Chapter 4

Chapter 4.1:

Target Market: Customers :the people or organizations who buy the products/services companies offer. You need to determine who the primary customers are and if they are they willing to buy your product or service. Target Market groups are interested in your product and also includes whether these companies and customers can afford to buy your product or service.  

Target+Market (binary/octet-stream)

Caption: : Put yourself in your customers shoes; think about the customer needs and viewpoints.

Market Segments: Groups of customers in a large market that share common characteristics are known as a market segments.  This may include women ages 25-34, senior citizens, etc.. Customer Profile:  Customer profile is a description of the characteristics of a person or company that is likely to purchase a good or service.;(See Chart Pg. 98) 

Customer+Profile (binary/octet-stream)

Caption: : Customer Profile

Demographics: Data that describes a group of people in terms of age, marital status, family size, ethnicity, gender profession, education  or income. Psychographics: Describe a group based on tastes, opinions, personality traits and lifestyle habits. Use-Based Data:  Data on how often a customer uses a particular service or product Geographic Data: Where do your customers live and how far will they travel to your business.

Role of Market Research: Market Research is a method of collecting, recording and analyzing information about customers, competitors and products and services. Primary Data: Information collected for the very first time to fit a specific purpose.  Examples: surveys, observations and focus groups.   Disadvantages of  Primary Data - It can be expensive to collect and time-consuming to attain. Secondary Data: Information that has already been published; information that may include population, family size, household income, industry forecasts, economic trends,etc.. (see examples on page 103) Disadvantages of Secondary Data - It can be out of date and possibly unreliable.

Chapter 4.2:

• Six steps of Market Research

Technology Driven Marketing Interaction with customers: companies identify relationships with customers (who they are, what they buy and where they are located). This is known as CRM - Customer Relationship Management. Companies use websites and other touchpoints such as warranty cards, service registration, etc.. This information is stored in a data warehouse - which contains all information in the CRM process.  Data Mining is used to find hidden patterns and relationships in the customer data stored in the Data Warehouse.

Chapter 4.3:

Impact of Competition: The U.S. economic system is based on private property, freedom of choice, profit, and competition. Most new businesses face competitors. It is very important to understand your competition. Large Retailers - They usually hold large quantities of inventory in stock; large retailers do not rely on a single product line; large companies usually have more resources to devote to advertising. Direct Competition -  A business that makes most of its money selling the same or similar products or services to the same market as other businesses. Indirect Competition - A  business that only makes a small amount of money selling the same or similar products or services to the same market as other businesses.

Example+D+Vs+Ind (binary/octet-stream)

Competitive Analysis: 1) make a list of competitors 2) summarize the products (or services) and prices offered by your competitors 3) List each competitors strengths and weaknesses 4) Find out strategies and objectives of your competitors 5) Determine the opportunities in the market 6) Identify threats to your business from the competition

Maintaining Customer Loyalty:  Listen and respond to customer feedback: ask for customer opinions; do not ignore customer requests; Other strategies for maintaining customer loyalty: - superior service - more convenient hours than other businesses - easy return policy - store-specific credit cards - personal notes or cards - birthdays, anniversaries, etc... saying thank you to the customer - frequent buyer programs (points, coupons, etc..)