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Lesson 6.1
THE VALUE OF MARKET RESEARCH
GOALS
Identify a target market by
understanding your
customers.
Research your market using
primary and secondary data.
continued
IDENTIFY YOUR TARGET MARKET
4. What needs or wants will my product or service
satisfy?
5. How many potential customers live in the area in
which I want to operate?
6. Where do these potential customers currently buy
the products or services I want to sell them?
7. What price are they willing to pay for my products
or services?
8. What can I do for my customers that other
companies are not already doing for them?
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 8
MARKET SEGMENTS
Groups of customers within a large
market who share common
characteristics are known as market
segments.
Mass Marketing
Advantages of Mass Marketing
Easy to prepare advertisements for and
reaches many people
Disadvantages of Mass Marketing
Does not target specific needs of
customers
Is not suitable for all products
Has nothing to make product stand out
from the competition
MARKET RESEARCH
Market research is a system for collecting,
recording, and analyzing information about
customers, competitors, goods, and services.
Market researchers collect primary and
secondary data.
If conducted properly, market research will
help entrepreneurs understand their target
markets and thus, satisfy the wants and
needs of the customers.
SECONDARY DATA
Secondary data is data found in
already published sources.
Secondary Sources
Information you can find using
secondary sources include information
on:
Demographics
Economic trends
Industry forecasts
PRIMARY DATA
Primary data is information collected
for the very first time to fit a specific
purpose.
Questionnaire or survey
Observation
Focus groups
Disadvantage of primary data
Time consuming
Expensive
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 20
Lesson 6.2
HOW TO PERFORM
MARKET RESEARCH
GOALS
Identify the five steps
involved in primary data
market research.
Design a questionnaire.
Primary Date
Three ways to collect primary data
include:
Survey
Observation
Focus group
Primary data becomes secondary data
when it is published.
DESIGN A SURVEY
Length of questionnaire
Questions
Clear
Easy to answer
Only important questions
It is important to define the question you
want your market research to answer
other wise you might conduct research
on the wrong issue.
ENTREPRENEURSHIP: Ideas in Action © SOUTH-WESTERN PUBLISHING
Chapter 6
Slide 26
Questionnaire
A good questionnaire is:
Clear
Relevant questions that are easy to answer
People are more inclined to answer
short questionnaires because they
don’t take much time.
Lesson 6.3
IDENTIFY YOUR COMPETITION
GOALS
Determine your direct and
indirect competition.
Analyze the strengths and
weaknesses of competitors.
Establish strategies for
maintaining customer loyalty.
Retail Businesses
Ways you could attract customers to retail
businesses may include:
Extended hours
Birthday cards
Frequent buyer programs
Personal Notes
Thank you cards
Store Specific credit cards
Coupons
Layaway program
Analyzing Competitors
Purpose
To figure out how to get customers to buy
from your business
Why can customer feedback be
considered a type of market research?
It is a valuable type of market research
because it is coming from customers who
care enough about your company and
product to communicate with you.