School Store Operations

Chapter 1

Research Your Market

Winning Strategies

Meeting Customer NeedsMeeting Customer Needs

How can marketing research contribute to the How can marketing research contribute to the success of the Ultimate Boutique?success of the Ultimate Boutique?

Identify other ways that the school store could Identify other ways that the school store could employ marketing research to decide what to employ marketing research to decide what to buy.buy.

Describe how to reach your target market

Explain how to analyze your competition

Lesson 1.1

Target Market

Page 4Create a list of products and services that would be appropriate based on each of the following demographic groups in your school:

•Age

•Gender

•Income Level

•Ethnic Background

•Education

•Occupation

PROFILING YOUR CUSTOMERS

MarketMarket

A group of people or companies that have a A group of people or companies that have a demand for a product or service and are willing demand for a product or service and are willing and able to buy itand able to buy it

Target MarketTarget Market

The particular group that you are interested The particular group that you are interested interested in reachinginterested in reaching

Target Market

The market segment should be measurableThe market segment should be measurable

The segment should be large enough to be The segment should be large enough to be profitableprofitable

The segment should be reachableThe segment should be reachable

Finding Your Customers

Identify why a customer would want to buy Identify why a customer would want to buy your product or serviceyour product or service

Segment your overall marketSegment your overall market

Research your marketResearch your market

Market Segmentation

Being able to promote to a specific group of Being able to promote to a specific group of customerscustomers

Demographics – Physical characteristics such as Demographics – Physical characteristics such as age, gender, location, education, occupation, age, gender, location, education, occupation, income level, marital status, and household typeincome level, marital status, and household type

Psychographics – Social characteristics such as Psychographics – Social characteristics such as needs, values, buying styles, culture, and interestsneeds, values, buying styles, culture, and interests

Geographics – Based upon where people live such Geographics – Based upon where people live such as local, regional, national, or global marketsas local, regional, national, or global markets

Why is it important to segment your market before positioning a new product

within your current product mix?

ANALYZING THE COMPETITION

The obvious competitor isn’t your only The obvious competitor isn’t your only competitorcompetitor

Competition Research

Studying the competition can provide you with Studying the competition can provide you with a wealth of information about your customer, a wealth of information about your customer, the market, and the profit potentialthe market, and the profit potential

Visiting and observingVisiting and observing

Calling and inquiringCalling and inquiring

Studying ads in newspapers, magazines, online Studying ads in newspapers, magazines, online and broadcastingand broadcasting

Why is it important to compare your school store with the competition?

Describe how to conduct effective market research

Identify the various methods used to collect data

Explain the six steps in the research process

Lesson 1.2

Market Research

Page 10

Describe how you would use market research to prevent financial losses in your store.

Design a questionnaire.

MARKETING INFORMATION SYSTEM

In order to succeed and make a profit, your In order to succeed and make a profit, your school store must meet the needs of its school store must meet the needs of its customerscustomers

Market Research Leads to Market Analysis

Market ResearchMarket Research

A process designed to identify solutions to a A process designed to identify solutions to a specific marketing problem by systematically specific marketing problem by systematically gathering and analyzing datagathering and analyzing data

DATA COLLECTION

Primary DataPrimary Data

Surveys, observations, and experimental methodSurveys, observations, and experimental method

Secondary DataSecondary Data

Sales and marketing magazines, the U.S. Sales and marketing magazines, the U.S. Department of Commerce, trade associations, Department of Commerce, trade associations, business publications, other sources, and business publications, other sources, and internal sourcesinternal sources

Primary Data

Information collected for the first time to Information collected for the first time to analyze a specific situationanalyze a specific situation

Subjective – useful, but it cannot be statistically Subjective – useful, but it cannot be statistically analyzedanalyzed

Measurable Data – More reliable because Measurable Data – More reliable because statistical analysis can be conductedstatistical analysis can be conducted

Keep it simple and easy to read, ask closed-ended Keep it simple and easy to read, ask closed-ended questions, get a large sample, give respondents an questions, get a large sample, give respondents an incentive, and construct the survey for multiple usesincentive, and construct the survey for multiple uses

Secondary Data

Information that already has been collected Information that already has been collected for purposes other than your current research for purposes other than your current research projectproject

Available through external sourcesAvailable through external sources

THE RESEARCH PROCESS

Identify a need or define the store’s problemIdentify a need or define the store’s problem

Obtain primary and secondary dataObtain primary and secondary data

Organize your dataOrganize your data

Analyze your dataAnalyze your data

Recommend solutionsRecommend solutions

Implement a plan of actionImplement a plan of action

Describe the role of the marketing mix

Identify internal & external sources of information

Lesson 1.3

Determine What to Buy

Page 16

Brainstorm ideas for using this data.

Discuss ways this data might affect your store’s buying plan.

THE MARKETING MIX

Marketing MixMarketing Mix

A blend of features that satisfies your chosen A blend of features that satisfies your chosen marketmarket

ProductProduct

PricePrice

PlacePlace

PromotionPromotion

Product Strategy

Product decisions are crucial to the success of Product decisions are crucial to the success of your school storeyour school store

Ask yourself these questions:Ask yourself these questions:

What should I buy?What should I buy?

How much should I buy?How much should I buy?

How is my product better than the competition?How is my product better than the competition?

Pricing Strategy

Costs and ExpensesCosts and Expenses

Economic ConditionsEconomic Conditions

Customer ImpressionsCustomer Impressions

CompetitionCompetition

Place Strategy

How and where products are offered to your How and where products are offered to your customerscustomers

Also called distributionAlso called distribution

Promotion Strategy

Promoting your goods and services through Promoting your goods and services through advertising and the use of other promotional advertising and the use of other promotional toolstools

• Encourages public acceptance of the school Encourages public acceptance of the school store and the product mixstore and the product mix

What is the purpose of the four elements of the marketing mix?

HELP WITH BUYING DECISIONS• You should not make buying decisions aloneYou should not make buying decisions alone

• Seek out and employ data from as many Seek out and employ data from as many sources as possiblesources as possible

Internal Sources

• Store RecordsStore Records

– Want Slip System – A customer form to request Want Slip System – A customer form to request items not offered or out of stockitems not offered or out of stock

• ManagementManagement

• Sales StaffSales Staff

External Sources

• CustomersCustomers

• Magazines, trade journals, and trade showsMagazines, trade journals, and trade shows

– Trade Shows – Periodic, temporary exhibits that are Trade Shows – Periodic, temporary exhibits that are scheduled throughout the year in various trade centersscheduled throughout the year in various trade centers

• VendorsVendors

• Trade associationsTrade associations

• CompetitorsCompetitors

How is operating a want slip system advantageous to the school store?

Men’s Clothing Sales Hit the Skids

Page 26Page 26

The menswear business The menswear business offers a good example of offers a good example of how complex the how complex the marketing process can be. marketing process can be. When retailers are dealing When retailers are dealing with a declining market, it with a declining market, it is more important than is more important than ever to conduct market ever to conduct market research and define a research and define a target market.target market.