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Market Analysis for Entrepreneurs

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I gave this presentation on February 16, 2016, at the Decatur Morgan County Entrepreneurial Center. It covers market analysis competitive analysis, the importance of target markets, pricing strategies, and positioning in the marketplace.

Published in: Business

Market Analysis for Entrepreneurs

  1. 1. Market Analysis
  2. 2. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  3. 3. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  4. 4. Questions to ask  Is your market growing or shrinking?  Is there room for one more company?  Will you be bringing something different to the market?
  5. 5. Do a BROAD search
  6. 6. Do a more specific search
  7. 7. Google Consumer Surveys
  8. 8. Google Consumer Surveys
  9. 9. What are industry blogs talking about?
  10. 10. Conduct primary research Interview potential customers, vendors, association leaders, related businesses
  11. 11. Use your own knowledge of your industry Trends? Pricing? Competitors? New technology?
  12. 12. 2006 – How I did it then  Personal knowledge of industry, competitors and pricing  I knew website sales would continue to grow in industry  I knew I had an innovative product  I didn’t aim too high
  13. 13. 2016 – How I do it now  Industry data through associations  Constant asking/pulsing customers, prospects, and others  Regular monitoring of competitors  Collaborative learning/sharing with staff  Annual SWOT and strategic planning
  14. 14. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  15. 15. Spy on your competitors: What do they say about themselves? How are you different?
  16. 16. Where can you research them? Websites Google Press Releases Social Media Networking Events Ask mutual contacts
  17. 17. The more you understand your competitors, the more effectively you can position your company!
  18. 18. Competitive analysis YOUR COMPANY COMPETITOR 1 COMPETITOR 2 COMPETITOR 3 Overview Competitive Advantage Target markets Market share Marketing Strategies Products/Service s Pricing/Costs Strengths Weaknesses Opportunities Threats
  19. 19. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  20. 20. Who buys from you? Do they all look alike?
  21. 21. Or are they all a bit different?
  22. 22. The more you understand your different target markets, the better you can structure your products, services and marketing efforts.
  23. 23. Target market examples Men who like to go fishing and live in Alabama, Tennessee, or Georgia and make at least $60,000 per year
  24. 24. Target market examples Women between the ages of 25 and 65 who live within 30 miles of Decatur, Alabama
  25. 25. Target market examples Small businesses with at least 5 employees and revenue of at least $500,000 per year
  26. 26. Target market examples The HR Directors at major industries in Decatur such as BP and 3M
  27. 27. Target market examples Government Contractors in Huntsville
  28. 28. Understand the value and potential of each of your Target Markets. Which are the easiest to sell to? Which are the most profitable?
  29. 29. Prioritize your target markets 1 2 3 4 5 What resources should you put into servicing or growing each target market?
  30. 30. Establishing target markets is the most efficient way to maximize your sales and marketing.
  31. 31. Should your services be packaged or marketed a bit differently for different markets? Define your services & message for each market
  32. 32. AUDIENCE PRODUCT/SERVICE MESSAGE General Business Branding, print design, web design, marketing & social media consulting We can help you be more strategic with your marketing so your business grows Economic & Community Development Organizations Web design, retail recruitment guides, presentation materials We can help your community attract the attention of site selectors and retailers Existing Customers All services – with a focus on new services Don’t forget we can help you with a wide range of services List each Audience… …and the service/product you want to provide each …and the message you want to tell each Do this in Excel
  33. 33. AUDIENCE PRODUCT/SERVICE MESSAGE BEST WAY TO REACH General Business Branding, print design, web design, marketing & social media consulting We can help you be more strategic with your marketing so you get results Networking, public speaking, sales reps, referral program, social media Economic & Community Development Organizations Web design, retail recruitment guides, presentation materials We can help your community attract the attention of site selectors and retailers Industry Tradeshows, sponsorships, referral program, e- newsletters, blog Existing Customers All services – with a focus on new services Don’t forget we can help you with a wide range of services Social media, Direct mail, referral programs, e- newsletters, calls List each Audience… …and the service/product you want to provide each …and the message you want to tell each …and the best ways to reach each Next, determine the best way to reach each market
  34. 34. Research your options  Are there industry associations that allow networking, tradeshows or advertising?  What local events do women go to and what local groups do they belong to?  What magazines or newspapers do my customers read?  What websites do my customers visit?
  35. 35. How do you choose?  What can you afford?  Spread out your visibility over time  What can you consistently deliver? Is a monthly e-newsletter realistic?  Biggest rule: Have a presence in as many places as possible within your budget: a small ad four times is better than a big ad once
  36. 36. Develop your 12 month plan and budget Do date/pricing research for print ads, events. Then plug in around those.
  37. 37. Develop your 12 month plan and budget Do date/pricing research for print ads, events. Then plug in around those.
  38. 38. Build in Structure and Accountability with Monthly Marketing Meetings  What happened last month? Did it yield results? Should we do anything different?  What is coming up? What do we need to prepare?  Anything anyone is seeing in the industry as an opportunity or threat?  Any customer feedback on products or services?
  39. 39. How I identified my target markets - then and now -
  40. 40. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  41. 41. Factors to consider  Amount of competition  Typical price ranges for your industry  Cost of your materials or supplies  Lower overhead as a startup could enable lower penetration pricing to gain market share, or keep pricing competitive and build more revenue to finance growth
  42. 42. What goes into cost model Direct labor Direct Materials Factory Overhead Sales, General, Admin What the market will bear
  43. 43. 2006 – How I did it then  I knew most industry pricing  I belonged to an industry that provided annual pricing surveys by market size and size of agency  I knew what the market would bear  I used standard pricing out the gate for design, penetration pricing for web.
  44. 44. 2016 – How I do it now All of the above plus  Direct analysis of all rates and pricing based on current data  Adjustments based on internal analysis of profitability by service and industry + what the market will bear
  45. 45. What We’ll Cover Today Understanding your market Analyzing your competitors Defining target markets Pricing strategies Positioning
  46. 46. How can you differentiate to stand out in your markets?
  47. 47. Define your brand identity. Get beyond your services list to what makes you different – an elevator pitch could capture this.
  48. 48. Focus on talking about WHY you are a better choice  We can help you grow your business  We can help you streamline operations  We can help you expand your capabilities  We can help you make better products  We have the best customer service  We have the most experience  We have the lowest price (be careful with this)  We are local
  49. 49. Factors to consider • strengths • competitor weaknesses • innovation • target market • price • Industry trends • experience • customer service • reliability • customer feedback • sales requests
  50. 50. How I did it 2006 - 2009/10 - 2016
  51. 51. Positioning needs to be revisited regularly!
  52. 52. Rule #1: Regularly pulse your company with market research – PAY ATTENTION! RESEARCH Customer Surveys Industry Sources Competitor Research Internal Data Google Research Social Media
  53. 53. Rule #2: ADAPT QUICKLY! RESEARCH Customer Surveys Industry Sources Competitor Research Internal Data Google Research Social Media • New services • New products • New marketing strategy • New positioning statements
  54. 54. Bottom Line: You don’t have to be perfect. You just have to be better than your competitors.
  55. 55. Download this presentation at www.slideshare.net/ellendid4 Please connect with me! www.RedSageOnline.com twitter.com/ellendidier twitter.com/RedSageAL facebook.com/redsage linkedin.com/in/ellendidie r

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