The Vault.com Career Guide to Marketing and Brand Management
The Vault.com – The Insider Career Network
When you're performing a
marketing analysis, you should always be asking the same key questions:
What are the major problems,
opportunities, and threats facing the company?
What's your strategy to
address these issues?
How much money will you need
to make to make this strategy profitable?
Why did you choose this
How will you execute this
strategy? What choices do you recommend for the marketing mix and
The 4 Cs, 5 Ps, and the
break-even economic analysis will help you organize these questions and
are a great way to begin analyzing a situation.
The 4 Cs should be used when performing a market assessment and
background evaluation of the situation at hand.
factors as well as other external factors (industry, consumer trends)
Strengths and weaknesses
Basis for competitive
Financial and other
Decision-making process (When
do they decide what brand they want to buy - at the store or prior to
even going shopping?)
Buying behavior (How often do
they buy? What quantities do they buy at one time? Is it an impulse or
Latent or unmet consumer needs
(Can you own something that no competitor has capitalized on yet?)
Basis of competition
Degree of rivalry
Major players and anticipated
competitors as well as opportunities and threats
Company specifics that might
affect competition in the future (cost structure, change in focus)
The 5 Ps should be used when you're ready to recommend a plan of action
and create marketing mix specifics.
Estimation of market size
Product benefits (both
tangible and intangible, in other words, functional AND emotional)
consider unit cost, perceived value pricing (e.g. premium pricing for
Skim vs. penetration pricing
Price leader vs. price
Role of consumer price
Channel power and control
Channel support (financing,
(awareness, interest level, trial, repurchase, loyalty issues)
Medium (TV, magazines,
Pull and/or push strategy
The break-even analysis should be done to determine:
Whether a company should enter
a new market with a product
How many units a company needs
to sell of a certain product to break even or be profitable
How much market share a brand
will need to make the launch financially successful
What margins the manufacturers
and retailers will need to secure
Mattel is deciding whether to
start manufacturing their Mr. Potato Head Doll in Peru. They hope to
sell the doll to local retailers for $23.00. Retailers in this market
like to have a 40 percent margin on the goods they sell to customers.
The start-up investment,
including all equipment to manufacture the dolls, will total $30,142.
The cost of goods sold per doll is $5.25. The annual volume of sales is
anticipated to reach 3,800, or a 19 percent share of the Peruvian
market. Should Mattel launch Mr. Potato Head in Peru?