Targeting New Markets

Lesson Goals: Learn the basics of marketing and advertising Develop a systematic process of analysis Develop an effective advertising program Targeting New Markets

Analyzing Your Market What is the size of the market? What types of customer will buy the product or service? What will they do with it? How many potential customers are there? Where are these customers located? Targeting New Markets

Analyzing Your Market How will customers learn about the product or service? Is the market growing? Are there any new trends in the market? What’s the future of the product or service? \Who else is making the product / providing the service? Targeting New Markets

Market Research Is there a need for your product or service? Says who? (aside from you) Prove it on paper. Market research is more than a “gut” feeling. Is there hard evidence that people will actually buy from you? Targeting New Markets

Market Segments Customers can be divided up into market segments or target markets Possible divisions are by age, gender, location, family, lifestyle and education. Who are your target markets? Targeting New Markets

Developing a Customer Profile Who are your customers? Are your customers all the same? How do your customers differ? Targeting New Markets

Profile of Industry What does your industry look like? Is the trend toward growth? Who is your competition? Why should you know about your competition? Targeting New Markets

Where to Go for Help Library reference room Trade magazines Competitors Small Business Administration Small Business Development Centers Cooperative Extension Service Targeting New Markets

Market Strategy Action plan Entice customers to buy your product Includes: –Distribution channels –Pricing –Promotion and advertising –Budget –Inventory selection –Visual merchandising –Customer relations –Evaluation Targeting New Markets

Advertising Communicating a sales message to customers A well-organized plan An investment Targeting New Markets

Advertising Goals Sends right message to the right customer Builds an image of quality, friendliness, perceived value Increases customer information about the business Attracts customers Targeting New Markets

Advertising Budget Cover 12-month period Percent of anticipated sales Targeting New Markets

Newspaper Television Road Signs Yellow Pages Point of Sale Business Cards E-Commerce Radio Direct Mail Label Brochures/Handouts Word of Mouth Infomercials Advertising Media

Newspaper Can be very effective Good copy and layout is important Classified ads can be used in some situations at low cost Targeting New Markets

Radio Market specific Length of ad is important Number of ads is important Ad must be targeted to a specific customer base to be effective Targeting New Markets

Television Similar to radio Expensive Effective for large audiences Targeting New Markets

Direct Mail Has strong potential, especially in 50 mile radius Requires an up-to-date mailing list Has ability to feature targeted messages Can offer a personal touch Targeting New Markets

Road Signs Most common type of advertising Signs must be: –neat in appearance –specific in their message –visible –in a good location Targeting New Markets

Yellow Pages Will your customers use them? Do your competitors use them? Can you afford it? Targeting New Markets

Brochures / Handouts How will they be distributed? Are they designed correctly to be easily opened, read, and responded to? Targeting New Markets

Label Advertising Good for establishing name of business Good for image building Only reaches customers who have made a purchase Targeting New Markets

Point of Sale Good display of product is very effective Brochures or info pieces are excellent The sale location should also be considered point of sale advertising Targeting New Markets

Word of Mouth Excellent form of Advertising Can also be negative advertising Targeting New Markets

Why Use E-Commerce? Convey information in detail Cost effective Large potential customer base Action oriented Effective in both short- and long-term Targeting New Markets

Packaging Wholesale vs. Retail Advertising tool Silent salesman Dressed for Success Targeting New Markets