Presentation on theme: "IDENTIFY AND MEET A MARKET NEED"— Presentation transcript:
1 IDENTIFY AND MEET A MARKET NEED Entrepreneurship4/20/2017Chapter 6IDENTIFY AND MEET A MARKET NEED6.1 The Value of Market Research6.2 How to Perform Market Research6.3 Identify Your CompetitionChapter 6
2 Lesson 6.1 THE VALUE OF MARKET RESEARCH Chapter 6Lesson 6.1 THE VALUE OF MARKET RESEARCHGOALSIdentify a target market by understanding your customers.Research your market using primary and secondary data.
3 Chapter 6WHAT 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.
4 UNDERSTAND YOUR CUSTOMER Chapter 6UNDERSTAND YOUR CUSTOMERCustomers 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.
5 DEMOGRAPHICS AND PSYCHOGRAPHICS Chapter 6DEMOGRAPHICS AND PSYCHOGRAPHICSDemographics 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.
6 IDENTIFY YOUR TARGET MARKET Chapter 6IDENTIFY YOUR TARGET MARKET1. 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?
7 continued IDENTIFY YOUR TARGET MARKET Chapter 6continued IDENTIFY YOUR TARGET MARKET4. 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?
8 Determining your Target Market Chapter 6Determining your Target MarketWhy is it important to determine who your target market is?Unless you understand who your target market is and what types of products or services they are looking for, you will probably not be able to satisfy their wants and needs.
9 THE IMPORTANCE OF A CUSTOMER PROFILE Chapter 6THE IMPORTANCE OF A CUSTOMER PROFILEA customer profile is a description of the characteristics of the person or company that is likely to purchase a product or service.
10 THE IMPORTANCE OF A CUSTOMER PROFILE Chapter 6THE IMPORTANCE OF A CUSTOMER PROFILEThe importance of a customer profile will help you understand how to meet customer demand. Understanding your competition will help you identify unmet needs.Disadvantage of market segmentationYou might market to a group who is not interested in the product or might overlook a segment that would be very interested in the product.
11 Chapter 6MARKET SEGMENTSGroups of customers within a large market who share common characteristics are known as market segments.
12 Mass Marketing Advantages of Mass Marketing Chapter 6Mass MarketingAdvantages of Mass MarketingEasy to prepare advertisements for and reaches many peopleDisadvantages of Mass MarketingDoes not target specific needs of customersIs not suitable for all productsHas nothing to make product stand out from the competition
13 UNDERSTAND THE COMPETITION Chapter 6UNDERSTAND THE COMPETITIONKnowing about your competition will help you define your target market.
14 Chapter 6MARKET RESEARCHMarket research is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services.Market researchers collect primary and secondary data.If conducted properly, market research will help entrepreneurs understand their target markets and thus, satisfy the wants and needs of the customers.
15 Limitations of Market Research Chapter 6Limitations of Market ResearchCan be costlyTime consumingMust be carefully analyzed so that incorrect decisions are not made
16 Chapter 6SECONDARY DATASecondary data is data found in already published sources.
17 PLACES TO FIND SECONDARY DATA Chapter 6PLACES TO FIND SECONDARY DATAPublications issued by government and community organizations, such as the U.S. Census Bureau, the Small Business Administration, and Chamber of CommerceBooks about specific industriesInformation on web sites for government and businessesBooks about other entrepreneurs who set up similar businessesSpecialized magazines and journals devoted to particular fieldsNewspaper articles and statistics
18 Chapter 6Secondary SourcesInformation you can find using secondary sources include information on:DemographicsEconomic trendsIndustry forecasts
19 Chapter 6PRIMARY DATAPrimary data is information collected for the very first time to fit a specific purpose.Questionnaire or surveyObservationFocus groupsDisadvantage of primary dataTime consumingExpensive
20 Difference between Primary and Secondary market research data Chapter 6Difference between Primary and Secondary market research dataSecondary data is found in published sourcesPrimary data is information that is collected for the first time to fit a specific purpose
21 Chapter 6Chapter 6.1 AssignmentNotes – Answers for assignments are throughout the notes, make sure you read them.Checkpoint pg 132Checkpoint pg 133Checkpoint pg 135Checkpoint pg 137Thinking Critically #1-5 pg 137ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences
22 Lesson 6.2 HOW TO PERFORM MARKET RESEARCH Chapter 6Lesson 6.2 HOW TO PERFORM MARKET RESEARCHGOALSIdentify the five steps involved in primary data market research.Design a questionnaire.
