WorksheetsChapter 4-Identify and Meet a Market Need
Total questions: 36
Worksheet time: 18mins
Individual companies that are interested in a product/service and are able to pay for it
Target Market
Customer Profile
Market Research
Market Segment
What is an aspect of target markets?
Age
Income level
Location
Price
All
Groups of customers within a large market who share common characteristics
Target Market
Market Segment
Customer Profile
Market Research
Description of the characteristics of the person/company that is likely to purchase a product/service
Target Market
Market Segment
Customer Profile
Market Research
Data that describes a group of people in terms of age, marital status, family size, gender, profession, education and income
Demographics
Psychographics
Use-Based Data
Geographic Data
Data that describes a group of people in terms of their tastes, opinions, personality traits, and lifestyle habits
Demographics
Psychographics
Use-Based Data
Geographic Data
Data that helps you determine where your potential customers live and how far they will travel to do business with you
Demographics
Psychographics
Use-Based Data
Geographic Data
System for collecting, recording, and analyzing information about customers, competitors, products, and services
Market Research
Primary Data
Secondary Data
Information collected for the very first time to fit a specific purpose
Market Research
Primary Data
Secondary Data
Found in already published sources
Market Research
Primary Data
Secondary Data
List of questions you would like to ask your customers to find out demographic and psychographic info
Survey
Focus Groups
In-depth interview with a group of target customers who provide valuable ideas on products/services
Survey
Focus Groups
Business that makes most of its money selling the same or similar products/services to the same market as other businesses
Direct Competition
Indirect Competition
Business that makes only a small amount of money selling the same or similar products/services to the same market as other businesses
Direct Competition
Indirect Competition
1st step of Market Research
Define the question
Determine the data needed
Collect the data
Analyze data
Take action
2nd step of Market Research
Define the question
Determine the data needed
Collect the data
Analyze data
Take action
3rd step of Market Research
Define the question
Determine the data needed
Collect the data
Analyze data
Take action
4th step of Market Research
Define the question
Determine the data needed
Collect the data
Analyze data
Take action
5th step of Market Research
Define the question
Determine the data needed
Collect the data
Analyze data
Take action
Last step of Market Research
Evaluate the results
Determine the data needed
Collect the data
Analyze data
Take action
Books
Primary Data
Secondary Data
Websites
Primary Data
Secondary Data
To identify your target market, you need to know
all of these
who your customers are
how old your customers are
where your potential customers currently shop
Which of the following is not an example of primary research?
obtaining statistics from a government web site
conducting a survey
observing customer behavior
all of these are examples of primary data research
Data that helps you determine where your potential customers live and how far they will travel to do business with you are
geographic data
use-based data
demographics
psychographics
Two disadvantages of collecting primary data are the costs and time involved
True
False
It is difficult for small businesses to compete with large retailers because
all of these
large retailers are able to order and stock products in larger quantities
large retail chains don't rely on a single product line
large companaies have more resources to devote to advertising
Which of the following is not a step involved when preparing a competitive analysis?
create a customer profile
list all competing businesses in your immediate area
list your competitors' strengths and weaknesses
summarize products and services offered by competitors
Longer questionnaires are always better because you can collect more information
False
True
Which of the following would most likely be the target market for a car dealer selling moderately priced minivans?
Middle-class families with children
Single people with higher incomes
People who are retired
None of these
Entrepreneurs must regularly evaluate the actions they take as a result of their market research. It is not enough simply to develop a plan of action.
True
False
The first step in a competitive analysis is to identify your competitors.
True
False
A market segment consists of people with common characteristics.
True
False
To be successful, all an entrepreneur needs to do is to come up with a good idea
True
False
Market research can be time-consuming and expensive, but it is worthwhile when major decisions must be made.
True
False
Companies that offer similar or identical products to the same group of target customers are called competitors.
True
False
