1. Identifying a market need
Chapter 6

2. Target market
Individuals or companies that are interested in your particular product or service and are willing and able to pay for it.

3. There main activities of the marketing concept
Satisfy customer wants and needs
Communicate with the customer
Make a profit

4. Market Segmentation
Dividing your market down into smaller segments to meet “niches”

5. Demographics Data that describes personal things about people
Age - profession
Income -Marital status
Ethnicity -Family size
Gender

6. Psychographics Like to garden, fish, hunt, play sports, etc.
Data that describes a group in terms of their tastes, opinions, personality traits, and lifestyle habits
Like to garden, fish, hunt, play sports, etc.

7. Geographics City County State Nation
Based on where people live
City
County
State
Nation
Where all would you target for your business?

8. Customer Profile
A description of the characteristics of a person or company who would like buy your product or service.
Important because you will focus all your promotion efforts toward these people

9. Market Research
System for collecting, recording, and analyzing information about customers, competitors, goods, and services

10. Secondary data
Data that has already been collected (in published sources)
Government publications such as U.S. Census, Chamber of Commerce
Web Sites for government and business (be sure is legitimate information)
Specialized magazines and journals – Newsweek, Entrepreneur
Newspaper articles and statistics

11. Primary Data
Data that is collected for the first time and usually for a specific purpose
Disadvantage of primary data is it can be time-consuming and expensive to get

12. Observe the number of people going into the place of business
OBSERVATION
Observe the number of people going into the place of business
Observe purchases they make
Observe good/bad things competition is doing

13. Focus Groups
In depth interviews with small groups of people (target market)
Get input regarding your business, product, new service idea
Usually can get more information from this primary data source

14. Questionnaires/Surveys
Most common type of primary data
Need to have questions regarding demographic, psychographic, and geographic information regarding your target market
Also information about the product and services to offer

15. Market Research Process
Define the Question/Problem: What is it your are trying to find out?
Select research method: Depends on the type of information need to gather

16. Market research (cont.)
Collect data: Good to have both secondary and primary sources of data
Analyze the data: Your target market should be considered
Draw conclusions: A plan of action (how use info.)

17. Types of competition
Direct Competition – Another business that sells similar products or services as another business (Wendys and McDonalds)
(Showplace Cinema and Somerset Cinema)
Indirect Competition – Competing against another business that makes only a small amount of money selling same or similar products and services
Bowling Alley and Finleys

18. Competing with large businesses
Can keep larger quantities available
They don’t rely on one single product line
Usually have more resources for advertising

19. Competition (things to analyze)
Their prices
Location
Type of facility
Their strengths
Their weaknesses
Strategy – customers come to you instead of them

20. Keeping Customers Loyal
Providing Superior Customer Service
Responding to questions and concerns
More convenient hours than competition
Easy return policies
Store-specific credit cards
Personal note cards for birthdays, thank you cards
Frequent buyer programs