WEALTH CREATION

Identify and Meet A

Market Need
GROUP PRIMROSE
 TARGET MARKET
the individuals or companies that are
interested in a particular product or service
Identify your
market
• individuals or companies?
• age and income?
• industries customers are in?
• needs and wants my product will satisfy?
• number of potential customers?
• competitive environment?
• pricing of product or service?
• what is unique about my offering?
 - groups of customers
within a large market
who share common
characteristics

Most products and services appeal to a small

portion of the population.
MARKET
Segmentation helps you serve your niche
SEGMENTS
efficiently.
 Customer Profile
- a description of the characteristics of the person or
company that is likely to purchase a product or service
 4 Types of
Customer Data
Demographi • age 1
cs
data that describes a group of
people in terms of:
•
•
•
marital status
family size
ethnicity
• gender
• profession
• education
• income
Psychograp 2
hics
Data that describe a group of
people in terms of:
»tastes
»opinions
»personality traits
»lifestyle habits
 3
data that helps you determine
how often
potential customers use a
particular service

Use-based
 data that helps you

geogra
determine:
where your customers live
and how far will they

data
travel

phic
4
4.2. RESEARCH THE MARKET

Goals
• Explain the role of market
research.
• Identify the six steps
involved in market research.
 Role of
Market costumers

Research
- a system for collecting, recording,
competitors

and analyzing information about:

goods

services
primary
information collected for the

data
very first time to fit a specific purpose

Examples: survey, observation, focus group

survey
a list of questions you ask your customers to
determine
 demographic information
 psychographic information
observation
determining information by watching customer behavior

focus group
an in-depth interview with a group of target customers
questions are similar to survey questions
group interaction allows for more in-depth discussion
disadvan
tages
expensive, time-consuming
Secondary
Data
information found in already-
published sources
examples:
 Government publications and websites
 Industry specific books
 Trade publications
 Newspaper articles
 Books about entrepreneurs in similar
businesses
 • Although primary data

six steps of collection is time consuming

and expensive, it will tell
you exactly what you want

market
to know.

• Primary data can uncover

information that is often not

research. available through secondary

sources.
Determine exactly what it is
you need to know.
1
define the
question
Decide what data you need
to answer the question.
2
determine
the data
 Conduct secondary research to help determine
the primary data requirements.
 Determine the most effective methodology for
primary research collection.
3
 Questionnaires should contain only the most
pertinent questions.

collect your
Survey
questionnaire
example
 Thoroughly analyze and interpret
data.
4
 Write down analysis results for
future reference.

analyze data
ake action
• Use your analysis results to develop
an action plan.

5
• Entrepreneurs must perpetually
reassess the effectiveness of their
6
actions.

evaluate the
 know your
competitors
Impact of Competition

To remain competitive, you should offer products

that are of equal or better quality than the
competition and that sell for the same or lower
prices
 Understand the
Competition
Determine the ways your competition is not
meeting the needs of their customers.

English Class | Laredo York Primary School

 Two types
Direct Indirect
competition competition
Originates from a business Originates from a business
that makes most of its that makes only a small
income by selling the same amount of money by selling
products or services as you the same products or
to the same market services as you to the same
market
Large Retailers?
Reasons that large retailers can be a source of
strong competition include:

• they can order and stock large quantities of

products the volume discounts they obtain result in
lower prices to the consumer
• they have multiple product lines if one product
does poorly, there are other products available to
generate sales
• they have larger advertising budgets
 Competitive
Analysis
Identifying and
examining the
characteristics of a
competing firm
 1. Make a list of your competitors.

2. Summarize the products and

prices offered by your
steps to begin competitors.

competitive 3. List each competitor’s strengths

and weaknesses.
analysis 4. Find out the strategies and
objectives of your competitors.

5. Determine the strength of the

market.
Maintaining Customer
Loyalty
LISTEN AND RESPOND TO
FEEDBACK PERPETUALLY ASK
FOR AND RESPOND TO
CUSTOMERS’ NEEDS.
STRATEGIES
to maintain customers' loyalty

superior frequent-buyer personal notes or

service programs birthday cards

convenient easy return

store-specific credit
hours policies
cards
 • Develop a convincing
multimedia presentation.
PERFORMANC • Recognize and respect
E INDICATORS copyright issues.
EVALUATED • Develop and support a theme
with a multimedia presentation.
 • Set priorities and manage time
to prepare and present an
PERFORMANC effective multimedia
presentation.
E INDICATORS • Make use of and implement
EVALUATED innovative technology in a
multimedia presentation.