start business unit 2

Information

– Fire & Safety procedures

– Toilets

– Refreshments

– Mobile Phones

– WAG supported

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Aims of Module 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.

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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?

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2.1 The Marketing Process

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2.2 What You Need To Research

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Market Research

Marketing Strategy

2.3 Marketing Strategy

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The Market Research• Market Size & Trends• Market Environment• Customers• Competitors• SWOT

Marketing Strategy• Marketing Objectives

– Product– Price– Place– Promotion

• Sales Forecast

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2.4 Contents of a Marketing Plan

Marketing Mix

2.5 Market Size & Trends

Expressed in terms of– Total amount spent annually– Size of target markets– Units sold in market place– Market Gap

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Exercise 2.6 The Market

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What is the size of your market?

Refer to Page 8

2.7 Market Size & Trends

Examples– Seasonal– Fashion– Increase/decrease in demand– Change in attitudes– Environmental concerns

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Exercise 2.8 The Market

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What are your market trends?

Refer to Page 9

2.9 Market Environment

SWOT Analysis

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•Strengths •Weaknesses

•Opportunities

•ThreatsInternal

External

2.9 PEST Analysis

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• Political/ Government

• Economic

• Social

• Technological

• Legal

• Environmental

2.10 Market Environment

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Identify which PEST factors will affect your

business

Refer to Page 11

2.11 Know Your Customers

1: Identify target market or customer groupings

2: Developing a customer profile by target market/customer group

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2.11 Or in other words

1: Who are they?

2: What are they?

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2.12 Market Segmentation

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Customers

Market Research

Marketing Strategy

Produ

ct

Place

Price

Promotio

nTarget Market

Market Segmentati

on

Customer

Groupings

2.12 Market Segmentation

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Divide the total market into distinctive groups with common characteristics or similar needs and wants

• Market as a whole

• Market subdivided

2.12 How to segment a market

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Consumer Market

• Age/ Gender

• Location

• Occupations

• Income

• Lifestyle

Commercial Market

• Business type

• Industry sector

• Location

• Number of employees

• Company turnover

• Product use

2.12 What are they…

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Factors

• Demographics

• Geographical

• Behavioural

• Psychological

2.13 Consumer (People) Market Profile

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Demographics

Behavioural Geographic Psychological

•Age•Gender•Occupation•Income levels

•When and how often do they buy?•How much do they spend?•Buying motives

•20 mile radius•District council•Wales/ UK Ireland•Europe/ Worldwide

•Social class•Lifestyle•Attitudes•Interests •Needs/ Wants

2.14 Commercial Market Profile

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Demographics

Behavioural Geographic Psychological

•No. of ‘ees•Turnover•Services/ product offered•Sector

•When and how often do they buy?•How much do they spend•Buying motives

•Wales•UK •Europe•Worldwide

•Innovative•Socially responsible•Financially prudent•Expect credit•Needs/ Wants

2.15 Customer Buying Motives

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• Quality

• Speed of service

• Guarantee

• 24 hour service

• Price

• Choice

Exercise 2.16 Your customer profile

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What is your customer profile?

Refer to Page 17

2.17 Competitors – What you need to know

• Who?• How many?• Where?• Products offered?• Strengths?• Weaknesses?

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COMPETITORS

Exercise 2.18 Competitor’s Information

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Who are your competitors and what

do you know about them?

Refer to Page19

2.19 What You Need To Research

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Market Research

Marketing Strategy

2.20 Types of Market Research

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What and How?Market Size &

Trends

Market Environment

Customers

Competitors

Primary Researc

h

Secondary

Research

2.20 Before You Start…

• What information is required

• Identify search methods

• Set a timeframe for the research

• Establish the research budget

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2.21 Primary Research (Examples)

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Research Technique

Advantages Disadvantages

Personal Survey

•Greater flexibility•Can observe body language•High response rate

•Time consuming•Expensive•Respondents have little time to think

Internet •Total flexibility in questions asked•Good response•Cheap/ free•Select respondents

•Must have PC•Must be PC literate•No interaction (loss of personal rapport)

2.21 Primary Research (Examples)

Research Technique

Advantages Disadvantages

Telephone •Flexible•Research those who wouldn’t give personal interviews

•Loss of personal rapport•May give rise to inappropriate response

Postal •Cheap•Respondents have more time to think

•Low response •Limited information obtained•Cannot clarify answers

Observation •Real picture•Sit and watch•Own observation not others

•Time consuming

2.22 Questionnaires (Do’s and Don’ts)

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Do

• Select respondents carefully

• Be precise

• Keep questions in a logical order

• Put easy and interesting questions at the beginning

• Test the questionnaire

Do Not

• Use jargon

• Ask double- barrelled questions

• Ask too many questions

• Ask leading, biased or emotive questions

• Ask questions beyond the respondent memory span

2.23 Secondary Research (Examples)

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Consumer Market

• Census

• Mintel reports

• Key Note reports

• Socio- economic audits

• Household expenditure survey

• Internet

• ONS

Commercial Market

• Yellow pages- www.yell.com

• Kompass & Kelly’s directories

• Databases

• Trade Associations

• Companies House- Limited Companies

• Dunn & Bradstreet

2.24 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?

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2.25 Market Information Sources

• Company and trade• Statistics• BOP• Trade magazines• Newspapers• Government

Publications

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2.26 Research PlannerExercise Page 27

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Information Required

Research Method/ Source

When Cost

Market Size/ Trends

Market Environment

Customer Information

Competition

Other

Any Questions?

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