An Industry is... A group of businesses that share similar business activities. Example: Sporting goods, clothing, travel, fashion

MARKETING CONCEPT Find out what customers want and need Find out what customers want and need Offer products that are better than others Offer products that are better than others Make a profit Make a profit

Market Segments Smaller groups of the buying market Smaller groups of the buying market For example: Sporting goods store located near our high school For example: Sporting goods store located near our high school What might this market segment be? What might this market segment be? o male & female students o into fitness/sports of all types o live nearby o buy mainly for their sport’s teams o aware of sporty athletic trends o interested in ways to improve athletic performance

DEMOGRAPHICS Age Age Marital Status Marital Status Family Size Family Size Ethnicity Ethnicity Gender Gender Profession Profession Education Education Income Income

PSYCHOGRAPHICS What they like What they like Opinions Opinions Personality Personality Lifestyle Habits Lifestyle Habits

TARGET MARKET Finding those interested in your product/service and willing and able to pay for it. One of the easiest first markets to break into is one in which customers have a problem that you can solve. Ex: You sell real estate. 1. Specifically what are you selling; say, new moderately priced condominiums. Who is your target market? 2. Your target market could be: middle-class individuals just starting off OR elderly individuals looking to downsize

IDENTIFY YOUR TARGET MARKET 1.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?

continued IDENTIFY YOUR TARGET MARKET 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.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?

Start the Research Process Find out what you need/want to know

Get Secondary Data Items found in published sources like: o US Census Bureau o SBA o Chamber of Commerce o Newspapers To find demographic information such as population makeup, income, etc as well as industry trends, market growth expectations, etc. o Specific Industry Books o Internet o Specialized Magazines

Collect Primary Data Questionnaires/Surveys Questionnaires/Surveys Observation—Say you want to open a bicycle/roller blade/skateboard shop, you may want to go to the local parks and count how many people are doing those activities to give you an idea of possible customers Observation—Say you want to open a bicycle/roller blade/skateboard shop, you may want to go to the local parks and count how many people are doing those activities to give you an idea of possible customers Focus Groups—Small groups that would answer the same types of questions as on a survey, however, you would be able to get more information since you’re interviewing them personally. Focus Groups—Small groups that would answer the same types of questions as on a survey, however, you would be able to get more information since you’re interviewing them personally.

Organize the Data then Analyze the Data

Must Know Your Customer Develop a Customer Profile Identifying the types of individuals or companies that would be interested in your product/service. Ex: Customer Profile for Rave  Females  Ages  Lives near Merrillville  Wants trendy clothing  Interested in reasonable prices  Average household income of $40,000/year

PRIMARY MARKET RESEARCH How Do You Do It? What are you trying to find out? Be specific and detailed What are you trying to find out? Be specific and detailed

PRIMARY MARKET RESEARCH How Do You Do It? Collecting the Information You’re Looking for Collecting the Information You’re Looking for –Secondary data first to help you decide exactly what kinds of primary data you may want  Demographic  Psychographic  Economic Trends  Industry Forecasts

PRIMARY MARKET RESEARCH How Do You Do It? How will you get the answers you’re looking for? How will you get the answers you’re looking for? –Survey –Things to think about  How long should it be  What questions should be on it  How should you give it  How many people should you give it to

PRIMARY MARKET RESEARCH How Do You Do It? How will you get the answers you’re looking for? How will you get the answers you’re looking for? –Observation  Where can you get the best info  When can you get the best info

PRIMARY MARKET RESEARCH How Do You Do It? How will you get the answers you’re looking for? How will you get the answers you’re looking for? –Focus Group  What kinds of people do you want in group  What questions to ask

PRIMARY MARKET RESEARCH How Do You Do It? Figure out and write down what the information you got means for your business Figure out and write down what the information you got means for your business

PRIMARY MARKET RESEARCH How Do You Do It? Decide how you will use the information you just got (draw conclusions) Decide how you will use the information you just got (draw conclusions) –Develop a plan that will include the information learned so your business can be profitable

TYPES OF COMPETITION Direct Competition—Businesses that make all or most of their money by selling similar products/services as yours Indirect Competition—Businesses that make only a small part of their money by selling similar products/services as yours Ex: Your business sells adult ladies clothing Direct competitor would be Fashion Bug Indirect competitor would be JC Penney

TOUGH TO COMPETE WITH LARGE BUSINESSES—WHY? More items in stock Don’t rely too much on any one product/service More money for advertising TOUGH TO COMPETE WITH LARGE BUSINESSES—HOW? Offer personalized service Offer special or custom-made products

ANALYZE ALL COMPETITORS Price—How are their prices compared to yours Location—Where are they located; close to you? Facility—Clean, Looks good Strengths—What do they do that makes them different and/or better than others? Weaknesses—What things are not so good about them or their products/services? Strategy—Develop plan to get customers to your business rather than others

WAYS TO MAINTAIN AND INCREASE CUSTOMERS Give superior service More convenient hours Easy return policy Match sale prices from competitors Frequent buyer program HOW TO KNOW WHAT CUSTOMERS WANT/NEED Ask for customer feedback when making purchases Call customers to ask questions Feedback/Suggestion box Survey