1. Market Analysis and Target Market
ENTREPRENEURSHIP
Market Analysis and Target Market
Presented By
Mrs. Bowden

2. Identify and Meet a Market Need
4.1 Identify Your Market
4.2 Research the Market
4.3 Know Your Competition

3. Goals Identify a target market by analyzing the needs of customers.
Identify Your Market
Goals
Identify a target market by analyzing the needs of customers.
Explain how market segmentation can help an entrepreneur analyze a target market.

4. Terms target market market segments customer profile demographics
psychographics
use-based data
geographics
Chapter 4

5. Target Market Customers are your most important asset. target market
the individuals or companies that are interested in a particular product or service
Chapter 4

6. Identify Your Target Market
Consider the following information regarding your customers:
individuals or companies?
age and income?
industries customers are in?
needs and wants my product will satisfy?
number of potential customers?
competitive environment?
pricing of product or service?
what is unique about my offering?
Chapter 4

7. What questions should you ask when identifying your target market?
Chapter 4

8. Market Segments market segments
groups of customers within a large market who share common characteristics
Most products and services appeal to a small portion of the population.
Segmentation helps you serve your niche efficiently.
Chapter 4

9. Customer Profile customer profile
a description of the characteristics of the person or company that is likely to purchase a product or service
Chapter 4

10. demographics data that describes a group of people in terms of age
marital status
family size
ethnicity
gender
profession
education
income
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11. psychographics data that describe a group of people in terms of tastes
opinions
personality traits
lifestyle habits
Chapter 4

12. use-based data geographic data
data that helps you determine how often potential customers use a particular service
geographic data
data that helps you determine
where your potential customers live
how far customers will travel to do business with you
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13. Name four types of customer data that may be analyzed in developing a customer profile.
Chapter 4

14. Goals Explain the role of market research.
Research the Market
Goals
Explain the role of market research.
Identify the six steps involved in market research.
Chapter 4

15. Terms market research primary data survey focus group secondary data
Chapter 4

16. Role of Market Research
a system for collecting, recording, and analyzing information about
customers
competitors
goods
services
Chapter 4

17. Primary Data primary data survey
information collected for the very first time to fit a specific purpose
survey
a list of questions you ask your customers to determine
demographic information
psychographic information
Chapter 4

18. - observation focus group
determining information by watching customer behavior
focus group
an in-depth interview with a group of target customers
questions are similar to survey questions
group interaction allows for more in-depth discussion
Chapter 4

19. disadvantages of primary data
expensive
time consuming
Chapter 4

20. Secondary Data secondary data Secondary data can be found in:
information found in already-published sources
Secondary data can be found in:
government publications and websites
industry specific books
trade publications
newspaper articles
books about entrepreneurs in similar businesses
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21. What types of data do entrepreneurs collect through market research?
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22. Six Steps of Market Research
Although primary data collection is time consuming and expensive, it will tell you exactly what you want to know.
Primary data can uncover information that is often not available through secondary sources.
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23. Chapter 4

24. Determine the Data Needed
Define the Question
Determine exactly what it is you need to know.
Determine the Data Needed
Decide what data you need to answer the question.
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25. Collect the Data
Conduct secondary research to help determine the primary data requirements.
Determine the most effective methodology for primary research collection.
Questionnaires should contain only the most pertinent questions.
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26. Chapter 4

27. Analyze the Data Take Action Evaluate the Results
Thoroughly analyze and interpret data.
Write down analysis results for future reference.
Take Action
Use your analysis results to develop an action plan.
Evaluate the Results
Entrepreneurs must perpetually reassess the effectiveness of their actions.
Chapter 4

28. What are the six steps of market research?
Chapter 4

29. Goals Explain the importance of understanding your competition.
Know Your Competition
Goals
Explain the importance of understanding your competition.
Determine types of competition.
Prepare a competitive analysis.
Describe strategies for maintaining customer loyalty.
Chapter 4

30. Terms direct competition indirect competition competitive analysis
Chapter 4

31. Impact of Competition
To remain competitive, you should offer products that are of equal or better quality than the competition and that sell for the same or lower prices.
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32. Understand the Competition
Determine the ways your competition is not meeting the needs of their customers.
The unmet needs of these customers provides you with an entrepreneurial opportunity.
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33. Why is it important for you to understand the competition your business faces?
Chapter 4

34. Types of Competition direct competition
originates from a business that makes most of its income by
selling the same products or services as you
to the same market
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35. indirect competition
originates from a business that makes only a small amount of money by
selling the same products or services as you
to the same market
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36. Large Retailers?
Reasons that large retailers can be a source of strong competition include:
they can order and stock large quantities of products
the volume discounts they obtain result in lower prices to the consumer
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37. they have multiple product lines
if one product does poorly, there are other products available to generate sales
they have larger advertising budgets
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38. What is the difference between direct and indirect competition?
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39. Competitive Analysis competitive analysis
identifying and examining the characteristics of a competing firm
Chapter 4

40. Follow these steps to begin your competitive analysis:
Make a list of your competitors.
Summarize the products and prices offered by your competitors.
List each competitor’s strengths and weaknesses.
Find out the strategies and objectives of your competitors.
Determine the strength of the market.
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41. Chapter 4

42. What is the purpose of a competitive analysis?
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43. Maintaining Customer Loyalty
Listen and Respond to Feedback
Perpetually ask for and respond to customers’ needs.
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44. Other strategies for Maintaining Customer Loyalty
superior service
convenient hours
easy return policies
store-specific credit cards
personal notes or birthday cards
frequent-buyer programs
Chapter 4

45. Why should you maintain customer loyalty?
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