Research the Market

Entrepreneurship

Unit 11, Lesson 2Copyright © Texas Education Agency, 2013. All Rights Reserved.

Copyright

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Role of Market Research

A system for collecting, recording, and

analyzing information about customers,

competitors, goods, and services Used to determine which marketing

strategies will be most effective and most profitable

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Advantages/Disadvantages of Market Research

Advantages Draw on primary and secondary data Identify ways to meet customer needs

Disadvantages Expensive Time-consuming

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Primary Data

Survey

Observation

Focus Groups

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Disadvantages of Primary Data

Time-consuming

Expensive

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Secondary Data

Found in already-published sources Data

– population– family size– household income– economic trends– industry forecasts– other information

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Six Steps of Market Research

1. Define the question.

2. Determine the data needed.

3. Collect the data.

4. Analyze the data.

5. Take action.

6. Evaluate the results.

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Assignments Possible New Product Success: Divide the class into teams (two

students per team). Ask teams to develop a new product that members believe will be very useful for students at their school. Each team must develop a questionnaire for potential consumers of this product to gauge their interest. The teams must survey at least 50 students from their school to complete the questionnaire. Each team must tabulate the results to determine if the product is a good idea and write a report to support the idea. This project will be evaluated using a related rubric.

Business Expansion Decision: Tell students that their family owned business processes and sells grape juice to food distributors. In order to grow, the business needs to expand its product line. Apply the six market research steps to help determine an additional product for your business. Record the market research steps with text and illustrations on a decisionmaking mural. This project will be evaluated using a related rubric.

Zip Code Life Styles: Select a zip code in the United States. Then conduct research about the demographics for that zip code. Write a paper that describes the demographics and lifestyles for the zip code. The report should also include pictures to further describe the population and the related lifestyle for the zip code. This project will be evaluated using a related rubric.

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