1. Identify and Meet a Market Need4
Identify and Meet a Market Need
4.1 Identify Your Market
4.2 How to do Research
4.3 Identify Competition
4.4 The Marketing Mix
4.5 Promotion and Goals

2. Lesson 4.1 Identify Your Market
Goals
Identify a target market by analyzing the needs of customers.
Describe how to conduct market research
Chapter 4

3. Terms Target market Demographics Psychographics Market segments
Market Research
Secondary Data
Primary Data
Observation
Focus Groups
Chapter 4

4. On the Scene
Why is it important for Cheryl to know exactly who her customers are?
What characteristics would you look for in your customers if you planned to open a paintball store?
What about a bakery?
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5. Target Market Target Market
The individuals or companies that are interested in a particular product or service
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6. Understand Your Customer
Customers are your most important asset.
They are the individuals and businesses who buy the products and services companies offer.
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7. Demographics Data that describes a group of people in terms of age
marital status
family size
ethnicity
gender
profession
education
income
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8. Psychographics data that describe a group of people in terms of tastes
opinions
personality traits
lifestyle habits
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9. Identify Your Target Market
Consider the following information regarding your customers:
individuals or companies?
age and income?
industries customers are in?
needs and wants my product will satisfy?
number of potential customers?
competitive environment?
pricing of product or service?
what is unique about my offering?
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10. What questions should you ask when identifying your target market?
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11. Customer Profile Customer profile
a description of the characteristics of the person or company that is likely to purchase a product or service
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12. 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.
Segmentation helps you serve your niche efficiently.
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13. 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
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14. Understand the Competition
Do they offer high quality with high prices?
Do they offer low quality with low prices?
How is their customer services?
Are their customers happy?
How much repeat business do they get?
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15. Why is it important to have a customer profile and understand your competition when determining your target market?
You must understand your competition and your customers’ needs and wants in order to define your target market.
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16. Market Research
You need to find out who your customers are, what they want or need, and how much they will pay for it.
Without customers, you have no business.
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17. Terms Market research Secondary data Primary data Survey Focus group
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18. Role of Market Research
Market research is
a system for collecting, recording, and analyzing information about
customers
competitors
goods
services
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19. Secondary Data Secondary data Secondary data can be found in:
information found in already-published sources
Secondary data can be found in:
government publications and websites
industry specific books
trade publications
newspaper articles
books about entrepreneurs in similar businesses
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20. Primary Data Primary data Observation
information collected for the very first time to fit a specific purpose
Observation
determining information by watching customer behavior
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21. Focus group
an in-depth interview with a group of target customers
questions are similar to survey questions
group interaction allows for more in-depth discussion
Survey
a list of questions you ask your customers to determine
demographic information
psychographic information
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22. disadvantages of primary data
expensive
time consuming
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