1. IDENTIFY AND MEET A MARKET NEED
Entrepreneurship
4/20/2017
Chapter 6
IDENTIFY AND MEET A MARKET NEED
6.1 The Value of Market Research
6.2 How to Perform Market Research
6.3 Identify Your Competition
Chapter 6

2. Lesson 6.1 THE VALUE OF MARKET RESEARCH
Chapter 6
Lesson 6.1 THE VALUE OF MARKET RESEARCH
GOALS
Identify a target market by understanding your customers.
Research your market using primary and secondary data.

3. Chapter 6
WHAT IS A TARGET MARKET?
The target market is the individuals or companies that are interested in a particular product or service and are willing and able to pay for it.
The marketing concept uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.

4. UNDERSTAND YOUR CUSTOMER
Chapter 6
UNDERSTAND YOUR CUSTOMER
Customers are the people who buy the products and services companies offer.
Customers buy goods and services to satisfy economic wants and needs.
An economic want is an unfilled desire of a customer.
An economic need is anything that is required to live.

5. DEMOGRAPHICS AND PSYCHOGRAPHICS
Chapter 6
DEMOGRAPHICS AND PSYCHOGRAPHICS
Demographics are data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income.
Psychographics are data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.

6. IDENTIFY YOUR TARGET MARKET
Chapter 6
IDENTIFY YOUR TARGET MARKET
1. Who are my customers: individuals or companies?
2. If customers are individuals:
How old are they?
How much money do they earn?
Where do they live?
How do they spend their time and money?
3. If customers are companies:
What industries are they in?
Where are those industries located?

7. continued IDENTIFY YOUR TARGET MARKET
Chapter 6
continued IDENTIFY YOUR TARGET MARKET
4. What needs or wants will my product or service satisfy?
5. How many potential customers live in the area in which I want to operate?
6. Where do these potential customers currently buy the products or services I want to sell them?
7. What price are they willing to pay for my products or services?
8. What can I do for my customers that other companies are not already doing for them?

8. Determining your Target Market
Chapter 6
Determining your Target Market
Why is it important to determine who your target market is?
Unless you understand who your target market is and what types of products or services they are looking for, you will probably not be able to satisfy their wants and needs.

9. THE IMPORTANCE OF A CUSTOMER PROFILE
Chapter 6
THE IMPORTANCE OF A CUSTOMER PROFILE
A customer profile is a description of the characteristics of the person or company that is likely to purchase a product or service.

10. THE IMPORTANCE OF A CUSTOMER PROFILE
Chapter 6
THE IMPORTANCE OF A CUSTOMER PROFILE
The importance of a customer profile will help you understand how to meet customer demand. Understanding your competition will help you identify unmet needs.
Disadvantage of market segmentation
You might market to a group who is not interested in the product or might overlook a segment that would be very interested in the product.

11. Chapter 6
MARKET SEGMENTS
Groups of customers within a large market who share common characteristics are known as market segments.

12. Mass Marketing Advantages of Mass Marketing
Chapter 6
Mass Marketing
Advantages of Mass Marketing
Easy to prepare advertisements for and reaches many people
Disadvantages of Mass Marketing
Does not target specific needs of customers
Is not suitable for all products
Has nothing to make product stand out from the competition

13. UNDERSTAND THE COMPETITION
Chapter 6
UNDERSTAND THE COMPETITION
Knowing about your competition will help you define your target market.

14. Chapter 6
MARKET RESEARCH
Market research is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Market researchers collect primary and secondary data.
If conducted properly, market research will help entrepreneurs understand their target markets and thus, satisfy the wants and needs of the customers.

15. Limitations of Market Research
Chapter 6
Limitations of Market Research
Can be costly
Time consuming
Must be carefully analyzed so that incorrect decisions are not made

16. Chapter 6
SECONDARY DATA
Secondary data is data found in already published sources.

17. PLACES TO FIND SECONDARY DATA
Chapter 6
PLACES TO FIND SECONDARY DATA
Publications issued by government and community organizations, such as the U.S. Census Bureau, the Small Business Administration, and Chamber of Commerce
Books about specific industries
Information on web sites for government and businesses
Books about other entrepreneurs who set up similar businesses
Specialized magazines and journals devoted to particular fields
Newspaper articles and statistics

18. Chapter 6
Secondary Sources
Information you can find using secondary sources include information on:
Demographics
Economic trends
Industry forecasts

19. Chapter 6
PRIMARY DATA
Primary data is information collected for the very first time to fit a specific purpose.
Questionnaire or survey
Observation
Focus groups
Disadvantage of primary data
Time consuming
Expensive

