ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Market Evaluation: Using Simple Tools to Determine Market Position

Updated on February 2, 2018

In order for a business to succeed in their marketing plan they have to understand how to use market evaluation tools to analyze the market around them. Determining your key differences and understanding your market gives you a leg up over your competition and overall makes you a better business, as Margaret Molly, chief marketing manager of Siegel & Gale, says, "Great Execution is the Ultimate Differentiator.” Knowing your market allows you to execute your plan with knowledge and gives you something to measure against. So how does this work? What is needed to accomplish? Will it be difficult to make into actionable items?

To answer these questions, we need to dig into the overall goal of a market analysis. Market analysis according to the Ovidijus Jurevicius involves the collection and portrayal of information about external factors which have, or may have, an impact on business, (Jurevicius, 2013) in other words its understanding your specific market in a specific location or customer base. This is the first step in understanding your market. Once you have determined your specifics you can use a few different tools such as, Pestle analysis ( Fig 1), 4 P marketing mix (Fig 2), and/or the SWOT analysis (Fig 3) to clearly define external and internal risk and opportunities for your business. (Kotler & Keller, 2012)

There is no one tool fits all. As a marketing leader you have to determine the key concepts that matter to your company. The method in which you determine your market potential can be one or all of these. In my experience, it is far better to develop a modified tool using parts of all of the above concepts to get a broad picture of the market. For instance, an online company may not be able to determine a full scope based on the Pestle analysis alone; the majority of their market may deal with less external forces so they may need to focus on the SWOT to determine true market needs. To answer our questions best it is far better to tailor a marketing analysis around the business itself. Recently I was able to develop a specific tool for a local small business using the 4P’s; product, price, place and promotion. Additionally I also used key indicators from the SWOT analysis to help determine where the business stood as a key player against market competitors. The results were very interesting, the business owner was not aware she was not taking full advantage of her businesses strength’s over a key competitor. The analysis helped her understand that not only is she able to overcome the lead market holder but that she has the skillsets to do it now. With a few small adjustments she should be able to corner her market. So what is needed to accomplish a solid marketing analysis?

The best answer is time. You need to develop your key indicator tool and then research and work towards answering the items as best as you can. According to Entrepreneur Magazine you should take a couple of months to develop your evaluation and then ultimately your plan. “Developing your plan is the heavy lifting of marketing. While executing your plan has its challenges, deciding what to do and how to do it is marketing’s greatest challenge.” ( Ellis, 2014 ) This is where the rubber meets the road. The tools referenced above give great insight to your strengths, weakness, and overall opportunities; now what do you do about them?

The above chart ( Fig 4 ) is a partial piece of a marketing assessment tool. This portion covers the promotion segment. As you can see there are opportunities for this business. The assessment gave the reviewer the ability to see where the gaps were and allowed the person to look at possible options. From this small piece of the puzzle you can take the needed items and strategize against the company goals. This allows you to prioritize what is necessary and actionable versus what can wait to be taken care of at a later date, the beauty of the assessment is the clear visual understanding of where you are at the time of the work, current state, which allows you to determine your strategic marketing plan. The future state is the ability to come back to this tool monthly, quarterly, and even yearly to assess your progress. Charmayne Smith said, “Entrepreneur Magazine recommends that marketing strategies be reviewed quarterly to ensure that they meet the needs of the business. Since business environments constantly change, you should review the analysis itself during the business review process.” ( Smith, 2004 )

Finally, the use of marketing segmentation and analysis tools are vital to your overall business success. The ability to use the tools in this article is vital to understand the business market and what risk and opportunities that market presents. As a business leader you have to know what you are up against at all times, as Jack Welsh says, “If you don’t have a competitive advantage, don’t compete.” How will you know if you have a competitive advantage without clearly understanding your market consumer and market competitors? The tools mentioned in this article give you the ability to determine your internal challenges, your external risk, and your actionable strategic goals.

Carmon McCulley

“ Carmon McCulley is an experienced business leader in the manufacturing industry, holding positions from plant manager to regional director. He has over a decade of business management and strategic financial analysis experience in “product-to-market” strategy. He has been in varying differing markets and is currently studying to increase his scope in executive understanding of business needs with an MBA at Oklahoma Baptist University.”

References:

Jurevicius, O. (2013, February 13). If it's Time to be Brave a PEST may be your Best Defense. Retrieved February 01, 2018, from https://www.strategicmanagementinsight.com/tools/pest-pestel-analysis.html

Kotler, P. & Keller, K. (2012). Marketing management. New York, NY: Prentice Hall.

Ellis, S. (2014, May 27). How to Create a Marketing Plan. Retrieved February 01, 2018, from https://www.entrepreneur.com/article/43018

Bradley, M. (2015, July 1). Understanding the Marketing Mix and the 4 Ps. Retrieved February 1, 2018, from https://www.linkedin.com/pulse/understanding-marketing-mix-4-ps-martin-bradley/

SWOT in Marketing Analysis. (2004, July). Retrieved February 01, 2018, from http://smallbusiness.chron.com/swot-marketing-analysis-1420.html

Fig 1
Fig 1
Fig 2 Fig 3
Fig 2 Fig 3
Fig 4
Fig 4

© 2018 Carmon McCulley

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)