapid market acceptance & profit improvement Maturity: slowing sales growth; profits peak/decline Decline: sales downward, profits towards 0   > profit typically lags behind growth of sales
• Definition: Economies of Scale Definition: Experience Effects Economies of scale: Less costs per unit of production.   Experience effects: - learning curve = relationship between cumulative production and labor costs. - experienve curve = relationship between cumulative production and total costs.

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