For natural scientists and engineers, it sometimes might be difficult to become with marketing, because it’s not as straightforward as their usual work. They love their creations so much that they might not get why others aren’t as excited. While customers may not always immediately see the value in these innovations. Sometimes the scientists may be even right.

For a company, developments and inventions are only to find a market and be soldto create a surplus of profits with which to finance and subsidize this research.

The ultimate aim of all efforts is to identify a market, which varies based on the product and diverse customer requirements. The demand for shelter is a fundamental need, presenting a potential global market opportunity.

1. Customer Needs – Product/Technology push Vs. Market pull

The “Product/Technology push” refers to a situation where an innovation or product is developed because of some technological advancement or because a company has identified something they believe is groundbreaking, rather than in response to an identified need in the market. some of believe of this thing are:

• Innovation is driven by what is technologically possible.
• It often involves high risks because there’s no guaranteed market demand.
• The approach can be summarized as “build it, and they will come.

The “Market Pull“, the opposite of the above, occurs when a company develops a product or service in response to a direct need or demand in the market. some of believe of this thing are:

• Innovation is driven by identified customer needs or market demand.
• Generally involves lower risks because the product is developed with a clear market need in mind.
• The approach can be summarized as “find out what they want, then build it.”

“Needs”, it may sound shitty, but it might be the most important thing to understand in developing a successful business. Even with advanced technology, robust intellectual property rights, and a skilled team, it’s essential to truly grasp the key concerns of your prospective customers (slow and often unsuccessful approach).

Identifying these needs can be complex. Numerous challenges arise when connecting with a potential client. Somethime, you might make any misunderstanding your customer as following example:

• Speak a different language and knowledge levels
• Project your personal beliefs onto the client
• Lack experience buying as a consumer
• Have limited understanding of the customer’s industry than presumed
• Be unaware of the customer’s requirements and interpretation of sustainability
• Focus on limitations instead of ways to meet the customer’s demands
• Get overly infatuated with, and lose perspective because of, your technology
• Overestimate the value of your product than it actually is

Customer needs are the internal factors that drive them to buy or use particular products and services.t’s essential to align what the customer needs with their reasons for needing it.

2. Key Customer Analysis

For designing, developing, and delivering a product that offers exceptional value to the customer, it is a conversational interview form that encompasses the diverse requirements of the customer. Given the time limitation of an interview, your inquiries should address the important question: “What is the customer looking for?”. If they don’t bring up an essential characteristic you’re aware of, it should be introduced as a topic of discussion.” There are several important considerations when conducting your interviews:

• Begin by engaging with the technical and market development teams, not the purchasing department
• Utilize your connections to identify initial interviewees and then keep branching out.
• Approach the process as a casual conversationrather than a structured survey
• Propose sharing insights from your previous discussions, giving them a compelling reason to converse with you
• Avoid diving straight into topics like purchase amounts, costs, and vendors; establish the rapport first
• Jot down notes from your conversations promptly

Finding the Appropriate Contacts

• Your own contact list
• Your network for introductions.
• Search for contacts on LinkedIn and Google.
• Contacts from trade and industry journals and websites.
• Conferences or trade show attendee lists/panelists.
• Customer technical visits
• Industry experts
• Trade journal editors
• Suppliers
• Annual reports
• Websites

3. Market Segmentation & Evaluation

Market Segmentation refers to the process of dividing a broad target market into distinct subsets of consumers with similar needs, characteristics, or behaviors that might require separate marketing strategies or mixes. The main goal is to identify specific niches in the market to tailor marketing efforts effectively and efficiently.

Once market segments are identified, they need to be evaluated to determine their attractiveness and feasibility for targeting. Here are the criteria commonly used to evaluate market segments:

• Measurable: The size, purchasing power, and characteristics of the segments can be measured.
• Substantial: The segments are large and profitable enough to serve. A segment should be the largest possible homogeneous group worth pursuing with a tailored marketing program.
• Accessible: The segment can be effectively reached and served.
• Differentiable: The segments are conceptually distinguishable and respond differently to different marketing mix elements and programs.
• Actionable: Effective programs can be designed to attract and serve the segments.

