research for entrepreneurs1

7/24/2019 Research for Entrepreneurs1

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JERRY R. MITCHELL 1

Marketing Research for

Entrepreneurs


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JERRY R. MITCHELL 2

Market Research: The Key to DefiningYour Focus


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JERRY R. MITCHELL 3

Market information known to you.

Own Costs

Competition Market Deman

Market !rice


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JERRY R. MITCHELL 4

Market information unknown to you.

Consumer Response

The "ncum#ent$s Reaction to youroffering

The Emergence of %ew Competitors

The Economy Ranom Factors


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JERRY R. MITCHELL 5

" #e&ie'e there are four key steps for

successfu& marketing:

Understanding the cust!er Ma"ing #a$ue %r &ur cust!er

C!!unicating &ur #a$ue t &ur target

!ar"et Ma"ing it eas& %r the cust!er t 'u&.


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JERRY R. MITCHELL (

(hat is marketing research)

. *ccoring to the *merican Marketing

*ssociation+ marketing research is thesystematic gathering+ recoring+ an

ana&y,ing of ata a#out pro#&ems

re&ating to the marketing of goos an

ser'ices.


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JERRY R. MITCHELL )

E#er& s!a$$ 'usiness *ner+!anager !ustas" the %$$*ing ,uestins t de#isee%%ecti#e !ar"eting strategies-


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JERRY R. MITCHELL

/h are !& cust!ers and 0tentia$cust!ers

/hat "ind % 0e0$e are the&/here d the& $i#e

Can and *i$$ the& 'u&

! I %%ering the "inds % gds rser#ices the& *ant + at the 'est 0$ace atthe 'est ti!e and in the right a!unts


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JERRY R. MITCHELL

re !& 0rices cnsistent *ith *hat 'u&ers#ie* as the 0rducts #a$ue

re !& 0r!tina$ 0rgra!s *r"ing

/hat d cust!ers thin" % !& 'usiness

H* des !& 'usiness c!0are *ith !&

c!0etitrs


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JERRY R. MITCHELL 16

(hat is the purpose of marketingresearch)

Mar"eting research %cuses and rgani7es!ar"eting in%r!atin. It ensures that suchin%r!atin is ti!e$& and 0er!itsentre0reneurs t-


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Reduce 'usiness ris"s

80t current and u0c!ing 0r'$e!s inthe current !ar"et

Identi%& sa$es 00rtunities

9e#e$0 0$ans % actin


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(hat are some commonmisconceptions a#out marketing

research)

Man& entre0reneurs thin" that !ar"etingresearch shu$d n$& 'e dne '& a s!a$$'usiness *hen the& are !a"ing a 0r%it.


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8!eti!es !anagers 'e$ie#e that un$essresearch 0r#ides a c!0$ete descri0tin% a situatin it is % n #a$ue.


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The !iscnce0tin that !ar"etingresearch re,uires 'ig d$$ars "ee0s !an&entre0reneurs %r! ding research..

Mar"eting research can 'e dne at !an&di%%erent $e#e$s 'th 'ig and s!a$$. Man&research 0r:ects can and are 'eing dne

%r ;1666 r $ess.


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nther !iscnce0tin is that &u can ntd research un$ess &u are as0histicated researcher. Yu dnt need

an M


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JERRY R. MITCHELL 1(

"s marketing research worth the

e-pense)

recent sur#e& % s!a$$ 'usiness!anagers re#ea$ed that 4 0ercent %thse ha#ing cnducted %r!a$ !ar"etingresearch 0r:ects in the 0ast three &ears

%e$t that the in%r!atin 'tained *as*rth the !ne& s0ent


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JERRY R. MITCHELL 1)

=#era$$ (5 0ercent said that the& *erea'$e t incr0rate the research %indingsint their decisin !a"ing 0rcess. =n$& )

0ercent re0rted that the& *ere nt a'$e ti!0$e!ent the resu$ts


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JERRY R. MITCHELL 1

Cnse,uent$& I 'e$ie#e that *hen s!a$$'usinesses d engage in !ar"etingresearch the 'ene%its usua$$& e>ceeds the

csts.


