Winning Strategies
Meeting Customer NeedsMeeting Customer Needs
How can marketing research contribute to the How can marketing research contribute to the success of the Ultimate Boutique?success of the Ultimate Boutique?
Identify other ways that the school store could Identify other ways that the school store could employ marketing research to decide what to employ marketing research to decide what to buy.buy.
Describe how to reach your target market
Explain how to analyze your competition
Lesson 1.1
Target Market
Page 4Create a list of products and services that would be appropriate based on each of the following demographic groups in your school:
•Age
•Gender
•Income Level
•Ethnic Background
•Education
•Occupation
PROFILING YOUR CUSTOMERS
MarketMarket
A group of people or companies that have a A group of people or companies that have a demand for a product or service and are willing demand for a product or service and are willing and able to buy itand able to buy it
Target MarketTarget Market
The particular group that you are interested The particular group that you are interested interested in reachinginterested in reaching
Target Market
The market segment should be measurableThe market segment should be measurable
The segment should be large enough to be The segment should be large enough to be profitableprofitable
The segment should be reachableThe segment should be reachable
Finding Your Customers
Identify why a customer would want to buy Identify why a customer would want to buy your product or serviceyour product or service
Segment your overall marketSegment your overall market
Research your marketResearch your market
Market Segmentation
Being able to promote to a specific group of Being able to promote to a specific group of customerscustomers
Demographics – Physical characteristics such as Demographics – Physical characteristics such as age, gender, location, education, occupation, age, gender, location, education, occupation, income level, marital status, and household typeincome level, marital status, and household type
Psychographics – Social characteristics such as Psychographics – Social characteristics such as needs, values, buying styles, culture, and interestsneeds, values, buying styles, culture, and interests
Geographics – Based upon where people live such Geographics – Based upon where people live such as local, regional, national, or global marketsas local, regional, national, or global markets
Why is it important to segment your market before positioning a new product
within your current product mix?
ANALYZING THE COMPETITION
The obvious competitor isn’t your only The obvious competitor isn’t your only competitorcompetitor
Competition Research
Studying the competition can provide you with Studying the competition can provide you with a wealth of information about your customer, a wealth of information about your customer, the market, and the profit potentialthe market, and the profit potential
Visiting and observingVisiting and observing
Calling and inquiringCalling and inquiring
Studying ads in newspapers, magazines, online Studying ads in newspapers, magazines, online and broadcastingand broadcasting
Describe how to conduct effective market research
Identify the various methods used to collect data
Explain the six steps in the research process
Lesson 1.2
Market Research
Page 10
Describe how you would use market research to prevent financial losses in your store.
Design a questionnaire.
MARKETING INFORMATION SYSTEM
In order to succeed and make a profit, your In order to succeed and make a profit, your school store must meet the needs of its school store must meet the needs of its customerscustomers
Market Research Leads to Market Analysis
Market ResearchMarket Research
A process designed to identify solutions to a A process designed to identify solutions to a specific marketing problem by systematically specific marketing problem by systematically gathering and analyzing datagathering and analyzing data
DATA COLLECTION
Primary DataPrimary Data
Surveys, observations, and experimental methodSurveys, observations, and experimental method
Secondary DataSecondary Data
Sales and marketing magazines, the U.S. Sales and marketing magazines, the U.S. Department of Commerce, trade associations, Department of Commerce, trade associations, business publications, other sources, and business publications, other sources, and internal sourcesinternal sources
Primary Data
Information collected for the first time to Information collected for the first time to analyze a specific situationanalyze a specific situation
Subjective – useful, but it cannot be statistically Subjective – useful, but it cannot be statistically analyzedanalyzed
Measurable Data – More reliable because Measurable Data – More reliable because statistical analysis can be conductedstatistical analysis can be conducted
Keep it simple and easy to read, ask closed-ended Keep it simple and easy to read, ask closed-ended questions, get a large sample, give respondents an questions, get a large sample, give respondents an incentive, and construct the survey for multiple usesincentive, and construct the survey for multiple uses
Secondary Data
Information that already has been collected Information that already has been collected for purposes other than your current research for purposes other than your current research projectproject
Available through external sourcesAvailable through external sources
THE RESEARCH PROCESS
Identify a need or define the store’s problemIdentify a need or define the store’s problem
Obtain primary and secondary dataObtain primary and secondary data
Organize your dataOrganize your data
Analyze your dataAnalyze your data
Recommend solutionsRecommend solutions
Implement a plan of actionImplement a plan of action
Describe the role of the marketing mix
Identify internal & external sources of information
Lesson 1.3
Determine What to Buy
Page 16
Brainstorm ideas for using this data.
Discuss ways this data might affect your store’s buying plan.
THE MARKETING MIX
Marketing MixMarketing Mix
A blend of features that satisfies your chosen A blend of features that satisfies your chosen marketmarket
ProductProduct
PricePrice
PlacePlace
PromotionPromotion
Product Strategy
Product decisions are crucial to the success of Product decisions are crucial to the success of your school storeyour school store
Ask yourself these questions:Ask yourself these questions:
What should I buy?What should I buy?
How much should I buy?How much should I buy?
How is my product better than the competition?How is my product better than the competition?
Pricing Strategy
Costs and ExpensesCosts and Expenses
Economic ConditionsEconomic Conditions
Customer ImpressionsCustomer Impressions
CompetitionCompetition
Place Strategy
How and where products are offered to your How and where products are offered to your customerscustomers
Also called distributionAlso called distribution
Promotion Strategy
Promoting your goods and services through Promoting your goods and services through advertising and the use of other promotional advertising and the use of other promotional toolstools
• Encourages public acceptance of the school Encourages public acceptance of the school store and the product mixstore and the product mix
HELP WITH BUYING DECISIONS• You should not make buying decisions aloneYou should not make buying decisions alone
• Seek out and employ data from as many Seek out and employ data from as many sources as possiblesources as possible
Internal Sources
• Store RecordsStore Records
– Want Slip System – A customer form to request Want Slip System – A customer form to request items not offered or out of stockitems not offered or out of stock
• ManagementManagement
• Sales StaffSales Staff
External Sources
• CustomersCustomers
• Magazines, trade journals, and trade showsMagazines, trade journals, and trade shows
– Trade Shows – Periodic, temporary exhibits that are Trade Shows – Periodic, temporary exhibits that are scheduled throughout the year in various trade centersscheduled throughout the year in various trade centers
• VendorsVendors
• Trade associationsTrade associations
• CompetitorsCompetitors
Men’s Clothing Sales Hit the Skids
Page 26Page 26
The menswear business The menswear business offers a good example of offers a good example of how complex the how complex the marketing process can be. marketing process can be. When retailers are dealing When retailers are dealing with a declining market, it with a declining market, it is more important than is more important than ever to conduct market ever to conduct market research and define a research and define a target market.target market.