Transcript Introduction to Criminal Justice After this lecture you

UNIT 2• INTREGRATED MARKETING
EXPLORING YOUR MARKET
4
ENTREPRENEURSHIP: Starting and Operating a Small Business, 3/e
Steve Mariotti and Caroline Glackin
Class Name
Instructor Name
Date, Semester
Performance Objectives
After this lecture, you should be able to complete the following Performance Objectives
1. Explain how marketing differs from selling.
2. Understand how market research prepares you for success.
3. Choose your market segment and research it.
4. Position your product or service within your market.
4
Markets & Marketing
Market-a group of people or organizations that
may be interested in buying a given product
or service, can afford it, and can do so
legally.
Marketing-the development and use of
strategies for getting a product or service to
customers and generating interest in it.
• Satisfying the customer at a profit
• The business function that identifies your customers and
their wants and needs
• The engine that drives ALL business decisions
4
Marketing Research
Primary = research conducted directly on a
subject or subjects
Secondary = research carried out indirectly
through other existing resources
4
Primary Research Methods
Personal interviews
Telephone surveys
Written surveys
Focus groups
Observation
Tracking
4
Secondary Research Methods
Online searches
Database searches
Industry associations, chamber of
commerce, and public agencies
Review of books and records
Competitor Web sites
4
Market Research Helps You Know Your
Customer
Market Research-is the collection and analysis of
data regarding target markets, industries, and
competitors.
Use market research to find out:
Who your potential customers are
Where you can reach them
What they want and need
How they behave
What the size of your potential market is
4
Learn from Actively Listening to
Your Customers
Find out what they really think about such subjects as:
Your products or service
The name of your business
Your location
Your logo and branding materials
Your proposed prices
Your promotional efforts
4
Market Research helps you get a Fix on Who
Your Customers Are
Get customers to answer such questions as:
How old are they?
What kind of income do they earn?
What are their hobbies and interests?
What is their family structure?
What is their occupation?
What is the benefit your product or service offers
that would best attract them?
4
Do You Know 10 People Who Love Your Product?
You May Have A Winner!
Not everybody has to like your product. What’s
important is that some people love it – a lot.
What if you conduct your market research and
learn that you do not have a winner?
- Is your business concept dead?
- Only the one you thought of first!
- Think positively; this is an opportunity to
develop an even better idea.
4
Customer Research
Surveys
Focus groups
Research reports
Demographics-statistics
dealing with the behavior
of groups of people.
4
Industry Research
What is the scale (size) of the industry, in units and
dollars?
What is the scope (geographic range) of the industry?
Is it a niche industry or does it reach a mass market?
What does the industry and individual company
profitability look like?
What trends are occurring in the industry?
What is the structure of the industry?
What competition is in the market space and what are
they doing?
4
Industry Research
Interviews
Observation
Tracking
Written sources of statistical data
Books & articles
Competitor Web sites
Trade associations & chambers of commerce
4
Make Market Research an Integral Part of
Your Business
Market research is not something you do only once.
Make it an ongoing part of your operations.
4
How Customers Decide to Buy
Step 1: If you have developed a product or service,
ask yourself what consumer need it will serve.
Step 2: Think about who might actually buy your
product.
Step 3: Analyze the buying process that will lead
customers to your product.
4
Customer Decision-Making
Awareness
Information search
Evaluation of alternatives
Decision to purchase
Evaluation of purchase
4
Owning Customer Perception
Features create benefits
• Feature = a fact about a product or service
• Benefit = what the feature can do to meet a customer’s needs
Needs, wants, and demands are different
4
Market Segmentation
Market segment- a group of consumers or businesses
that have a similar response to a particular type of
product or service.





Four Basic Ways to Segment a
Market:
Geographic
Demographic
Psychographic
Behavioral
4 Product Life Cycle (PLC) Stages
Product Life Cycle: The four stages that a
product or service goes through as it matures in
the market:
1.
Introduction
2.
Growth
3.
Maturity
4.
Decline
Where is your product/service in the PLC?
Is your market saturated?
4
Market Positioning
Positioning-distinguishing a product or service from
similar products or services being offered to the
same market.
Goal is to position your product/service clearly in the
mind of your target market as the brand that provides
that difference.
- (Your business name/brand) is the (competitive
industry/category) that (provides these benefits, or
points of difference) to (audience/target market)
Sample positioning statement:
(Microsoft) is the ( US software producer) that
(provides affordable computer solutions) to
(American businesses)
4
Developing a Marketing Plan
Your marketing plan must include an
understanding of prospective customers
and their wants, needs, and demands.
KEY TERMS
demographics
market research
market segment
marketing
positioning
primary research
product life cycle (PLC)
secondary research