Entrepreneurship I Class #4 Market Research and Marketing.
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Entrepreneurship I Class #4 Market Research and Marketing
9/25/022 Market Group of potential customers who have purchasing power and unsatisfied needs. A new venture will survive only if a market exists Market research involves gathering information about a particular market, followed by an analysis of that market
9/25/023 Market research Analyze the market –understand the nature of the opportunity Segment Target Position Marketing plan
9/25/025 Competitive analysis Market share Strengths/weaknesses New entrants/mergers Stable/increasing/decreasing Barriers to entry for you Barriers to entry for others (assuming you are in the market)
9/25/026 Segment Sub-markets –allow entry best suited to limited resource base Various ways of segmenting market: –product –customer –geography –distribution
9/25/0215 Marketing Plan Recognize a need Develop a solution to fill the need Understand the benefits to the customer Create a sales/distribution strategy Formulate a promotional program Establish a sustainable market position Establish pricing
9/25/0216 The Need How many have the need? How much will they pay for a solution? How do they get along now? How well do you know this area? Is this a window of opportunity or a long felt need?
9/25/0217 The Solution Can a product or service be designed? Can it be developed at an acceptable cost and time? Can the risks be minimized or eliminated? Can it be produced at a cost that will generate profits? Can it be differentiated from existing solutions?
9/25/0218 Benefits Establish between end-user and customer (who pays you?). Why will they buy this? What value do you bring (over the competitors)?
9/25/0219 Sales/distribution strategy How much can be spent on recurring sales cost? What are the best channels now? The best channels in the future? How will the competition react? What sales presentation materials are required? How much sales training is required?
9/25/0220 Direct selling Direct sales people in regions or at headquarters Direct Mail – telemarketing Direct response marketing Corporate relationships
9/25/0221 Indirect selling Distributors Agents and sales representatives Corporate partnerships System houses - value added resellers (VARs) System integrators Direct mail houses Brand name for other corporations
9/25/0222 Promotional program How will the product be positioned? How will the initial launch be handled? Will you advertise - where, how much? How will PR be handled? Will you use direct marketing? Who will be responsible for promotions?
9/25/0223 Sustainable market position High cost of entry for others Patents, copyright, trade secrets Brand name recognition Proprietary sales/distribution channels Continuing product enhancements
9/25/0224 Pricing Selling price = –Cost to produce the product + –Expenses to run company + –Cost of marketing+ –Pretax profit you desire
9/25/0225 What Can You Do? Innovation - in your product Creativity - in the marketing plan Execution - of operating plan Persistence - without it, forget it!
9/25/0227 Differentiation Points Quality Speed Reliability Service Design Relationships Features Personality Technology
9/25/0228 Customer intimate Establishing relationships that provide value to the customer Teams or partnerships
9/25/0229 Price vs. Quality High Quality Low Quality High Price Low Price
9/25/0230 International marketing Every company needs to consider marketing outside of home territory Even start ups should consider what international markets they could address Specific new ideas and approaches may be needed to succeed
9/25/0231 Market research project Secondary research –information which already exists somewhere Primary research –Talking to real people: customers suppliers partners Experts –Case study that relates to your business
9/25/0232 Questions Open ended questions Closed ended questions