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Recognize A Potential Market
Recognize A Potential Market
scrap book
Any magazine where you can find products or services offered.
Bond paper
Paste / glue
1/8 illustration board
Scissors
How many Fs are in the sentence?
Please read for 5 seconds
WHAT IS A TARGET
MARKET?
Slide
24
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.
Chapter 6 Slide 25
IDENTIFY YOUR TARGET MARKET
Chapter 6 Slide 28
THE IMPORTANCE OF
A CUSTOMER PROFILE
Chapter 6
A customer profile is a
description of the characteristics
of the person or company that is
likely to purchase a product or
service.
Slide
29
THE IMPORTANCE OF
A CUSTOMER PROFILE
The importance of a customer profile will help
Chapter 6
Slide
31
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
Chapter 6 Slide 32
UNDERSTAND THE
COMPETITION
Knowing about
your competition
will help you define
your target market.
Chapter 6 Slide 33
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.
Chapter 6 Slide 34
Limitations of Market
Research
Can be costly
Time consuming
Must be carefully
analyzed so that incorrect
decisions are not made
Chapter 6 Slide 35
SECONDARY
DATA
Secondary data is data found in
already published sources.
Chapter 6 Slide 36
PLACES TO FIND
SECONDARY DATA
Publications issued by government and
community organizations, such as the U.S.
Census Bureau, the Small Business
Administration, and Chamber of Commerce
Books about specific industries
Information on web sites for government
and businesses
Books about other entrepreneurs who set
up similar businesses
Specialized magazines and journals devoted
to particular fields
Newspaper articles and statistics Slide 37
Chapter 6
Secondary Sources
Chapter 6 Slide 38
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
Chapter 6 Slide 39
Difference between Primary and Secondary
market research data
Primary data is information that is collected for the first time to fit a
specific purpose
Chapter 6 Slide 40
Group Activity
Instruction: