Presentation on theme: "School Store Operations Chapter 1"— Presentation transcript:
1School Store Operations Chapter 1 Chapter 1 - Research Your MarketSchool Store Operations Chapter 1Research Your Market
2Winning Strategies Meeting Customer Needs How can marketing research contribute to the success of the Ultimate Boutique?Identify other ways that the school store could employ marketing research to decide what to buy.
3Lesson 1.1 Target Market Describe how to reach your target market Explain how to analyze your competition
4Page 4Create a list of products and services that would be appropriate based on each of the following demographic groups in your school:AgeGenderIncome LevelEthnic BackgroundEducationOccupation
5PROFILING YOUR CUSTOMERS MarketA group of people or companies that have a demand for a product or service and are willing and able to buy itTarget MarketThe particular group that you are interested interested in reaching
6Target Market The market segment should be measurable The segment should be large enough to be profitableThe segment should be reachable
7Finding Your Customers Identify why a customer would want to buy your product or serviceSegment your overall marketResearch your market
8Market SegmentationBeing able to promote to a specific group of customersDemographics – Physical characteristics such as age, gender, location, education, occupation, income level, marital status, and household typePsychographics – Social characteristics such as needs, values, buying styles, culture, and interestsGeographics – Based upon where people live such as local, regional, national, or global markets
9Why is it important to segment your market before positioning a new product within your current product mix?
10ANALYZING THE COMPETITION The obvious competitor isn’t your only competitor
11Competition ResearchStudying the competition can provide you with a wealth of information about your customer, the market, and the profit potentialVisiting and observingCalling and inquiringStudying ads in newspapers, magazines, online and broadcasting
12Why is it important to compare your school store with the competition?
13Lesson 1.2 Market Research Describe how to conduct effective market researchIdentify the various methods used to collect dataExplain the six steps in the research process
14Page 10Describe how you would use market research to prevent financial losses in your store.Design a questionnaire.
15MARKETING INFORMATION SYSTEM In order to succeed and make a profit, your school store must meet the needs of its customers
16Market Research Leads to Market Analysis A process designed to identify solutions to a specific marketing problem by systematically gathering and analyzing data
17DATA COLLECTION Primary Data Secondary Data Surveys, observations, and experimental methodSecondary DataSales and marketing magazines, the U.S. Department of Commerce, trade associations, business publications, other sources, and internal sources
18Primary DataInformation collected for the first time to analyze a specific situationSubjective – useful, but it cannot be statistically analyzedMeasurable Data – More reliable because statistical analysis can be conductedKeep it simple and easy to read, ask closed-ended questions, get a large sample, give respondents an incentive, and construct the survey for multiple uses
19Secondary DataInformation that already has been collected for purposes other than your current research projectAvailable through external sources
20THE RESEARCH PROCESS Identify a need or define the store’s problem Obtain primary and secondary dataOrganize your dataAnalyze your dataRecommend solutionsImplement a plan of action
21Lesson 1.3 Determine What to Buy Describe the role of the marketing mixIdentify internal & external sources of information
22Page 16 Brainstorm ideas for using this data. Discuss ways this data might affect your store’s buying plan.
23THE MARKETING MIX Marketing Mix A blend of features that satisfies your chosen marketProductPricePlacePromotion
24Product StrategyProduct decisions are crucial to the success of your school storeAsk yourself these questions:What should I buy?How much should I buy?How is my product better than the competition?
25Pricing Strategy Costs and Expenses Economic Conditions Customer ImpressionsCompetition
26Place Strategy How and where products are offered to your customers Also called distribution
27Promotion StrategyPromoting your goods and services through advertising and the use of other promotional toolsEncourages public acceptance of the school store and the product mix
28What is the purpose of the four elements of the marketing mix?
29HELP WITH BUYING DECISIONS You should not make buying decisions aloneSeek out and employ data from as many sources as possible
30Internal Sources Store Records Management Sales Staff Want Slip System – A customer form to request items not offered or out of stockManagementSales Staff
31External Sources Customers Magazines, trade journals, and trade shows Trade Shows – Periodic, temporary exhibits that are scheduled throughout the year in various trade centersVendorsTrade associationsCompetitors
32How is operating a want slip system advantageous to the school store?
33Men’s Clothing Sales Hit the Skids Page 26 The menswear business offers a good example of how complex the marketing process can be. When retailers are dealing with a declining market, it is more important than ever to conduct market research and define a target market.