“Target Marketing and the Use of Internet Shopping Agents”.doc

“Target Marketing and the Use of Internet Shopping Agents” Prepared by: Cullen F. Goenner, PhD Department of Economics University of North Dakota Grand Forks, ND 58201 Tel: 701-777-3353 E-mail: cullen.goenner@ “Target Marketing and the Use of Internet Shopping Agents” Abstract: In order to succeed, entrepreneurs in North Dakota must seek out new markets and better serve those they currently operate within. One way to increase demand for a good or service is through marketing. Marketing targeted at potential customers not only makes individuals aware of the availability of the product, but may also differentiate in a positive manner the product from those of competitors. This report demonstrates some ways in which entrepreneurs can conduct market research that helps them to understand the key characteristics of their target market based on the geography of their customer base. Armed with this information, I discuss ways in which entrepreneurs can focus their marketing and advertising presence to identify promising markets as well as more effectively reach potential customers in the information age. Introduction: According to the US Small Business Administration (SBA) website, the key to successful marketing for a small business is to: Determine the needs of their customers through market research Analyze their competitive advantages to develop a market strategy Select specific markets to serve by target marketing Determine how to satisfy customer needs by identifying a market mix For many small businesses these activities may seem like a challenging task as they involve data collection, analysis, and finally interpretation that offer unknown utility to those without experience. For firms that operate exclusively in a local market such tools are most likely already implemented in an informal manner as the business may share a relationship with the customer base that reveals their customer’s attitudes, behaviors, and demographic characteristics.