Please bring materials for a problem product

scrap book
Any magazine where you can find products or services offered.
Bond paper
Paste / glue
1/8 illustration board
Scissors
How many Fs are in the sentence?
Please read for 5 seconds
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 marketing concept uses the
needs of customers as the primary
focus during the planning,
production, distribution, and
promotion of a product or service.
Chapter 6 Slide 23
 Customers are the people
who buy the products and
Chapter 6

UNDERSTA services companies offer.

ND YOUR
CUSTOMER
Customers buy goods and services to satisfy
economic wants and needs.
An economic want is an An economic need is
unfilled desire of a anything that is required
customer. to live.

Slide
24
 DEMOGRAPHICS
AND
PSYCHOGRAPHICS
Demographics are data that describe a
group of people in terms of their age,
marital status, family size, ethnicity,
gender, profession, education, and
income.

Psychographics are data that describe a

group of people in terms of their tastes,
opinions, personality traits, and lifestyle
habits.

Chapter 6 Slide 25
IDENTIFY YOUR TARGET MARKET

1. Who are my customers: individuals or

companies?
2. 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?
3. If customers are companies:
What industries are they in?
Where are those industries located?
Chapter 6 Slide 26
IDENTIFY YOUR TARGET MARKET
4. What needs or wants will my product or
service satisfy?
5. How many potential customers live in the
area in which I want to operate?
6. Where do these potential customers
currently buy the products or services I want
to sell them?
7. What price are they willing to pay for my
products or services?
8. What can I do for my customers that other
companies are not already doing for them?
Chapter 6 Slide 27
Determining your Target Market
Why is it important to determine who your
target market is?
Unless you understand who your target
market is and what types of products or
services they are looking for, you will
probably not be able to satisfy their wants
and needs.

Chapter 6 Slide 28
 THE IMPORTANCE OF
A CUSTOMER PROFILE
Chapter 6

A customer profile is a
description of the characteristics
of the person or company that is
likely to purchase a product or
service.

Slide
29
 THE IMPORTANCE OF
A CUSTOMER PROFILE
The importance of a customer profile will help
Chapter 6

you understand how to meet customer

demand. Understanding your competition will
help you identify unmet needs.
Disadvantage of market segmentation
You might market to a group who is not
interested in the product or might overlook
a segment that would be very interested in
the product.
Slide
30
 Groups of customers
Chapter 6

within a large market

MARKET who share common
SEGMENTS characteristics are
known as market
segments.

Slide
31
 Mass Marketing
Advantages of Mass Marketing
Easy to prepare advertisements for
and reaches many people
Disadvantages of Mass Marketing
Does not target specific needs of
customers
Is not suitable for all products
Has nothing to make product stand
out from the competition

Chapter 6 Slide 32
 UNDERSTAND THE
COMPETITION

Knowing about
your competition
will help you define
your target market.

Chapter 6 Slide 33
 MARKET RESEARCH
Market research is a system for
collecting, recording, and analyzing
information about customers,
competitors, goods, and services.
Market researchers collect primary and
secondary data.
If conducted properly, market research
will help entrepreneurs understand their
target markets and thus, satisfy the
wants and needs of the customers.
Chapter 6 Slide 34
Limitations of Market
Research

Can be costly
Time consuming
Must be carefully
analyzed so that incorrect
decisions are not made
Chapter 6 Slide 35
 SECONDARY
DATA
Secondary data is data found in
already published sources.

Chapter 6 Slide 36
 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 Slide 37
Chapter 6
Secondary Sources

Information you can

find using secondary
sources include
information on:
Secondary Sources
Demographics
Economic trends
Industry forecasts

Chapter 6 Slide 38
 PRIMARY DATA
Primary data is information
collected for the very first time
to fit a specific purpose.
Questionnaire or survey
Observation
Focus groups
Disadvantage of primary data
Time consuming
Expensive

Chapter 6 Slide 39
Difference between Primary and Secondary
market research data

Secondary data is found in published sources

Primary data is information that is collected for the first time to fit a
specific purpose

Chapter 6 Slide 40
Group Activity
Instruction:

Think atleas3 products (goods or services)

Make a demographic survey from your target markets based on that
products.
You can survey on different strands within our campus, choose only 10
from the ABM,ADT, and STEM