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JERRY R. MITCHELL 1

ow &arge shou& your marketing research

#uget #e)

s a ru$e c!0anies ha#e !ar"eting research

'udgets that range an&*here %r! .62 t 10ercent % c!0an& sa$es. Man& c!0aniess0end 56 0ercent r !re % the !ar"etingresearch 'udget 'u&ing research %r!

cnsu$ting %ir!s. ?r ne* c!0anies the& !ust$earn t d !st % it the!se$#es.


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(hat topics o sma&& #usiness managers

an entrepreneurs aress through

marketing research stuies)


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/hat is &ur target !ar"et

H* 'ig is it

/h 'u&s &ur 0rduct /h& d the& need it

/h 0a&s %r it

/h uses it


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H* d the users %i> the 'usiness 0r'$e!&ure addressing tda&

H* !uch are the& *i$$ing t 0a&

/h& *u$d the& 'u& %r! &u

/hat 'usiness 0r'$e!s are !re

i!0rtant t the! than this ne


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(hat are the two #asic types ofmarketing research)


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The t* 'asic t&0es % !ar"eting researchare ,uantitati#e and ,ua$itati#e.@uantitati#e research ans*ers ,uestins

that start *ith Ah* !an&A r Ah* !uchA.@ua$itati#e research addresses issues thatdea$ *ith A*h&A r Ah* @uantitati#eresearch usua$$& in#$#es sur#e&s *hi$e

,ua$itati#e studies re$& n 'ser#atin runstructured cn#ersatins *ithcust!ers.


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(here can " get he&p for marketing researchpro/ects)

/hen researching &ur 'usiness idea it is

i!0rtant t d as thrugh a search %rin%r!atin as is 0ssi'$e. It is a$srec!!ended t d as !uch % it as &u can n&ur *n.

This *i$$ he$0 &u "n* the !ar"et %r &ur idea'etter and can he$0 t "ee0 the csts d*n atthe start.


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0ome !&aces to start your research.

Facti'a

1e-is%e-is 2usiness 0ource !remier

!ro3uest Direct

Thomson Research


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?acti#a is an n$ine data'ase designed ta$$* access t 'usiness and %inancia$in%r!atin. This ser#ice c#ers 0u'$ic$&

and 0ri#ate$& he$d c!0anies industriesthe stc" !ar"et and the ecn!&.C#erage is d!estic and internatina$.Current stc" ,utes %u$$+te>t ne*s0a0er

*ire and !aga7ine artic$es and c!0an&0r%i$es can 'e $cated #ia a user+%riend$&*e' inter%ace.


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JERRY R. MITCHELL 2

Le>isBe>is 0r#ides access t %u$$+te>tartic$es %r! thusands % ne*s0a0ersand !aga7ines *r$d*ide. ?u$$+te>t 8EC

%i$ings are a#ai$a'$e. Man& $ca$ and !stnatina$ internatina$ ne*s0a0ers areinc$uded. E>tensi#e c#erage % the

accunting ta> and $ega$ $iterature


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JERRY R. MITCHELL 2

2usiness 0ource !remierThe


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This data'ase a$s inc$udes Cuntr& Mnitrand Industr& Year'" Re0rts %r! /E? 35cuntr& re0rts %r! the Ecn!ist Inte$$igence

Unit EIUF and /a$$ 8treet /rds. The 0eer+re#ie*ed %u$$ te>t cntent in t 'ac" %i$es area#ai$a'$e %r !an& :urna$s 'ac" t 16.

dditina$$&


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Dr@uest 9irect is a *e'+'ased ser#ice .Dr@uest 9irect inde>es artic$es %r! #er1666 'usiness and genera$ 0u'$icatins.

This data'ase c#ers a range % su':ects%r! c!0an& in%r!atin t !ar"etingand !anage!ent trends.


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Th!sn Research 0r#ides *e'+'asedaccess t c!0$ete 8EC %i$ings %r U.8.and internatina$ c!0anies. Rea$+ti!e

and histrica$ E9GR %i$ings. ?u$$+te>tartic$es and su!!aries %r! the trade0ress ne*s0a0ers *ire stries and

ne*s$etters *r$d*ide.


