2. ENPI MODULE 2 Research Your Idea

3. WHAT IS MARKET RESEARCH? Market research: an organized way to gather and analyze information needed to make business decision

4. UNDERSTANDING YOUR MARKET 3 Main Areas of Market Research Focus –Business Environment: social, economic, or political factors that could impact your business; tends to be industry specific –Customers: individual consumers or businesses; successful businesses will satisfy customer wants and needs while making a profit –Competition: identify who your competitors are and how they operate

5. MARKET RESEARCH METHODS Primary Research – new information that is collected for a particular purpose (obtained directly from potential customers) –Pros: up to date and focused –Cons: expensive and time intense –Sources: interviews/surveys, focus groups, observations

6. MARKET RESEARCH METHODS Secondary Research – existing information that was previously gathered for a purpose other than the study at hand –Pros: cheap and easy to obtain –Cons: too general –Sources: Government, trade groups and journals, business magazines and reports, local community resources

7. data that has been collected; available for you to use SECONDARY MARKET RESEARCH

8. Resource: Government Bureau of Economic Analysis Bureau of Labor Statistics Census Bureau FedStats State Government Local Government Demographic, Geographic data Example: Fairfax County Demographic Information Fairfax County Demographic Information

9. Resource: Trade Groups/Journals Association related to particular industry American Society of Association Executives (ASAE) How do I find a trade association for my industry? Google your industry + trade association Example: If I want to find an association that relates to my cake business, I can search baking + trade association and I find http://www.americanbakers.org/

10. Resource: Business Magazines Forbes American City Business Journals Entrepreneur Magazine Fast Company Dun and Bradstreet BizStats Businessweek Inc

11. Resources: Local Community Chamber of Commerce –Fairfax County –Vienna-Tysons Regional (Marshall) –Dulles Regional (Chantilly) Business Development Authority Community Colleges Example: Fairfax County Chamber of Commerce Fairfax County Chamber of Commerce

12. Locating your TARGET MARKET –Who are your customers? Target Market- a limited number of customers who are most likely to buy your product or service Market Segmentation- grouping of consumers or businesses within a particular market that has one or more things in common

13. SEGMENTING YOUR MARKET Demographics – age, gender, marital status, family size, ethnicity, occupation, income Geographics- basing market segments on where consumers live or where businesses are located Psychographics- attitudes, opinions, beliefs, interests, personality, lifestyle, political affiliation and personal preference Buying patterns (consumer behavior)- what, how much and how often do people buy

14. CREATING CUSTOMER PROFILES Customer Profile- organized snapshot of who your customer/target market is –Demographics –Geographics –Psychographics –Buying Patterns

15. CUSTOMER PROFILE ASSIGNMENT 100 points  Copy (paste into a blank presentation) and use information you’ve researched about your target market to complete the chart on the next slide  Create a photo collage that visually depicts your Customer Profile. You should include pictures from the 4 ways to segment your market. Your slide should be filled from corner to corner.  Submit both your chart and picture collage (in one file) to Blackboard and save as lastname________customerprofile.

16. Company Name: ________________ DEMOGRAPHICS (AGE, GENDER, MARITAL STATUS, FAMILY SIZE, ETHNIC BACKGROUND, EDUCATION, OCCUPATION, ANNUAL INCOME) GEOGRAPHICS (WHERE DOES YOUR CUSTOMER LIVE?) PSYCHOGRAPHICS (ATTITUDES, OPINIONS, BELIEFS, INTERESTS, PERSONALITY, LIFESTYLE, POLITICAL AFFILIATION…) BUYING PATTERNS (WHERE DO THEY SHOP? WHAT DO THEY BUY? HOW OFTEN DO THEY SHOP? HOW MUCH DO THEY SPEND?)