Understanding TALC helps business managers focus product management, develop future marketing strategies and allocate resources for radically innovative products. TALC can be represented by bell curve composed of five sections. In the graphic below, the blue curve represents the groups of consumer adopting a new technology and yellow is the market share which obviously reaches 100% following complete adoption. This is the point of market saturation.
Why do we benchmark our competitors?
Benchmarking is a systematic and continuous process involving the comparison of characteristics of the best products, services and processes in order to improve business performance.
There are four different categories of benchmarking:
Penetration measures the popularity of a product in terms of usage or purchase. It is a function of the number of people who buy a product category or a particular brand and the size of the relevant market. Start-ups and established businesses use this metric to evaluate the effectiveness of their product development and marketing strategies. Strategies to increase the penetration rate include adjusting the marketing and packaging strategy to generate sales growth and increasing the total market size by attracting new customers.
Market sizing can be approached utilizing the eight following steps:
The pool of consumers in every major product category includes groups of people with a variety of wants, needs and personal characteristics. A firm's marketing challenge is to identify one or more of these groups as a potential target market -- buyers most likely to choose their brand instead of that of a competitor.
Four criteria can be used to determine the potential a target market:
Marketing and entrepreneurship have been regarded traditionally as two distinct fields of study. A growing awareness of the importance of entrepreneurship and innovation to marketing, and of marketing to successful entrepreneurship, has led to attempts to combine the two disciplines as "entrepreneurial marketing''. The main thrust of entrepreneurial marketing is an emphasis on adapting marketing to forms that are appropriate to small and medium-sized enterprises (SMEs), acknowledging the likely pivotal role of the entrepreneur in any marketing activities.