Transcript Lec3 - efreidoc.fr

ENTREPRENEURSHIP
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NEGOTIATION
 Lecture: 3
 Markets
 Definition & Selection
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Three marketing lectures focus on developing the
marketing plan for the business idea
Idea – target market –secondary research –
primary research – competition – analysis
= presentation
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Marketing plan defines:
 Where
you are
 Where you would like to be
 How you are going to get there
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 .
Ideal markets
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Growing or large
Supplied by businesses that are not inefficient or outdated
Has a niche or sector which can be exploited
Is not heavily dependant on price to help consumers select one product
preference to another
Is not already supplied by products which are heavily branded (little cu
loyalty to one brand or another)
Is not dominated by two or three very large suppliers (instead has a nu
small potential competitors)
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Purpose of the plan/objectives for finance
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How much finance is required
Brief description of the business and its market
Highlights of financial projections/what the money is for
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What has to be researched and why
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Market structure and special characteristics - to determine what factors
have to be taken into account in setting up the company and
establishing a marketing, advertising and sales policy
Market size and growth potential - to establish whether there is a
capacity to make sufficient sales and profit and maintain long term
growth and development of business
Market segments and niche – (market segmentation) identifying a
group of customers within the market that has common characteristics,
needs, tastes and features.
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Estimated share of business – is there sufficient room for another business
and how much of the market will you be able to generate revenue from
Customers – forecasting how many customers you will start off with and
how you will grow your customer base
Customer type - detailed description of your target customer
 Business to business - size, type, turnover, needs, buying policy,
customer’s business objectives
 Business to consumer – demographics, age, affluence, family/personal
situation, preferences, influences
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Customer behaviour
 Who will buy – purchaser and/or consumer?
 Why will they buy?
 How much will they buy?
 How do they buy and pay?
 When will they buy?
 What influences them?
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Competitors - the business must research the strengths and
weaknesses of at least two main competitors
 Brand identity/how they serve the market/unique
qualities/customer service/pricing policy/market
position/special conditions
Competitor response - how are they likely to react to a new
competitor. Price war with heavy discounting? Negative
publicity? Special offers? Tie-in deals to retain customer
base? Changes in customer service and pricing policy.
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Things to research and determine about your market grouping/target
customer/market segmentation (niche)
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Is your target market (or markets) a consumer market, a
industrial,commercial or professional market?
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Consumer market
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Family and personal factors. Does age, sex, family size or marital
status form the basis of different groups?
Does your product/service rely on supplying a local area/will location
be a prime consideration?
Is social class important for your customer?
Can your product be tailored to appeal to heavy or light users?
Are there psychological or social factors at work? What’s important:
bettering oneself, lifestyle, being part of the crowd, standing out from
the crowd?
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Could there be snob or prestige appeal, some customers like
to think they are getting the best?
Could price be a feature?
 top of the range, exclusive, expensive, luxurious
 value for money, added value
 cheapest no matter what
Where do they buy now? Can you create a niche out of
distribution methods?
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For industrial, commercial, professional clients:
What type of industry will you be selling into? You could specialise in
one industry or professional (vertical marketing)
How big are the companies you are selling to? This could mean different
procedures in purchasing and frequency? Can you create benefits from
different order/purchase parameters?
Will one group of customers require quicker or more frequent deliveries?
Price could well create different market segments in industrial or
professional users?
Will one group of customers look for a higher level of after-sales care?
Could this be your distinguishing feature?
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General research common to business or consumer markets:
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Consider what other categories might apply to your market.
Each market will have its own specialised characteristics
apart from the general ones listed for each customer type.
Look to see if there is a potential target group that has just
one of the characteristics listed for business or consumer
markets. This could define your specific target group.
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Tutorial – workshop
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Establish the research criteria for a business target group and a
consumer target group. Listing the parameters for each and
determining any distinctions between the two market/customer types.