Focusing on what makes customers want and need certain products and/or services is the key to a successful business. The absence of satisfaction (for a want or a need) is what drives customers to buy. An actual "need" far outweighs desire for a product or service.
To determine customer wants or needs, a business must first understand what the wants and needs are, and then assess what products or services it can profitably provide. The target market and its environmental factors (covered in an Environmental Scan, an article to be published later this year) must be analyzed to determine strategic plans to reach every customer possible. When needs or wants are clearly understood, a company can find the sweet spot and address it on target.
Many ISPs define a market by focusing only on products/services that currently meet customer needs. For example, the ISP that believed that their market was the "cheap access" space likely made some poor marketing decisions. There are strong and well-known players with deep pockets in that market, like Net Zero. Such a service may benefit a certain market segment.
There is the question, though, as to how many customers really want cheap access, a question as to how many take the time to understand what does not come with this service offering. Thinking about customer needs first-and then identifying services that meet those needs-is the best way to define a market.
A starting point
To pinpoint customers' needs and wants, a company may first look at the big picture and obtain key data such as geographic location, population, cost of living, and languages spoken in the area that may drive needs and wants. The company can obtain much of this information through simple observation and local knowledge.
However, conducting a market trend analysis is a main step in grasping the market's needs and numerous wants. Some businesses determine customer wants by a combination of some competitive analysis and asking a sample of people about wants and needs. What are competitors offering? How have they been successful? Why have they failed? What has changed in the target market and how can this be taken advantage of?
This analysis alone can guide an ISP in determining what wants and needs are missing in the target market. It can be critical to establishing a well-supported service that customers want. The want or need can be translated as a missing value. For example, many ISPs will offer 24 X 7 technical support services where others may be offering limited hours of technical support. In its marketing, the ISP can explain the benefit of 24 X 7 support to a target audience. This service gives the ISP a competitive advantage, i.e., value to the defined and targeted audience.
Many ISPs set up businesses that are structured for the ISP's convenience, not the convenience of customers. How does this fit with determining customer wants and needs and satisfying customers? Listening to customers is not usually in many ISP managers' comfort zones. It is generally a reactive process. ISPs need to know:
what is the differences between Industry and Market
Representatives from the following functions may normally be needed to serve on the market research team EXCEPT
Michael Potter's five forces framework can be used to determine whether the industry is attractive enough to sustain a small or medium size enterprise. The five forces of Entry, Rivalry, Substitutes, Buyers and Suppliers jointly determine the intensity of competition and profit potential for a small and medium size firm in a given industry or market sector. In analysing each market force, the question is whether it is sufficiently strong to reduce or eliminate industry profits. The focus at this stage is at the industry level because industry dynamics and profits of necessity dictate profits of other firms that enter the industry. Also, in carrying out a five forces analysis we want to be able to answer this question: If the competitive forces in the industry are strong, is there some strategy that firms might employ to defend it, or influence the forces in their own favour?
A market which is not a fair market with rapidly arbitrage, e.g. buy low sell high in foreign currency industry.
The tendency of an industry to locate close to its market . Industries locate near the market if the cost of transport of the finished.
there are four factors that determines the market structure of a particular industry they are: number of buyers and sellers information and mobility the nature of product. entry and exit of a firm from market.
A survey.
what is the differences between Industry and Market
Market structure of the media industry: Oligopoly
Oligopoly :)
A stock market index helps you determine the value of a stock by determining the potential return on investment for a selected companies stock. The type of index depends on the industry.
Representatives from the following functions may normally be needed to serve on the market research team EXCEPT
The immediate cause of the Great Depression was the stock market crash of 1929, also known as Black Tuesday.
Market attractiveness is a term that describes the profit possibilities available in a given market or industry. The more attractive a market, the higher the potential profits. Companies in the process of considering entries into new industries or markets conduct a number of analyses to determine whether or not such a move would be good for the business. One such analysis is a marketattractiveness analysis, conducted to find out if entering a particular market or industry would be profitable and how much the company could potentially earn.
The music industry is dominated by a few large firms which dominate the market, thus enabling the industry to exert its market influence. They also partake in collusion to ensure that barriers to entry into the music industry remain high for new firms to enter. The characteristics of an oligopoly are as follows: Few, large number of firms dominate the market. High barriers to entry Long run abnormal profits Price makers- have the ability to determine market price. Maximise profits where MC=MR. The music industry fits into the above characteristics and therefore is considered to be an oligopoly.
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Market research can benefit a business by finding information about their target market, compettition, current trends in their industry, how big is the market and how much money is being spent in the industry.