Presentation on theme: "Analyze the Needs of Customers How Market Segmentation Can Help an Entrepreneur analyze a Target Market."— Presentation transcript:
Analyze the Needs of Customers How Market Segmentation Can Help an Entrepreneur analyze a Target Market
Don’t be so focused on your product/business ◦ Who are your main customers? ◦ Are they willing to buy your product? Use Market Research!!!! ◦ Market research will tell you about your customers and their willingness to purchase your product. Target Market – the individuals or companies that are interested in a particular product or service and are willing and able to pay for it.
#1 Who is my potential Market? Are my customers individuals or companies?
#2 If my 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 my customers are companies, what industries are they in? Where are those industries located?
#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 What is the demand for my products or services?
#7 Where do these potential customers currently buy their products or services?
#8 What price are they willing to pay for my products or services?
#9 What can I do for my customers that other companies are not already doing for them?
Market Segments – groups of customers within a large market who share common characteristics. Segmenting helps you develop products a product or service that will meet specific customer needs/wants. Impossible to please everyone in the market. Make decisions based on information gathered about market segments. Data needs to be analyze correctly!
People with common characteristics. The more you learn about them, the better strategy you can develop. Customer Profile- a description of the characteristics of the person or company that is likely to purchase a product or service.
Demographics – Data that describe a group of people in terms of age, marital status, family size, ethnicity, gender, profession, education, and income. Psychographics – Data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits. Use-Based Data – Data that help you determine how often potential customers use a particular service. Geographic Data – Data that help you determine where your potential customers live and how far they will travel to do business with you.