Identify and Meet a Market Need 4 Identify and Meet a Market Need 4.1 Identify Your Market 4.2 How to do Research 4.3 Identify Competition 4.4 The Marketing Mix 4.5 Promotion and Goals

Lesson 4.1 Identify Your Market Goals Identify a target market by analyzing the needs of customers. Describe how to conduct market research Chapter 4

Terms Target market Demographics Psychographics Market segments Market Research Secondary Data Primary Data Observation Focus Groups Chapter 4

On the Scene Why is it important for Cheryl to know exactly who her customers are? What characteristics would you look for in your customers if you planned to open a paintball store? What about a bakery? Textbook Page 74 Chapter 4

Target Market Target Market The individuals or companies that are interested in a particular product or service Textbook Page 74 Chapter 4

Understand Your Customer Customers are your most important asset. They are the individuals and businesses who buy the products and services companies offer. Textbook Page 75 Chapter 4

Demographics Data that describes a group of people in terms of age marital status family size ethnicity gender profession education income Textbook Page 75 Chapter 4

Psychographics data that describe a group of people in terms of tastes opinions personality traits lifestyle habits Textbook Page 75 Chapter 4

Identify Your Target Market Consider the following information regarding your customers: individuals or companies? age and income? industries customers are in? needs and wants my product will satisfy? number of potential customers? competitive environment? pricing of product or service? what is unique about my offering? Textbook Page 75 Chapter 4

What questions should you ask when identifying your target market? Chapter 4

Customer Profile Customer profile a description of the characteristics of the person or company that is likely to purchase a product or service Textbook Page 76 Chapter 4

Market Segments Market segments groups of customers within a large market who share common characteristics Most products and services appeal to a small portion of the population. Segmentation helps you serve your niche efficiently. Textbook Page 76 Chapter 4

Use-based data Geographic data data that helps you determine how often potential customers use a particular service Geographic data data that helps you determine where your potential customers live how far customers will travel to do business with you Chapter 4

Understand the Competition Do they offer high quality with high prices? Do they offer low quality with low prices? How is their customer services? Are their customers happy? How much repeat business do they get? Textbook Page 77 Chapter 4

Why is it important to have a customer profile and understand your competition when determining your target market? You must understand your competition and your customers’ needs and wants in order to define your target market. Chapter 4

Market Research You need to find out who your customers are, what they want or need, and how much they will pay for it. Without customers, you have no business. Textbook Page 77 Chapter 4

Terms Market research Secondary data Primary data Survey Focus group Chapter 4

Role of Market Research Market research is a system for collecting, recording, and analyzing information about customers competitors goods services Chapter 4

Secondary Data Secondary data Secondary data can be found in: information found in already-published sources Secondary data can be found in: government publications and websites industry specific books trade publications newspaper articles books about entrepreneurs in similar businesses Textbook Page 77 Chapter 4

Primary Data Primary data Observation information collected for the very first time to fit a specific purpose Observation determining information by watching customer behavior Chapter 4

Focus group an in-depth interview with a group of target customers questions are similar to survey questions group interaction allows for more in-depth discussion Survey a list of questions you ask your customers to determine demographic information psychographic information Chapter 4

disadvantages of primary data expensive time consuming Chapter 4