Lesson 4: Market Flashcards
__________ refers to the group of consumers or potential customers who have a need or desire for a particular product or service.
It can be defined as a group of individuals or organizations that share common characteristics and have the potential to purchase a specific product or service.
Market
refers to a specific group of customers or consumers that a technopreneur is aiming to reach and serve with their technology productor service.
Target market
Differentiate Market and target market
Market refers to overall group of people that has the potential to buy a product while target market is a specific group of people that a technopreneur wants to reach.
Market includes people who have or do not have a specific need in the product while target market includes people who have specific need in the product.
________________ is the thorough process of data collection to choose whether the product or the service that is going to come will cater to customers’ needs
Market analysis
_______________, in essence, is an exercise undertaken to gather feedback and information directly from the customers, generally for judging the viability of specific business decisions.
Market research
Enumerate 2 types of market research
- Primary research
- Secondary research
A research where experts from a target market are interviewed in order to collect new data. The advantage of this is that it is still your own research purpose in focus.
Primary research
A research that uses existing data records from previous surveys. This can be collected both internally and
externally.
Secondary research
Differentiate market analysis and market research
Market research gets information and feedbacks directly from the customers while market analysis uses a broader source to get data.
Enumerate 8 dimensions of market analysis
- Market size
- Market segment
- Market trends
- Market growth rate
- Market profitability
- Industry cost-structure
- Distribution channel
- key success factors
______________ refers to the current and potential volume of the selected market.
Market size
It is the process of dividing a larger market into smaller, more defined groups of consumers who have similar needs, wants or characteristics.
Market segment
__________ refer to the general direction or pattern of change in a particular market over time. They are the movements or shifts in demand, supply, and pricing that reflect changes in consumer behavior, preferences, and needs.
Market trends are influenced by various factors such as demographic shifts, technological advancements, economic conditions, and cultural shifts.
Market trends
refers to the rate at which the market is expected to grow in terms of demand
Market growth rate
The ________________ is also the basic information investors need before making an investment decision.
market growth rate
How to determine market growth rate? Enumerate 2.
- Extrapolating
- Product diffusion curve
_______________ the past data into the future, market growth rate can be ascertained in an organization.
Extrapolating
________________ - based on the study of characteristics of adoption rate of similar products
Product diffusion curve
refers to the ability of a company or product to generate profits within a specific market.
Market profitability
It refers to the way in which costs are incurred in a particular industry.
Industry cost-structure
Distribution channel
Manufacturer > wholesaler > retailer > customer
These are the specific factors that are critical to the success
Key success factors
It is a strategic framework for analyzing the competitive environment of an industry by Michael E. Porter in 1980.
Porter’s five forces model
Enumerate the Porter’s 5 forces model
- Threat of new entrants
- Bargaining power of
suppliers - Bargaining power of buyers
- Threat of substitutes
- Rivalry among existing
competitors
This force refers to the potential for new competitors to enter the market and disrupt the current competitive landscape.
Threat of new entrants
This force refers to the power that supplier have in the industry and ability to increase price and reduce quality of goods and services.
Bargaining power of supplier
This force refers to the power that buyers have over the industry and their ability to negotiate lower prices or higher quality goods or services
Bargaining power of buyers
This force refers to the potential for substitutes to take market share away from the industry’s products or services
Threat of substitutes
This force refers to the intensity of competition among existing firms in the industry.
Rivalry among existing competition.
Enumerate 5 skills to understand target market
- Segmenting the market
- Targeting
- Understanding your target
- Analyzing the Competition
- Estimating Potential Market Demand
Enumerate the 6 steps of a market analysis
- Research your industry
- Investigate the competitive landscape
- Identify market gaps
- Define your target market
- Identify barriers to entry
- Create a sales forecast
