Entrepreneurship Chapter 4-NP

disadvantages of primary data

- time - consuming - more expensive

secondary data can be found in

-publications issued by government and community organizations - industry specific books - government and business websites - books about entrepreneurs in similar businesses - trade publications - newspaper articles and statistics

what are the three ways to collect data ?

1. Surveys 2. Observations 3. Focus groups

what are the three secondary data ?

1. population 2. family size 3. economic trends

psychographics

Data that describe a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits.

use-based data

Data that helps a business determine how often potential customers use a particular service

geographic data

Data that helps you determine where your potential customers live and how far they will travel to do business with you

behavioral data

Information employed in marketing for designing promotional campaigns based on consumers' buying habits, brand preferences, and product usage.

It is difficult for small businesses to compete with large retailers because...

Large retailers are able to order and stock products in large qualities, large retail chains don't rely on a single product line, and large companies have more resources to devote on ads

Survey

List of questions to ask customers to find out demographic and psychographic information; can be conducted by mail, over the phone, on the internet, or in person

an example of primary research

Obtaining statistics from a government web site

6 steps of market research

Step 1: Define the Question Step 2: Determine the Data Needed Step 3: Collect Data Step 4: Analyze the Data Step 5: Take Action Step 6: Evaluate the Results

direct competition

a business that makes most of its money selling the same or similar products/services to the same market as other businesses

indirect competition

a business that makes only a small amount of money selling the same or similar products and services to the same market as other businesses

customer profile

a description of the characteristics of the person or company that is likely to purchase the product

survey

a list of questions you would like to ask your potential customers to find out demogrpahic and psychological information

market research

a system of collecting , recording , and analzing information

focus group

an in depth interview with a group of target customers who provide valuable ideas

what is a market segment made up of ?

common characteristics

analyze the data

data can be used to forecast sales and find out about your potential customers

Demographics

data that describle a group of people in terms of age , material status , family size , ethnicity , gender , professional , ect

psychopathic

data that describles a group of people in terms of their tastes , opinions , personality , ect

Use base data

data that helps you determine how often potential customers use a particular service

define the question

define exactly what you need to know

observation

determining information by watching customer behavior

take action

develop a plan of action based no info found in the market research

touch point

feed back

data mining

finds hidden patterns and relationships in the customer data stored in the data warehouse

Customer Relationship Management

foucese in understanding customers as indiviuals instead of as part of a group

secondary data

found in already published source

market segments

groups of customers within a large market who share common characteristics

competitive analysis

identifying and examining the characteristics of a competing firm

primary data

information that is collected for the first time; used for solving the particular problem under investigation

evaluate the results

is the last step in the market research process . entrepreuers must regular evaluate the actions they take as a result of the plan

large retailers

large quantities of products in stock, do not rely on a single product line, larger advertising budget

maintain customer loyalty

listen and respond to feedback - continually ask for and respond to customers needs

why is market segmentation important ?

most product and service appeal to only a small portion of the population

collect the data

perform research first to familiarize yourself with your market

what do most market research ?

primary data

what the most common is primary market research ?

survey

Target Market

the individual or companies that are interested in a particular product or service and are willing to pay for it

Customers

the people or organizations who buy the products and services companies offer

what are the disadvantages of primary data ?

time consuming and expensive

To identify your target market, you need to know...

who your customers are, how old your customers are and where your potential customers currently shop