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Marketing Basics - Kotler Philip

Assessment of marketing opportunities

It is one thing to identify opportunities, and quite another to determine which ones are suitable for the firm. We define the marketing opportunity of a company as follows:

A marketing opportunity for a firm ? an attractive marketing direction where a particular firm can achieve a competitive advantage.

For example, video games? an attractive field of activity, but we instinctively feel that it will not work for Helen Curtis. Why? The answer to this question can be found in Fig. 8. The marketing opportunity must exactly match the goals and resources of the company. Consider these factors in turn.

COMPANY GOALS . Any company pursues a range of goals. For example, Helen Curtis, which focuses mainly on hair care products, aims to achieve high levels of profit, high sales, sales growth, and customer acquisition. The company is likely to come to the conclusion that these goals themselves preclude its involvement in the production of video games. There is no confidence in either a high level of sales or high profits. And besides, if customers of Helen Curtis products find cosmetics and video games incompatible, this step can undermine the customers ’favor.

COMPANY RESOURCES . Even if the production of video games meets the goals of Helen Curtis, the company probably will not have the resources sufficient to successfully operate in this area. Each industry has its own conditions for success. The video game industry requires a lot of capital, knowledge of the secrets of technology and the existence of effective distribution channels. All this, the company "Helen Curtis" will clearly miss. And although the company could have acquired one of the existing video game manufacturing companies, its own resources and experience would not have brought any benefit to the acquired company.