Chapter 6 Market Analysis - TeacherWeb

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					Chapter 6
Market Analysis

    Business Management
    Mrs. Deady
6.1 Doing Market Research Objectives

Def: Market Research – process of systematically
   collecting, recording, analyzing and presenting
   data related to marketing goods and services

n Define an area of analysis for your research
n When to use different types of research
n Develop and conduct effective market research
6.1 Definitions
n Industry – collection of businesses with a common
  line of products or services
n Market – group of people or companies that have a
  demand for your product or service
n Carrying capacity – is the industry able to support
  new growth, support expansion
n Complexity – number and diversity of contacts with
  which you must deal
n Target Market – particular group of customers you
  are interested in to sell your product
6.1 Definitions
n Market Segmentation – process of grouping a
  market into smaller subgroups defined by
  specific characteristics.
n Industrial Market – goods or services bought
  for business use
n Primary Data – information you obtain
  specifically for your study
n Secondary Data – information collected by
  someone else
Market Segmentation
Process of grouping a market into smaller
  qGeographics – region, state, country, city and/or
  qDemographics – age, gender, income, occupation,
   education ,religion, race, nationality
  qPsychographics – personality, values, opinions,
   beliefs, motivations, attitudes, activities and
  qProduct Benefits – knowledge of and personal
   experience with a product or service
Steps in the Research Process
q Identify the Information needs
q Obtain Secondary resources
q Collect Primary Data (Disadvantages are
  questionnaires not returned, returned multiple
  times, cost and accuracy)
q Organize the Data
q Analyze this Data
Three Types of Market Research

n Exploratory – when you know little about a subject
   q Focus Group
   q Government or industry publications
n Descriptive – to determine a customer profile
   q Questionnaire
   q Interviews
   q Observation
n Historical – study the past to find patterns to
  predict the future
Data Interpretation

n Data Mining involves collecting data from one or
  more existing databases and looking for
  relationships among the data.
n Used to find or predict:
   q Market segmentation
   q Customer or client profiling
6.2 Industry and Market Analysis

n Explain how to research an industry
n Identify a customer profile and
  customer needs analysis
 6.2 Definitions
n Barriers to Entry – conditions that make it difficult or
  costly for outside forms to enter a market or compete
  with established firms
n Economies of Scale – cost of producing one unit of a
  good decreases as the volume of the production
n Brand Loyalty – tendency to buy a particular brand
n Mass Marketing – trying to reach all customers with a
  single marketing plan
n Market Share – portion of total sales generated by all
  competing companies in a given market
Definitions, cont’d

n Niche – small, specialized segment of the market, based
  on customer needs
n Market Positioning – act of identifying a specific market
  niche for a product
n Competitive Advantage – feature that makes a product
  more desirable than its competitors’ products
n Customer Profile – complete picture of prospective
  customer; geographic, demographic, psychographic and
  product benefits
n Customer Needs Analysis – pinpoints features and
  benefits of your goods or services that customers value
Industry Forces that Affect Your Business

q   Barriers to Entry
q   Threats from Substitute Products
q   Sources of Supply
q   Buyers’ Ability to Bargain
q   Technology
Creating a Customer Profile –
Questions to Ask

q Who are my customers?
q What do they generally buy;
  how do they hear about the
  products and services they buy?
q How often do they buy?
q How can my business meet their
Ways to Forecast Demand

q Use historical analogy products to predict
  demand for your product
q Interview prospective customers and
q Go into limited production to test the market

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