After evaluation, a company can decide which segments to target with specific marketing strategies. The process doesn’t end here, though. Regularly reviewing and updating segmentation as market conditions change is crucial to ensure that marketing efforts remain aligned with the evolving needs and behaviors of target customers.

4. Competitors & their product analysis

Competitor & its product analysis is the process of systematically gathering and analyzing information about a company’s competitors and their product in order to gain insights into their strengths, weaknesses, strategies, and performance. The primary goal of competitive analysis is to help a company make informed decisions and develop effective strategies to gain a competitive advantage in the marketplace. Here are some of the key components of competitive analysis

• Identifying Competitors: The first step is to identify who your direct and indirect competitors are. Direct competitors offer similar products or services to the same target market, while indirect competitors may offer different products or services but compete for the same consumer.
• Analyzing Strengths and Weaknesses: Competitive analysis involves assessing the strengths and weaknesses of each competitor. This includes evaluating factors such as their market share, product quality, pricing strategies, distribution channels, marketing efforts, customer base, and financial stability..
• Identifying Opportunities and Threats: Competitive analysis helps identify opportunities that a company can exploit and threats that it needs to address. Opportunities might include gaps in the market or weaknesses in competitors’ offerings that can be capitalized on. Threats may involve emerging competitors or changing consumer preferences.
• Benchmarking: Benchmarking involves comparing your company’s performance and practices to those of your competitors. It helps in identifying areas where your company lags behind or excels and can inform strategic improvements.

Competitive analysis is an ongoing process because the competitive landscape is dynamic, and competitors’ strategies can change over time. Regularly monitoring and updating your competitive analysis can help your company stay competitive in the marketplace and adapt to shifting industry trends and consumer preferences.

5. Driving Forces and Life Cycle Analysis

Driving forces refer to the factors or influences that create change, shape industry dynamics, and impact the competitive landscape of a particular market or industry. These forces are often external to individual companies but have a significant impact on their operations and strategies. Understanding these driving forces is crucial for businesses to adapt and thrive in a constantly evolving business environment. Here are some common examples of driving forces:

• Technological Advancements: Rapid advancements in technology can disrupt industries, create new opportunities, and change how businesses operate and deliver products or services.
• Market Trends and Consumer Preferences: Changing consumer preferences and market trends can drive shifts in demand, requiring companies to adjust their offerings and strategies accordingly.
• Regulatory Changes: New laws and regulations can have a profound impact on industries, affecting everything from product safety standards to environmental regulations.
• Economic Conditions: Economic factors like inflation, interest rates, and economic cycles can influence consumer spending and overall market conditions.
• Globalization: Expanding into international markets or facing increased global competition can be a driving force for many industries.
• Competitive Actions: The strategies and actions of competitors can be a significant driving force, especially in highly competitive markets.
• Social and Cultural Shifts: Changes in societal values, demographics, and cultural norms can drive shifts in consumer behavior and preferences.

Life Cycle Analysis, also known as Life Cycle Assessment, is a systematic and comprehensive evaluation of the environmental impacts associated with a product, service, or process throughout its entire life cycle. This analysis takes into account all stages of a product’s life, from raw material extraction and manufacturing to transportation, use, and disposal or recycling. The main objectives of conducting a Life Cycle Analysis are:

• Environmental Impact Assessment: To quantify and assess the environmental impacts such as carbon emissions, resource consumption, pollution, and waste generation associated with a product or process.
• Identification of Hotspots: To identify the stages of the life cycle where the most significant environmental impacts occur, allowing for targeted improvements.
• Comparison of Alternatives: To compare different product designs, materials, or processes to determine which one has a lower environmental impact.
• Support Sustainable Decision-Making: To provide data and insights that can inform sustainable product development, procurement, and decision-making.

Life Cycle Analysis and Driving Forces are valuable for businesses and organizations looking to minimize their environmental footprint, comply with regulations, meet sustainability goals, and make informed decisions about product design and resource use. Moreover, they allow businesses to anticipate changes, identify new opportunities, and adapt their strategies to remain competitive and responsive to market dynamics.

