Griffin | Entrepreneurship
 
Resume Table of Contents  

Entrepreneurship

Business Plan
Market Research/Trade Area Analysis

 
State Standards
 
  • E 3.1 Content Standard: Students understand the economic principles and concepts fundamental to business operations.
  • E 3.1.1 Assess the role of competition in marketing

  • E 7.1 Content Standard: Students understand tools, strategies, and systems needed to access, process, maintain, evaluate, and disseminate information to assist business decision-making.
  • E 7.1.1 Assess marketing-information needs
  • E 7.1.4 Identify information monitored for marketing decision making (IM:184) (SP)
  • E 7.1.5 Identify market segments (IM:239) (M/E)
  • E 7.1.6 Select target market (IM:160) (M/E)

  • E 3.1 Content Standard: Students understand tools, techniques, and systems that affect a business’s ability to plan, control, and organize an organization/department.
  • E 15.1.4 Recognize the components of a business plan
  • E 15.1.5 Develop business plan (MN:102) (ON)
Chapter Objectives
 

Students will:

  • Research your market using primary and secondary data.
  • Create a customer profile
  • Identify a target market by understanding your customers.
  • Create a trading area analysis
1.

Trading Area Analysis (Business Plan)

  1. Trading Area Analysis
    1. Geographic and demographic information
    2. Market segment analysis of target market (age, income level, population estimate, other specific demographic and economic information)
    3. Customer buying behavior related to business, product, or service
    4. Analysis of the potential location (availability, cost, traffic patterns, destination shopping, and proximity to competition)
2.
Understanding Your Customer

Customers Power Point

  • What is a target market
  • Understand your customer
  • Demographics and Psychographics
  • The importance of a customer profile
  • Understand the competition
  • Market Research
  • Secondary data
  • Primary data
  • Customer Profile
3.

Market segment analysis of target market

Groups of customers within a large market who share common characteristics are known as market segment.

  • Gender
  • Price
  • Interest
Choose a market segment of your target market (age, income level, population estimate, other specific demographic and economic information)
4.

Market Research - HOMEWORK

THERE ARE 2 DOCUMENTS FOR GRADING. (The survey and the summary.)

Glaze SurveyCreate, distribute, and summarize a Market Research Survey to at least 30 individuals. (survey sample)

  1. Create a Google Form at: www.google.com/forms/about/
    1. Go to Google Forms
    2. Choose the Menu (Upper Left) then Sheets
    3. Start a new spreadsheet
    4. Go to Tools / Create a Form
    5. Add a description and questions
      1. Multiple Choice for only one answer
      2. Checkboxes for more than one answer at a time
    6. Choose a Theme
    7. When done Click on Share Form in the upper right.
    8. Email the link to Friends and Facebook (Explain that you are not really giving out Starbuck cards.)

  2. Google Survey Grading:
    1. Include your name and description of your survey
    2. Include at least 10 questions
    3. Make sure all ranges are covered (i.e. 10 - 19, 20 - 29)
    4. Check to see if none or I don't....would be an option
    5. Include a comment section
    6. Offer gift cards for contact info. (Also explain it's for a class assignment and you are not really giving away a gift card.)
    7. Ask for the user's name and email in a seperate section.
    8. Questions and answers make sense
    9. Grammar & spelling
    10. Have at least 30 individuals complete the survey.
    11. Send a survey link to the instructor for a grade.

Create a Market Research Summary Document. Make it clean/professional enough if I were paying you for the document. In include:

    1. Research goals and objectives (Don't forget this!)
    2. Results by question
    3. Results can be found in Google Survey but you will need to copy/paste (or PrintScreen and paste) and then crop them in a word document for the report.

      Survey Results

      (Click on image for full document.)

5.

Customer Profile - HOMEWORK

  • Review your own research and market data (from my web site)
  • Create a Customer Profile in MS Word including:

    • Name, Period, Date
    • Business Name, Product or Service
    • (Include question numbers and questions.)

