Start business unit 2


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Start business unit 2

  1. 1. Information – Fire & Safety procedures – Toilets – Refreshments – Mobile Phones 1
  2. 2. • Provides an introduction to the marketing process.• Outlines the key information you need to know about your customers.• Describes how to determine market size, and identify trends in the market place.• Identifies external influences in the market place and how they can affect a business.• Outlines the key information you need to know about your competitors.• Describes how to research your market using primary and secondary research methods. 2
  3. 3. Introductions• Who am I?• Who are you?• What is the name of your business?• How long have you been trading? – If not trading yet, proposed start date?• What do want to learn from today, what is your objective for this session? 3
  4. 4. The Marketing Process 4
  5. 5. What You Need To ResearchMarket MarketingResearch Strategy 5
  6. 6. 2.4 Contents of aMarketing Plan The Market Research Marketing Strategy • Market Size & Trends • Marketing Objectives • Market Environment – Product • Customers – Price • Competitors – Place • SWOT – Promotion Marketing Mix • Sales Forecast 6
  7. 7. Market Size & TrendsExpressed in terms of – Total amount spent annually – Size of target markets – Units sold in market place – Market Gap 7
  8. 8. Market Size & TrendsExamples – Seasonal – Fashion – Increase/decrease in demand – Change in attitudes – Environmental concerns 8
  9. 9. Market Environment SWOT Analysis•Strengths •Weaknesses Internal•Opportunities •Threats External 9
  10. 10. 2.9 PEST Analysis•Political/ Government•Economic•Social•Technological•Legal•Environmental 10
  11. 11. 2.10 Market Environment Identify which PESTfactors will affect your business Refer to Page 11 11
  12. 12. 2.11 Know Your Customers1: Identify target market or customer groupings2: Developing a customer profile by target market/customer group 12
  13. 13. 2.11 Or in other words 1: Who are they? 2: What are they? 13
  14. 14. Market SegmentationMarket Research Marketing Strategy Customers Market Segmentation Target Market Customer Groupings 14
  15. 15. Market Segmentation • Market as a wholeDivide the totalmarket intodistinctive groupswith commoncharacteristics or • Market subdividedsimilar needs andwants 15
  16. 16. How to segment a marketConsumer Market Commercial Market•Age/ Gender •Business type•Location •Industry sector•Occupations •Location•Income •Number of employees•Lifestyle •Company turnover •Product use 16
  17. 17. What are they…Factors•Demographics•Geographical•Behavioural•Psychological 17
  18. 18. Consumer (People) Market Profile Demographics Behavioural Geographic Psychological•Age •When and how •20 mile radius •Social class•Gender often do they •District council •Lifestyle•Occupation buy? •Wales/ UK •Attitudes•Income levels •How much do Ireland •Interests they spend? •Europe/ •Needs/ Wants •Buying motives Worldwide 18
  19. 19. Commercial Market Profile Demographics Behavioural Geographic Psychological•No. of ‘ees •When and how •Wales •Innovative•Turnover often do they •UK •Socially•Services/ buy? •Europe responsibleproduct offered •How much do •Worldwide •Financially•Sector they spend prudent •Buying motives •Expect credit •Needs/ Wants 19
  20. 20. Customer Buying Motives•Quality•Speed of service•Guarantee•24 hour service•Price•Choice 20
  21. 21. Competitors – What you need to know • Who?COMPETITORS • How many? • Where? • Products offered? • Strengths? • Weaknesses? 21
  22. 22. What You Need To Research Market Marketing Research Strategy 22
  23. 23. Types of Market Research What and How? Market Size & Trends Primary Market Research Environment Customers Secondary Research Competitors 23
  24. 24. Before You Start…• What information is required• Identify search methods• Set a timeframe for the research• Establish the research budget 24
  25. 25. Primary Research (Examples)Research Advantages DisadvantagesTechniquePersonal •Greater flexibility •Time consumingSurvey •Can observe body •Expensive language •Respondents •High response rate have little time to thinkInternet •Total flexibility in •Must have PC questions asked •Must be PC •Good response literate •Cheap/ free •No interaction •Select (loss of personal respondents rapport) 25
  26. 26. Primary Research (Examples)Research Advantages DisadvantagesTechniqueTelephone •Flexible •Loss of personal •Research those who wouldn’t rapport give personal interviews •May give rise to inappropriate responsePostal •Cheap •Low response •Respondents have more time •Limited to think information obtained •Cannot clarify answersObservation •Real picture •Time consuming •Sit and watch •Own observation not others
  27. 27. Questionnaires (Do’s and Don’ts)Do Do Not•Select respondents •Use jargoncarefully •Ask double- barrelled•Be precise questions•Keep questions in a •Ask too manylogical order questions•Put easy and •Ask leading, biased orinteresting questions emotive questionsat the beginning •Ask questions beyond•Test the the respondentquestionnaire memory span 27
  28. 28. Secondary Research (Examples)Consumer Market Commercial Market•Census •Yellow pages-•Mintel reports •Kompass & Kelly’s•Key Note reports directories•Socio- economic •Databasesaudits •Trade Associations•Householdexpenditure survey •Companies House- Limited Companies•Internet •Dunn & Bradstreet•ONS 28
  29. 29. Planning the research• Ask yourself• What info do you require?• What methods are you going to use?• Timeframe?• Budget?• How will you analyse the results?• How will you use the results? 29
  30. 30. Market Information Sources• Company and trade• Statistics• BOP• Trade magazines• Newspapers• Government Publications 30
  31. 31. Research PlannerInformation Research Method/ When CostRequired SourceMarketSize/TrendsMarketEnvironmentCustomerInformationCompetitionOther 31
  32. 32. Any Questions? 32