It refers to factors that allow a company to produce goods or services better or more cheaply than it's rivals.

It is a competitive advantage that can be maintained over a period of time.

A firm's ability to produce a good or service more efficiently than it's competitors, which leads to greater profit margins.

When a firm's products or services differ form it's competitors offerings and are seen as superior.

In Harvard Business School he wrote "competitive advantage", the definitive business school textbook on the topic which helps companies to create a sustainable competitive advantage.

Source of Competitive advantage

It means companies provide reasonable value at a lower price.

It means companies deliver better benefits than anyone else.

It means the company's leaders understand and service their target market better than anyone else.

An esteemed investor identifies "moats" that business can figuratively dig around themselves to entrench competitive advantage.

It refers to a defensive barrier.

The process of selecting the groups of customers to focus on in a firm's marketing mix.

It involves finding out why customers would buy from you, dividing the market into segments according to demographies and other characteristics, and then finding the most profitable segments to include in your target market.

It involves selecting one or more market segments or groups of customers to target in your marketing mix.

It is a quantitative and qualitative assessment of a market

Five Ps of Marketing Mix

Benefits of Target Market Identification

Steps for the Identification of the Target Market

A large part of market research and an important component of business plan.

When assessing the size of the market, your approach will depend on the type of business you are selling to investors.

it is the size of a market.

it is the potential buyer or clients

The first thing to do is to see if the figure is publicly available as either published by a consultancy firm or by a state body

There are 2 methods that can be used to build estimates the bottom- up approach or the top-down approach

It is the type of customers you target within the market.

This section is very important as it is where you show your potential investor that you have an intimate knowledge of your market.

The aim of this section is to give a fair view of who you are competing against.

This section is all about answering two questions from your investors

It fefers to licences and concessions in particular or requirements by the authority to start a business, which is usually one of the hammers to entry

It is experts from a target market are interviewed in order to collect new data.

It uses existing data records from previous surveys.

Different Methods of Market Analysis

Five types of Competitors

This are competitors who are directly vying for your customers.

This are those competitors who do the same thing that you and target the same kinds of customers but aren't selling in your market area and aren't likely to do so.

This are businesses that are in the same category, but they sell different products and services than you.

This are like potential competitors, but they're much more ready and likely to enter your market.

This are those who provide an alternative to the services that you offer that solves the same pain points.

It is what gives you a competitive advantage in your market

a strategic process that marketers the to determine the place or asche in offering should occupy in a given market, relative to other customer allertiatives

When you position a product or service, you answer these questions:

it is the process companies use to make a product or service stand out from its competitors in ways that provide unique value to the customer.

It identifies a set of characteristics and benefits that make a product different and better for a target audience.

It is at work any time you're choosing between two products in the same category.

Characteristics of a Product:

It has lots of features because you've anticipated what people need as they come up the power curve.

it reflects your insights on how to ease people's pain or increase their pleasure

It embodies everything a customer needs, such as support, documentation, and enhancements.

it makes people better. Great stuff doesn't fight you it becomes one with you.

It is not just functional; it's also well designed so that people can use it easily and quickly.

Four types of product

The products that fulfill a need, but they work the same way as existing products

products that serve a market that doesn't exist, or they provide functionality that no one wants

the worst products of all.

This is the holy grail of evangelism

Refers to how different industries are classified and differentiated based on their degree and nature of competition for goods and services

Types/categories of Market structure

Factors that determine Market Structure

It is a group of people in a homogenous market who share common marketable characteristics such as interests, geography, age, demographic, or lifestyle

It is a process of separating, identifying, and evaluating the layers of a market to identify a target market.

It seeks to identify targeted groups of consumers to tailor products and branding in a way that is attractive to the group.

It helps companies minimize risk by figuring out which products are the most likely to earn a share of a target market and the best ways to market and deliver those products to the market

Three (3) Criteria to Identify Different Market Segments

Market Segmentation Strategies

Common needs within a segment

Being unique from other groups

a similar response to the market

Customers are target locally, statewide, regionally, or nationally

Customers are targeted by their age, gender, race, income, and education level

identification based on attitudes, beliefs, emotions, lifestyle, and hobbies

identification based on various patterns shch as purchasing occasion and loyalty status

It made up of the total number of potential buyers of a product or service within a given market, and the total revenue that these sales may generate

simple, it's often unreliable and overly optimistic

time-consuming, because you do all of your own market research and dont rely solely on genralized forecasts and trends

It derived from a military strategy that as you are approaching an enemy territory, you should plan and focus all your resources on winning a small border area that become a stronghold area from which to advance into the enemy territory

a small market with specific characteristics that make it an ideal target to sell a new product or service

Segmentation For the beachhead market

Conditions that define a beachead market

market structure characterized by a large number of small firms, a homogeneous product, and very east entry into or exit from the market, price taker

A market structure in which a few large firms dominate a market, either homogeneous or differentiated product and difficult market entry

A market structure characterized by many small sellers, a differentiated product, and easy market entry.

a market structure characterized by a single seller, a unique product, and impossible entry into the market

It is what makes your product or services stand out to your target audience.

It forms the basis of the development of a marketing strategy and concrete marketing measures

It's how you distinguish what you sell form what your competitors do, and it increases brand loyalty, sales and growth

It looks at the "relevant" market size for your product or service, and then calculates how much your organization might earn from it

The choice of the market is based on the compatibility between the resources available, the product, and the market itself.

This section is where you need to place your competitive edge without mentioning it explicitly

it is more powerful when it's personal, because it's easier for potential customers to imagine how a product fills a need

This is the corner of the chart where meaning, margin and money are made

Three step process of finding a market segment and market size