Targeting New Markets
Targeting New Markets
Lesson Goals:
• Learn the basics of marketing and advertising
• Develop a systematic process of analysis
• Develop an effective advertising program
Targeting New Markets
Analyzing Your Market
• What is the size of the market?
• What types of customer will buy
the product or service?
• What will they do with it?
• How many potential customers
are there?
• Where are these customers
located?
Targeting New Markets
Analyzing Your Market
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How will customers learn about the product or service?
Is the market growing?
Are there any new trends in the market?
What’s the future of the product or service?
\Who else is making the product / providing the service?
Targeting New Markets
Market Research
• Is there a need for your product or
service?
• Says who? (aside from you) Prove it
on paper.
• Market research is more than a “gut”
feeling. Is there hard evidence that
people will actually buy from you?
Targeting New Markets
Market Segments
• Customers can be divided up
into market segments or
target markets
• Possible divisions are by age,
gender, location, family,
lifestyle and education.
• Who are your target markets?
Targeting New Markets
Developing a Customer Profile
Who are your customers?
• Are your customers all the same?
• How do your customers differ?
Targeting New Markets
Profile of Industry
• What does your industry look like?
• Is the trend toward growth?
• Who is your competition?
• Why should you know about your
competition?
Targeting New Markets
Where to Go for Help
• Library reference room
• Trade magazines
• Competitors
• Small Business Administration
• Small Business Development Centers
• Cooperative Extension Service
Targeting New Markets
Market Strategy
• Action plan
• Entice customers to buy your product
• Includes:
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Distribution channels
Pricing
Promotion and advertising
Budget
Inventory selection
Visual merchandising
Customer relations
Evaluation
Targeting New Markets
Advertising
• Communicating a sales
message to customers
• A well-organized plan
• An investment
Targeting New Markets
Advertising Goals
• Sends right message to the right customer
• Builds an image of quality, friendliness,
perceived value
• Increases customer information about the
business
• Attracts customers
Targeting New Markets
Advertising Budget
• Cover 12-month period
• Percent of anticipated sales
Targeting New Markets
Advertising Media
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Newspaper
Television
Road Signs
Yellow Pages
Point of Sale
Business Cards
E-Commerce
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Radio
Direct Mail
Label
Brochures/Handouts
Word of Mouth
Infomercials
Targeting New Markets
Newspaper
• Can be very effective
• Good copy and layout is
important
• Classified ads can be
used in some situations at
low cost
Targeting New Markets
Radio
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Market specific
Length of ad is important
Number of ads is important
Ad must be targeted to a
specific customer base to be
effective
Targeting New Markets
Television
• Similar to radio
• Expensive
• Effective for large
audiences
Targeting New Markets
Direct Mail
• Has strong potential,
especially in
50 mile radius
• Requires an up-to-date
mailing list
• Has ability to feature targeted
messages
• Can offer a personal touch
Targeting New Markets
Road Signs
• Most common type of advertising
• Signs must be:
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neat in appearance
specific in their message
visible
in a good location
Targeting New Markets
Yellow Pages
• Will your customers use
them?
• Do your competitors
use them?
• Can you afford it?
Targeting New Markets
Brochures / Handouts
• How will they be distributed?
• Are they designed correctly
to be easily opened, read,
and responded to?
Targeting New Markets
Label Advertising
• Good for establishing name
of business
• Good for image building
• Only reaches customers
who have made a purchase
Targeting New Markets
Point of Sale
• Good display of product is very effective
• Brochures or info pieces are excellent
• The sale location should also be
considered point of sale advertising
Targeting New Markets
Word of Mouth
• Excellent form of Advertising
• Can also be negative advertising
Targeting New Markets
Why Use E-Commerce?
• Convey information in detail
• Cost effective
• Large potential customer base
• Action oriented
• Effective in both short- and long-term
Targeting New Markets
Packaging
• Wholesale vs. Retail
• Advertising tool
• Silent salesman
• Dressed for Success