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    Meeting A Market Need

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    Chukwudi Anigbogu
    This document discusses how to identify a target market for a new business. It explains that the target market consists of individuals or companies interested in a product or service and willing to pay for it. Important factors to consider include demographics like age, income, location; psychographics like tastes and lifestyle; identifying customer needs; estimating potential customer numbers; and researching competitors and how to differentiate your business. The key is to thoroughly understand potential customers and competitors before launching a new business to solve a market problem.

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    Meeting A Market Need

    Uploaded by

    Chukwudi Anigbogu
    201 views14 pages
    This document discusses how to identify a target market for a new business. It explains that the target market consists of individuals or companies interested in a product or service and willing to pay for it. Important factors to consider include demographics like age, income, location; psychographics like tastes and lifestyle; identifying customer needs; estimating potential customer numbers; and researching competitors and how to differentiate your business. The key is to thoroughly understand potential customers and competitors before launching a new business to solve a market problem.

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    EDS

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    Meeting a Market Need

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    This document discusses how to identify a target market for a new business. It explains that the target market consists of individuals or companies interested in a product or service and willing to pay for it. Important factors to consider include demographics like age, income, location; psychographics like tastes and lifestyle; identifying customer needs; estimating potential customer numbers; and researching competitors and how to differentiate your business. The key is to thoroughly understand potential customers and competitors before launching a new business to solve a market problem.

    Copyright:

    © All Rights Reserved
    Download as PPSX, PDF, TXT or read online from Scribd
    Download as ppsx, pdf, or txt
    201 views14 pages

    Meeting A Market Need

    Uploaded by

    Chukwudi Anigbogu
    This document discusses how to identify a target market for a new business. It explains that the target market consists of individuals or companies interested in a product or service and willing to pay for it. Important factors to consider include demographics like age, income, location; psychographics like tastes and lifestyle; identifying customer needs; estimating potential customer numbers; and researching competitors and how to differentiate your business. The key is to thoroughly understand potential customers and competitors before launching a new business to solve a market problem.

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    You are on page 1of 14

    STARTING YOUR OWN BUSINESS:

    MEETING A MARKET NEED

    ENTREPRENEURIAL DEVELOPMENT STUDIES


    II
    EDS 121
    BUSINESS IS PROBLEM SOLVING

    Doing business involves solving people’s problems in


    various aspects of life

    Starting a viable business requires a would be


    entrepreneur to have what it takes to proffer solution(s) to
    customer needs

    Therefore it is very important to carefully examine the


    needs of a target market before venturing into any
    business
    WHAT IS A TARGET MARKET?

    The target market is the individuals or


    companies that are interested in a
    particular product or service and are
    willing and able to pay for it.

    E.g if you had an innovative idea


    about selling popcorn, how would you
    define your target market?
    UNDERSTAND YOUR CUSTOMER

    Customers are the people who buy the


    products and services companies offer.
    Customers buy goods and services to satisfy
    economic wants and needs.
     An economic want is an unfilled desire of a
    customer. E.g a place to buy a particular kind
    of delicacy
     An economic need is anything that is
    required to live. E.g a medication
    DEMOGRAPHICS AND PSYCHOGRAPHICS

    Demographics are data that describe


    a group of people in terms of their age,
    marital status, family size, ethnicity,
    gender, profession, education, and
    income.
    Psychographics are data that
    describe a group of people in terms of
    their tastes, opinions, personality traits,
    and lifestyle habits
    IDENTIFY YOUR TARGET MARKET

    Who are my customers: individuals or companies?


    If customers are individuals:
    How old are they?
    How much money do they earn?
    Where do they live?
    How do they spend their time and money?
    If customers are companies:
    What industries are they in?
    Where are those industries located?
    IDENTIFY YOUR TARGET MARKET CONTD.

    What needs or wants will my product or service


    satisfy?
    How many potential customers live in the area in
    which I want to operate?
    Where do these potential customers currently buy
    the products or services I want to sell them?
    What price are they willing to pay for my products
    or services?
    What can I do for my customers that other
    companies are not already doing for them?
    UNDERSTAND THE COMPETITION

    Knowing about your competition


    will help you define your target
    market.
    IDENTIFY YOUR COMPETITION

    Determine your direct and indirect


    competition.
    Analyze the strengths and
    weaknesses of competitors.
    Establish strategies for
    maintaining customer loyalty
    DIRECT AND INDIRECT COMPETITION

    Direct competition is competition from a


    business that makes most of its money
    selling the same or similar products or
    services as another business.
    Indirect competition is competition from
    a business that makes only a small amount
    of money selling the same or similar
    products or services as another business.
    Find your direct competition
    Find your indirect competition
    COMPETING WITH LARGE BUSINESSES

    Large retailers usually are able to


    keep larger quantities of products
    in stock.
    Large retail chains don’t rely on
    one single product line.
    Large companies usually have
    more resources to devote to
    advertising.
    STUDY INDIVIDUAL COMPETITORS

    Price
    Location
    Facility
    Strengths
    Weaknesses
    Strategy
    CLASS ACTIVITY
    Write down a business idea/product of your choice?

    What needs or wants will your product or service satisfy?

    Where would you locate the business?

    How many potential customers live in the area in which you want to
    operate?

    Where do these potential customers currently buy the products or


    services you want to sell them?

    What can I do for my customers that other companies are not already
    doing for them?
    THANK YOU FOR
    PARTICIPATING

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