Marketing questions

[myfayt]

I am currently writing my business plan and need a little help understand these questions. I am not looking for you to give me answers, but just examples or break it down into what exact I would say. I figure it will take 6 months to finish the full business plan. I just don't understand how to answer these or where to do the research for it.

* What is the total size of your market?
* What percent share of your market will you have?
* Trends in target market – growth trends, consumer preferences, product development.


Thank you for any help you all can provide.

[Iamnotsatisfied]

6 Months to finish the business plan?

Those are pretty basic terms and questions. If you don't understand them now... It's best if you study basic highschool business beforehand.

Not a whole course.. but just a couple of days going over the basics.

If we told you the answer... You won't do you own research... Something you need to do.

[inle]

* What is the total size of your market?
* What percent share of your market will you have?
* Trends in target market – growth trends, consumer preferences, product development.

Let me help you out a little..

First it will depends on your offering to the market & your target market..

Lets say you are selling some Unique Candy Floss to 3-10 year old children living in a certain location..

Your total market size will be the number of 3-10 year old children living in that location, the total number of candies(including Lollipops, Chocolate etc as they are often percieved as subsitutes for Candy Floss) sold in a year, the total number of $ been sold for the candies..

Percent market share is how many you likely to sell in a year in terms of quantities(number of Candy Floss) & the sales($) you got in a year out of the total market share..
I assume this is a start-up so your share is zero..
You got to estimate your sales volume then..

Trends are the consumers'(in this case, children aged 3-10)buying patterns, the movers, the movements, the likes & dislikes & the tastes towards candies & even Candy Floss..

For me, I will prefer 2 get at least 5 past consecutive years reports for all of them to get the more accurate feel..

Hope it helps..

[myfayt]

6 Months to finish the business plan?

Those are pretty basic terms and questions. If you don't understand them now... It's best if you study basic highschool business beforehand.

Not a whole course.. but just a couple of days going over the basics.

If we told you the answer... You won't do you own research... Something you need to do.

I think that was uncalled for. I've already answered over 20 questions on my own. I am just stuck at this part. I have business knowledge and started up 4 businesses before, but all without a business plan with they failed. This is the first time I am writing a business plan. I am way past high school days, so no chance going back to that stuff.

Also as stated I don't want you to tell me what to say, I just need a general idea of what I should be looking for, I didn't ask you to write it for me.

[myfayt]

Let me help you out a little..

First it will depends on your offering to the market & your target market..

Lets say you are selling some Unique Candy Floss to 3-10 year old children living in a certain location..

Your total market size will be the number of 3-10 year old children living in that location, the total number of candies(including Lollipops, Chocolate etc as they are often percieved as subsitutes for Candy Floss) sold in a year, the total number of $ been sold for the candies..

Percent market share is how many you likely to sell in a year in terms of quantities(number of Candy Floss) & the sales($) you got in a year out of the total market share..
I assume this is a start-up so your share is zero..
You got to estimate your sales volume then..

Trends are the consumers'(in this case, children aged 3-10)buying patterns, the movers, the movements, the likes & dislikes & the tastes towards candies & even Candy Floss..

For me, I will prefer 2 get at least 5 past consecutive years reports for all of them to get the more accurate feel..

Hope it helps..

Thank you for this help, now I understand what to do. The business I am starting is a general retail store. Like a Kmart only smaller with no food items.

So really my market size would be everyone, hard to put it into words in the business plan.

Yeah being a startup I will need to estimate it. I am research what other smaller retail shops do in a year and base it on that,

I understand trends now, so you mean really like if someone is hot and everyone wants it, like if sleeveless shirts were the big thing, and you had a clothing shop, you'd want to add lots of sleeveless shirts to your stock, kind of thing?

[muqtada123]

whats your schooling?

[myfayt]

whats your schooling?

I attended some classes at Darden Business School, also my father is a successful entrepreneur, and also read some books and articles on being an entrepreneur. But you don't need to take 4 years of college to be a successful entrepreneur, many high school dropouts are billionaires and in the top 50 wealthy people and that is a fact.

[inle]

Thank you for this help, now I understand what to do. The business I am starting is a general retail store. Like a Kmart only smaller with no food items.

So really my market size would be everyone, hard to put it into words in the business plan.

Yeah being a startup I will need to estimate it. I am research what other smaller retail shops do in a year and base it on that,

I understand trends now, so you mean really like if someone is hot and everyone wants it, like if sleeveless shirts were the big thing, and you had a clothing shop, you'd want to add lots of sleeveless shirts to your stock, kind of thing?

Let me help you again..

It is always a MAJOR mistake for any company to target everyone..
Surely everyone is a consumer but you got to position & brand your business to cater to a specific group you like to impact..

Think through what's your typical customers & their typical characteristic..
Like age, gender, race, likes/dislikes, behavior, buying power etc..

For example:
Although everyone is a consumer to McDonalds', but McDonalds' target customers is CHILDREN..
Whatever marketing campaigns, activities etc they do are generally focusing on serving the desires of children..

As for trends & lifestyle of consumers, you are quite right over the sleeveless shirts example..
But what's more important is to look beyond the sleeveless shirts(which is the hard benefit) & zoom into the customers' motivations & desires(the psychological/soft benefits) to have the sleeveless shirts..

That's more important & can drive long-term bigger sales through profitable campaigns when you serve their psychological/soft benefits & desires..

Research on these unless you want to bulk purchase sleeveless shirts that will remain in your warehouse when the fab is over..

Nobody buy hammers & nails..
They just want something to hang their picture on the wall..


PS:
I am not from a formal business background but I just knocked my head too often over the years that it somehow knocked some sense in me..

Drop me a pm & let me know if you need further help..

[Bakewell86]

size of marker we can't guess.....on internet its v v vast....so can u gguess ?????!!!!!

[myfayt]

Inle: That's going to be hard to answer for who I cater too. When I look at kmart for an example, I don't see what specific person they market for. While I will carry a small range of children's items, it isn't that much. Things like lamps, bed sheets, towels, gardening tools, coffee makers, etc. That is adult stuff (unless it's like superman design) but they aren't made for children like toys. So I guess I would be targeting 18+ age range.....

I will be carrying a small supply of each item, trying to not have back stock. If something ends up not selling well and I have 100 of them left, then thats not going to be good. Like for instance if I sell....... A coffee maker, well whats the chance someone will need one? I could carry 2, so if I sell one I can reorder another, or if I sell both in a month then great, but what's the chances of selling a dozen in a year? It's not going to be a huge store at all. So I will pay strict attention to reordering on time, and what is being sold daily with P.O.S. systems.

@Bakewell86: I won't be selling online

[inle]

myfayt:
I am not from the States so I am not sure how Kmart target its market..
But I am very sure, it will have a focus on a specific group..

The reason is simple:
Everyone got their likes, dislikes, preferences etc..
Some will even conflict with each other..

If you will to target at everyone & try to please everyones' tastes(which are likely to conflict) from your operations, sales/marketing campaigns, customer services etc, you won't please everyone..
Worst, you might confuse & displease everyone, including your staff & yourself..

And because you are selling products & not benefits & fail to add value, the only competitive edge will be Cheap Prices..

I don't like Price Wars..

Your choice, Your business..
It is always best to zoom in as much as possible..

Clue: Starbucks zoom in at young single working executives..
Look at their offerings, pricings, promotion, environment & their staff to see how they add value to thís group & what benefits are being served..

Starbucks don't sell coffee ya..
No, not even tea..