3.1 - Understand markets, customers, and capabilities
PCF ID: 10101 | Elements: 18 | Metrics Available: Y | Benchmarkable: 3
Definition
Making sense of the market and customers to identify the right opportunities to be capitalized, given the organization's competencies. Discern trends and shift in the market and customers. Identify the right market opportunities that fit closely with the organization's capabilities and strategy by gathering intelligence on various attributes of different market/customer segments.
Overview
This process group covers understand markets, customers, and capabilities within the broader context of Market and Sell Products and Services.
Process Hierarchy
Processes
| ID | Process | PCF ID | Sub-elements | Metrics |
|---|---|---|---|---|
| 3.1.1 | Perform customer and market intelligence analysis | 10106 | 8 | Y |
| 3.1.2 | Evaluate and prioritize market opportunities | 10107 | 7 | Y |
3.1.1 - Perform customer and market intelligence analysis
PCF ID: 10106
Definition: Gathering intelligence on the market and customers. Closely examine the inherent attributes and collective behavior of the various market and customer segments. Track trends in the market. Determine what drives the customers to make purchasing decisions in order to identify opportunities in the market.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 3.1.1.1 | Conduct customer and market research | 10108 | 1 | N |
| 3.1.1.2 | Identify market segments | 10109 | 1 | N |
| 3.1.1.3 | Analyze market and industry trends | 10110 | 0 | N |
| 3.1.1.4 | Analyze competing organizations, competitive/substitute products/services | 10111 | 0 | N |
| 3.1.1.5 | Evaluate existing products/services | 10112 | 0 | N |
| 3.1.1.6 | Assess internal and external business environment | 10113 | 0 | N |
3.1.1.1 - Conduct customer and market research (1 tasks)
Definition: Carrying out research studies to understand the behavior of customers and the realities of the market. Undertake research to understand the market conditions as well as the characteristics, drives, and desires of prospective customers. Gather highly contextualized intelligence through primary and secondary research methods, with the objective of gaining insights over how to best seize a market opportunity. Consider assistance from professional research services.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 3.1.1.1.1 | Understand consumer needs and predict customer pur... | 10114 | Identifying the factors that drive the targeted market segment. Model customer p... |
3.1.1.2 - Identify market segments (1 tasks)
Definition: Identifying a section of the customer population to target for marketing products/services. Create segments within the customer population for targeted marketing campaigns, which increase the efficacy of marketing outlay. Determine the right customer segments, craft effective marketing messages, and efficiently communicate them. Determine the optimal pricing mix. Consider assistance from professional services for market segmentation studies, with coordination and oversight from the marketing/sales functions.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 3.1.1.2.1 | Determine market share gain/loss | 10115 | Determining the increase or decrease of the company's sales volume in the target... |
3.1.1.3 - Analyze market and industry trends
Definition: Examining large-scale shifts and trends, with relevance to the organization's products/services. Vet the industrial and larger market landscape to identify broad-based movements that could have a direct or tangential impact on the uptake of the organization's products/services. Examine, among other things, the market capitalization of similar products, the profitability of organizations offering competing products/services, the stock price of key vendors/suppliers in the organizational value-chain, the rate and scale of innovation activity in the organization's product/service category, the price and availability of raw materials, and the shelf-life of similar products/services. Conduct primary and secondary research, and consider enlisting professional services.
3.1.1.4 - Analyze competing organizations, competitive/substitute products/services
Definition: Examining the strengths and weaknesses of competing organizations. Assess competing organizations for offerings, product strategy, marketing and delivery channels, etc. Analyze the usability experience, durability, USP, and other key attributes of competing and substitute products. Gather competitive intelligence, and consider enlisting professional services.
3.1.1.5 - Evaluate existing products/services
Definition: Examining the brands owned and products offered in the market. Determine the relative position of the existing products/brands in the marketplace.
3.1.1.6 - Assess internal and external business environment
Definition: Understanding the culture and environment in which you're operating. Analyze how internal decision-making, thought processes, financial circumstances, and more affect the ability to bring new products to market. Survey or analyze the market into which the products would be introduced.
