1. IDENTIFY AND MEET A MARKET NEED
Entrepreneurship
4/21/2017
Chapter 6
IDENTIFY AND MEET A MARKET NEED
6.1 The Value of Market Research
6.2 How to Perform Market Research
6.3 Identify Your Competition
Chapter 6

2. Lesson 6.1 THE VALUE OF MARKET RESEARCH
Chapter 6
Lesson 6.1 THE VALUE OF MARKET RESEARCH
GOALS
Identify a target market by understanding your customers.
Research your market using primary and secondary data.

3. Chapter 6
WHAT IS A TARGET MARKET?
The target market is the individuals or companies that are interested in a particular product or service and are willing and able to pay for it.
The marketing concept uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.

4. UNDERSTAND YOUR CUSTOMER
Chapter 6
UNDERSTAND YOUR CUSTOMER
Customers are the people who buy the products and services companies offer.
Customers buy goods and services to satisfy economic wants and needs.
An economic want is an unfilled desire of a customer.
An economic need is anything that is required to live.

5. DEMOGRAPHICS AND PSYCHOGRAPHICS
Chapter 6
DEMOGRAPHICS AND PSYCHOGRAPHICS
Demographics are data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income.
Psychographics are data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.

6. IDENTIFY YOUR TARGET MARKET
Chapter 6
IDENTIFY YOUR TARGET MARKET
1. Who are my customers: individuals or companies?
2. If customers are individuals:
How old are they?
How much money do they earn?
Where do they live?
How do they spend their time and money?
3. If customers are companies:
What industries are they in?
Where are those industries located?

7. continued IDENTIFY YOUR TARGET MARKET
Chapter 6
continued IDENTIFY YOUR TARGET MARKET
4. What needs or wants will my product or service satisfy?
5. How many potential customers live in the area in which I want to operate?
6. Where do these potential customers currently buy the products or services I want to sell them?
7. What price are they willing to pay for my products or services?
8. What can I do for my customers that other companies are not already doing for them?

8. THE IMPORTANCE OF A CUSTOMER PROFILE
Chapter 6
THE IMPORTANCE OF A CUSTOMER PROFILE
A customer profile is a description of the characteristics of the person or company that is likely to purchase a product or service.

9. Chapter 6
MARKET SEGMENTS
Groups of customers within a large market who share common characteristics are known as market segments.

10. UNDERSTAND THE COMPETITION
Chapter 6
UNDERSTAND THE COMPETITION
Knowing about your competition will help you define your target market.

11. Chapter 6
MARKET RESEARCH
Market research is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Market researchers collect primary and secondary data.

12. Chapter 6
SECONDARY DATA
Secondary data is data found in already published sources.

13. PLACES TO FIND SECONDARY DATA
Chapter 6
PLACES TO FIND SECONDARY DATA
Publications issued by government and community organizations, such as the U.S. Census Bureau, the Small Business Administration, and Chamber of Commerce
Books about specific industries
Information on web sites for government and businesses
Books about other entrepreneurs who set up similar businesses
Specialized magazines and journals devoted to particular fields
Newspaper articles and statistics

14. Chapter 6
PRIMARY DATA
Primary data is information collected for the very first time to fit a specific purpose.
Questionnaire or survey
Observation
Focus groups
Disadvantage of primary data

15. Lesson 6.2 HOW TO PERFORM MARKET RESEARCH
Chapter 6
Lesson 6.2 HOW TO PERFORM MARKET RESEARCH
GOALS
Identify the five steps involved in primary data market research.
Design a questionnaire.

16. FIVE STEPS OF PRIMARY MARKET RESEARCH
Chapter 6
FIVE STEPS OF PRIMARY MARKET RESEARCH
Define the question
Select a research method
Collect data
Analyze data
Draw conclusions

17. DESIGN A SURVEY Length of questionnaire Questions Clear Easy to answer
Chapter 6
DESIGN A SURVEY
Length of questionnaire
Questions
Clear
Easy to answer
Only important questions

18. Lesson 6.3 IDENTIFY YOUR COMPETITION
Chapter 6
Lesson 6.3 IDENTIFY YOUR COMPETITION
GOALS
Determine your direct and indirect competition.
Analyze the strengths and weaknesses of competitors.
Establish strategies for maintaining customer loyalty.

19. DIRECT AND INDIRECT COMPETITION
Chapter 6
DIRECT AND INDIRECT COMPETITION
Direct competition is competition from a business that makes most of its money selling the same or similar products or services as another business.
Indirect competition is competition from a business that makes only a small amount of money selling the same or similar products or services as another business.
Find your direct competition
Find your indirect competition

20. COMPETING WITH LARGE BUSINESSES
Chapter 6
COMPETING WITH LARGE BUSINESSES
Large retailers usually are able to keep larger quantities of products in stock.
Large retail chains don’t rely on one single product line.
Large companies usually have more resources to devote to advertising.

21. STUDY INDIVIDUAL COMPETITORS
Chapter 6
STUDY INDIVIDUAL COMPETITORS
Price
Location
Facility
Strengths
Weaknesses
Strategy

22. STRATEGIES FOR MAINTAINING CUSTOMER LOYALTY
Chapter 6
STRATEGIES FOR MAINTAINING CUSTOMER LOYALTY
Listen and respond to feedback
Other strategies for maintaining loyalty
Superior service
More convenient hours than other businesses
Easy return policies
Store-specific credit cards
Personal notes or cards
Frequent buyer programs