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Published byLeona Boyd Modified over 9 years ago
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Market Analysis…WHY? Gather information about your industry Identify prospective customers and their buying habits You can not fulfill the Marketing Concept if you don’t know who your customers are, what they want and how your company fits into the industry.
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What is an “Industry”? Collection of businesses with a common line of products Includes: -manufacturers -suppliers -distributors
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Identifying Your Markets Market – group of people or companies (industrial) who have demand for your product and are willing and able to buy Target Market – the particular market segment to which you will focus your company’s efforts Market Segmentation Target Marketing
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Market Segmentation Breaking down the market into smaller groups of buyers with similar needs and interests – market segments Consumer or industrial Geographics Demographics Psychographics (Lifestyle) Buying Characteristics
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Consumer vs. Industrial Markets Consumer Market – customers who buy for personal use Industrial Market – customers who buy for business use
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Demographics Age Income Gender Family size Family life cycle Income Occupation Education Religion Race Nationality Social Class
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Psychographics Personality Opinions Lifestyle elements Activities Interests
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Buying Characteristics Knowledge of goods and services Personal experience with them Personal responses to them
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Identifying Your Target Market Remember, this is the specific market segment to which you will focus your company’s efforts
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Target Market Guidelines Segment should be measurable (how many potential customers?) Segment should be large enough to be potentially profitable (will sales cover your costs?) Segment should be reachable (informatively and physically) Segment should be responsive
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Can You Serve Multiple Markets? Usually in the start-up stage you select and serve one target market. As you grow you may decide to add segments.
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Conducting Market Research Define the research question (what are you trying to find out?) Identify the types of market research you need to conduct Go through the steps
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Defining the Research Question Helps you focus your research Reduces chances of errors or wasted time
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Types of Market Research Exploratory research Descriptive research Historical research
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Exploratory Research Used when you know little about a subject Government or industry publications Focus groups
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Descriptive Research To determine the status of something (customers e.g.) Demographic data Questionnaires Interviews Observation
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Historical Research Studying the past/patterns Used to predict future trends Trade Associations/Publications Other business owners Economic data
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The Research Process Identify information needs Collect secondary data Collect primary data Organize data Analyze data
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Secondary Data Information that has already been collected
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Primary Data Information obtained for the first time and used specifically for your study
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