Robert Bahn, Consultant ASU Small Business and Technology Development Center's presentation to Batesville Next Level class on Market Research and Direct mail opportunities with USPS Every Door Direct Mail
Horngren’s Financial & Managerial Accounting, 7th edition by Miller-Nobles so...
How to Find Your Target Market Using Market Research
1. LOOKING FOR A NEEDLE IN A
HAYSTACK
HOW TO FIND YOUR TARGET MARKET 1
2. KNOWING YOUR CUSTOMERS
• Knowing you need customers is Correct.
• Knowing who they are and where to find
them is very important.
• Knowing how to get in touch with them is
very important too.
• Knowing how to get them to your place of
business to buy “STUFF” is the most
important.
2
3. …LIKE FINDING A NEEDLE IN A HAYSTACK
• Finding that customer may be like finding a needle
in a haystack.
3
4. HOW DO YOU LOCATE YOUR MARKET?
• What haystack are you looking in?
• Define your market in area. In potential customers..
4
8. MARKET RESEARCH
• Market Research by the ASU SBTDC may
be very helpful. If your business customer
is female between the age of 25-35 then
how do I know where to advertise?
• Market Research can find out where that
group of people live.
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10. HOW DO I REACH THAT GROUP WITH
THE LEAST EXPENSE?
• Television
• Radio
• Cable Inserts
• Direct Mail
• Targeted Direct Mail “Every Door Direct
Mail”
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11. WHAT OTHER MARKET RESEARCH IS
AVAILABLE FROM THE ASU SBTDC?
Small Business and Technology Development Center
P.O. Box 2650
State University, AR 72467
Phone (870) 972-3517
Fax (870 972-3678
asu.asbtdc.org
asusbtdc@astate.edu
Jonesboro, Arkansas
2/29/2012
Jonesboro, AR 72401
Dear Mr. :
The following report has been prepared by the ASU Small Business and Technology Development Center. The
information has been compiled from a variety of sources to address your specific research request. The information
will help you assess the feasibility of your business venture. Please keep in mind that the information contained in this
report is copyrighted.
If you have questions or if additional information is needed, please do not hesitate to contact me. I am happy to
review the information at your convenience.
Sincerely,
Robert Bahn
Business Consultant 11
12. WHAT OTHER MARKET RESEARCH IS
AVAILABLE FROM THE ASU SBTDC?
Market & Industry Report
Prepared For: Jonesboro, AR
Prepared By: , Intern
ASU Small Business and Technology Development Center
2/29/2012
Business Description:
Wireless Telecommunications Service NAICS 517210/ SIC 4812
Purpose of Research:
Client is assessing the feasibility of opening a family fun center e in Jonesboro, Arkansas. Client is requesting market and
industry information.
Contents:
This report consists of several attached documents:
1) First Research: Industry Profile: Wireless Telecommunications Service (except Satellite)
(12/19/211)
2) BizMiner: US Market Research Report: Wireless Phone Service
3) BizMiner: State-Metro Industry Market report: Wireless Phone Service
4) BizMiner: Industry Financial Report (5yr): Wireless Phone Service
5) New Strategist Publications: Demographics of Consumer Demand, 7th edition:
Household spending on Telephones, Cellular Phone Service, Phone Cards
6) DemographicsNow: Consumer Expenditure Comparison: Jonesboro & Craighead Co.
7) DemographicsNow: Demographics Detail Comparison: Jonesboro & Craighead Co.
8) DemographicsNow: Income by Age Comparison: Jonesboro & Craighead Co.
9) SageWorks Industry Data and Analysis: Wireless Telecommunications Carriers (except Satellite)
10) RMA 2012: Wireless Telecommunications Carriers (except Satellite) 12
13. WHAT OTHER MARKET RESEARCH IS
AVAILABLE FROM THE ASU SBTDC?
Remarks:
First Research Industry profiles provide a broad overview of an industry and the trends shaping it.
Each profile covers what drives demand, who are the industry’s target customers, and statistics such as number of
establishments, industry revenue, and degree of concentration. Profiles discuss current market trends, as well as specific
challenges and opportunities impacting the industry. Profiles are intended for use by sales people calling on a customer, thus
the section titled Call Preparation Questions. Each profile concludes with a five year industry forecast, 24 month “opportunity
rating” and links to industry websites for further research. Profiles are updated by the publisher every 90 days.
BizMiner financial and market research profiles are drawn from a database of more than 18 million firms. The numbers and
ratios contained in these reports are representative of real world firms. The figures are classified according to the sales
revenue of the firms, or whether they are startups or sole proprietorships. These reports are useful in creating financial
projections for new businesses, or comparing to established small firms.
US Industry Market Report highlights include:
Based on a review of 34,226 establishments including 17,451 small businesses
•Average annual sales for small businesses as of q2 2011: $1,532,071
•Average annual sales per employee for industry as q2 2011: $468,218
•Failure rates for small business: 30.67%
State-Metro Industry Market Report: Arkansas
Based on a review of 67 establishments including 32 small businesses
•Average annual sales for small businesses as of q2 2011: $1,360,758
•Average annual sales per employee for industry as q2 2011: $468,218
•Failure rates for small business: 37.50%
Industry Financial Report (5yr):
Based on a review of 153 businesses:
• After Tax Net Profit as of q2 2011: 11.46%
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14. WHAT OTHER MARKET RESEARCH IS
AVAILABLE FROM THE ASU SBTDC?
Best Customers 2006 is published by New Strategist Publications and describes the “best customers” for various
businesses. Included is information for household spending on telephones, cellular phone service, and phone cards
with detailed household spending; best customers index; and biggest customers’ market share.
DemographicsNow summarizes projected expenditures as well as demographics for specific areas. Based on a
review of 2011 Consumer Expenditures:
Cellular Phone Service: Jonesboro Craighead County
Total Households 26,377 37,908
Ave. Annual HH Expenditure $386.54 $380.20
Total $10,195,766 $14,412,622
SageWorks: Industry Data and Analysis summarizes the data about industry’s financial data and ratios; the industry’s
income statement; and balance sheet data. Also, the report provides cues how to improve business’s liquidity, profits,
and sales growth.
Risk Management Association (RMA) financial ratios are used by the banking industry. Lenders use RMA ratios to
evaluate loan proposals and make lending decisions. If a client intends to submit financial statements or analysis to
a bank as part of a loan package, they should check their work against these metrics first.
Wireless Telecommunications Carriers (except Satellite) NAICS 517210
Average Annual Revenue: $1,970,846
Average Assets: $284,308 Number of Establishments: 13
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15. WHERE ARE YOUR CUSTOMERS?
• Ask your customers what part of Batesville they live.
• Have them put a pin or sticker on a map to indicate
what part of Batesville they live.
• Have a give away and use the sign up sheets to
find out where your current customers live.
• Take your data base and plot on a map to
determine what part of Batesville is right for a
promotion using EDDM.
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16. WHERE ARE YOUR CUSTOMERS?
• Use your database.
• If very large then use random sampling by
using every tenth customer. Plot on a map.
• Use the random sampling of customers and
go on to the Post Office website and see
what carrier route their address is part of.
• People who live close to your existing
customers are great potential customers.
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17. • www.melissadata.com
• A place to start to find out more about the different
carrier routes in your area.
• Good information about the economics of the
different areas in your target market.
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