Market Positioning
What to Expect
BAM reveals and analyzes critical data to detect essential facts and statistics relevant to customers and competition, showing market deficiencies and comparing business strengths to substantiate a favorable opportunity. The approach identifies the overall attractiveness of the potential market appropriate to creating evergreen potential. Many variables are evaluated, such as characterizing the market size, pricing, customer acquisition cost, and the essence of the business offering pertinent to the statistical analysis and measures. The strategy includes evaluating the cost of value delivered, speed to market, and the total cost of ownership.
The purpose is to determine market types, differentiation, penetration challenges, market share distribution and analyze the direct competition to ensure market positioning. Developing objectives are influenced by applied methods that resonate with the target market to achieve predictive outcomes. As a result, the study clarifies the impact relevant to market opportunity. Furthermore, it establishes a plan for setting concise objectives to reach essential market goals while maximizing "best prices" to drive revenue streams.
Solution Partners
Target Demographics
Michael Crain, MS MIS
Multi-Entrepreneur
University Educator
Growth Consultant
Resource Developer
Strategic Planning
Angel Garcia, MBA
Multi-Entrepreneur
Marketing Strategy
Industry Researcher
Financial Projections
Strategic Planning
Developing the Gap Analysis
Sustaining in a selected market and aiming for new markets to penetrate often requires a market gap analysis to determine and validate an opportunity. Therefore, the research focuses on establishing the ideal future, determining growth rate benchmarks and annual revenue generally from controlling product acceleration. In addition, deploying a gap analysis enables the various evaluations of the “best methods” of achieving business goals, underlining deficiencies and opportunities to confirm practical development and improvements.
The process assesses the business’s overall performance, defines the current condition, evaluates key performance indicators (KPIs) collectively with core functions, and develops a series of actions to bridge the market gaps with organizational strengths. Gap analysis is a handy mechanism for assisting marketing decisions and deciding upon marketing strategies and tactics to increase market positioning and boost profitability.
The elements of closing the gap deploy tactical approaches utilizing various marketing mixes to modify the methodology and achieve the vision. For example, the outcome may include pricing strategies to maximize profits while determining the “right” marketing mix to ensure effectiveness and return on investment—evaluating competitors and barriers-to-entry while assessing the total cost the business will incur. Other evaluations consider market development, penetration, diversification, and product development.
Customer Behavioral Patterns
Customer purchase behavioral patterns remain essential and relevant when understanding influences and responses toward specific sales strategies. The customer's needs, preferences, and perspectives largely control purchasing. The study cultivates the necessary adjustments to work hours when revealing peak shopping and frequency when determining significant increases in sales from promotional offers.
Conducting the evaluation facilitates an observation of product demand, the essential product, and the extent of influence of individuals to develop the ultimate buyer. Other reviews include:
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The location of purchase.
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Comparing prices and various offers.
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Loyalty is appropriate to the nature of the merchandise and availability.
Determining the type of product purchased, its quantity, and if perishable or durable will assist in gathering vital evidence of buying capacity, inventory, and cycles. Although it remains challenging to uncover the origin of the actual customer or the decision maker that fuels final approval, the results should indicate a demand for a solution. BAM's customer composition is based on demographics defined by gender, age group, and social status, which fosters the capability to explore customers' mindset for purchasing and the level of engagement between brands.
Uncovering the Target Audience
Building a solid foundation defining the target audience requires brainstorming to stimulate creative thoughts and intensify problem-based development. BAM’s process creates a broad description of ideal customers while researching potential demographics to identify the needs and locations to find specific customers.
The approach analyzes the current customer base, performs market research to identify industry trends, and conducts evaluations of direct competitors. The objective mandates a sense of creativity to produce customer personas while continuously revising to specify whom the target audience represents. The intent is to create marketing collateral that underlines the branded asset and promotes the company, product, or services. It establishes a customer-centric association between the brand and the audience.
While determining the target audience (who will purchase), characterizing the target market is relevant to defining the market size that determines marketing efforts and applied resources. For example, it is common to have multiple market considerations and includes a local service-based or e-commerce platform. Likewise, developing more than one target audience within a target market is common while influencing various distribution channels relevant to developing a favorable market mix.
Segmentation Planning
Researching and developing market segmentation fosters a strategic plan that clearly defines vital insights concerning a lucrative target audience. The grouping of products or the characteristics of potential customers into categories heightens the expansion of a market-product grid. Estimating market size and demand is relevant to identifying target markets while evolving marketing campaigns to align with customer segments that presumably become influential.
The objective is to improve engagement and brand loyalty while optimizing cost efficiency and prioritizing resources. The many goals focus on growing a niche, increasing market capabilities, or penetrating new markets. The process acknowledges group-specific characteristics with shared demographics that conceive a commonality to purchase or request services. While understanding the customer's needs and desires allows for articulating what attracts new sales and expands the longevity of a customer-centric relationship.
The action considers the business offering while analyzing market pains and gains to generate customer profiles or categories that coincide with market size and demand. In addition, many considerations fuel various research techniques to determine demographics, psychographics, behavior, and geography while using effective strategies and best practices to reinvent and stimulate a strategic dialogue. Finally, the results allow for modeling future events and developing behavioral models enabling predictive analytics while striving to identify common traits in a specific group of customers appropriate to products or services.
Developing Pricing Models
Pricing typically reflects the quality of the product or services while creating sufficient appeal to attract customers and drive purchases. The development of pricing determines the return on value; rather, it fulfills the customer's expectations. I often say, "people do not buy features - they purchase benefits." Describing benefits is a critical element that maximizes appeal, why customers purchase and spawn profitability. Conversely, the disadvantage of pricing strategies is when they become unsuccessful, either by not appealing to target customers adequately or inaccurately meeting revenue expectations.
The "right pricing" boosts sales volumes, increases market positioning, forms a market-product image, and remains vital to customer decision-making. In addition, customers purchase because the product or service rectifies a problem while satisfying a necessity. Therefore, a product or service must provide solutions or benefits that meet needs or fail miserably.
BAM's analysis of price models includes cost-plus or markup pricing to define the fixed percentage applicable to generating a specific profit. Other evaluations include competitive pricing relevant to strategically selecting a price point based on competitors and without complex models and strategies. The model enables the assessment of the cost to produce the product and the revenue it generates. Additional types of models include price skimming pertinent to setting high prices to reflect the quality and adjusting prices as the market evolves. Finally, the development enables a penetration pricing model to enter new markets with low pricing to create brand awareness or gain customer attention to begin building trust.
Value-based pricing is suitable for establishing a perceived value defined by the customer's perception and compared to a competitor's product value. The framework includes a customer's expected benefit, perceived cost, and value. Such an evaluation encapsulates the tangible attributes (design, size, and color), the measurement of personal significance, and perceived intangible benefits that stimulate an emotional response.