6. Industry analysis

it is the process of evaluating and understanding the dynamics, trends, opportunities, and challenges within a specific industry or market segment. It is a crucial step for businesses, investors, and policymakers to make informed decisions about entering, competing in, or investing in a particular industry. Industry analysis provides valuable insights into the competitive landscape, market potential, and factors that can impact the success of businesses within that industry. Industry analysis is typically performed through a combination of desk research, data collection, interviews, and market surveys.

7. Distinctive Competencies

Distinctive competencies, also known as “core competencies”, are unique and exceptional capabilities, resources, or skills that set a company apart from its competitors and enable it to create a sustainable competitive advantage in the marketplace. These competencies are specific to a particular organization and are “not easily replicated by others”. They form the foundation of a company’s strategic strengths and are a key driver of its success.

Examples of distinctive competencies can vary widely depending on the industry and company. Some examples might include:

• Apple’s Design and User Experience: Apple is known for its distinctive competency in design and user experience, which sets its products apart from competitors in the consumer electronics industry.
• Google’s Search Algorithm: Google’s search algorithm is a distinctive competency that powers its search engine and makes it the dominant player in the search industry.

For the ethylene production in the petrochemical industry, such competencies can be rooted in various facets of the business as example.

8. Supply industry

The term “supply industry” typically refers to industries that provide products, services, raw materials, or components that are essential inputs for another industry. The petrochemical industry, especially in the production of ethylene, relies on various suppliers to provide raw materials, equipment, and services essential for its operations. there are some key aspects of the supply industry within the chemical industry

• Raw Materials: The supply industry provides chemical manufacturers with raw materials such as chemicals, petrochemicals, minerals, and other substances that serve as the building blocks for producing various chemical products.
• Equipment and Machinery: Chemical companies rely on specialized equipment, machinery, and technology to carry out their manufacturing processes. The supply industry provides and services this equipment.
• Laboratory and Testing Services: Suppliers in the supply industry may offer laboratory services, testing equipment, and analytical tools to support quality control, research, and development efforts within the chemical industry.
• Logistics and Transportation: Transportation and logistics providers within the supply industry play a crucial role in moving raw materials and finished products to and from chemical manufacturing facilities.
• Safety and Environmental Services: Given the importance of safety and environmental compliance in the chemical industry, suppliers may offer safety equipment, training, and environmental consulting services.
• Chemical Intermediates: Chemical intermediates, which are partially processed chemicals used as intermediaries in the production of other chemicals, are often supplied by companies within the supply industry.
• Consulting and Technical Support: Some suppliers offer consulting and technical support services to help chemical companies optimize their processes, improve efficiency, and address technical challenges.

The supply industry for the chemical sector is diverse and complex, encompassing a wide range of products and services tailored to the specific needs of chemical manufacturers. Establishing strong relationships with reliable suppliers and managing the supply chain effectively is crucial for chemical companies to ensure a steady flow of raw materials, maintain product quality, and remain competitive in the industry. Additionally, safety and environmental considerations are of paramount importance in the chemical supply industry to prevent accidents and protect the environment.

Key takeaways

In conclusion, successful businesses must continually assess and adapt to their operating environment and customer demands. Understanding customer needs, market pull approaches, is foundational. Key customer analysis, market segmentation, and evaluation help tailor strategies to meet specific customer requirements.

Competitive analysis, driven by industry forces and life cycle considerations, informs businesses about their competitive position and potential opportunities. Industry analysis provides insights into market dynamics and trends. Distinctive competencies and effective supply chain management are essential for achieving and maintaining a competitive edge.

By integrating these concepts and insights, businesses can make informed decisions, optimize their strategies, and position themselves effectively within their industry, ultimately leading to sustainable success.

Disclaimer:

The views and opinions expressed in this Linkedin article are solely my own and do not represent the views or opinions of my current employer. This article is a personal reflection and does not involve any proprietary or confidential information from my current company. Any similarities in ideas or concepts presented in this article to my current company’s work are purely coincidental.

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