Chapter 6

Analyzing the
Market and
the Customer
 Overview

• Researching and characterizing the

target market
• Forecasting new product/service demand
• Getting the product/service to
the customer
• Market feasibility conclusions

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 The Target Market

• The Primary Customer

• The first person to pay you for your

product or service

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 Researching the Target Market

• Assess information needs

– How will data be used?
– What data need to be collected?
– What methods of analysis should be used?

• Research secondary sources first

– Demographics
– Psychographics
– Competitors
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 Researching the
Target Market (cont.)
• Conduct primary research
– Demographics of initial customer
– Purchasing patterns
– How they respond to your competitors

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 Primary Research Techniques
Response Rate

Face Interviews
HIGH
Internet Surveys Focus Groups

Phone Interviews

Mail Surveys
LOW

LOW Quality of Information HIGH

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 The Customer Profile

• Picture in great detail the person or entity

most likely to buy from you

• Age, income level, education

• Buying habits: when, where, how much?

• How does this customer want

to purchase?

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 Forecasting Demand

• Use historical analogy or substitute

products/services

• Interview prospective end-users

and intermediaries

• Go into limited production or do a formal

test market

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 Getting the Product/Service
to the Customer

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 Take-Aways

• List what students took away from the

discussion in real time

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