; TARGET MARKET
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

TARGET MARKET

VIEWS: 10 PAGES: 21

  • pg 1
									        TARGET MARKET
Finding those interested in your product/service
and willing and able to pay for it.

Ex: You sell real estate.
     1. Specifically what are you selling; say,
new moderately priced condominiums.

       2. Your target market would be middle-class
individuals who are either just starting off or
elderly and looking to downsize.
     MARKETING CONCEPT
 Find out what customers want and need
 Offer products that are better than others
 Make a profit
         DEMOGRAPHICS
 Age
 Marital Status
 Family Size
 Ethnicity
 Gender
 Profession
 Education
 Income
        PSYCHOGRAPHICS
 What they like
 Opinions
 Personality
 Lifestyle Habits
    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?
                       continued
      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?
       CUSTOMER PROFILE
Identifying the types of individuals or companies
  that would be interested in your product/service.

Ex: Customer Profile for Rave
 Females
 Ages 13-21
 Lives near Merrillville
 Wants trendy clothing
 Interested in reasonable prices
 Average household income of $40,000/year
                 Market Segments
   Smaller sections of a market
       For example: Sporting Goods
         Skating
         Tennis
         Golf
         Soccer
         Volleyball
         Track/Running
         Bowling
    Secondary Market Research Data
Items found in published sources

o   US Census Bureau
o   SBA
o   Chamber of Commerce
o   Specific Industry Books
o   Internet
o   Specialized Magazines
o   Newspapers
Primary Market Research Data
   Questionnaires/Surveys
   Observation—Say you want to open a
    bicycle/roller blade/skateboard shop, you may
    want to go to the local parks and count how
    many people are doing those activities to give
    you an idea of possible customers
   Focus Groups—Small groups that would answer
    the same types of questions as on a survey,
    however, you would be able to get more
    information since you’re interviewing them
    personally.
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   What are you trying to find out? Be
    specific and detailed
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   How will you get the answers you’re
    looking for?
    – Survey –Things to think about
        How long should it be
        What questions should be on it
        How should you give it
        How many people should you give it to
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   How will you get the answers you’re
    looking for?
    – Observation
        Where can you get the best info
        When can you get the best info
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   How will you get the answers you’re
    looking for?
    – Focus Group
        What kinds of people do you want in group
        What questions to ask
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   Collecting the Information You’re Looking
    for
    – Secondary data first to help you decide
      exactly what kinds of primary data you may
      want
        Demographic
        Psychographic
        Economic Trends
        Industry Forecasts
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   Figure out and write down what the
    information you got means for your
    business
     PRIMARY MARKET RESEARCH
         How Do You Do It?
   Decide how you will use the information
    you just got (draw conclusions)
    – Develop a plan that will include the
      information learned so your business can be
      profitable
TYPES OF COMPETITION
  Direct Competition—Businesses that make
  all or most of their money by selling similar
  products/services as yours
  Indirect Competition—Businesses that
  make only a small part of their money by
  selling similar products/services as yours
Ex: Your business sells adult ladies
  clothing—a direct competitor would be
  Fashion Bug; an indirect competitor would
  be JC Penney
TOUGH TO COMPETE WITH
LARGE BUSINESSES—WHY?
 More items in stock
 Don’t really too much on any one
 product/service
 More money for advertising
ANALYZE ALL COMPETITORS
 Price—How are their prices compared to
 yours
 Location—Where are they located; close to
 you?
 Nice Facility—Clean, Looks good
 Strengths—What do they do that makes
 them different and/or better than others?
 Weaknesses—What things are not so good
 about them or their products/services?
 Strategy—Develop plan to get customers
 to your business rather than others
WAYS TO MAINTAIN AND
INCREASE CUSTOMERS
  Give superior service
  More convenient hours
  Easy return policy
  Match sale prices from competitors
  Frequent buyer program

HOW TO KNOW WHAT CUSTOMERS WANT/NEED

  Ask for customer feedback when making purchases
  Call customers to ask questions
  Feedback/Suggestion box
  Survey

								
To top