The value of market research

1. The value of market research

2. Entrepreneurs can become so focused on the products and services that they forget about their customers. • Coming up with a great new product or service does not always determine success. • You need to research who your primary market will be and determine whether people will be willing to buy your product or service. • Market research is the key to finding out this information.

3. What is a Target Market? • These are the people or companies that are interested in a particular product or service and are willing and able to pay for it. • Identifying your target market helps you to reach the people you most want to sell to. • Target customers are the ones you most want to attract to. • A car dealer selling mini-vans would want to target families with little children.

4. Who would the following want to target as customers? • Sports car dealership • Salon and spa • Milestones or the KEG • McDonalds e.g. BIG MAC combo • NIKE e.g. LIVESTRONG • Fishing and Tackle store • Barber shop

5. What about theses companies? • Energizer (batteries) • Apple, IBM, Microsoft • Gas station These are examples of companies that would MASS market, meaning they want to attract anyone and everyone that needs their product or service.

6. The Customer • As a business person, you always need to remember that your customer is your most important asset. • Asset: anything in your business that has monetary value $$$$$$$$$$$$$.

7. The Marketing Concept Uses the needs of customers as the primary focus during the planning, production, distribution and promotion of a product or service. Three activities must be accomplished by businesses in order to use the marketing concept successfully. • Identify what will satisfy the customers’ wants and needs. • Develop and market products or services that customers consider better than other choices. • Operate profitably

8. Understand Your Customer! • Customers are the people who buy the products and services businesses offer. • The customer is your most important asset. • Without your customer, you do not have a business. • Understanding people’s wants and needs will allow you to identify business opportunities. • The more you know about your customers, the better you will be at giving them what they need and want.

9. Businesses that identify their target markets are the businesses that succeed. • This is why you need to identify and define your target market. • If you concentrate your selling efforts on a certain type of individual, you will be more likely to give those individuals exactly what they need. • This will make customers happy and they will continue to buy from you. • When you understand your customers, you are more likely to have a successful business.

10. Demographics and Psychographics • Demographics are data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, professions, education and income levels • Psychographics are data that describe a group of people in terms of their tastes, opinions, personality traits and lifestyle habits.

11. Let’s try to identify our target market • Go to Class Net and open the document: Identifying my Target Market and complete the chart by thinking about the questions listed in the chart. Entrepreneurship Ideas in Action by Cynthia L. Greene