1. Identify and Meet a Market Need
4.1 Identify Your Market
4.2 Research the Market
4.3 Know Your Competition

2. Lesson 4.1 Identify Your Market
Goals
Identify a target market by analyzing the needs of customers.
Explain how market segmentation can help an entrepreneur analyze a target market.
Chapter 4

3. Vocabulary target market market segments customer profile demographics
psychographics
use-based data
geographic data
Chapter 4

4. Target Market customers target market
the people or organizations who buy the products and services companies offer
target market
the individuals or companies that are interested in buying a particular product or service
Chapter 4

5. Identify Your Target Market
Consider the following information regarding your customers:
individuals or companies?
age, income, place of residence?
industries customers are in?
needs and wants my product will satisfy?
number of potential customers in my area?
demand for my product or service?
who is the competition?
pricing of product or service?
what is unique about my offering?
Chapter 4

6. What questions should you ask when identifying your target market?
Chapter 1

7. 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.
It is important to carefully analyze market data to meet the needs of segments of the market.
Chapter 4

8. Customer Profile customer profile
a description of the characteristics of the person or company that is likely to purchase a product or service
Chapter 4

9. demographics data that describes a group of people in terms of age
marital status
family size
ethnicity
gender
profession
education
income
Chapter 4

10. psychographics data that describe a group of people in terms of tastes
opinions
personality traits
lifestyle habits
Chapter 4

11. 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

12. Name four types of customer data that may be analyzed in developing a customer profile.
Chapter 1

13. Lesson 4.2 Research the Market
Goals
Explain the role of market research.
Identify the six steps involved in market research.
Explain the role technology plays in marketing research.
Chapter 4

14. Vocabulary market research primary data survey focus group
secondary data
customer relationship management
Chapter 4

15. Role of Market Research
a system for collecting, recording, and analyzing information about
customers
competitors
products
services
Chapter 4

16. Primary Data primary data survey
information collected for the very first time to fit a specific purpose
survey
a list of questions you ask your customers to determine
demographic information
psychographic information
Chapter 4

17. observation focus group
determining information by watching customer behavior
focus group
an in-depth interview with a group of target customers
questions are similar to survey questions
group interaction allows for more discussion
Chapter 4

18. disadvantages of primary data
time-consuming
more expensive
Chapter 4

19. Secondary Data secondary data
information found in already-published sources
Chapter 4

20. Secondary data can be found in:
publications issued by government and community organizations
industry specific books
government and business websites
books about entrepreneurs in similar businesses
trade publications
newspaper articles and statistics
Chapter 1

21. What types of data can be collected through market research?
Chapter 1

22. Six Steps of Market Research
Although primary data collection is time consuming and expensive, it will tell you exactly what you want to know.
Primary data can uncover information that is often not available through secondary sources.
Chapter 4

23. Chapter 4

24. Determine the Data Needed
Define the Question
Determine exactly what it is you need to know.
Determine the Data Needed
Decide what data you need to answer the question.
Chapter 4

25. Collect the Data Decide the best way to gather data.
People’s opinions can be obtained through
focus groups
surveys
secondary market research
demographic data
psychographic data
economic trends
industry forecasts
Chapter 4

26. Analyze the Data Take Action Evaluate the Results
Thoroughly analyze and interpret data.
Write down analysis results for future reference.
Take Action
Use your analysis results to develop an action plan.
Evaluate the Results
Entrepreneurs must regularly evaluate the actions they take as a result of the plan.
Chapter 4

27. What are the six steps of market research?
Chapter 1

28. Technology-Driven Marketing
Customer relationship management
a business strategy designed to increase profitability and customer satisfaction
uses technology to track customer interactions
focuses on understanding customers as individuals instead of as part of a group
Chapter 1

29. Interactions with Customers
Companies collect data about customers through interactions that occur via
phone
web
salespersons
product registration
product warranty cards
Chapter 1

30. electronic data transfer
touch points
places where a customer might have contact with a company
discussion with delivery personnel
electronic data transfer
the movement of data between locations in a structured, computer-retrievable format
Chapter 1

31. Customer Database data warehouse data mining
a large computerized database containing all of the information collected in the CRM process
data mining
finds hidden patterns and relationships in the customer data stored in the data warehouse
Chapter 1

32. What is the goal of CRM?
Chapter 1

33. Lesson 4.3 Know Your Competition
Goals
Explain the importance of knowing and understanding your competition.
Prepare a competitive analysis.
Describe strategies for maintaining customer loyalty.
Chapter 4

34. Vocabulary direct competition indirect competition
competitive analysis
Chapter 4

35. Impact of Competition You should always watch the competition.
Offer products that are of equal or better quality that sell for the same or lower prices.
Chapter 4

36. Understand the Competition
New businesses need to identify some special customer need or want that is not being met.
Chapter 4

37. Know the Types of Competition
direct competition
a business that makes most of its money selling the same or similar products or services to the same market as other businesses
Chapter 4

38. indirect competition
a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses
Chapter 4

39. large retailers
Reasons that make it difficult for entrepreneurs to compete with large retailers include:
Large retailers can keep larger quantities of products in stock.
Large chains do not rely on a single product line.
Large companies have a larger advertising budget.
Chapter 4

40. Why is it important to understand the competition your business faces?
Chapter 1

41. Competitive Analysis competitive analysis
identifying and examining the characteristics of a competing firm
Chapter 4

42. Follow these steps to begin your competitive analysis:
Make a list of your competitors.
Summarize the products and prices offered by your competitors.
Chapter 4

43. List each competitor’s strengths and weaknesses.
Find out the strategies and objectives of your competitors.
Determine the opportunities in the market.
Identify threats to your business from the competition.
Chapter 4

44. Chapter 4

45. What is the purpose of a competitive analysis?
Chapter 1

46. Maintain Customer Loyalty
Listen and Respond to Feedback
Continually ask for and respond to customers’ needs.
Chapter 4

47. Other strategies for Maintaining Loyalty
superior service
convenient hours
easy return policies
store-specific credit cards
personal notes or birthday cards
frequent-buyer programs
Chapter 4

48. What are some strategies for maintaining customer loyalty?
Chapter 1

49. Performance Competencies
Develop the presentation logically and systematically
Communicate the design process effectively
Chapter 1

50. Present the tips, techniques, and tools used
Demonstrate the ability to make a businesslike presentation
Show self-confidence apparent through knowledge of content and articulation of ideas
Chapter 4

51. Give It A Try
Document addresses topic and is appropriate for the audience
Graphics, text treatment, and special effects show creativity and cohesiveness of design
Chapter 1

52. Selection of fonts and type sizes is appropriate
Overall layout and design is creative and appealing
Final product indicates a clear thought process and an intended, planned direction with formulation and execution of a firm idea
Required information is effectively communicated
Chapter 4