1. Chapter 4 Exploring Your Market
Entrepreneurship
Chapter 4
Exploring Your Market

2. 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

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

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

5. Secondary Research Methods
Online searches
Article & book searches
Competitor websites

6. 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

7. Customer Research
Surveys
Focus groups
Research reports

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

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

10. 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.

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

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

13. 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).