20. Difference between Primary and Secondary market research data
Chapter 6
Difference between Primary and Secondary market research data
Secondary data is found in published sources
Primary data is information that is collected for the first time to fit a specific purpose

21. Chapter 6
Chapter 6.1 Assignment
Notes – Answers for assignments are throughout the notes, make sure you read them.
Checkpoint pg 132
Checkpoint pg 133
Checkpoint pg 135
Checkpoint pg 137
Thinking Critically #1-5 pg 137
ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences

22. Lesson 6.2 HOW TO PERFORM MARKET RESEARCH
Chapter 6
Lesson 6.2 HOW TO PERFORM MARKET RESEARCH
GOALS
Identify the five steps involved in primary data market research.
Design a questionnaire.

23. FIVE STEPS OF PRIMARY MARKET RESEARCH
Chapter 6
FIVE STEPS OF PRIMARY MARKET RESEARCH
Steps involved in conducting a market research include:
Define Question – know what you want and find out
Select Method – survey, observation or focus groups
Collect Data – gather needed information
Analyze Data
Draw Conclusions – a plan of action

24. Primary Date Three ways to collect primary data include:
Chapter 6
Primary Date
Three ways to collect primary data include:
Survey
Observation
Focus group
Primary data becomes secondary data when it is published.

25. DESIGN A SURVEY Length of questionnaire Questions
Chapter 6
DESIGN A SURVEY
Length of questionnaire
Questions
Clear
Easy to answer
Only important questions
It is important to define the question you want your market research to answer other wise you might conduct research on the wrong issue.

26. Questionnaire A good questionnaire is:
Chapter 6
Questionnaire
A good questionnaire is:
Clear
Relevant questions that are easy to answer
People are more inclined to answer short questionnaires because they don’t take much time.

27. Chapter 6
Chapter 6.2 Assignment
Notes – Answers for assignments are throughout the notes, make sure you read them.
Checkpoint pg 139
Checkpoint pg 141
Checkpoint pg 142
Thinking Critically #1-3 pg 142
ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences

28. Lesson 6.3 IDENTIFY YOUR COMPETITION
Chapter 6
Lesson 6.3 IDENTIFY YOUR COMPETITION
GOALS
Determine your direct and indirect competition.
Analyze the strengths and weaknesses of competitors.
Establish strategies for maintaining customer loyalty.

29. DIRECT AND INDIRECT COMPETITION
Chapter 6
DIRECT AND INDIRECT COMPETITION
Direct competition is competition from a business that makes most of its money selling the same or similar products or services as another business.
Indirect competition is competition from a business that makes only a small amount of money selling the same or similar products or services as another business.
Find your direct competition
Find your indirect competition

30. DIRECT AND INDIRECT COMPETITION
Chapter 6
DIRECT AND INDIRECT COMPETITION
Why should Entrepreneurs analyze both direct and indirect competitors?
Both direct and indirect might take customers from them.

31. COMPETING WITH LARGE BUSINESSES
Chapter 6
COMPETING WITH LARGE BUSINESSES
Large retailers usually are able to keep larger quantities of products in stock.
Large retail chains don’t rely on one single product line.
Large companies usually have more resources to devote to advertising.

32. Chapter 6
Retail Businesses
Ways you could attract customers to retail businesses may include:
Extended hours
Birthday cards
Frequent buyer programs
Personal Notes
Thank you cards
Store Specific credit cards
Coupons
Layaway program

33. STUDY INDIVIDUAL COMPETITORS
Chapter 6
STUDY INDIVIDUAL COMPETITORS
Price
Location
Facility
Strengths
Weaknesses
Strategy

34. Analyzing Competitors
Chapter 6
Analyzing Competitors
Purpose
To figure out how to get customers to buy from your business
Why can customer feedback be considered a type of market research?
It is a valuable type of market research because it is coming from customers who care enough about your company and product to communicate with you.

35. STRATEGIES FOR MAINTAINING CUSTOMER LOYALTY
Chapter 6
STRATEGIES FOR MAINTAINING CUSTOMER LOYALTY
Listen and respond to feedback
Other strategies for maintaining loyalty
Superior service
More convenient hours than other businesses
Easy return policies
Store-specific credit cards
Personal notes or cards
Frequent buyer programs

36. Chapter 6
Chapter 6.3 Assignment
Notes – Answers for assignments are throughout the notes, make sure you read them.
Checkpoint pg 144
Checkpoint pg 145
Checkpoint pg 147
Thinking Critically #1-3 pg 147
ALL DUE AT THE END OF CLASS, THIS IS A TEST GRADE!!!!!!!!!! Answer in complete sentences