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4ourna&s5%ewspapers 2usiness"nternet "ne-

In the *hite 0a0er &u *i$$ %ind a detai$ed$ist % 0$aces I use.


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Re#ie*

Market *na&ysis

(ho is your customer)

n*$edge % the cust!er ena'$es &u tdeter!ine the !ar"et si7e and *hat deter!inestheir 'u&ing decisin. It 0r#ides in%r!atin that

*i$$ assist in chsing a $catin deter!ining0rduct r ser#ices t 'e %%ered esta'$ishing0ricing and 0$anning a se$$ing strateg&.


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e& issues t cnsider are-

/h *i$$ 'u& &ur 0rduct Dri!ar& and secndar&target gru0s.

/here des the 'u&er $i#e and *hat is their 0r%i$e

/hat %actrs in%$uence the decisin t 'u& /h is in#$#ed in the 0urchase decisin

H* %ten *i$$ 'u&ers 'u&

/here d the& 'u& *hen and h* !uch d the& 'u&

/hat are the 'u&ers 0re%erences and needs

re cust!ers $&a$ Can $ng ter! re$atinshi0s 'e'ui$t


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(hat prouct or ser'ice are you se&&ing)

*n important aspect of market ana&ysisis to ensure that the prouct or ser'ice

meets the market 6customer7 nees.

!rouct or ser'ice focus must #e the

customer.


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Issues t address are-

80eci%icatins % a$$ &ur 0rducts and r ser#ices and"e& %eatures re$ati#e t *hat 0rs0ecti#e 'u&ers in &urtarget !ar"et are sa&ing the& need.

C!0arisn *ith c!0etitrs and h* cust!ers0ercei#e &ur 0rduct re$ati#e t thers a#ai$a'$e.

/hat are the current trends *hat stage % !aturit& is the0rduct $i%e c&c$e at

/hat regu$atins a00$& t &ur 0rduct r ser#ice /hat 0ac"aging is re,uired


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JERRY R. MITCHELL 3

(ho is your competition)

re there c!0etitrs that e>ist n* and*hat ne* c!0etitrs are $i"e$& t enterthe !ar"et H* *i$$ &ur 0rduct rser#ice c!0are and *hat is the 0r'a'$ereactin % &ur c!0etitrs nce &u

enter the !ar"et


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JERRY R. MITCHELL 3

Issues t cnsider are- /h are &ur !a:r c!0etitrs /hat share % the !ar"et d the& ha#e

/hat are their strengths and *ea"nesses e.g.,ua$it& 0rice ser#ice 0a&!ent ter!s $catinre0utatin etc.F

H* d &u c!0are t &ur c!0etitrs andh* *i$$ the& react t &ur entr& int

the !ar"et /hat %actrs are there that cu$d increase r

reduce &ur c!0etitin


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(hat is your target market)

ccurate identi%icatin and ana$&sis % the target!ar"et ena'$es &u t de#e$0 an e%%ecti#e

#era$$ !ar"eting strateg&. The in%r!atin *i$$assist in deter!ining 'usiness si7e ut0utre,uire!entsF distri'utin channe$s 0ricing0r!tin strateg& and ther !ar"eting

decisins.


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Target !ar"et issues inc$ude-

/hat is the #era$$ !ar"et si7e Bu!'er% 0tentia$ cust!ers and 0h&sica$'undaries

/hich seg!ent % the !ar"et is the !stattracti#e in ter!s % %uture gr*th0tentia$ ease % entr& c!0etitin 0r%it0tentia$ and #era$$ ris"


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H* d 0rducts genera$$& get t thecust!er

/hat is the current d$$ar #a$ue r ,uantit&

% 0rductser#ice 'eing s$d int eachseg!ent % the !ar"et

/hat scia$ technica$ en#irn!enta$ r

ecn!ic changes are ta"ing 0$ace *ithinthe !ar"et and h* *i$$ the& i!0actsa$es


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(hat are your istri#ution channe&s)

There !a& 'e !an& 0tins %r !#ing &ur0rduct t the cust!er such as direct retai$

*h$esa$e cnsign!ent 'r"er etc. The !ethd% distri'utin has i!0rtant i!0$icatinsa%%ecting &ur 0ricing structure ad#ertising!essage cash %$* etc. Yu *i$$ *ant t chse

the distri'utin !ethd 'est suited %r &ur0rduct and *here &u *ant t 'e 0sitined inthe !ar"et0$ace.


