Download Identify Your Market

Identify Your Market
Entrepreneurship
Unit 4, Lesson 2
Copyright © Texas Education
Agency, 2013. All Rights Reserved
1
Copyright
Copyright © Texas Education Agency. The materials found on this website are copyrighted © and
trademarked ™ as the property of the Texas Education Agency and may not be reproduced without
the express written permission of the Texas Education Agency, except under the following conditions:
1)Texas public school districts, charter schools, and Education Service Centers may reproduce and use
copies of the Materials and Related Materials for the districts’ and schools’ educational use without
obtaining permission from the Texas Education Agency;
2)Residents of the state of Texas may reproduce and use copies of the Materials and Related Materials
for individual personal use only without obtaining written permission of the Texas Education Agency;
3)Any portion reproduced must be reproduced in its entirety and remain unedited, unaltered and
unchanged in any way;
4)No monetary charge can be made for the reproduced materials or any document containing them;
however, a reasonable charge to cover only the cost of reproduction and distribution may be charged.
Private entities or persons located in Texas that are not Texas public school districts or Texas charter
schools or any entity, whether public or private, educational or non-educational, located outside the
state of Texas MUST obtain written approval from the Texas Education Agency and will be required to
enter into a license agreement that may involve the payment of a licensing fee or a royalty fee.
Copyright © Texas Education Agency, 2013. All Rights Reserved
2
Target Market
• Target Market – Individuals (or
companies) who are interested in a particular
product or service and are willing and able to
pay for it.
Copyright © Texas Education Agency, 2013. All Rights Reserved
3
Identify Your Target Market
• Questions to Ask
– Who are my customers? Are individuals or
companies?
– What are the demographics for my individual
customers?
– What industries are represented by company
customers?
Copyright © Texas Education Agency, 2013. All Rights Reserved
4
Identify Your Target Market
• Questions to Ask
– 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?
Copyright © Texas Education Agency, 2013. All Rights Reserved
5
Market Segments
• Groups of customers within a large market
who share common characteristics
– Identified by market research
– Most products and services appeal only to a small portion
of the population
– Businesses make decisions based on the information
gathered on market segments
Copyright © Texas Education Agency, 2013. All Rights Reserved
6
Customer Profile
• Demographics
- Age, marital status, family size, ethnicity, gender
profession, education, and income
• Psychographics
- Individual tastes, opinions, lifestyle habits, and
personality traits
Copyright © Texas Education Agency, 2013. All Rights Reserved
7
Customer Profile
• Geographic Data
- Determines where your potential customers live and
how far they will travel to do business with you
• Use-Based Data
- How often potential customers use a particular service
Copyright © Texas Education Agency, 2013. All Rights Reserved
8
Assignments
1. Inform Assignment #1
Split the class into five groups. Use the Internet to research SBA, SBDC, SCORE, the chamber
of commerce for your community, and professional organizations representing the careers
interests in that group of students. Each group is responsible for teaching the class about the
organization they have researched. PowerPoint group presentations will be evaluated using
a rubric.
2. Location, Location, Location Assignment #2
The success of a business depends heavily upon the location. The business must be located
conveniently for the target market. The location should be easily accessible by traffic going
both directions. There should be plenty of parking spaces available in a well-lighted parking
lot. There should be a high level of consumer traffic flow daily. Ask students to select an
available business location in the community, conduct research, observe the location, and
write a report explaining why the location is a good/poor choice for a business. The report
will be evaluated using a rubric.
3. Entrepreneurship Newscast Assignment #3
Ask students to locate two articles in the library or on the Internet about successful
entrepreneurs and write the Top Ten Points for each article. Students will share their
information in class, using digital presentations for their newscasts. Digital presentations will
be evaluated using a rubric.
Copyright © Texas Education Agency, 2013. All Rights Reserved
9