MKT Research

Market Research : 

1 Market Research Is there a real market for my product/service?

Market research comes first* : 

2 Market research comes first* *Why can’t you just start in with product sales efforts?

Purposes of market research : 

3 Purposes of market research Start-up To determine if there are enough potential customers for your products or services to provide a satisfactory return on your investment To get the information you need to write your business plan On-going To stay aware of new trends To monitor your competitors’ activities To know your customers’ level of satisfaction with your products and services

Questions to make the right decisions : 

4 Questions to make the right decisions What is the nature of the demand for your services or products? Who is most likely to buy or use your products or services? Who are your competitors, and what products and services do they offer? What is the growth potential for your product or service?

Excellent market research is : 

5 Excellent market research is Objective and unbiased Reliable and accurate Sufficiently in-depth Relevant to your information needs Continually up-dated and used

Begin with secondary Research : 

6 Begin with secondary Research Research done by reputable sources Published for your use

Secondary Research Sources : 

7 Secondary Research Sources Internet Topics related to your products or services Links to other topics Trends and new product and service developments Possible government regulations Library Hennepin County Libraries J.J. Hill Reference Library, St. Paul Reference librarians SCORE Counselors

Additional sources : 

8 Additional sources Business publications Found in most libraries Corporate Annual Reports Industry publications Business sections of newspapers Seminars and workshops St. Paul Science Museum (computer skills courses) Events listed in the business sections of Sunday and Monday newspapers U of M Extension, St. Thomas Extension and Hennepin Technical Colleges

Continue with primary research : 

9 Continue with primary research Information gathered by you

Sources for primary research : 

10 Sources for primary research Information interviews Internet: Access the websites of competitors—note how they present themselves Trade shows: Study the displays of competitors, and meet potential customers Yellow Pages and other directories

Scout out a location : 

11 Scout out a location Proximity to direct competitors Demographics of the area/neighborhood (social/economic, population age) Access issues: Traffic barriers, amount of foot traffic, and parking availability

Evaluate Competitors : 

12 Evaluate Competitors Array of products and services Pricing structures Mood/tone/ambiance/service Style, message, and frequency of newspaper ads, including local “shoppers” and direct mail

Knowing Your Target Market : 

13 Knowing Your Target Market Whether your target is a consumer or a business, you must know: How customers really use your products and services Usual buying cycles Loyalty to established brands or suppliers Unmet needs and wants your products and services can fulfill (or be modified to do so)

Are consumers your target market? : 

14 Are consumers your target market? How will you generate interest and motivate buying? What are the demographics of consumers you plan to have as customers (age, gender, income, education)? Can you cluster your market by interest and lifestyle (psychographics)? How far will consumers travel to buy your product? How will you turn your target market’s “wants” into “needs”?

Are businesses your target market? : 

15 Are businesses your target market? What are their decision-making policies? Who has the decision-making authority to specify your products or services? What are their expectations of product and service quality, delivery, price, etc?

Summary : 

16 Summary Organize, file, update, and use your research Monitor your customer’s satisfaction and loyalty Identify your customer’s changing needs Be aware of your competitors’ products and services and their strategies