Why is it important for entrepreneurs to define and identify who their customers are? What strategies do entrepreneurs use to determine customer needs and wants?  –MGT 401

Identifying the target market allows the entrepreneur to create specific strategies intended to sell to this market. By specifically focusing advertising at the target market this can gain the attention of that market. For instance, in advertising, commercials are targeted by using studies which indicate when certain groups are watching TV or listening to the radio. It would be useless to play commercials which target 15 year olds during the school day. Another consideration is making the noise fit the consumer. It is not wise to target seniors with products designed for teenagers since there would be of little interest. This is why music companies consistently target teenagers for media sales and not as many older audiences.  Entrepreneurs use these same tactics in order to identify and serve their market.

Participation

I think a large part of identifying the consumer is to identify them in accordance with their buying:

  1. Innovators- People who first adopt an idea or invent it.
  2. Adopters- People who are trend-setters, seeking new ideas for implementation.
  3. The early majority- Those who for ideas to be tested by others first.
  4. The late majority- Those who wait still longer to get on the band wagon.
  5. The laggards- They are traditionalists and are not interested in new ideas/products and are the last group to buy into new ideas (Armstrong & Kotler, 2009).

Because the goal of marketing is to gain the largest share of the market, these groups impact marketing strategy in a variety ways. To appeal to the largest market marketing entrepreneurs must market their products in a manner which appeals to the varying consumers.

References

Armstrong, G. & Kotler, P. (2009). Marketing: An introduction (9th ed.). Upper Saddle River, NJ: Pearson Education.