1. Analyzing the Market and the Customer
Chapter 6
Analyzing the Market and the Customer

2. 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

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

4. 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

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

6. 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

7. 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

8. 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

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

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