Market Analyis Chapter 6 Entrepreneurship and Small Business Management

Topics 6.1 Doing Market Research 6.2 Industry and Market Analysis

Doing Market Research Chapter 6.1 Entrepreneurship and Small Business Management

Basic Marketing Concept “If a business is to succeed and make a profit, it must satisfy its customers.”

Doing Market Research Defining areas of analysis – Industry – Target market and customer

Industry A collection of businesses with a common line of products and

Customers Market = group who has a demand Target market = group you are selling to Market segment = smaller groups with similar needs and interests – Geographics = location – Demographics = age, job, gender, etc. – Psychographics = personality, opinion, lifestyle, etc.

Customers, continued Industrial Markets = business customers Multiple market segments = possible but not until later

Target Marketing Should be measurable Should be large enough to make profit Should be reachable Should be responsive

Conducting Market Research Process of investigating areas of market you are interested in – 1. Define the research question. 2. Decide what type of research. 3. Follow the research process. Look for data to support customer acceptance of the new product or service.

Define Research Question Helps you focus your research

Research Designs = ways to structure your research Exploratory = government publications Descriptive = questionnaires, interviews, observations Historical = study the past – trade associations, other business owners

The Research Process 1. Determine information/data needs. 2. Collect secondary data = already been collected 3. Collect primary data = you collect 4. Organize data = charts and reports 5. Analyze data = once you have identified market, evaluate prospects for success

Industry and Market Analysis Chapter 6.2 Entrepreneurship and Small Business Management

Topics Looking at the industry Looking at the customer

Looking at the Industry Volatility = how quickly things change in an industry

Your Company and the Industry Industry trends = project 3-5 years Sales potential = good SP does not guarantee success Demographics = average size of companies Barriers to entry = keep new businesses from entering or succeeding

Competition Direct competition = those with products and services like yours Indirect competition = different products but compete for same customers

Target Customer Customer Profile = complete picture of prospective customers Customer needs analysis = a way to pinpoint which features and benefits customers value

The End Make sure you have your notes filled in!