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Pinpointing the Target Market

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					  Business Management


Pinpointing the Target
        Market
                                 The Basics

•   What to sell
•   To whom
•   How often
•   What terms
•   At what price
•   How to get the product or service to the
    customer
         Marketing Plan Objectives
• Should determine customer needs and wants
  through market research
• Should pinpoint the specific target markets
  the small company will serve
• Should analyze the firm’s competitive
  advantages and build a marketing strategy
  around them
• Should help to create a marketing mix that
  meets customer needs and wants
                        Market Research

• Businesses that ignore demographic trends
  and fail to adjust their strategies accordingly
  run the risk of becoming competitively
  obsolete
        Market Trends to Watch for:

•   Increasing population diversity
•   Changing family patterns
•   Greater environmental and health concerns
•   Emergence of premium and discount niches
•   Surge in baby boomers and the elderly
•   Greater emphasis on social responsibility
•   Slower growing markets
             How to Conduct Market
                         Research
• Step 1: Define the problem
  – Symptoms versus problems
• Step 2: Collect the data
  – Geographic
  – Demographic
  – Psychographic
• Step 3: Analyze and interpret the data
• Step 4: Draw conclusions and act
   Two Types of Market Research

• Primary
• Secondary
The Two Types of Market Research

• Primary research - data you collect yourself
  –   Customer surveys and questionnaires
  –   Focus groups
  –   Daily transactions
  –   Other ideas…
The Two Types of Market Research

• Secondary research:
  –   Business directories
  –   Direct mail lists
  –   Demographic data
  –   Census data
  –   Forecasts
  –   Market research
  –   Articles, local data and the World Wide Web
  Faith Popcorn: Trend Tracking
                          Ideas
• Read as many current publications as
  possible
• Watch the top ten TV shows
• See the top ten movies
• Talk to at least 150 customers a year about
  what they’re buying and why
• Talk with the ten smartest people you know
• Listen to your children
      Pinpointing the Target Market
• Most marketing experts contend that the
  greatest marketing mistake small businesses
  make is failing to define clearly the target
  market to be served. Need to understand:
  –   Income levels
  –   Lifestyles
  –   Buying patterns
  –   Likes and dislikes
  –   Psychological profiles
  Making Relationship Marketing
                          Work
• To make relationship marketing work, a
  small business must achieve the highest of
  the following four levels of customer
  involvement:
  –   Customer awareness
  –   Customer sensitivity
  –   Customer alignment
  –   Customer partnership
        Customer Satisfaction: Six
    Important Sources to Develop a
                 Competitive Edge
•   Focus on the customer
•   Devotion to Quality
•   Attention to convenience
•   Concentration on Innovation
•   Dedication to service
•   Emphasis on Speed
The True Costs of Poor Customer
                       Relations
• 67% of customers who stop patronizing a
  particular store do so because an indifferent
  employee treated them poorly
• 96% of dissatisfied customers never complain
  about rude or discourteous service, but…
• 91% will not buy from the business again
• 100% of those unhappy customers will tell their
  “horror stories” to at least nine other people
• 13% of those unhappy customers will tell their
  stories to at least twenty other people
    Questions every business should
                     ask customers
•   What are we doing right?
•   How can we do that even better?
•   What have we done wrong?
•   What can we do in the future?
     Total Quality Management Principles

• Identifying best customers and giving them an incentive to
  return
• When you create a dissatisfied customer, fix the problem
  fast
• Make sure your business system makes it easy for
  customer to buy from you
• Encourage customer complaints so that you know what
  your problems are
• Ask employees for feedback on improving customer
  service
     Total Quality Management Principles

• Get total commitment to superior customer service from
  top managers and allocate resources appropriately
• Allow manager to wait on customers occasionally. It’s a
  great dose of reality
• Carefully select and train everyone who will deal with the
  customers.
• Develop a service theme that communicates your attitude
  toward customers
• Reward employees “caught” providing exceptional service
  to customers
• Special treatment keeps customer coming back
                          Convenience

• Location
• Business hours
• Pickup or delivery services?
• Easy to use credit cards?
• Are you employees trained to handle
  transaction quickly?
• How are customer orders managed by
  phone?
                               Innovation

• What time and attention will be devoted to
  innovation?
         Dedication to service and
            customer satisfaction
• Listen to the customer and respond
• Define superior service
• Set standards and measure
  performance
• Examine steps customers must engage
  to get your product or service
• Hire the right employees
         Dedication to service and
            customer satisfaction
• Determine how to train employees to
  deliver superior service
• Empower employees to offer superior
  service
• Use technology to improve service
• Reward superior service
• Get top managers support
   Choosing a Marketing Strategy

• After market research has been compiled
  and assessed, an organizational marketing
  strategy must be selected:
  –   Market penetration
  –   Market development
  –   Product development
  –   Diversification
  –   Market segmentation
     Guerilla Marketing Strategies

• Organize/sponsor community oriented
  project
• Sponsor offbeat memorable events
• Always be on the lookout for new niches
• Offer to speak about your business,
  industry, product or service to local orgs.
• Ask present customers for referrals
• Develop a sales “script”
     Guerilla Marketing Strategies

• Offer customers gift certificates
• Create samples of your product and give
  them to customers
• Offer a 100%, money-back, no hassles
  guarantee.
• Create a frequent buyer program
• Clip articles that feature your business and
  send them to customers
     Guerilla Marketing Strategies

• Test how well your ads “pull” with coded
  coupons that customers bring in.
• Create “tip sheets” to pass out to customers
• Create an award for your community
• Conduct a contest in the community
• Collect testimonials
• Et cetera
      Understand your products life
                            cycle
•   Introduction
•   Growth
•   Maturity
•   Market saturation
•   Product decline
                    The Marketing Mix

•   Product - Determine what you will sell
•   Place - Where you will sell it
•   Price - At what price
•   Promotion - How will you let the customer
    know that your product exists?
                                     Place
• Manufacturer to consumer
• Manufacturing to retailer to consumer
• Manufacturer to wholesaler to retailer to
  consumer
• Manufacturer to wholesaler to wholesaler to
  consumer
• Manufacturer to industrial user
• Manufacturer to wholesaler to industrial
  user
                                         Price

• Based on:
  – A small company’s cost structure
  – An assessment of what the market will bear
  – The desired image the company wants to create
    in the customers mind
                                Promotion

• Publicity
• Advertising
• Personal selling

Its goal is to inform the consumer

				
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posted:9/5/2011
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