Presentation on theme: "IDENTIFY AND MEET A MARKET NEED"— Presentation transcript:
1 IDENTIFY AND MEET A MARKET NEED Entrepreneurship4/21/2017Chapter 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 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.
9 Chapter 6MARKET SEGMENTSGroups of customers within a large market who share common characteristics are known as market segments.
10 UNDERSTAND THE COMPETITION Chapter 6UNDERSTAND THE COMPETITIONKnowing about your competition will help you define your target market.
11 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.
12 Chapter 6SECONDARY DATASecondary data is data found in already published sources.
13 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
14 Chapter 6PRIMARY DATAPrimary data is information collected for the very first time to fit a specific purpose.Questionnaire or surveyObservationFocus groupsDisadvantage of primary data
15 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.
16 FIVE STEPS OF PRIMARY MARKET RESEARCH Chapter 6FIVE STEPS OF PRIMARY MARKET RESEARCHDefine the questionSelect a research methodCollect dataAnalyze dataDraw conclusions
17 DESIGN A SURVEY Length of questionnaire Questions Clear Easy to answer Chapter 6DESIGN A SURVEYLength of questionnaireQuestionsClearEasy to answerOnly important questions
18 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.
19 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
20 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.
21 STUDY INDIVIDUAL COMPETITORS Chapter 6STUDY INDIVIDUAL COMPETITORSPriceLocationFacilityStrengthsWeaknessesStrategy
22 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