ANALYZE THE MARKET NEED

WEEK 3
A MARKET ANALYSIS:

 Is a quantitative and qualitative evaluation of

a market. The goal is to look into the size of
the market both in volume and in value, the
various customer segments and buying
patterns, the competition, and the economic
environment in terms of barriers to entry
and regulation.
HOW TO DO A MARKET ANALYSIS:

 The objectives of the market analysis are to

make sure that everything about the market
is clear and that the business if feasible and it
is large enough to build a sustainable
business.
 These are the recommended items for
market analysis
HOW TO DO A MARKET ANALYSIS:

 These are the recommended items for

market analysis
Demographics Segmentation
Target Market
Market Need
Competition
DEMOGRAPHICS SEGMENTATION:

Dividing the total people in the market

based on the customer demographics.
Demographic segmentation portions the
market on parameters like age of the
customer, gender, income, family life cycle,
educational qualification, socioeconomic
status, religion, etc. This helps in creating
groups exhibiting a similar need and want,
and can be targeted in a much more better
way by companies.
 TARGET MARKET:

A target market is a group of customers that a

business has decided to aim its marketing efforts
towards. As an entrepreneur, one should have a
well-defined target market to be able to create a
strong marketing strategy. Product, price,
promotion, and place are the four elements of a
marketing mix that has to be taken into
consideration in defining the target market. It is
proven that a business must have a clear definition
of its target market in order for it effectively
provides what they need.
 MARKET NEED:

Businesses should start by knowing the consumer's interests, desires

and needs. It’s easier to sell what consumers want and need than try to sell
something they don’t see the benefit in buying. In a fast moving world, it
should be a competitive edge having the chance of monitoring the market,
detecting what can be a source of a profitable new business. Market
needs inform organizations about what products develop, for what
customers, at what cost, through which distribution channels, reducing the
uncertainty that a new product/service development always brings with it.
 MARKET COMPETITION:

Competition in marketing is the rivalry between existing companies,

services or products that exists within a specific market.
RECOGNIZING THE TARGET
MARKET
Week 3
RECOGNIZING THE TARGET MARKET

To build a solid foundation for a business, the entrepreneur must identify

first the business’ target market. There is no such thing as “one size fits all”
when it comes to recognizing a market niche. The clearer the business can
identify its target customer, the more effective it could become in tailor-
fitting its strategies in getting customers.
On the other hand, targeting a specific market does not mean excluding
those who do not fit the criteria. Target marketing focuses marketing
budgets and brand message on a specific market, therefore is more cost-
effective and efficient way to reach customers to generate business.
RESEARCH THE COMPETITION

 Competitors are like each companies enemies who always want bigger
portion of the market share. By knowing the competitor, an entrepreneur
will be able to compare themselves to see what things that are effective
and works for the other companies in the industry. This can be done by
researching on several internet platforms like Google and Yahoo as well as
social media sites like Facebook, Twitter and YouTube. Few other ways to
do research would include asking customers, attending conferences, and
even hiring or pirating key employees of a competitor company
 IDENTIFY THE MARKET NEEDS

 In starting a business, one good question to have in mind if

there is a consumer needs for you product. Unless it does, you
may end up developing a plan, a product or solution that really
doesn’t have to solve. Which also means there is no market to
buy your product.
 Importantly, business exist to give solution to customers
problems and meet their needs better than the competitors in
the market placed in reasonable price.
 EXAMPLES:

 YouTube becoming the second largest search engine, nest to its

own parent company Google. There is a need for customers who
prefer video content be played rather than reading.
 Podcasting gives opportunity to people who spends hours in
driving and can now listen to different audio programs.
“The key point to think of is. As an aspiring entrepreneur, you
want to identify what the Market (Consumer) is a problem, and
not what you believe is the problem
 TO IDENTIFY THE PROBLEMS

What are the customers main

concern?

What condition or circumstances that

are preventing customers from getting
What they want?

Why are customers are seeking a

solution to their problems?
MOTIVATION FOR BUYING PRODUCTS

Consumers buy products because of needs that requires

satisfaction. Need is what propels buyers to buy a
product. Every need must be satisfied by a specific
product. Knowing the needs of the market is highly
important in order for them become loyal and even
stewards of companies that they love and support due to
the products that a valued company creates. A famous
determinant of human needs is the Maslow’s Hierarchy
of Needs.
MASLOW’S HIERARCHY NEEDS.
 MASLOW’S HIERARCHY NEEDS
Physiological needs
The first stage in Maslow’s Hierarchy.
Basic needs are the requirements for
human existence. If these
requirements are not met. The human
body cannot function properly.
Physiological are most vital and
therefore should be met first.
Safety needs
The second stage
One physiological needs are satisfied,
safety needs take precedence and
dictates behavior
Example: in the absence of physical
safety, people may experience post-
traumatic stress disorder or trauma
 MASLOW’S HIERARCHY NEEDS

