STARTING YOUR OWN BUSINESS:

MEETING A MARKET NEED

ENTREPRENEURIAL DEVELOPMENT STUDIES

II
EDS 121
 BUSINESS IS PROBLEM SOLVING

Doing business involves solving people’s problems in

various aspects of life

Starting a viable business requires a would be

entrepreneur to have what it takes to proffer solution(s) to
customer needs

Therefore it is very important to carefully examine the

needs of a target market before venturing into any
business
 WHAT IS A TARGET MARKET?

The 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.

E.g if you had an innovative idea

about selling popcorn, how would you
define your target market?
 UNDERSTAND YOUR CUSTOMER

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. E.g a place to buy a particular kind
of delicacy
 An economic need is anything that is
required to live. E.g a medication
 DEMOGRAPHICS AND PSYCHOGRAPHICS

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
 IDENTIFY YOUR TARGET MARKET

Who are my customers: individuals or companies?

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?
If customers are companies:
What industries are they in?
Where are those industries located?
 IDENTIFY YOUR TARGET MARKET CONTD.

What needs or wants will my product or service

satisfy?
How many potential customers live in the area in
which I want to operate?
Where do these potential customers currently buy
the products or services I want to sell them?
What price are they willing to pay for my products
or services?
What can I do for my customers that other
companies are not already doing for them?
 UNDERSTAND THE COMPETITION

Knowing about your competition

will help you define your target
market.
 IDENTIFY YOUR COMPETITION

Determine your direct and indirect

competition.
Analyze the strengths and
weaknesses of competitors.
Establish strategies for
maintaining customer loyalty
 DIRECT AND INDIRECT COMPETITION

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
 COMPETING WITH LARGE BUSINESSES

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.
 STUDY INDIVIDUAL COMPETITORS

Price
Location
Facility
Strengths
Weaknesses
Strategy
 CLASS ACTIVITY
Write down a business idea/product of your choice?

What needs or wants will your product or service satisfy?

Where would you locate the business?

How many potential customers live in the area in which you want to
operate?

Where do these potential customers currently buy the products or

services you want to sell them?

What can I do for my customers that other companies are not already
doing for them?
THANK YOU FOR
PARTICIPATING