Week 11
This week, while we did not receive new lessons and material, we were given the opportunity to apply previously learned concepts to a large memo and in class.
One concept that was used heavily this week was the PEST Analysis. In the memo, we were tasked to use the PEST analysis as well as other tools in order to give an industry outlook. In my case it was to the smart bottle market. PEST stands for Political, Economic, Social, and Technology. If there is negative trends in any of these categories it will make it very difficult for a company to succeed. In PEST, Political refers to the regulations of a business in that particular marketplace. This includes any laws passed by Congress or by any administrative agency. Additionally, if the government is controlled by a particular party the future outlook for politics could be different. Economic refers to the ability to pay for services, equipment, or anything else. If the going price for a particular job is very high, then it becomes difficult to higher the required amount at that position. Social refers to social trends such as celebrity endorsement of products. If a product is deemed to be popular then additional people will rush to buy it. On the other hand if a celebrity insults the product or says it is bad then people will shy away from it. Finally, Technical refers to potential advancements the company can make through development. Essentially this analysis tool breaks down individual trends in the industry into their respective categories. For example, San Francisco and other cities have begun to ban single use water bottles. This benefits the reusable water bottle industry which is the larger market of smart bottles. This would be a political trend due to written legislation being passed that influences the industry.
Another concept that we used is Market Segmentation. Market Segmentation is the idea that companies should break down a market into groups of similar people in order to target who they can satisfy rather than trying to satisfy all. The company will create a Target Market that they will then tailor their company towards in order to gain an advantage in that particular segment. The company can also advertise specifically towards those people. This is all in hopes of creating a loyal customer base that is satisfied with your tailored product. Market Segmentation is usually in four separate ways. Demographic Segmentation allows companies to segment by gender, income, ethnicity, and education. Geographic segments by location, region, and zip code. Psychographic segments by interests, activities, and lifestyle. Behavioral Segmentation segments by actual behavior that a consumer displays daily. My team, HydroFit, determined that workers in retail and medical fields between the ages of 25-45 would be the target customer. These people are constantly focused on their jobs as well as on their feet. It seems unrealistic from results of survey and reasonable expectations that these people would be able to maintain proper hydration daily.
Additionally, we continued the Marketing Research Process. This is a three step process utilized by a firm to solve problems with the assistance of collected data. The first step is to determine what the problem is. To do this, the firm will collect information through either primary or secondary research. Primary research refers to research that is produced for the specific problem by your firm or a hired firm. Secondary research refers to research that has be produced by a firm that is unrelated to your firm. The second step is that the firm will analyze the gathered information. A common method to do this is through cross tabulation, which refers to the comparison between gathered data responses and additional responses from other questions. The third step to this is to report the findings from the research. By doing this, the firm will also present the best solution to the problem available. We have begun to gather such information through Simmons as well as a primary resource such as our survey.
I would like to learn more about applying gathered data to our respective projects.
One concept that was used heavily this week was the PEST Analysis. In the memo, we were tasked to use the PEST analysis as well as other tools in order to give an industry outlook. In my case it was to the smart bottle market. PEST stands for Political, Economic, Social, and Technology. If there is negative trends in any of these categories it will make it very difficult for a company to succeed. In PEST, Political refers to the regulations of a business in that particular marketplace. This includes any laws passed by Congress or by any administrative agency. Additionally, if the government is controlled by a particular party the future outlook for politics could be different. Economic refers to the ability to pay for services, equipment, or anything else. If the going price for a particular job is very high, then it becomes difficult to higher the required amount at that position. Social refers to social trends such as celebrity endorsement of products. If a product is deemed to be popular then additional people will rush to buy it. On the other hand if a celebrity insults the product or says it is bad then people will shy away from it. Finally, Technical refers to potential advancements the company can make through development. Essentially this analysis tool breaks down individual trends in the industry into their respective categories. For example, San Francisco and other cities have begun to ban single use water bottles. This benefits the reusable water bottle industry which is the larger market of smart bottles. This would be a political trend due to written legislation being passed that influences the industry.
Another concept that we used is Market Segmentation. Market Segmentation is the idea that companies should break down a market into groups of similar people in order to target who they can satisfy rather than trying to satisfy all. The company will create a Target Market that they will then tailor their company towards in order to gain an advantage in that particular segment. The company can also advertise specifically towards those people. This is all in hopes of creating a loyal customer base that is satisfied with your tailored product. Market Segmentation is usually in four separate ways. Demographic Segmentation allows companies to segment by gender, income, ethnicity, and education. Geographic segments by location, region, and zip code. Psychographic segments by interests, activities, and lifestyle. Behavioral Segmentation segments by actual behavior that a consumer displays daily. My team, HydroFit, determined that workers in retail and medical fields between the ages of 25-45 would be the target customer. These people are constantly focused on their jobs as well as on their feet. It seems unrealistic from results of survey and reasonable expectations that these people would be able to maintain proper hydration daily.
Additionally, we continued the Marketing Research Process. This is a three step process utilized by a firm to solve problems with the assistance of collected data. The first step is to determine what the problem is. To do this, the firm will collect information through either primary or secondary research. Primary research refers to research that is produced for the specific problem by your firm or a hired firm. Secondary research refers to research that has be produced by a firm that is unrelated to your firm. The second step is that the firm will analyze the gathered information. A common method to do this is through cross tabulation, which refers to the comparison between gathered data responses and additional responses from other questions. The third step to this is to report the findings from the research. By doing this, the firm will also present the best solution to the problem available. We have begun to gather such information through Simmons as well as a primary resource such as our survey.
I would like to learn more about applying gathered data to our respective projects.
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