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e& issues are- /hat !ethds % distri'utin are 'est suited %r

&ur 0rduct /hat !ethds % distri'utin d &ur

c!0etitrs use /hat are the csts re$ati#e t !ar"et c#erage 9es &ur $e#e$ % a#ai$a'$e ca0ita$ r 0rductin

ca0acities restrict &ur chice % distri'utin!ethds

re there *nershi0 00rtunities in the su00$&chain


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!ricing

The ':ecti#e is t !a>i!i7e 0r%its *hi$ere!aining c!0etiti#e in the !ar"et0$ace.

Dricing can 'e 'ased n either the cst 0rice r!ar"et 0rice /hat *i$$ the !ar"et 0a&F.Regard$ess % the 0ricing !ethd used it iscritica$ t "n* a$$ % &ur csts in#$#ed in

de$i#er& % &ur 0rduct r ser#ice t a#id0ssi'$e under0ricing and 0erating $sses.


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I% the !ar"et *i$$ nt su00rt a 0rice $e#e$su%%icient t c#er cst it *i$$ 'e necessar&t in#estigate *hether csts can 'e

$*ered r a$ternati#e$& it !a& 'enecessar& t a'andn &ur 0$ans t0rceed.


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Issues t cnsider are-

/hat cntr$ d &u ha#e #er the 0rduct0rice e.g. e>c$usi#e 0rduct nc!0etitin high !ar"et de!and etc.F

/hat are c!0etitr 0rices and h* dthe& 0rice their 0rducts

/hat 0rice and sa$es #$u!e are neededt achie#e 0r%it ':ecti#es


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JERRY R. MITCHELL 4

Can &u se$$ &ur 0rduct at di%%erent0rices int di%%erent !ar"ets

Can &u !aintain &ur 0rices #er ti!eand *hat d &u e>0ect t ha00en tc!0etitrs 0rices

re &ur 0rices ,uantit& sensiti#e


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JERRY R. MITCHELL 4

!romotion an 0e&&ing

Dr!tin % &ur 0rduct r ser#ice andde#e$0!ent % a 0r!tin strateg& is 0art %

the !ar"et ana$&sis. It is i!0rtant t ana$&7e*hat are the 'est !ethds % !a"ing &urcust!er a*are and *hat !essage *i$$ !ti#atethe! t 'u&. ?r! the 0r!tin strateg& the

ad#ertising 'udget and #era$$ sa$es 0$an arethen de#e$0ed.


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Ite!s t cnsider are-

/hat !edia % ad#ertising and sa$es d&ur c!0etitrs use

/hat !edia % ad#ertising is 'est suited treach &ur cust!er Dri!ar& andsecndar& !edia. e.g. Dri!ar& +

ne*s0a0er and radi 8ecndar& + %$&ersand trade sh*sF.


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/hat sa$es t$s and training *i$$ 'ere,uired %r sta%%

/hat i!age are &u atte!0ting t 'ui$dthrugh &ur 0r!tin

Dac"aging


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/hi$e cust!er ser#ice in stre dis0$a&and !erchandising are nt 0art % the!ar"et ana$&sis the& are an i!0rtant 0art

% the 'usiness i!age and 0r!tin0ac"age. =nging attentin shu$d 'egi#en t these areas t assure !a>i!u!0r!tina$ 'ene%it is achie#ed and that

the desired i!age is 0rtra&ed.


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!rimary50econary Data 0ources

Dri!ar& data is the in%r!atin &u *i$$ 'tainthrugh &ur *n e%%rts r '& hiring s!ene

and can inc$ude 'ser#atin sur#e&ing ande>0eri!entatin.

8ecndar& data cnsists % in%r!atin *hichhas 'een gathered '& s!ene e$se and is

re$e#ant t the #enture &u *ant t esta'$ish.

research for entrepreneurs1

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