Identify and Meet a Market Need

1. Identify and Meet a Market Need 4.1 Identify Your Market 4.2 Research the Market 4.3 Know Your Competition

2. Lesson 4.2Research the Market Goals • Explain the role of market research. • Identify the six steps involved in market research. • Explain the role technology plays in marketing research. Chapter 4

3. Vocabulary • market research • primary data • survey • focus group • secondary data • customer relationship management Chapter 4

4. Role of Market Research • market research • a system for collecting, recording, and analyzing information about • customers • competitors • products • services Chapter 4

5. Primary Data • primary data • information collected for the very first time to fit a specific purpose • survey • a list of questions you ask your customers to determine • demographic information • psychographic information Chapter 4

6. 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 discussion Chapter 4

7. disadvantages of primary data • time-consuming • more expensive Chapter 4

8. Secondary Data • secondary data • information found in already-published sources Chapter 4

9. Secondary data can be found in: • publications issued by government and community organizations • industry specific books • government and business websites • books about entrepreneurs in similar businesses • trade publications • newspaper articles and statistics Chapter 1

10. What types of data can be collected through market research? Chapter 1

11. Six Steps of Market Research • Although primary data collection is time consuming and expensive, it will tell you exactly what you want to know. • Primary data can uncover information that is often not available through secondary sources. Chapter 4

12. Chapter 4

13. Define the Question • Determine exactly what it is you need to know. • Determine the Data Needed • Decide what data you need to answer the question. Chapter 4

14. Collect the Data • Decide the best way to gather data. • People’s opinions can be obtained through • focus groups • surveys • secondary market research • demographic data • psychographic data • economic trends • industry forecasts Chapter 4

15. Analyze the Data • Thoroughly analyze and interpret data. • Write down analysis results for future reference. • Take Action • Use your analysis results to develop an action plan. • Evaluate the Results • Entrepreneurs must regularly evaluate the actions they take as a result of the plan. Chapter 4

16. What are the six steps of market research? Chapter 1

17. Technology-Driven Marketing • Customer relationship management • a business strategy designed to increase profitability and customer satisfaction • uses technology to track customer interactions • focuses on understanding customers as individuals instead of as part of a group Chapter 1

18. Interactions with Customers • Companies collect data about customers through interactions that occur via • phone • web • salespersons • product registration • product warranty cards Chapter 1

19. touch points • places where a customer might have contact with a company • discussion with delivery personnel • electronic data transfer • the movement of data between locations in a structured, computer-retrievable format Chapter 1

20. Customer Database • data warehouse • a large computerized database containing all of the information collected in the CRM process • data mining • finds hidden patterns and relationships in the customer data stored in the data warehouse Chapter 1

21. What is the goal of CRM? Chapter 1

22. Lesson 4.3Know Your Competition Goals • Explain the importance of knowing and understanding your competition. • Prepare a competitive analysis. • Describe strategies for maintaining customer loyalty. Chapter 4

23. Vocabulary • direct competition • indirect competition • competitive analysis Chapter 4

24. Impact of Competition • You should always watch the competition. • Offer products that are of equal or better quality that sell for the same or lower prices. Chapter 4

25. Understand the Competition • New businesses need to identify some special customer need or want that is not being met. Chapter 4

26. Know the Types of Competition • direct competition • a business that makes most of its money selling the same or similar products or services to the same market as other businesses Chapter 4

27. indirect competition • a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses Chapter 4

28. large retailers • Reasons that make it difficult for entrepreneurs to compete with large retailers include: • Large retailers can keep larger quantities of products in stock. • Large chains do not rely on a single product line. • Large companies have a larger advertising budget. Chapter 4

29. Why is it important to understand the competition your business faces? Chapter 1

30. Competitive Analysis • competitive analysis • identifying and examining the characteristics of a competing firm Chapter 4

31. Follow these steps to begin your competitive analysis: • Make a list of your competitors. • Summarize the products and prices offered by your competitors. Chapter 4

32. List each competitor’s strengths and weaknesses. • Find out the strategies and objectives of your competitors. • Determine the opportunities in the market. • Identify threats to your business from the competition. Chapter 4

33. Chapter 4

34. What is the purpose of a competitive analysis? Chapter 1

35. Maintain Customer Loyalty • Listen and Respond to Feedback • Continually ask for and respond to customers’ needs. Chapter 4

36. Other strategies for Maintaining Loyalty • superior service • convenient hours • easy return policies • store-specific credit cards • personal notes or birthday cards • frequent-buyer programs Chapter 4

37. What are some strategies for maintaining customer loyalty? Chapter 1

38. Performance Competencies • Develop the presentation logically and systematically • Communicate the design process effectively Chapter 1

39. Demonstrate the ability to make a businesslike presentation • Show self-confidence apparent through knowledge of content and articulation of ideas • Present the tips, techniques, and tools used Chapter 4

40. Give It A Try • Document addresses topic and is appropriate for the audience • Graphics, text treatment, and special effects show creativity and cohesiveness of design Chapter 1

41. Overall layout and design is creative and appealing • Final product indicates a clear thought process and an intended, planned direction with formulation and execution of a firm idea • Required information is effectively communicated • Selection of fonts and type sizes is appropriate Chapter 4