1. Overview of Market Research

2. Market Research2 Market Research Module Schedule of Activities Time Activity Day 1: 9:00 - 10:00-Overview of Market Research 10:00 – 11:00-Determining the Size of Microfinance Market and Risks 11:00 – 12:00-Data Gathering and Area Mapping 12:00 - 1:00-Break 1:00 - 2:30-Market Survey 2:30 - 3:30-Data Processing and Analysis 3:30 - 4:30-Focus Group Discussion 4:30 - 5:00-Briefing for Field Practicum

3. Market Research3 Day 2: 8:00 - 5:00-Field Practicum Day 3 9:00 - 12:00-Data Analysis and Report Writing 12:00 - 1:00-Break 1:00 - 3:00-Report Presentation 3:00 - 3:30-Discussion of Market Research Issues 3:30 - 4:00-Action Planning

4. Market Research4 What is Market Research? “It is the systematic design, collection, analysis and reporting of data and findings relevant to a specific marketing situation facing the company.” - Philip Kotler

5. Market Research5 What is Market Research? Define the objectives Design – determine how you will go about the market research, and what tools to use. Collect and process Analyze Report Steps Involved PRODUCT DESIGNING INPUTS TO

6. Market Research6 Why do Market Research? So that the bank can design and offer products and services that the market needs and wants. So that the bank can design and offer products and services that the market needs and wants. This is called “market-driven” approach versus the one known as “product-driven”. This is called “market-driven” approach versus the one known as “product-driven”.

7. Market Research7 Why do Market Research? PRODUCT-DRIVEN – produce something and try to sell it without much regard to market demand. PRODUCT-DRIVEN – produce something and try to sell it without much regard to market demand. MARKET-DRIVEN –identify and meet clients’ needs on a profitable basis. MARKET-DRIVEN –identify and meet clients’ needs on a profitable basis. Product vs. Market-Driven Approaches

8. Market Research8 Objectives of Market Research in Microfinance Understand the environment in which the bank and its microfinance unit operates Understand the environment in which the bank and its microfinance unit operates - Market opportunities and risks - Competition and products they offer Understand the microenterprise sector Understand the microenterprise sector - Identify the financial services needed by microfinance clients Develop products that respond to the needs of and opportunities in the market Develop products that respond to the needs of and opportunities in the market

9. Market Research9 Market Research Tools Product Development Product Test Product Review and Modification Secondary data FGD Area mapping Satisfaction FGDs Exit survey Survey

10. Market Research10 Market Research for Product Development: Determining Market Size and Risks Market Size and Risks Research Question: Is there sufficient market in the bank’s target area(s)? What are the risks? If GO, proceed to Market Survey If NO GO, look for other sites and repeat the same process Gathering Assessment Market by Competitors Secondary Data Competitor Market Size Size of Market Served Size of “Unserved” Market Decision Point: Market Risks Go/No Go

11. Market Research11 Market Research for Product Development Product Development and Business Planning Research Questions:: What product (s) would be suitable? What is the potential market share of the bank? Market Survey Area Mapping Assessment of Supply & Demand Characteristics Estimation of Bank’s Target Market Share Product Concept Design Financial Projections Secondary Data “What do clients want?” Focus Group Discussions (FGD) OUTPUTS