Guide to Starting and Operating a Small Business | 2018 Guide to Starting and Operating a Small Business - Page 46

Market Analysis • Determine if there is a market for your product or service. • Set the stage for developing your marketing plan • Uncover market information that will assist in the sale of your product or service Know Your Market You need to know the market for your business: How many potential buyers are there? Where are they, and what do they care about? What do they read, what do they watch, what do they listen to? Does your product or service fill a need or a want? How do you learn about competitors? What does the industry environment look like? What are the industry trends? Understanding the market means that you should be able to answer the following questions: how many prospective customers are there; how much do they spend in your product/service area; where are they located; what are effective ways to reach them; how many other vendors serve the same customer groups; what unique abilities do competitors possess; how do economic trends impact customer buying decisions? Target Market Determine your “ideal customer.” • Know Why Customers Will Choose Your Business. Based on why customers buy a particular product or service, you must determine the nature of your competitive advantage. If your potential customers buy solely on the basis of price, are your prices the lowest? If not, how will you compete? Be thorough and careful in this analysis. Your potential customers probably have established buying patterns that do not include your business. You must give them YXY[X\ۈ˜XZ\H\X\Y]\[^HH[HY[\\[\\XYY (]\Z[HH[YXY[Y]XX^Y\ˈۘH[H]\Z[HH[X[\Y\[X[\\BوX܈\XK[H\H[H][ۈY[YH^HXZHZ\^Z[X\[ۜˈ[\X\][[Y\\[\H[]\Y[HYYXH[[]\XX[\\]X\] ^H\X[H^HX]\B^x&]HY[[Y\\[Y[ۈXH܈X]\H^H]H][H[\XHو\[\\\\HوX܈\XH[\[H\\YۈHX[Y[][ۈو[\[]YX[܈H8'ܙو[]8'HYX[YYXO’ۛ[[\\Y\[8']HY\Yx'HX][\\[\[[[HXZHX\[ۜX]œ[[\X\][[Y\\[\܈H[YX]H\[˂(]\Z[H[H\H[[ [H[\\\[\ܝ[\][H[ ][H[\]YH[\]YY][\\Y\Y\[\ˈY]و[[ZY[YH\X[\ XHXJH [\ܘH “ۛ[H ]Z[ \X]ܜ[ ܈[YH[\ ZHܙ\XHH[[\KHۜ\[[ݙ[[\\š[Y\H[\΂X[ݙ\[X[\Y\][\[][X][ۜXXˈ[\[][X][ۜ[[\Y\][H[[HˈKK8'\X]HXH[\ܙ\'B\[]H[\[YH][ێH[\Y\^HH[O›\]\Y\^H]H\۝X ]ۛ[H]^H[^H[[HXX][HYZ[(]\Z[HYX]H[]\H[\Y\\XHY]ˈ\و[\[[\]\Z[[[]\[\X܈\XH[H[Y[Kٙ\[ۘ[[\Y\\Y\Y^H[ۙ]][H[[]YY\\[B\H[\Y\\XH][Z[X[H[\[[\YHH\Y\XY\H]\܈Y][ۘ[\\\˂[^O]X^HHH[\\^[\N[H^\\X[[[[ O[[\X[[H]H[YK]H[ۙ^K[\ݙHYO›[^H^H[\X8$[[۝H[[Y[\ۛK[ LXۙH[]]\H]HYX\›[\\HX\ۘ[]H܈[\X Kˈ\[[\]Z\Y[\\X[HY[[ˊB\O\H\Y\Z[H܈[\X Hۛ[K[H]Z[ܙKۈ[\X]O