1. Market Research

2. Listen To The Consumer
Your market consists of potential customers for your product or service.
Market research is how you find out who these customers are and what they need.
Business owners ask consumers questions
Listen carefully to their answers
You want to get into your customers’ head and find out what they really think about:
Your product
Your logo
The name of your business
Your prices
Your location
Your promotional offers

3. SWOT Analysis Strengths Weaknesses Opportunities Threats
Good marketing relies on good plans
Conduct a SWOT Analysis
An assessment that lists and analyzes the company’s strengths and weaknesses.
Also includes the opportunities and the threats that surround it.
SWOT – Strengths, Weaknesses, Opportunities and Threats
Listing of everything that can foster the success and what can make it fail.
Strengths
Weaknesses
Opportunities
Threats

4. SWOT Analysis
This internal and external awareness will help a business identify weaknesses and prepare to handle threats
Competition
Changing marketplace
An accurate analysis also will help a company be more competitive because it provides guidance and direction.
Allows a company to develop strategies around the SWOT analysis

5. Identifying and Analyzing Markets
Businesses look for ways to connect with current and potential customers.
The surest way is to know these people well
Where they live
Their income level
Age
Ethnic background
Activities
Values
What interests them
When a company looks at its customers this way, it can identify groups of people who have many things in common

6. Identifying and Analyzing Markets
Marketers analyze groups of customers to see if any of them can be further broken down into smaller, more precise clusters
The process of classifying people who form a given market into even smaller groups is called market segmentation.
Marketers ask, “Which of these segments should we target?”
Usually too costly to target all the potential target market
Important to identify those markets in which the company has an advantage that enables it to survive against its competition over a long period of time
Marketers call this a situation a sustainable competitive advantage

7. Your Research Method Is Important
The method you use may affect the answers you get
Some may be less honest when you interview them face-to-face
May create embarrassment for some
Handing out surveys creates anonymity

8. Research The Market Before Opening Your Business
Don’t begin until you have researched your market thoroughly
Be open to criticism
Not always pleasant to hear, but can be valuable
Can help fine tune your business

9. Researching Your Market Segment
Once you have chosen your market segment, you can design a survey and begin market research.
Some questions to ask:
Would you buy this product or service?
How much would you be willing to pay for it?
Where would you buy it?
How would you improve it?
Who are my closest competitors?
Is my product/service worse or better than those of my competitors?

10. Who Is In Your Market Segment?
Who is your market?
Everyone in the school?
Friends?
Family members?
Neighbors?
People online?
Which segment of your market should you target?
Refer to your marketing vision
What is the chief benefit you want to show your customers?
Which customers in your market would be most interested in this benefit?

11. Who Is In Your Market Segment?
A market segment is composed of consumers who have a similar response to a certain type of marketing.
For example:
In the cosmetics industry:
One segment responds positively to luxuriously packaged, expensive products
One segment is most responsive to products that claim to make customers look younger
Another wants low prices
A company that recognizes these segments and chooses one or two to market will be more successful that one that tries to sell cosmetics to every single woman in the country.

12. Target Market Demographics
Facts about groups of people are called demographics.
Information is found
Internet research
Magazine Articles
Business Library

13. Demographics
Demographics refer to statistics that describe a population in terms of personal characteristics
Age
Gender
Income level
Marital status
Ethnic background
Education
occupation

14. Demographics Age Gender Income Marital Status Ethnic Background
Marketers can easily use age to segment the market by creating age ranges.
Gender
Gender helps to create market segments as well.
Income
Marketers want to know how much money they have to spend on different products
Look for two types of income
Disposable
Money left after taking out taxes
Discretionary
Money left after paying for basic living necessities (food, shelter, clothing)
Marital Status
Ethnic Background

15. Geographics
Geographics refers to segmentation of the market based on where people live.
Relates closely to demographics because of the similarity among people who live in a certain area
To segment a market geographically, you can refer to local, regional, national, or even global markets

16. Psychographics
Psychographics involves grouping people with similar lifestyles, as well as shared attitudes, values, and opinions.
Consumer lifestyles include how people spend their time and money
Attitudes, values, and opinions require special research to learn more about a group’s personality traits and motivation
Activities
A good way to get a feel for market segmentation by activities is to visit the magazine section of a bookstore. For each interest group and activity, you will find at least one related magazine, which represents a market segment.
Attitudes
Consumers’ attitudes, such as taking responsibility for one’s health, eating healthier, and becoming physically fit, are trend-setting issues for marketers in the twenty first century
Personality & Values
More advanced study of psychographics includes the study of personality characteristics and values.

17. Behavioral
Segmenting the market based on product related behavior involves looking at the benefits desired by consumers, shopping patterns, and usage rate.
How Marketers Use Consumers’ Behavioral Patterns
Study shopping patterns to determine usage rates
Companies classify their customers according to the percentage of sales each group generates
Apply 80/20 rule – 80% of a company’s sales are generated by 20% of its loyal customers

18. Types of Market Research
General Research
Check libraries, city agencies, and other resources for information
Research competition in the area
What are they selling?
What are the challenges?
What has been successful?

19. Types of Market Research
Statistical Research
Statistics are facts collected, analyzed and presented as numbers.
Age
Annual income
Ethnic or religious background
Gender
Geographic location
Interests
Occupation
Types of dwelling (house or apartment)
Examples:
In our class we have 17 males and 11 female. This means that 61% of the class are male and 39% of the class are female.

20. Types of Market Research
Industry Research
Search the Internet
Look for recent articles on trends in the industry and its major players by using an Internet search engine.
Look on your competitors’ web sites to find their annual reports. These are likely to have valuable industry information.
Visit the Internet Public Library at
Interviews
Interview an executive about the industry and trends
Local Small Business Administration (SBA) office
Local Chamber of Commerce
Business schools at local colleges
Libraries
Career centers

21. Dealing With Criticism
Criticism can be difficult to hear – particularly when its about your business.
Don’t take criticism personally.
Keep an open mind.
Use active listening techniques
Ask clarifying questions
Paraphrase the criticism
Be open to advice
Ask the critic what solution they may offer
Stay calm and listen for helpful information

22. Do You Know Ten People Who Love Your Product?
Not everyone has to like your product.
Important for SOME to love it.
Example:
Not everyone loves hip hop clothing, but Daymond John knew some that loved it. He created FUBU clothing line and turned into a $350 million business.

23. Make Market Research Ongoing
Market research is not something you do only once.
Tastes and desires change as new ideas and products come out.
Continue to survey as you operate your business
Keeps you current with their needs and how they feel about your product.

24. Market Research Avoids Costly Mistakes
Ask customers what they want
Determine needs and wishes regarding the Four Ps.
Product
Place
Price
Promotion