3.1.2 - Evaluate and prioritize market opportunities
PCF ID: 10107
Definition: Appraising market opportunities by quantifying and subjecting them to prioritization, as well as validation tests. Closely examine the market opportunities that have been identified by Perform customer and market intelligence analysis [10106]. Triangulate those opportunities to capitalize by finding a fit between identified opportunities and the composite of organizational capabilities and business strategy.
| ID | Activity | PCF ID | Tasks | Metrics |
|---|---|---|---|---|
| 3.1.2.1 | Quantify market opportunities | 10116 | 0 | N |
| 3.1.2.2 | Determine target segments | 10117 | 1 | N |
| 3.1.2.3 | Prioritize opportunities consistent with capabilities and overall business strategy | 10118 | 0 | N |
| 3.1.2.4 | Validate opportunities | 10119 | 2 | N |
3.1.2.1 - Quantify market opportunities
Definition: Attaching quantifiable indicators to opportunities that have been identified in the market. Compute estimated figures of the approximate value that can be captured with the provision of existing products/services (i.e., the extent of financial benefits that can be reaped in the market).
3.1.2.2 - Determine target segments (1 tasks)
Definition: Identifying the targeted segment of customers. Deduce those particular customer segments that are to be targeted from among the market segments.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 3.1.2.2.1 | Identify under-served and saturated market segment... | 18941 | Determining which groups of potential customers do not yet, or already do have a... |
3.1.2.3 - Prioritize opportunities consistent with capabilities and overall business strategy
Definition: Creating an index of market opportunities, and arrange them in order of preference. Prioritize based on the opportunities' adherence to the overall business strategy. Correlate with the competencies and capacities that the organization, as a whole, processes.
3.1.2.4 - Validate opportunities (2 tasks)
Definition: Confirming the practicability and reasonableness of the market opportunities that have been identified. Give substance to the real-time feasibility of the market opportunities.
| ID | Task | PCF ID | Definition |
|---|---|---|---|
| 3.1.2.4.1 | Test with customers/consumers | 10120 | Validating identified market opportunities by testing company's offerings on lim... |
| 3.1.2.4.2 | Confirm internal capabilities | 10121 | Verifying that the company has sufficient infrastructure and resources to delive... |
Change Summary (v7.2.1 vs v6.1.1)
Changes indicated by:
+XXXXX- New element added-XXXXX- Element removedcXXXXX- Element changedNEW- Newly introduced
Complete Element List with Definitions
All 18 elements
| ID | Name | Definition |
|---|---|---|
| 3.1 | Understand markets, customers, and capabilities | Making sense of the market and customers to identify the right opportunities to be capitalized, give... |
| 3.1.1 | Perform customer and market intelligence... | Gathering intelligence on the market and customers. Closely examine the inherent attributes and coll... |
| 3.1.1.1 | Conduct customer and market research | Carrying out research studies to understand the behavior of customers and the realities of the marke... |
| 3.1.1.1.1 | Understand consumer needs and predict cu... | Identifying the factors that drive the targeted market segment. Model customer purchasing patterns, ... |
| 3.1.1.2 | Identify market segments | Identifying a section of the customer population to target for marketing products/services. Create s... |
| 3.1.1.2.1 | Determine market share gain/loss | Determining the increase or decrease of the company's sales volume in the targeted markets. Conduct ... |
| 3.1.1.3 | Analyze market and industry trends | Examining large-scale shifts and trends, with relevance to the organization's products/services. Vet... |
| 3.1.1.4 | Analyze competing organizations, competi... | Examining the strengths and weaknesses of competing organizations. Assess competing organizations fo... |
| 3.1.1.5 | Evaluate existing products/services | Examining the brands owned and products offered in the market. Determine the relative position of th... |
| 3.1.1.6 | Assess internal and external business en... | Understanding the culture and environment in which you're operating. Analyze how internal decision-m... |
| 3.1.2 | Evaluate and prioritize market opportuni... | Appraising market opportunities by quantifying and subjecting them to prioritization, as well as val... |
| 3.1.2.1 | Quantify market opportunities | Attaching quantifiable indicators to opportunities that have been identified in the market. Compute ... |
| 3.1.2.2 | Determine target segments | Identifying the targeted segment of customers. Deduce those particular customer segments that are to... |
| 3.1.2.2.1 | Identify under-served and saturated mark... | Determining which groups of potential customers do not yet, or already do have access to the product... |
| 3.1.2.3 | Prioritize opportunities consistent with... | Creating an index of market opportunities, and arrange them in order of preference. Prioritize based... |
| 3.1.2.4 | Validate opportunities | Confirming the practicability and reasonableness of the market opportunities that have been identifi... |
| 3.1.2.4.1 | Test with customers/consumers | Validating identified market opportunities by testing company's offerings on limited-size samples of... |
| 3.1.2.4.2 | Confirm internal capabilities | Verifying that the company has sufficient infrastructure and resources to deliver their offerings in... |
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