4 Identify and Meet a Market Need 4

4 Identify and Meet a Market Need 4. 1 Identify Your Market 4. 2 Research the Market 4. 3 Know Your Competition

Lesson 4. 2 Research the Market Goals Explain the role of market research. Identify the six steps involved in market research. Explain the role technology plays in marketing research. Chapter 4 Slide 13

Vocabulary market research primary data survey focus group secondary data customer relationship management Chapter 4 Slide 14

Role of Market Research market research a system for collecting, recording, and analyzing information about customers competitors products services Chapter 4 Slide 15

Primary Data primary data information collected for the very first time to fit a specific purpose survey a list of questions you ask your customers to determine demographic information psychographic information Chapter 4 Slide 16

n observation determining information by watching customer behavior focus group an in-depth interview with a group of target customers questions are similar to survey questions group interaction allows for more discussion Chapter 4 Slide 17

n disadvantages of primary data time-consuming more expensive Chapter 4 Slide 18

Secondary Data secondary data information found in already-published sources Chapter 4 Slide 19

n Secondary data can be found in: publications issued by government and community organizations industry specific books government and business websites books about entrepreneurs in similar businesses trade publications newspaper articles and statistics Chapter 1 Slide 20

What types of data can be collected through market research? Chapter 1 Slide 21

Six Steps of Market Research Although primary data collection is time consuming and expensive, it will tell you exactly what you want to know. Primary data can uncover information that is often not available through secondary sources. Chapter 4 Slide 22

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1. Define the Question Determine exactly what it is you need to know. 2. Determine the Data Needed Decide what data you need to answer the question. Chapter 4 Slide 24

3. Collect the Data Decide the best way to gather data. People’s opinions can be obtained through focus groups surveys secondary market research demographic data psychographic data economic trends industry forecasts Chapter 4 Slide 25

4. Analyze the Data Thoroughly analyze and interpret data. Write down analysis results for future reference. 5. Take Action Use your analysis results to develop an action plan. 6. Evaluate the Results Entrepreneurs must regularly evaluate the actions they take as a result of the plan. Chapter 4 Slide 26

What are the six steps of market research? Chapter 1 Slide 27

Technology-Driven Marketing Customer relationship management a business strategy designed to increase profitability and customer satisfaction uses technology to track customer interactions focuses on understanding customers as individuals instead of as part of a group Chapter 1 Slide 28

n Interactions with Customers Companies collect data about customers through interactions that occur via phone web salespersons product registration product warranty cards Chapter 1 Slide 29

n touch points places where a customer might have contact with a company discussion with delivery personnel electronic data transfer the movement of data between locations in a structured, computer-retrievable format Chapter 1 Slide 30

n Customer Database data warehouse a large computerized database containing all of the information collected in the CRM process data mining finds hidden patterns and relationships in the customer data stored in the data warehouse Chapter 1 Slide 31

What is the goal of CRM? Chapter 1 Slide 32

Lesson 4. 3 Know Your Competition Goals Explain the importance of knowing and understanding your competition. Prepare a competitive analysis. Describe strategies for maintaining customer loyalty. Chapter 4 Slide 33

Vocabulary direct competition indirect competition competitive analysis Chapter 4 Slide 34

Impact of Competition You should always watch the competition. Offer products that are of equal or better quality that sell for the same or lower prices. Chapter 4 Slide 35

Understand the Competition New businesses need to identify some special customer need or want that is not being met. Chapter 4 Slide 36

Know the Types of Competition direct competition a business that makes most of its money selling the same or similar products or services to the same market as other businesses Chapter 4 Slide 37

n indirect competition a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses Chapter 4 Slide 38

n large retailers Reasons that make it difficult for entrepreneurs to compete with large retailers include: Large retailers can keep larger quantities of products in stock. Large chains do not rely on a single product line. Large companies have a larger advertising budget. Chapter 4 Slide 39

Why is it important to understand the competition your business faces? Chapter 1 Slide 40

Competitive Analysis competitive analysis identifying and examining the characteristics of a competing firm Chapter 4 Slide 41

n Follow these steps to begin your competitive analysis: Make a list of your competitors. Summarize the products and prices offered by your competitors. Chapter 4 Slide 42

n List each competitor’s strengths and weaknesses. Find out the strategies and objectives of your competitors. Determine the opportunities in the market. Identify threats to your business from the competition. Chapter 4 Slide 43

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What is the purpose of a competitive analysis? Chapter 1 Slide 45

Maintain Customer Loyalty Listen and Respond to Feedback Continually ask for and respond to customers’ needs. Chapter 4 Slide 46

n Other strategies for Maintaining Loyalty superior service convenient hours easy return policies store-specific credit cards personal notes or birthday cards frequent-buyer programs Chapter 4 Slide 47

What are some strategies for maintaining customer loyalty? Chapter 1 Slide 48

Performance Competencies Develop the presentation logically and systematically Communicate the design process effectively Chapter 1 Slide 49

n Present the tips, techniques, and tools used Demonstrate the ability to make a businesslike presentation Show self-confidence apparent through knowledge of content and articulation of ideas Chapter 4 Slide 50

Give It A Try Document addresses topic and is appropriate for the audience Graphics, text treatment, and special effects show creativity and cohesiveness of design Chapter 1 Slide 51

n Selection of fonts and type sizes is appropriate Overall layout and design is creative and appealing Final product indicates a clear thought process and an intended, planned direction with formulation and execution of a firm idea Required information is effectively communicated Chapter 4 Slide 52