ANALYZING YOUR

MARKET

Knowing Your Market A good Plan will Include

What needs will be satisfied

Whose needs will be satisfied
How many people will benefit

 How will consumers chose the product or service

Who are you competitors\
What will your competitors be doing
What other factors could affect a business like yours

Where to find the answers

Newspapers / magazines
Trade shows
Newsletters
Trade publications
Local chamber of commerce
Local board of trade
Suppliers / customers
Competitors
Provincial and Federal departments (Statistics Canada)

Advantages of Market Research

Provide data about customers products
services prices advertising and customer
behaviour
Project future sales
Which products are in demand and how your
product should differ
Help appeal to more customers

Knowing your product

Know why your product is better than your
competitors
How easy is it for me to get the product
How does your company handle problems

Your Customers
Demographic profile
How they know about your business
Where else they have purchased or could
purchase similar products

Forms of Marketing Research

Surveys
Observation
Experimentation or product sampling

Identifying a market strategy

Marketing strategy a plan with 3 functions
Identify customers and the product they will buy
Identify size of market and outline trends
Identify sales expectations and the kind of promotion
or advertising that will be necessary.

The four Ps of marketing

Product (or service) is the product something
customers will want to buy
-Will it be of benefit to them?
-will it meet their needs?

The four Ps of marketing (2nd P)

Place
-How will the product get to the customer
-What channels of distribution are required
-When should the product or service be in stock or
ready
-Where will the product or service be avalible

The four Ps of marketing (3rd P)

Price
-How much are customers willing to pay
-What is the best price to charge for maximum profit

The four Ps of marketing (4th P)

Promotion
-How will the customers be made aware that the product
is available
-Which of the following promotional activities will be best
for this venture: advertising, personal selling, publicity, sales
promotion, or e-marketing.

Confirming your target market

Target market those individuals or organizations
who are likely to use what you can provide.
Market segment - when a product is targeted toward
a group of people who share common
characteristics, they are your market segment

Common market segments

DEMOGRAPHIC!!!!!!! People of the same sex,
age, marital status, family size, of in the same stage
of the family life cycle.
Socioeconomic people of similar occupation,
education, income, social class, or culture
Psychographic- people with similar lifestyles
Behaviour Patters people who can be identified by
when and where they shop
Consumption patterns identified by their
knowledge about and loyalty to products/brands

The 6 Ps of Entrepreneurship
Profit yes please!
Profit formula
Profit = (price of each unit x quantity) - costs
Which entrepreneur made the greatest profit?
Price Quantity
cost
Ali
$3
2000
$500
Sarah
$2
4000
$1000
Kannipa $2
3000
$750

 1.Why is pricing important to the success of a venture?

2. What three questions must an Entrepreneur ask before
setting the price for a product or service?

3.Tickle me Elmo is one example of a product that had a

perceived value higher than its actual value. Give another
example and explain your reasoning.

Price
The price the a venture receives for its good and
services pays for production and distribution costs.
Sometimes selling a large quantity will be more
profitable, but not always.

Total Profit = total revenue total cost

Total revenue = price of each unit X quantity sold

Production People Productivity

The entrepreneur must organize their resources. Employees,
materials, equipment
Output per worker = total output/number of workers
Every business has costs
Fixed are the same amount every month, regardless of how much
you sell
Variable differ each moth depending on demand and outputof the
product or service

Promotion
Is the vehicle that entrepreneurs use to tell customers their
message.
Advertising is a message paid for by the venture directed at the
customer. The purpose is to move customers through the AIDA
formula Attention, Interest, Desire and Action