abcs of market research
DESCRIPTION
This presentation was designed to demystify market research and demonstrate that it’s not as scary as one may think. Ongoing research is as important to a business as it is when starting a business.TRANSCRIPT
The ABCs ofMarket Research
Betty Eitner
Modal Consulting Inc.
©Modal Consulting Inc. 2011
Why Research the Market
• Business decisions that are based on sound market research, analysis and intelligence have a substantial payout.
• Knowing your market, it’s potential and identifying the ideal target is an essential part of any business being it a start-up, a spin-out or an existing business.
©Modal Consulting Inc. 2011
Market Research will…
identify opportunities steer business decisions provide consumer behavior determine target markets improve communication strategies develop marketing strategy create benchmarks minimize risk maximize success
©Modal Consulting Inc. 2011
Not as Scary as it Sounds
Secondary Research = Information Already Collected by Someone Else
– Newspapers, magazines, books– Studies, white papers, reports– Websites, brochures, trade shows– Statistical information
It is the most cost and time effective way of
collecting information.
©Modal Consulting Inc. 2011
Not as Scary as it Sounds
Primary Research = Firsthand
Information
– Talk, listen, observe– Surveys, questionnaires, focus groups– Trade shows, webcasts, conferences
This can also be the most valuable, because
it's current and specific.
©Modal Consulting Inc. 2011
ROI of Market Research
The amount of market research you do is limited only by:
• your time (if you're doing it yourself) • your budget (if you hire someone else to do it)
Market research is necessary at all stages of a business's life.
It can also prevent costly mistakes and realize excellent returns.
©Modal Consulting Inc. 2011
Identify Opportunities
Ongoing market research and analysis allows you to rediscover your market, your clients and your competitors. – What has changed about spending habits,
priorities and needs? – What products and/or services can respond to
the changes? – Are there niche markets out there that have
fewer competitors?
©Modal Consulting Inc. 2011
Know What You Need to Know!
©Modal Consulting Inc. 2011
Before Getting Started…
Know what you need to know…– Clients
• Who is your target audience
• What & where are they buying now
• Why should they use your services or purchase from you
– Competition• Who are they & what are they offering
• Can you do it better or more competitively
• Can you find a niche market that they are under-servicing
– Environment• Local, national or global – what effects your business
©Modal Consulting Inc. 2011
Market Research Grid
Client Competitor Environment
Data Organization
©Modal Consulting Inc. 2011
What you Need to Know
• You need to gather information from and about your clients to focus your marketing efforts, maintain and improve your customer service, and to guide your efforts in developing new products and/or services.
• Ensure you are looking for information that is pertinent to your current focus otherwise you can get into information overload and become overwhelmed.
©Modal Consulting Inc. 2011
What you Need to Know
• Information gathered about the competition can help you determine what works and what hasn't worked, give you ideas for improving your products and/or services, and provide insight into how to increase or shift your share of the market.
• Knowing the competition is one of the key components of successful business development.
©Modal Consulting Inc. 2011
What you Need to Know
• Gathering information about the environment (economic, social, technological, regulatory and political forces) allows you to stay abreast of and respond to particular trends or events that can impact your business.
• Whether it's a change in interest rates, a business closure or employment rates; be aware and judge the ripple effect on your business - good or bad.
©Modal Consulting Inc. 2011
Don’t Depend on Instinct
©Modal Consulting Inc. 2011
The Key to Success…
All successful businesses need to have a close understanding of potential and existing customers and their marketplace.
Market research allows you to: – target customers; – track markets and trends; – market and sell effectively; – compete with other suppliers; – spot new opportunities; and – gain vital knowledge.
©Modal Consulting Inc. 2011