Social needs Esteem needs

Third Stage Fourth stage These needs includes
Stage of Love and Once basic needs have been Self-esteem
belongingness satisfied, esteem needs become Respect
essential to an individual
Achievement
Once individual have adequately
met their need of love and Confidence
belonging, they can begin to Recognition
cultivate positive feelings of self
worth or self esteem Accomplishments
MASLOW’S HIERARCHY NEEDS

Self-actualizing needs
Fifth and the last Stage
It is the highest level of Maslow’s
Hierarchy.
This level pertains to what a
persons optimum potential
PRODUCT AND SERVICES

Product is a tangible item that is put on the market for acquisition,

attention, or consumption, while a service is an intangible item, which arises
from the output of one or more individuals. Although it seems like the main
distinction between the two concepts is founded on their tangibility, that is
not always the case. In most cases services are intangible, but products are
not always tangible.”
SOURCES OF BUSINESS IDEAS

Business ideas are thoughts that Surveys

when implemented can lead to Training
income generalization. Experience
Entrepreneurs first come up with Hobbies
ideas from different sources that Talents
should lead them to starting a Market Gaps
well-planned business Events
Media
 SOURCES OF BUSINESS IDEAS
Surveys:
Business ideas can be generated
from surveys. Through this type
of data generation method,
entrepreneurs will have
awareness of what customers are
looking for and therefore an
opportunity of a business to
innovate based on the
responder’s answers.
Training:
This is probably the most home-based
business. For example, there are
seminar that conducts how to cook,
bake, handcraft, and even repair things.
Institutions such as NegoEskwela and
TESDA are some of the country’s
institution that offers short courses and
trainings for aspiring entrepreneurs.
 SOURCES OF BUSINESS IDEAS
Experience:
Probably the best and effective
source of business idea is from
experience. This can be from work
or even at school. As they say
experience is the best teacher,
which means that good things as
well as mistakes from experience
can be valuable factors in creating
and growing a business.
Hobbies:
This can be a good business idea
because it is something that an
entrepreneur is fond of doing and can
enjoy while doing the business. Most car
enthusiasts for example create business
out of their own hobby as a way for
them to enjoy while they operate their
business.
 SOURCES OF BUSINESS IDEAS

Talents: Market Gap:

 A talent is something that can be innate in a Also known as “niche”, spotting a gap
person, or that has been honed for years. in the market can also form a great
 Someone’s talent can be a good idea for business idea. A market gap can mean
business because like a hobby, it is something an important area in the market that
that can be enjoyed, and entrepreneur will
not have the feeling of working while doing is not occupied and therefore is can
it. For example, a talented musician who has be filled with product to satisfy the
a passion of teaching and sharing his or her market.
craft can teach and start a talent school that
help potential musician and artists improved
their gift.
 SOURCES OF BUSINESS IDEAS
Events:
A business can also be created through
attending events in which new ideas
are exchanged. It is also a venue where
people with similar interests gather
and where the birth of new business
can happen.
Media:
An idea can also come from the
media. Reading magazines,
newspapers and such published
materials that contain business
related issues can help one bring
about.
LIFE CYCLE THROUGH THE
STAGES
IF YOU PLAN TO FAIL, YOU FAIL TO PLAN
INTRODUCTION STAGE:

At the Introduction stage the product comes to the market and the
business looks to get a foothold on the sales ladder by:
 Establishing branding and assuring the market of the quality of the new
product.
 An initial low pricing policy to get into the market, though with little
competition, price may be high initially to recoup development costs.
 Selection of a distribution model to get the product onto the market.
 Promotion of the product through aiming it at specific target groups such
as online forums.
GROWTH STAGE:

After successful Introduction comes the Growth stage. This will look to
take developments at the first stage up to another level by:
 Maintaining the quality of the product and adding any extra services or
support that becomes obvious during introduction.
 Keeping the price at a good level to maintain sales growth.
 Increasing distribution and sourcing new, faster ways of getting the
product onto the shelves.
 Marketing campaigns aimed at a broader audience and at growing market
share for the product.
MATURITY STAGE:

With growth established, Maturity is the next stage of the life cycle. The
business deals with this by:
 Adding features that will make the product differ from the inevitable
competitors that enter the market.
 Cutting price to counter competition.
 Revising distribution channels and using incentives to encourage stores to
stock the original product in preference to newcomers.
 New promotions that aim to show differences between products.
DECLINE STAGE:

When the Decline happens, the business will consider:

 Keeping the product on the market but adding or removing features or
finding new uses for it.
 Reducing costs and production and keeping it just for a niche segment of
the market.
 Discontinuing the product or selling the production rights to another
company.
-END OF WEEK 3-4-