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Frequently
Ask Questions
What does market analysis involve?
How do I develop a marketing strategy?
What does market analysis involve?
This is the research phase that will help determine the opportunities and challenges for your product. This step is where you define the target market at which you will focus your marketing efforts. Some questions you should be asking are:
- What is the market potential for your product in the area?
- How fast is the market growing for your product?
- What does your typical customer look like?
- Where are your customers located?
Demographic (location, age, income level, spending habits and family composition of potential customers) and psychographics (hobbies, beliefs and lifestyles) data help identify the target market.
Competitive analysis is another important step of market analysis. This is where you identify your competition and determine their strengths and weaknesses. You determine if the market is already saturated. It helps you identify what it is about your product that is better than the competition. The competitive analysis will provide you with information to help you produce a better product so it will have a greater chance for success in the marketplace. If you are interested in finding out more contact: University of Illinois Extension Quad Cities Center at 309-792-2500.
How do I develop a marketing strategy?
The marketing strategy is that part of a planning process where you determine the action steps to overcome challenges identified in a market analysis. Here you build on the 4 P's of marketing: Product, Price, Promotion, and Placement.
- Product: All information regarding your product must be familiar to you. The benefits, features and unique characteristics that set it apart from the competition. To help the consumer identify with your product you may want to use a catchy name so that the consumer easily remembers it.
- Price: When you market your product, it is now up to you to determine the asking price. You must price your product at an amount high enough to generate a profit. However, you must also make the price attractive enough to encourage customers and generate sales. You must constantly be alert to changes in the marketplace and changes in your business that could signal a need to adjust the product price.
- Promotion: Everything you do with your customer to encourage them to purchase your product is promotion. It is not merely advertising, but includes public relations and networking. The whole concept of promotion is to catch and hold the public's attention and get them to buy your product. The Internet has created another avenue for promotion.
- Placement: Getting your product to the customer when and where they want it is placement. This is often referred to as distribution. Distribution often represents 15% to 50% of the final price of the product. Often businesses do not have the resources to individually deliver the product to the customer. They must therefore rely on an established distribution channel made up of retailers, wholesalers, distributors, agents, brokers or cooperatives. You must determine the distribution partner that best fills your needs and your customer's needs.
This information just touches on the basics. If you are interested in finding out more contact: University of Illinois Extension Quad Cities Center at 309-792-2500
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University
of Illinois Extension
Office of Extension and Outreach
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