IDENTIFY AND MEET A MARKET NEED Flashcards
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 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.
Target Market
uses the needs of customers as the primary focus during the planning, production, distribution, and promotion of a product or service.
marketing concept
are the people who buy the products and services companies offer.
Customers
is an unfilled desire of a customer.
economic want
is anything that is required to live.
economic need
are data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income.
Demographics
are data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.
Psychographics
How to identify your target market
- Who are my customers: individuals or companies?
- 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? - If customers are companies:
What industries are they in?
Where are those industries located? - What needs or wants will my product or service satisfy?
- How many potential customers live in the area in which I want to operate?
- Where do these potential customers currently buy the products or services I want to sell them?
- What price are they willing to pay for my products or services?
- What can I do for my customers that other companies are not already doing for them?
is a description of the characteristics of the person or company that is likely to purchase a product or service.
customer profile
Groups of customers within a large market who share common characteristics are known as
market segments.
is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Market research
is data found in already published sources.
Secondary data
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
is information collected for the very first time to fit a specific purpose.
Primary data
Examples of Primary Data
Questionnaire or survey
Observation
Focus groups
FIVE STEPS OF PRIMARY MARKET RESEARCH
Define the question Select a research method Collect data Analyze data Draw conclusions
HOW TO DESIGN A SURVEY
Length of questionnaire
Questions
Questions are?
Clear
Easy to answer
Only important questions
is competition from a business that makes most of its money selling the same or similar products or services as another business.
Direct 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.
Indirect competition
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.
STUDY INDIVIDUAL COMPETITORS
Price Location Facility Strengths Weaknesses Strategy
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
