Chapter 6 IDENTIFY AND MEET A MARKET NEED

Report
Chapter 6
IDENTIFY AND MEET
A MARKET NEED
LESSONS
6.1 The Value of Market Research
6.2 How to Perform Market Research
6.3 Identify Your Competition
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Chapter 6
Slide 2
Lesson 6.1
THE VALUE OF MARKET RESEARCH
GOALS
Identify a target market by
understanding your
customers.
Research your market using
primary and secondary data.
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Chapter 6
Slide 3
WHAT IS A TARGET MARKET?
The target market is the individuals or
companies that are interested in a
particular product or service and are
willing and able to pay for it.
The marketing concept uses the
needs of customers as the primary
focus during the planning, production,
distribution, and promotion of a product
or service.
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Chapter 6
Slide 4
UNDERSTAND YOUR CUSTOMER
Customers are the people who buy the
products and services companies offer.
Customers buy goods and services to
satisfy economic wants and needs.
An economic want is an unfilled desire of a
customer.
An economic need is anything that is
required to live.
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DEMOGRAPHICS AND
PSYCHOGRAPHICS
Chapter 6
Slide 5
 Demographics are data that describe a
group of people in terms of their age, marital
status, family size, ethnicity, gender,
profession, education, and income.
 Psychographics are data that describe a
group of people in terms of their tastes,
opinions, personality traits, and lifestyle
habits.
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Chapter 6
Slide 6
IDENTIFY YOUR TARGET MARKET
1. Who are my customers: individuals or
companies?
2. If customers are individuals:
How old are they?
How much money do they earn?
Where do they live?
How do they spend their time and money?
3. If customers are companies:
What industries are they in?
Where are those industries located?
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Chapter 6
Slide 7
continued
IDENTIFY YOUR TARGET MARKET
4. What needs or wants will my product or service
satisfy?
5. How many potential customers live in the area in
which I want to operate?
6. Where do these potential customers currently buy
the products or services I want to sell them?
7. What price are they willing to pay for my products
or services?
8. What can I do for my customers that other
companies are not already doing for them?
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THE IMPORTANCE OF
A CUSTOMER PROFILE
Chapter 6
Slide 8
A customer profile is a description of
the characteristics of the person or
company that is likely to purchase a
product or service.
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Chapter 6
Slide 9
MARKET SEGMENTS
Groups of customers within a large
market who share common
characteristics are known as market
segments.
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Chapter 6
Slide 10
UNDERSTAND THE COMPETITION
Knowing about your competition will
help you define your target market.
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Chapter 6
Slide 11
MARKET RESEARCH
Market research is a system for
collecting, recording, and analyzing
information about customers,
competitors, goods, and services.
Market researchers collect primary and
secondary data.
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Chapter 6
Slide 12
SECONDARY DATA
Secondary data is data found in
already published sources.
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Chapter 6
Slide 13
PLACES TO FIND SECONDARY DATA
 Publications issued by government and community
organizations, such as the U.S. Census Bureau, the Small
Business Administration, and Chamber of Commerce
 Books about specific industries
 Information on web sites for government and businesses
 Books about other entrepreneurs who set up similar
businesses
 Specialized magazines and journals devoted to particular
fields
 Newspaper articles and statistics
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Chapter 6
Slide 14
PRIMARY DATA
Primary data is information collected
for the very first time to fit a specific
purpose.
Questionnaire or survey
Observation
Focus groups
Disadvantage of primary data
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Chapter 6
Slide 15
Lesson 6.2
HOW TO PERFORM
MARKET RESEARCH
GOALS
Identify the five steps
involved in primary data
market research.
Design a questionnaire.
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FIVE STEPS OF
PRIMARY MARKET RESEARCH
Chapter 6
Slide 16
Define the question
Select a research method
Collect data
Analyze data
Draw conclusions
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Chapter 6
Slide 17
DESIGN A SURVEY
Length of questionnaire
Questions
Clear
Easy to answer
Only important questions
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Chapter 6
Slide 18
Lesson 6.3
IDENTIFY YOUR COMPETITION
GOALS
Determine your direct and
indirect competition.
Analyze the strengths and
weaknesses of competitors.
Establish strategies for
maintaining customer loyalty.
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DIRECT AND INDIRECT
COMPETITION
Chapter 6
Slide 19
 Direct competition is competition from a
business that makes most of its money selling
the same or similar products or services as
another business.
 Indirect competition is competition from a
business that makes only a small amount of
money selling the same or similar products or
services as another business.
 Find your direct competition
 Find your indirect competition
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COMPETING WITH
LARGE BUSINESSES
Chapter 6
Slide 20
Large retailers usually are able to keep
larger quantities of products in stock.
Large retail chains don’t rely on one
single product line.
Large companies usually have more
resources to devote to advertising.
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Chapter 6
Slide 21
STUDY INDIVIDUAL COMPETITORS
Price
Location
Facility
Strengths
Weaknesses
Strategy
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STRATEGIES FOR MAINTAINING
CUSTOMER LOYALTY
Chapter 6
Slide 22
Listen and respond to feedback
Other strategies for maintaining loyalty
Superior service
More convenient hours than other
businesses
Easy return policies
Store-specific credit cards
Personal notes or cards
Frequent buyer programs
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