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Entrepreneurship Class - Mr. SherpinskyEntrepreneurship Class - Mr. SherpinskyCouncil Rock School DistrictCouncil Rock School District
Identify a target market by understanding your customers.
Research your market using primary and secondary data.
GOALSGOALS
Do you think it is important to have a thorough knowledge of a product before trying to market it?
What type of things do you think Travis had to consider before offering items for sale on the Internet?
What do you think of the way Travis pays his friends to work for him?
Product knowledge is very important Convince others that
products meet needs Develop website
Maintained Process all orders Shipping methods Pricing
Advantages or not?
Get SetWhat do you look for and
want to know?
WebifyHow to find
information and customers quickly
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.
Marketing concept uses the needs of customers as the primary focus during the: planning, production, distribution, and promotion of a product or
service.
Customers are the people who buy the products and services companies offer.
Customers buy goods and services to satisfy economic wants and needs. An economic want is an
unfilled desire of a customer. An economic need is
anything that is required to live.
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.
1.1. Who are my customers: individuals or companies?
2.2. 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?3.3. If customers are companies:
What industries are they in?Where are those industries
located?
44.. What needs or wants will my product or service satisfy?
5.5. How many potential customers live in the area in which I want to operate?
6.6. Where do these potential customers currently buy the products or services I want to sell them?
7.7. What price are they willing to pay for my products or services?
8.8. What can I do for my customers that other companies are not already doing for them?
A customer profile is a description of the characteristics of the person or company that is likely to purchase a product or service.
Internet Research Can you identify key traits among
these specific target markets?
▪ DINKSDINKS▪WOOFSWOOFS▪ SKIPPIESSKIPPIES▪ SWAKSSWAKS▪ SWANKSSWANKS
DINKS More discretionary/disposable income, more wants than More discretionary/disposable income, more wants than
needs/status.needs/status.
WOOFS More discretionary income, health conscious, able to travel More discretionary income, health conscious, able to travel
extensively for longer periods of time, desire to spend time with extensively for longer periods of time, desire to spend time with family/grandchildren.family/grandchildren.
SKIPPIES Desire self-esteem, sense of belonging from keeping up with the Desire self-esteem, sense of belonging from keeping up with the
latest styles, trends, and technology.latest styles, trends, and technology.
SWAKS Convenience and value important because of less discretionary Convenience and value important because of less discretionary
income.income.
SWANKS More discretionary income; desire for companionship; very career More discretionary income; desire for companionship; very career
oriented.oriented.
Markets and Doc Loch
Groups of customers within a large market who share common characteristics are known as market segments.
Segmenting can help you develop a product or service.
TD Bank and Target Markets and Market Segmentation
Knowing about your competition will help you define your target market.
Market research is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services.
Market researchers collect primary and secondary data.
Secondary data is data found in already published sources. Publication by government or
community organizations like U.S. Census Bureau, SBA, and Chamber of Commerce
Books about specific industries Information on the Web Entrepreneur books and
magazines Newspapers and journals
Primary data is information collected for the very first time to fit a specific purpose. Questionnaire or survey Observation Focus groups (Big $$$)
Disadvantage of primary data: Expensive & Time-Expensive & Time-ConsumingConsuming
Identify the five steps involved in primary data market research.
Design a questionnaire.
GOALSGOALS
Market Research Made-Easy & MR Analysis
1. Define the question
2. Select a research method
3. Collect data4. Analyze data5. Draw
conclusions
Need to define exactly what you are trying to find out
Example: Dog-walking service How many dog owners live in the
area How many of them lack the time to
walk their dogs How much they might be willing to
pay to have someone walk their dogs for them
Methodology Survey Observation Focus Groups
Method you use will depend on what type of information you want to gather
DemographicPsychographicEconomic trends Industry forecastsAttitudesStrength of
feelings Strongly Agree, Somewhat
Agree, Somewhat Disagree, Strongly Disagree
Length of questionnaireQuestions
Clear Easy to answer Only important questions
Need to interpret the information you have found
Written down so it can be used later
Segment the data by various target groups
Cross-referencing and cross-tabbing
Determine how to use the data
Develop a plan of action based on the information found in market research
Build a survey! Build a survey! COFFEECOFFEE3 Psychographic
Questions for your product to determine who would use this product
3 Demographics Questions for the product
Determine your direct and indirect competition.
Analyze the strengths and weaknesses of competitors.
Establish strategies for maintaining customer loyalty.
GOALSGOALS
Direct competition is competition from a business that makes most of its money selling the same or similar products or services as another business.
Indirect competition is competition from a business that makes only a small amount of money selling the same or similar products or services as another business. Find your direct competition Find your indirect competition
Large retailers usually are able to keep larger quantities of products in stock. Large retail chains don’t
rely on one single product line.
Large companies usually have more resources to devote to advertising.
Price What do they charge?
Location Where are they located?
Facility Is their building nice?
Accessible? Appealing to customers?
Listen and respond to feedback
Other strategies for maintaining loyalty Superior service More convenient hours than
other businesses Easy return policies Store-specific credit cards Personal notes or cards Frequent buyer programs
Strengths What do they do better? What do they do Best?
Weaknesses Any disadvantages with
them?
StrategyStrategy What will you do to attract
customers to you How will you get customers
to come to you instead of them?▪ Pricing▪ Servicing▪ Unique Offerings▪ Other ideas???
Thinking Out of the BoxThinking Out of the BoxCreate Something Out of Nothing
Brainstorm ideas for our potential coffee cafe and develop four (4)
well flushed out ideas/concepts for bringing customers into your coffee
café with your major coffee competitor being WAWA!
Review pages 148, 149, 150Case Study, page 152
Everything Mentioned Everything Mentioned will be on the quiz!!!will be on the quiz!!!
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.
Marketing concept uses the needs of customers as the primary focus during the: planning, production, distribution, and promotion of a product or
service.
Demographics data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education, and income.
Psychographics: data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.
1. Define the question
2. Select a research method
3. Collect data4. Analyze data5. Draw
conclusions
Market research is a system for collecting, recording, and analyzing information about customers, competitors, goods, and services. Market researchers
collect primary and secondary data.
Primary data is information collected for the very first time to fit a specific purpose. Questionnaire or survey Observation Focus groups (Big $$$)
Disadvantage of primary data: Expensive & Time-Expensive & Time-ConsumingConsuming
Secondary data is data found in already published sources. Publication by government or
community organizations like U.S. Census Bureau, SBA, and Chamber of Commerce
Books about specific industries Information on the Web Entrepreneur books and
magazines Newspapers and journals
A customer profile is a description of the characteristics of the person or company that is likely to purchase a product or service.
Direct competition is competition from a business that makes most of its money selling the same or similar products or services as another business.
Indirect competition is competition from a business that makes only a small amount of money selling the same or similar products or services as another business. Find your direct competition Find your indirect competition
Customers are the people who buy the products and services companies offer.
Customers buy goods and services to satisfy economic wants and needs. An economic want is an
unfilled desire of a customer. An economic need is
anything that is required to live.
City: Population: 5000Data:Data:
30% will use our product 4 times each year
Each purchase results in $50.00 revenue for us
Calculate the potential revenue for 6 months
5000 x 30% = 1500 5000 x 30% = 1500 customerscustomers
1500 x 4 =6000 1500 x 4 =6000 purchase a yearpurchase a year
6000 x $50.00 per 6000 x $50.00 per purchase means we purchase means we will have a potential of will have a potential of $300,000 in revenue$300,000 in revenue
Or does it?Or does it? $300.000 / 2 = 6 $300.000 / 2 = 6
months of revenuemonths of revenue$150.000$150.000