Frequently Asked Questions and Answers about Markets and Marketing:
How do I determine what my market is or if there is a market for my product/service?
First you must have in your mind a strong perception of what the business idea or business is. Then, you will have to
begin researching needs of customers, longevity of product, competitors, intellectual property issues, customer base,
etc. You will also need to learn as much as possible about your industry. This is a challenge and one you have to face.
Where do I do this research?
One of the answers might sound quite antiquated in today's world of the Internet. But, one of the best sources of
information is your public library or a local college library. The reference librarians are helpful and can assist you
in finding much of the material you need. The libraries are also wired well and there are those that can help you with
electronic access. The Spokane Public Library is an excellent example of helpful staff and a web site that links to
regional demographic information. Besides libraries and Internet sites, you can learn about marketing from others
including other business owners, educational offerings, seminars, professional organizations, etc. Specifically, you can
contact your local Small Business Development Center for counseling, classes,
referrals and access to primary and secondary research.
Other sources of information and assistance:
Where can I find information on my industry?
This information is especially important when looking the potential strength and tenure of your company. You need to
evaluate trends, business profiles and all
other areas impacting this particular industry. Check
trade journals and capitalize on memberships in trade organizations. You should carefully review
business statistics
and indicators as they pertain to your industry, community and region.
How do I go about determining my customer profile?
Developing a customer profile is crucial to the success of a business. In starting your research you need to ask yourself
over and over, "Who is my customer." Is your customer (the buyer) the end user, the conduit, the distributor,
etc.? Is your customer an individual or another business? The demographics (age, gender, location, education, income
level, etc.) and the psychographics (needs, values, interests, etc.) of the customer base determine the target market.
You will answer the questions of market size and potential. There is an abundance of
census data available. More condensed
information can found if you know the zip codes
for your target market. Numerous organizations provide information on communities and develop community profiles (see EDC
above). Some specialize in a particular service such as information you need to know when moving to a new community. An
example gives pertinent demographic information by zip code or school area when you select "Neighborhood Profile."
Do I have competition and who is the competition?
Everyone and every business have competition whether it is direct (head-to-head) or indirect (like product/service but
different target market or business category). Identifying your competition
and the strengths and weaknesses of your competition is crucial to the success of your business.
How do I compare to my competition?
Developing and growing your business is an exercise in asking and answering questions. This includes asking questions
about your competition. Will you lead or follow your competition? This will be determined on when you ask and answer
questions regarding product, customer, sales, potentiality, price, place, etc. You need to know your strengths and those
of your competitors as well as your weaknesses and their weaknesses. A good way to assess this information is to develop
a matrix that can display your comparisons at a glance.
What is important to know about my trade area?
Early on in the decision making process you have evaluate how important location and customer access are to your
business. You also need to determine if shipping and freight access is important to the success of your business. If the
physical access to your business by your customers is critical to the success of your business you should look at how
customers access the business. Are they foot customers or do them come by personal vehicle? What brings new customers to
your business? Is it your location and access to automobile traffic, public transportation, or casual shoppers? For some
of these answers you should find data on traffic studies for your location. Your city or county engineer should be able
to help you with this.
The world of e-commerce has expanded the trade areas for a large portion of today's businesses. To compete today and in the future you have to be prepared to know how e-commerce can impact your business and even expand your trade area. Will you be prepared? As with all business ventures you need to research and then evaluate what you have learned. To start you should check information available on the Internet, in publications, through contacts and other users.
As important as knowing the physical characteristics of your trade area are in knowing the economic characteristics of that trade area and small business in general. What drives that area and how will you fit into it?
What is the market potential for my business and how much of that market can I expect to capture?
In other words, what market share do you want to achieve and how will you project sales? Will there be growth in the
market and how will you anticipate market growth
and measure your impact in that market?
What are the four P's of marketing and why are they important?
The four P's of marketing are:
I have all my research done. Now what do I do?
Now it is time to develop the marketing plan section of your business plan. In this you will outline your marketing
strategies including how you anticipate your market and market growth and your impact in that market. You will have
defined your customer and the methods of getting your message to your customer as well as delivering your product.
