Targeting New Markets. Lesson Goals: Learn the basics of marketing and advertising Develop a systematic process of analysis Develop an effective advertising

Targeting New Markets

Lesson Goals:

• Learn the basics of marketing and advertising• Develop a systematic process of analysis• Develop an effective advertising program


Analyzing Your Market

• What is the size of the market?• What types of customer will buy

the product or service?• What will they do with it?• How many potential customers

are there?• Where are these customers

located?


Analyzing Your Market

• How will customers learn about the product or service?• Is the market growing?• Are there any new trends in the market?• What’s the future of the product or service?• \Who else is making the product / providing the service?


Market Research

• Is there a need for your product or service?

• Says who? (aside from you) Prove it on paper.

• Market research is more than a “gut” feeling. Is there hard evidence that people will actually buy from you?


Market Segments

• Customers can be divided up into market segments or target markets

• Possible divisions are by age, gender, location, family, lifestyle and education.

• Who are your target markets?


Developing a Customer ProfileWho are your customers?

• Are your customers all the same?• How do your customers differ?


Profile of Industry

• What does your industry look like?• Is the trend toward growth?• Who is your competition?• Why should you know about your

competition?


Where to Go for Help

• Library reference room• Trade magazines• Competitors• Small Business Administration• Small Business Development Centers• Cooperative Extension Service


Market Strategy• Action plan

• Entice customers to buy your product

• Includes:– Distribution channels

– Pricing

– Promotion and advertising

– Budget

– Inventory selection

– Visual merchandising

– Customer relations

– Evaluation


Advertising

• Communicating a sales message to customers

• A well-organized plan• An investment


Advertising Goals

• Sends right message to the right customer• Builds an image of quality, friendliness,

perceived value• Increases customer information about the

business• Attracts customers


Advertising Budget

• Cover 12-month period• Percent of anticipated sales



• Newspaper• Television• Road Signs• Yellow Pages• Point of Sale• Business Cards• E-Commerce

• Radio• Direct Mail• Label• Brochures/Handouts• Word of Mouth• Infomercials

Advertising Media

NewspaperNewspaper

• Can be very effective• Good copy and layout is

important• Classified ads can be

used in some situations at low cost


RadioRadio

• Market specific• Length of ad is important• Number of ads is important• Ad must be targeted to a

specific customer base to be effective


TelevisionTelevision

• Similar to radio• Expensive• Effective for large

audiences


Direct MailDirect Mail

• Has strong potential, especially in 50 mile radius

• Requires an up-to-date mailing list

• Has ability to feature targeted messages

• Can offer a personal touch


Road Signs

• Most common type of advertising• Signs must be:

– neat in appearance– specific in their message– visible– in a good location


Yellow Pages

• Will your customers use them?

• Do your competitors use them?

• Can you afford it?


Brochures / Handouts

• How will they be distributed?• Are they designed correctly

to be easily opened, read, and responded to?


Label Advertising

• Good for establishing name of business

• Good for image building• Only reaches customers

who have made a purchase


Point of Sale

• Good display of product is very effective• Brochures or info pieces are excellent• The sale location should also be

considered point of sale advertising


Word of Mouth

• Excellent form of Advertising• Can also be negative advertising


Why Use E-Commerce?

• Convey information in detail• Cost effective• Large potential customer base• Action oriented• Effective in both short- and long-term


Packaging

• Wholesale vs. Retail• Advertising tool• Silent salesman• Dressed for Success


Documents

Targeting New Markets. Lesson Goals: Learn the basics of marketing and advertising Develop a systematic process of analysis Develop an effective advertising