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Identify and Meet A Market Need: Lessons

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53 views

Identify and Meet A Market Need: Lessons

Present

Uploaded by

Sheila Bliss Goc-ong
Copyright
© © All Rights Reserved
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Chapter 6

IDENTIFY AND MEET


A MARKET NEED
LESSONS
6.1 The Value of Market Research
6.2 How to Perform Market Research
6.3 Identify Your Competition

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 2

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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 3

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.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 4

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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 5
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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 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?
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 7

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?
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 8
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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 9

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

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 10

UNDERSTAND THE COMPETITION


Knowing about your competition will
help you define your target market.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 11

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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 12

SECONDARY DATA
Secondary data is data found in
already published sources.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 13

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

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 14

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

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 15

Lesson 6.2
HOW TO PERFORM
MARKET RESEARCH

GOALS
Identify the five steps
involved in primary data
market research.
Design a questionnaire.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


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

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 17

DESIGN A SURVEY
Length of questionnaire
Questions
Clear
Easy to answer
Only important questions

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 18

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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 19
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
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 20
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.

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 21

STUDY INDIVIDUAL COMPETITORS


Price
Location
Facility
Strengths
Weaknesses
Strategy

ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING


Chapter 6
Slide 22
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
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING

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