1. Doing Market Research Unit 2

2. Market Analysis  Industry – is a collection of businesses that are categorized by a specific business activity  Within the industry are value chains that support a common line of products or services that satisfy market demands  A market is defined by the customers for a particular product or service  You need to analyze the market and the industry and assess your chances for success within it

3. Defining Areas of Analysis To succeed and make a PROFIT, a business must satisfy the needs of its customers. However, you cannot satisfy current customers or attract new customers if you do not know who they are and what they want. To find out, you must conduct market analysis.

4. Industry  Carrying Capacity  The way to understand the industry’s ability to support new growth  Is there room for new businesses like yours?  Uncertainty  The degree of stability or instability in an industry  A fast changing industry would present higher risk  Complexity  Is the number and diversity of contacts with which you must deal to do business  Stage of Life Cycle  Which stage is the industry in?

5. Stage of Life Cycle

6. Target Market and Customer  Market is a group of people or companies who have a demand for a product or service and are willing and able to buy it  Target market is a group of customers of interest to you as a business owner  You want to know as much as you can about the market in as much detail as possible

7. Target Marketing  Guidelines to use when segmenting the target market  The market should be measurable  Should be large enough to be potentially profitable  Should be reachable  Should be responsive

8. Market Segmentation  The process of grouping a market into smaller subgroups defined by specific characteristics  Market segments or subgroups are buyers who have similar characteristics  Consumer markets  Geographics  Demographics  Psychographics  Industrial markets are made up of customers who buy goods and services for business

9. Conducting Market Research  Collecting and analyzing information aimed at understanding the behavior of consumers in a certain market  Market research is the same whether you are doing research for an existing business or a new venture

10. Marketing Research  Identify the focus of the research  Do not waste time gathering useless information  Assess customer demand and willingness to pay  Select the type of market research  Exploratory - when you know very little about a subject  Descriptive – determining status like a customer profile  Historical Research  Studying the past

11. Start the Research Process 1.Identify your information needs 2.Obtain secondary resources 3.Collect primary data 4.Organize the data 5.Analyze the data