Often the entrepreneur is inclined to run with a “quick and dirty” appraisal. While this may be quite acceptable at the pre-initiation stage, the fact remains that the creation of a sound marketing plan requires more substance than estimates drawn from unsupported assumptions. This process usually entails identifying a customer group, for example the number of services stations is a region, and making the assumption that at least 10 percent will buy an innovative compressor unit to inflate tires. What is overlooked in the example is the probability of purchasing, given that each station likely has a compressor that is providing the service. What needs to be measured is the degree of satisfaction with existing equipment, the physical condition, and the advantages or benefits in switching, something only primary marketing research can determine.
TABLE 11.2 Customer Characteristics