PowerPoint Presentation

Section 6.1
 Pages 91-97
6.1
Doing Market Research
What you’ll learn
 How
to define an area of
analysis for your research
 When to use different types
of research
 How to develop an effective
market research project
6.1
Doing Market Research
Why it’s important

Not understanding the
industry and the market is
one of the biggest causes of
business failure at start-up.
6.1
Doing Market Research
Why it’s important

Conducting effective market
research before you start
your business will increase
its chances of success.
6.1
Doing Market Research
Key Terms
industry
market
target market
market segments
demographics
psychographics
industrial markets
6.1
Doing Market Research
Key Terms (Cont.)
market research
exploratory research
descriptive research
historical research
secondary data
primary data
6.1
Doing Market Research
I. DEFINING AREAS OF
ANALYSIS
A. A business must satisfy its
customers to succeed and
make a profit.
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Doing Market Research
B. Conduct a thorough market
analysis to find out who
customers are and what they
want.
6.1
Doing Market Research
C. Identify prospective customers
and determine their buying
habits.
D. Analyze your field of endeavor
or industry, and rate your
prospects for success with it.
6.1
Doing Market Research
II. Industry
A collection of businesses
with a common line of
products or services.
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Doing Market Research
III. TARGET MARKET AND
CUSTOMER
A. A market is a group of
people or companies that
has a demand for a
product and is willing and
able to buy it.
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Doing Market Research
B. The particular group a
business is interested in, its
target market, will be the
focus of its efforts.
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Doing Market Research
IV. MARKET
SEGMENTATION
A. Market segments are
small groups of buyers
with similar needs,
broken down from the
total market.
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Doing Market Research
B. Consumer markets are
usually segmented.
1. Geographics - region,
state, country, city, or area
6.1
Doing Market Research
2. Demographics - age,
gender, family size, family
life cycle, income,
occupation, religion, race,
nationality, or social class.
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Doing Market Research
3. Psychographics personality, opinions and
lifestyle elements,
including activities and
interests.
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Doing Market Research
C. Customers who buy goods or
services for business use
make up the industrial
market.
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Doing Market Research
Market Segment Profiles
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Doing Market Research
V. TARGET MARKETING
The target market is a specific
segment in which a business
concentrates its efforts.
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Doing Market Research
A. The market should be
measurable.
B. The segment should be large
enough to be potentially
profitable.
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Doing Market Research
C. The segment should be
reachable.
D. The market segment should be
responsive.
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Doing Market Research
Discussion Starter
Statistics show that more
Americans are living
alone. What businesses
could benefit from this
trend?
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Doing Market Research
VI. CONDUCTING MARKET
RESEARCH
Investigation of the market is
called market research.
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Doing Market Research
VII. DEFINE THE
RESEARCH QUESTION
A. Focus research.
B. Find data to support
customer acceptance of
your product or service.
6.1
Doing Market Research
VIII. TYPES OF MARKET
RESEARCH
Research designs are ways
to structure your research.
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Doing Market Research
A. Exploratory research is used
when little is known about a
subject.
B. Descriptive research is done to
determine the status of
something.
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Doing Market Research
C. Historical research involves
studying the past.
6.1
Doing Market Research
Critical Thinking
In what type of situations
might historical research
be used?
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Doing Market Research
IX. THE RESEARCGH
PROCESS
To successfully research an
industry and market, it’s
important to have a plan.
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Doing Market Research
X. STEP 1: LOOK AT YOUR
INFORMATION NEEDS
A. Survey target markets.
B. Gather information about
competitors.
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Doing Market Research
XI. STEP 2: START WITH
SECONDARY
RESOURCES
A. Information that has
already been collected is
called secondary data.
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Doing Market Research
B. Examples of secondary sources
1. The Wall Street Journal
2. Thomas Register
3. Securities and Exchange
Commission
4. The Department of
Commerce
5. CNN’s financial news.
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Doing Market Research
XII. STEP 3: COLLECT
PRIMARAY DATA
A. Primary data is obtained
for the first time and used
specifically for your study.
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Doing Market Research
B. Gather data through
observation, interviews, and
surveys.
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Doing Market Research
XIII. STEP 4: ORGANIZE
YOUR DATA
Set up charts and record the
results from the primary
and secondary data.
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Doing Market Research
XIV. STEP 5: ANALYZE YOUR
DATA
A. Is there a market for your
product or service?
B. How big is that market?
C. Will the industry support a
business like yours?
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Doing Market Research
Reinforcement
What traits and skills
does someone who
conducts market
research as a career use?
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Doing Market Research
End of Section 6.1