PowerPoint Presentation  Section 6.1  Pages 91-97

What you’ll learn  How to define an area of analysis for your research  When to use different types of research  How to develop an effective market research project 6.1 Doing Market Research

Why it’s important  Not understanding the industry and the market is one of the biggest causes of business failure at start-up. 6.1 Doing Market Research

Why it’s important  Conducting effective market research before you start your business will increase its chances of success. 6.1 Doing Market Research

Key Terms industry market market target market target market market segments market segments demographics demographicspsychographics industrial markets 6.1 Doing Market Research

Key Terms (Cont.) market research exploratory research exploratory research descriptive research descriptive research historical research historical research secondary data secondary data primary data primary data 6.1 Doing Market Research

I. DEFINING AREAS OF ANALYSIS A. A business must satisfy its customers to succeed and make a profit. 6.1 Doing Market Research

B.Conduct a thorough market analysis to find out who customers are and what they want. 6.1 Doing Market Research

C.Identify prospective customers and determine their buying habits. D.Analyze your field of endeavor or industry, and rate your prospects for success with it. 6.1 Doing Market Research

II. Industry A collection of businesses with a common line of products or services. 6.1 Doing Market Research

III. TARGET MARKET AND CUSTOMER A. A market is a group of people or companies that has a demand for a product and is willing and able to buy it.

6.1 Doing Market Research B.The particular group a business is interested in, its target market, will be the focus of its efforts.

6.1 Doing Market Research IV. MARKET SEGMENTATION A. Market segments are small groups of buyers with similar needs, broken down from the total market.

6.1 Doing Market Research B. Consumer markets are usually segmented. 1. Geographics - region, state, country, city, or area

6.1 Doing Market Research 2. Demographics - age, gender, family size, family life cycle, income, occupation, religion, race, nationality, or social class.

6.1 Doing Market Research 3. Psychographics - personality, opinions and lifestyle elements, including activities and interests.

6.1 Doing Market Research C. Customers who buy goods or services for business use make up the industrial market.

6.1 Doing Market Research Market Segment Profiles

6.1 Doing Market Research V. TARGET MARKETING The target market is a specific segment in which a business concentrates its efforts.

6.1 Doing Market Research A. The market should be measurable. B. The segment should be large enough to be potentially profitable.

6.1 Doing Market Research C. The segment should be reachable. D. The market segment should be responsive.

6.1 Doing Market Research Discussion Starter Statistics show that more Americans are living alone. What businesses could benefit from this trend?

6.1 Doing Market Research VI. CONDUCTING MARKET RESEARCH Investigation of the market is called market research.

6.1 Doing Market Research VII. DEFINE THE RESEARCH QUESTION A. Focus research. B. Find data to support customer acceptance of your product or service.

6.1 Doing Market Research VIII. TYPES OF MARKET RESEARCH Research designs are ways to structure your research.

6.1 Doing Market Research A. Exploratory research is used when little is known about a subject. B. Descriptive research is done to determine the status of something.

6.1 Doing Market Research C. Historical research involves studying the past.

6.1 Doing Market Research Critical Thinking In what type of situations might historical research be used?

6.1 Doing Market Research IX. THE RESEARCGH PROCESS To successfully research an industry and market, it’s important to have a plan.

6.1 Doing Market Research X. STEP 1: LOOK AT YOUR INFORMATION NEEDS A. Survey target markets. B. Gather information about competitors.

6.1 Doing Market Research XI. STEP 2: START WITH SECONDARY RESOURCES A. Information that has already been collected is called secondary data.

6.1 Doing Market Research B. Examples of secondary sources 1. The Wall Street Journal 2. Thomas Register 3. Securities and Exchange Commission 4. The Department of Commerce 5. CNN’s financial news.

6.1 Doing Market Research XII. STEP 3: COLLECT PRIMARAY DATA A. Primary data is obtained for the first time and used specifically for your study.

6.1 Doing Market Research B. Gather data through observation, interviews, and surveys.

6.1 Doing Market Research XIII. STEP 4: ORGANIZE YOUR DATA Set up charts and record the results from the primary and secondary data.

6.1 Doing Market Research XIV. STEP 5: ANALYZE YOUR DATA A. Is there a market for your product or service? B. How big is that market? C. Will the industry support a business like yours?

6.1 Doing Market Research Reinforcement What traits and skills does someone who conducts market research as a career use?

6.1 Doing Market Research End of Section 6.1