School Store Operations Chapter 1 Chapter 1 - Research Your Market School Store Operations Chapter 1 Research Your Market

Winning Strategies Meeting Customer Needs How can marketing research contribute to the success of the Ultimate Boutique? Identify other ways that the school store could employ marketing research to decide what to buy.

Lesson 1.1 Target Market Describe how to reach your target market Explain how to analyze your competition

Page 4 Create a list of products and services that would be appropriate based on each of the following demographic groups in your school: Age Gender Income Level Ethnic Background Education Occupation

PROFILING YOUR CUSTOMERS Market A group of people or companies that have a demand for a product or service and are willing and able to buy it Target Market The particular group that you are interested interested in reaching

Target Market The market segment should be measurable The segment should be large enough to be profitable The segment should be reachable

Finding Your Customers Identify why a customer would want to buy your product or service Segment your overall market Research your market

Market Segmentation Being able to promote to a specific group of customers Demographics – Physical characteristics such as age, gender, location, education, occupation, income level, marital status, and household type Psychographics – Social characteristics such as needs, values, buying styles, culture, and interests Geographics – Based upon where people live such as local, regional, national, or global markets

Why is it important to segment your market before positioning a new product within your current product mix?

ANALYZING THE COMPETITION The obvious competitor isn’t your only competitor

Competition Research Studying the competition can provide you with a wealth of information about your customer, the market, and the profit potential Visiting and observing Calling and inquiring Studying ads in newspapers, magazines, online and broadcasting

Why is it important to compare your school store with the competition?

Lesson 1.2 Market Research Describe how to conduct effective market research Identify the various methods used to collect data Explain the six steps in the research process

Page 10 Describe how you would use market research to prevent financial losses in your store. Design a questionnaire.

MARKETING INFORMATION SYSTEM In order to succeed and make a profit, your school store must meet the needs of its customers

Market Research Leads to Market Analysis A process designed to identify solutions to a specific marketing problem by systematically gathering and analyzing data

DATA COLLECTION Primary Data Secondary Data Surveys, observations, and experimental method Secondary Data Sales and marketing magazines, the U.S. Department of Commerce, trade associations, business publications, other sources, and internal sources

Primary Data Information collected for the first time to analyze a specific situation Subjective – useful, but it cannot be statistically analyzed Measurable Data – More reliable because statistical analysis can be conducted Keep it simple and easy to read, ask closed-ended questions, get a large sample, give respondents an incentive, and construct the survey for multiple uses

Secondary Data Information that already has been collected for purposes other than your current research project Available through external sources

THE RESEARCH PROCESS Identify a need or define the store’s problem Obtain primary and secondary data Organize your data Analyze your data Recommend solutions Implement a plan of action

Lesson 1.3 Determine What to Buy Describe the role of the marketing mix Identify internal & external sources of information

Page 16 Brainstorm ideas for using this data. Discuss ways this data might affect your store’s buying plan.

THE MARKETING MIX Marketing Mix A blend of features that satisfies your chosen market Product Price Place Promotion

Product Strategy Product decisions are crucial to the success of your school store Ask yourself these questions: What should I buy? How much should I buy? How is my product better than the competition?

Pricing Strategy Costs and Expenses Economic Conditions Customer Impressions Competition

Place Strategy How and where products are offered to your customers Also called distribution

Promotion Strategy Promoting your goods and services through advertising and the use of other promotional tools Encourages public acceptance of the school store and the product mix

What is the purpose of the four elements of the marketing mix?

HELP WITH BUYING DECISIONS You should not make buying decisions alone Seek out and employ data from as many sources as possible

Internal Sources Store Records Management Sales Staff Want Slip System – A customer form to request items not offered or out of stock Management Sales Staff

External Sources Customers Magazines, trade journals, and trade shows Trade Shows – Periodic, temporary exhibits that are scheduled throughout the year in various trade centers Vendors Trade associations Competitors

How is operating a want slip system advantageous to the school store?

Men’s Clothing Sales Hit the Skids Page 26 The menswear business offers a good example of how complex the marketing process can be. When retailers are dealing with a declining market, it is more important than ever to conduct market research and define a target market.