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
