chapter 4: Identify and meet a market need

What is NOT a good way to get customer feedback?

Check with your competition

Direct Competition

Comes from a business that makes most of its market as other businesses

Indirect competition

Comes from 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

What is NOT a step involved when preparing a competitive analysis?

Create customer profile

Secondary Data

Data found in already- published sources

Demographics

Data that describe a group of people in terms of their age, marital status, family size, ethnicity, gender, profession, education and income

Psychographics

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

used-based data

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

Customer profile

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

Market Segments

Groups of customers within large market who share common characteristics

Competitive analysis

Identifying and examining the characteristics of a competing firm

Focus group

In-depth interview with a group of target customers who provide valuable ideas on products or services for the same good or service

Target Market

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

Primary data

Info collected or the very first time to fit a specific purpose

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

What is NOT an example of primary research

Obtaining statistics from a government web site

Market research

System for collecting, recording, and analyzing info about customers, competitors, goods and services

True or False? Business do not need to identify their target market in order to succeed

True

What is not included as a source of secondary data

customer feedback from a survey

What is NOT a reason that entrepreneurs need to know who their customers are..

customers have no influence on product or services offered

Geographic data

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

What is a strategy for maintaining customer loyalty?

offering superior service

True or False? Two disadvantages of collecting primary data are the costs and time involved

true

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