Chapter 4 Exploring Your Market Entrepreneurship Chapter 4 Exploring Your Market

Markets & Marketing Market = those people or organizations that may be interested in buying a product or service, have the resources to buy it, and are permitted by law or regulation to do so Marketing = satisfying the customer at a profit The business function that identifies your customers and their wants and needs The engine that drives ALL business decisions

Marketing Research Primary = research conducted directly on a subject or subjects Secondary = research carried out indirectly through other existing resources

Primary Research Methods Personal interviews Telephone surveys Written surveys Focus groups Observation Tracking Review of books & records

Secondary Research Methods Online searches Article & book searches Competitor websites

Visualize Your Customer Use market research to find out: Who your potential customers are Where you can reach them What they want and need How they behave What the size of your potential market is

Customer Research Surveys Focus groups Research reports

Industry Research Interviews Observation Tracking Written sources of statistical data Books & articles Competitor websites Trade associations & chambers of commerce

Customer Decision-Making Awareness Information search Evaluation of alternatives Decision to purchase Evaluation of purchase

Owning Customer Perception Features create benefits. Feature = a fact about a product or service Benefit = what the feature can do to meet a customer’s needs Needs, wants, and demands are different.

Market Segmentation Market segment = customers who have similar response to a certain type of marketing Segmentation methods Geographic Demographic Psychographic Behavioral

Product Life Cycle (PLC) Stages Introduction Growth Maturity Decline Where is your product/service in the PLC? Is your market saturated?

Market Positioning Distinguish your product/service from others offered to your market segment. Goal is to clearly communicate how your product/service differs from competitors. Sample positioning statement: (General Motors) is the (leading US automobile maker) that (provides affordable cars) to (American families).