Analyzing the Market and the Customer Chapter 6 Analyzing the Market and the Customer

Overview Researching and characterizing the target market Forecasting new product/service demand Getting the product/service to the customer Market feasibility conclusions Copyright © Houghton Mifflin Company

The Target Market The Primary Customer The first person to pay you for your product or service Copyright © Houghton Mifflin Company

Researching the Target Market Assess information needs How will data be used? What data need to be collected? What methods of analysis should be used? Research secondary sources first Demographics Psychographics Competitors Copyright © Houghton Mifflin Company

Researching the Target Market (cont.) Conduct primary research Demographics of initial customer Purchasing patterns How they respond to your competitors Copyright © Houghton Mifflin Company

Primary Research Techniques Response Rate Face Interviews HIGH Internet Surveys Focus Groups Phone Interviews Mail Surveys LOW LOW Quality of Information HIGH Copyright © Houghton Mifflin Company

The Customer Profile Picture in great detail the person or entity most likely to buy from you Age, income level, education Buying habits: when, where, how much? How does this customer want to purchase? Copyright © Houghton Mifflin Company

Forecasting Demand Use historical analogy or substitute products/services Interview prospective end-users and intermediaries Go into limited production or do a formal test market Copyright © Houghton Mifflin Company

Getting the Product/Service to the Customer Copyright © Houghton Mifflin Company

Take-Aways List what students took away from the discussion in real time Copyright © Houghton Mifflin Company