    1. Go to City Feet ** (great demographic info)

    City Feet

    1. Search for your general area. (Fishers - For Lease)
    2. Pick a specific location.
    3. Scroll down and expand demographic information.
    4. Answer the questions below.
      • You might need to add several of the demographic categories together.
    1. Who are my customers?
      1A. If customers are individuals:
       
    • How old are they? (You can't sell to 5 - 90)
    • What is their gender?
    • Marital Status?
    • How much money do they earn?
    • Where do they live?
    • How do they spend their time and money?
    • What do they like to do?
      1B. If customers are companies:
     
    • What industries are they in?
    • Where are those industries located?
    2. Why do they buy?
    3. What needs or wants will my product or service satisfy?
    4. What makes them feel good about buying?
    5. When do they buy? Seasonal? Time of day?
    6. How far will they go to get my product or service?
    7. How do they buy? (web site, face to face, phone, etc.)
    8. What do they expect from you?
    9. How much is spent in the area on related items?
    10. What is the average purchase price?
    11. What price are they willing to pay for my products or services?
    12. How many potential customers live in the area in which I want to operate?
    13. Where do these potential customers currently buy the products or services I want to sell them?
    14. What do they think about your competitors?
    15. What can I do for my customers that other companies are not already doing for them?
       

6.

Customer buying behavior - BP HOMEWORK

  1. Create a narrative of your customer buying behavior related to business, product, or service
7.

Trading Area Intro

Trading Areas Power Point

  • The value of market research
  • What is a target market
  • Understand your customer
  • demographics and psychographics
  • Identify your target market
  • The importance of a customer profile
  • Market segments
  • Understand the competition
  • Market Research
  • Secondary data
  • Primary data
  • Trading Area Analysis
8.

Articles

  1. How to find the Best Location
  2. Choosing a Location for your Business
9. Geographic and Demographic Information - BP HOMEWORK
 
  1. Choose a trade area.
  2. Review the linked market (especially Loop Net and City Feet) info to gather geographic and demographic information.
 

Trading Area = Fishers

TA

Geo

FISHERS GATEWAY SHOPS - 1,960 SF
8965 EAST 116TH STREET :: FISHERS, IN

2010 Demographics
  1 mile 3 miles 5 miles
POPULATION 11,660 77,094 158,083
AVG HOUSEHOLD INCOME $91,159 $104,936 $109,540
DAYTIME POPULATION 7,645 36,176 78,657
AVERAGE HOUSING VALUE $184,784 $215,664 $230,521
 

Where to get the geographic and demographic information.

Language Links Trading Area Example
Come Dance With Me Trading Area Example

10.

Choosing a Locations / Lease Negotiations

Choosing Locations / Lease Negotiations Power Point

  • Read Lease Lessons

  • Questions to Ask
  • Finding the best location
  • Choosing a Location
    • Non-Retail
    • Service
    • Industrial
    • Home
  • Physical Layout
  • Lease or Buy
  • Design the Layout
  • SmartDraw
  • LOI
  • Negotiating the Lease
  • TI
  • CAMS
  • Personal Guarantee Limits
  • Put It All Together

Sample Layouts (click for larger image)

map 1map 2

map3

Sample Menu's (click for larger image)

Menu-EX1  Menu-EX2  

Menu-EX3

 

11.

Potential Location - HOMEWORK

  1. Choose your specific location.
  2. Analyze the potential location based on:
    1. Availability
    2. Cost
    3. traffic patterns
    4. destination shopping
    5. proximity to competition
    6. Profit / best deal

Specific Realtors

Individual Property Sheets

12.

Trading Area Analysis - BP HOMEWORK

  • Review the linked samples and grading rubric and create your own trading area analysis for your business plan. (contest guidlines)
  • Use the links on the web site to create the Trading area analysis in MS Word:

III. Analysis of the Business Situation
     Trading Area Analysis

 

Articles

 

Test

50 Points (15 T/F, 35 MC)

CUSTOMER  
  Target Markets
Demographics
Psychographics
Customer Profile
Market Research
Primary Data
Secondary Data
TRADING AREAS
  Find best location
Where to get data
Trade Area
Market Segments
LOCATION   
  5 Types of Locations
    What to look for (7Q’s)
  Business Layouts
    Design for…
  Negotiating a Lease
    Buy or lease
Letter of Intent
Lease
3 Types of Leases
TI (Calculate)
CAMS (Calculate)
  • Trading Areas / Customers / Choosing a Location Quiz

Additional Resources

A.
  • Google landlord concessions



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