23 FIVE STEPS OF PRIMARY MARKET RESEARCH Chapter 6FIVE STEPS OF PRIMARY MARKET RESEARCHSteps involved in conducting a market research include:Define Question – know what you want and find outSelect Method – survey, observation or focus groupsCollect Data – gather needed informationAnalyze DataDraw Conclusions – a plan of action
24 Primary Date Three ways to collect primary data include: Chapter 6Primary DateThree ways to collect primary data include:SurveyObservationFocus groupPrimary data becomes secondary data when it is published.
25 DESIGN A SURVEY Length of questionnaire Questions Chapter 6DESIGN A SURVEYLength of questionnaireQuestionsClearEasy to answerOnly important questionsIt is important to define the question you want your market research to answer other wise you might conduct research on the wrong issue.
26 Questionnaire A good questionnaire is: Chapter 6QuestionnaireA good questionnaire is:ClearRelevant questions that are easy to answerPeople are more inclined to answer short questionnaires because they don’t take much time.
27 Chapter 6Chapter 6.2 AssignmentNotes – Answers for assignments are throughout the notes, make sure you read them.Checkpoint pg 139Checkpoint pg 141Checkpoint pg 142Thinking Critically #1-3 pg 142ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences
28 Lesson 6.3 IDENTIFY YOUR COMPETITION Chapter 6Lesson 6.3 IDENTIFY YOUR COMPETITIONGOALSDetermine your direct and indirect competition.Analyze the strengths and weaknesses of competitors.Establish strategies for maintaining customer loyalty.
29 DIRECT AND INDIRECT COMPETITION Chapter 6DIRECT AND INDIRECT COMPETITIONDirect 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 competitionFind your indirect competition
30 DIRECT AND INDIRECT COMPETITION Chapter 6DIRECT AND INDIRECT COMPETITIONWhy should Entrepreneurs analyze both direct and indirect competitors?Both direct and indirect might take customers from them.
31 COMPETING WITH LARGE BUSINESSES Chapter 6COMPETING WITH LARGE BUSINESSESLarge 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.
32 Chapter 6Retail BusinessesWays you could attract customers to retail businesses may include:Extended hoursBirthday cardsFrequent buyer programsPersonal NotesThank you cardsStore Specific credit cardsCouponsLayaway program
33 STUDY INDIVIDUAL COMPETITORS Chapter 6STUDY INDIVIDUAL COMPETITORSPriceLocationFacilityStrengthsWeaknessesStrategy
34 Analyzing Competitors Chapter 6Analyzing CompetitorsPurposeTo figure out how to get customers to buy from your businessWhy can customer feedback be considered a type of market research?It is a valuable type of market research because it is coming from customers who care enough about your company and product to communicate with you.
35 STRATEGIES FOR MAINTAINING CUSTOMER LOYALTY Chapter 6STRATEGIES FOR MAINTAINING CUSTOMER LOYALTYListen and respond to feedbackOther strategies for maintaining loyaltySuperior serviceMore convenient hours than other businessesEasy return policiesStore-specific credit cardsPersonal notes or cardsFrequent buyer programs
36 Chapter 6Chapter 6.3 AssignmentNotes – Answers for assignments are throughout the notes, make sure you read them.Checkpoint pg 144Checkpoint pg 145Checkpoint pg 147Thinking Critically #1-3 pg 147ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences