Identify Your Market Entrepreneurship Unit 4, Lesson 2 Copyright © Texas Education Agency, All Rights Reserved 1

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Target Market Target Market – Individuals (or companies) who are interested in a particular product or service and are willing and able to pay for it. 3 Copyright © Texas Education Agency, All Rights Reserved

Identify Your Target Market Questions to Ask –Who are my customers? Are individuals or companies? –What are the demographics for my individual customers? –What industries are represented by company customers? 4 Copyright © Texas Education Agency, All Rights Reserved

Identify Your Target Market Questions to Ask –How many potential customers live in the area in which I want to operate? –Where do these potential customers currently buy the products or services I want to sell them? –What price are they willing to pay for my products or services? –What can I do for my customers that other companies are not already doing for them? 5 Copyright © Texas Education Agency, All Rights Reserved

Market Segments Groups of customers within a large market who share common characteristics –Identified by market research –Most products and services appeal only to a small portion of the population –Businesses make decisions based on the information gathered on market segments 6 Copyright © Texas Education Agency, All Rights Reserved

Customer Profile Demographics - Age, marital status, family size, ethnicity, gender profession, education, and income Psychographics - Individual tastes, opinions, lifestyle habits, and personality traits 7 Copyright © Texas Education Agency, All Rights Reserved

Customer Profile Geographic Data - Determines where your potential customers live and how far they will travel to do business with you Use-Based Data - How often potential customers use a particular service 8 Copyright © Texas Education Agency, All Rights Reserved

Assignments 1.Inform Assignment #1 Split the class into five groups. Use the Internet to research SBA, SBDC, SCORE, the chamber of commerce for your community, and professional organizations representing the careers interests in that group of students. Each group is responsible for teaching the class about the organization they have researched. PowerPoint group presentations will be evaluated using a rubric. 2. Location, Location, Location Assignment #2 The success of a business depends heavily upon the location. The business must be located conveniently for the target market. The location should be easily accessible by traffic going both directions. There should be plenty of parking spaces available in a well-lighted parking lot. There should be a high level of consumer traffic flow daily. Ask students to select an available business location in the community, conduct research, observe the location, and write a report explaining why the location is a good/poor choice for a business. The report will be evaluated using a rubric. 3. Entrepreneurship Newscast Assignment #3 Ask students to locate two articles in the library or on the Internet about successful entrepreneurs and write the Top Ten Points for each article. Students will share their information in class, using digital presentations for their newscasts. Digital presentations will be evaluated using a rubric. 9 Copyright © Texas Education Agency, All Rights Reserved