market analysis and surveying
DESCRIPTION
Slides of my presentation during the event organized by foundation “Young Entrepreneurs Stichting, YES” at the Aruba Chamber of Commerce and Industry. January 28th, 2014.TRANSCRIPT
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Market Analysis and Surveying
E.M. Erasmus, MA
January 28, 2014
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Roadmap
• Why do Market Analysis?
• Market Analysis Grid
• Research Process
• Low-Budget/DIY Market Analysis
• Some Helpful Tips and Resources
• Final Thoughts
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Why do Market Analysis?
• A key part of developing your business strategy
• Both first-time entrepreneurs and existing companies need market information for new products and services.
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Why do Market Analysis?
Marketing Analysis can be used to: • Identify & Assess Opportunities
• Examine Market Segments
• Select Target Markets
• Plan & Implement Marketing Mixes
• Evaluate Marketing Performance
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Market Analysis Grid
Customer Competition Context
Secondary
Primary
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CUSTOMER ANALYSIS
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After first identifying your market, you will then need to select a target market to be the focus of your company’s efforts.
Target Market and Customer
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• Consumer market segmentation is
based on geographics, demographics,
psychographics, and buying
characteristics.
• A business can select and serve multiple
market segments.
Target Market and Customer
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Market Segmentation
demographics
geographics
psychographics
buying characteristics
Target Market and Customer
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Target Market and Customer
The target market for your product or service should be:
Measurable
Large enough to be profitable
Reachable
Responsive
1
2
3
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Create
Evaluate
Forecast
Create a customer profile.
Evaluate customers’ needs.
Conduct research to forecast demand.
Researching the Target Customer
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Creating a customer profile (personas) is the first step in targeting your marketing efforts.
• Age, gender, lifestyle
• Purchasing power
• Purchasing process
• Frequency of purchase, etc.
Creating a Customer Profile
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In order to provide what the customer wants, you should prepare a customer needs analysis: that is a list of features and benefits of your good or service that the customers value
Evaluating Customers’ Needs
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Several methods can be used to forecast demand:
Use historical analogy.
Interview prospective customers and
intermediaries.
Go into limited supply.
Forecasting Demand
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• Usually, competing products and services are already established in the market.
• To succeed, you must be able to capture market share by differentiating your business.
The Competition
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Many entrepreneurial companies succeed by studying the competition to define a niche in the market.
The Competition
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The Competition
Create a profile of direct and indirect competitors in the market:
• Who are they?
• What makes them successful?
• What are their weaknesses?
• How will they react to new market entrants?
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BUSINESS CONTEXT (ENVIRONMENT)
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Look
Understand
Study
Look at trends and patterns of change.
Understand industry forces that affect your business.
Study industry demographics.
Analyzing the business environment
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Local Trends
Renewable Energy
Ageing Population
Tourism Demographics Social Media
Mobile
Gateway/Export
Generation Y
Recycling/Upcycling
Consumer Awareness
Creative Industries
Sustainable Food
Health Consciousness
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Global Trends
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Global Trends
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barriers to entry
threats from substitute products
sources of supply
buyers’ ability to bargain
technology
Industry Forces
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carrying capacity
the ability of industry to support
new growth
uncertainty
the degree of stability or instability
in a given industry
complexity
the number and diversity of
contacts with which a business
must deal
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2
3
4
Birth
Growth
Maturity
Decline
industry life cycle
the current stage of an industry
Industry Demographics
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Identify your information needs.
Start the Research Process
The Five Steps of an Effective Research Plan
1
2
3
4
5
Obtain secondary resources.
Collect primary data.
Organize the data.
Analyze the data.
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Research secondary data before researching primary sources because it is easily obtained and inexpensive.
Start the Research Process
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The most common methods of gathering primary data are:
• observation
• interviews
• surveys
Start the Research Process
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LOW-BUDGET/DIY MARKET ANALYSIS
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Low-Budget Market Analysis & Surveying
• Use social media
• Talk to potential customers
• Visit your (potential) competitor
• Attend lectures and workshops (UA, KvK, etc.)
• Make use of UA students to conduct research
• Research and project reports database UA
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Rule of Thumb
• The larger your investment, the more extensive your market analysis should be.
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RESOURCES AND TIPS
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Online Resources
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Online Resources
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Online Resources
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Online resources
• http://www.marketresearchworld.net/
• http://www.bizstats.com/
• http://www.markettools.com/KnowledgeCenter
• http://www.sba.gov
• http://freeonlinesurveys.com/
• http://www.surveymonkey.com/
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Online resources
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Books on marketing research
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Books on marketing research
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• Methodology: should be good enough, not (scientifically) perfect;
• Make marketing research a habit;
• Don’t just rely on family and friends;
• Don’t just collect data…do something with it!;
• Know your industry…inside and out…;
Sharing some wisdom
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Always Remember
• Market Analysis & Surveying is a tool.
• It assists entrepreneurs in their decision making.
• IT IS NOT A REPLACEMENT FOR ENTREPRENEURIAL JUDGEMENT!!
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Final thoughts…
“He who asks is a fool for five minutes.
He who does not ask is a fool forever.” ~ Chinese proverb