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