1. 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.

2. What is an “Industry”?  Collection of businesses with a common line of products  Includes: -manufacturers -suppliers -distributors

3. 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

4. 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

5. Consumer vs. Industrial Markets  Consumer Market – customers who buy for personal use  Industrial Market – customers who buy for business use

6. Demographics  Age  Income  Gender  Family size  Family life cycle  Income  Occupation  Education  Religion  Race  Nationality  Social Class

7. Psychographics  Personality  Opinions  Lifestyle elements  Activities  Interests

8. Buying Characteristics  Knowledge of goods and services  Personal experience with them  Personal responses to them

9. Identifying Your Target Market Remember, this is the specific market segment to which you will focus your company’s efforts

10. 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

11. 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.

12. 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

13. Defining the Research Question  Helps you focus your research  Reduces chances of errors or wasted time

14. Types of Market Research  Exploratory research  Descriptive research  Historical research

15. Exploratory Research  Used when you know little about a subject  Government or industry publications  Focus groups

16. Descriptive Research  To determine the status of something (customers e.g.)  Demographic data  Questionnaires  Interviews  Observation

17. Historical Research  Studying the past/patterns  Used to predict future trends  Trade Associations/Publications  Other business owners  Economic data

18. The Research Process  Identify information needs  Collect secondary data  Collect primary data  Organize data  Analyze data

19. Secondary Data Information that has already been collected

20. Primary Data Information obtained for the first time and used specifically for your study