Information Overload “In this oh so overwhelming information age, it’s all too easy to be buried, burdened, and burned out by data overload.”

Setting the Stage No one ever asked for a microwave! Don’t expect research to give you the ANSWER Translation: customers can explain but seldom express ther deep needs Example: change hours or? Not an exact science

Consumers and Demand Business Plan Section 3, Part A Done through marketing research process Collect secondary data Collect primary data through use of electronic survey Create conclusions to support your consumer demand

5 Steps of Primary Market Research Define the Question Select a Research Method Collect Data Analyze Data Draw Conclusions

Define the Question (Identify your Information Needs) What are you trying to find out? Maggie would like to start a dog walking service….what does she need to know? Step 1: How will your data be used? What data needs to be collected? What methods of analysis will be used? What does my customer want?

She needs to find out…. How many dog owners are in her area How many lack the time to walk their dogs How much would they be willing to pay

Select a Research Method (Obtain Secondary Resources) Primary Data vs. Secondary What is best for Maggie? Step 2: Secondary data: information that has been collected by someone else. It is easily obtained and inexpensive. Use the Internet to get started. Resources to use include: U.S. Census Bureau, Chamber of Commerce, trade associations, trade publications, and commercial research agencies. When collecting secondary data, ask yourself: demographics & psychographics of the customer, how large is the market, is it growing, is it affected by geography, how can I reach it, how do my competitors reach the market, what strategies have been successful with these customers?

Secondary Data Maggie’s Neighborhood First from Secondary Sources 60% were dog owners Average salary $75,000 Most had adults working Dog ownership is on the rise First from Secondary Sources Demographic and psychographic data Economic trends

Select a Research Method Possible Primary Sources How will your questions get answered? Survey Observation Focus group

Survey Strengths and Weaknesses

Observational Research Fisher-Price set up an observation lab in which it could observe the reactions of little tots to new toys.

3. Collect Data First from Secondary Sources Demographic and psychographic data Economic trends and industry forecasts Then, create Primary Data Collection Step 3: Primary data: information you obtain for the first time and use specifically for your study. It is current and relates directly to your objectives. Use observation, interviews, and surveys. Use several reputable sources. When collecting primary data, ask yourself: demographics of my customer, would potential customers purchase; why/why not, when and how much would they purchase, how do they find out about the product/service, what do customers like about my competitors?

4. Organize Data Interpret the information Maggie’s findings: 2,500 dogs in her area 30% of dog owners would pay $20 for a dog walk = 750 dogs/week! Step 4: Categorize the data and create charts and graphs to depict the findings. This information helps to refine your market analysis and serves as a basis for your marketing plan.

5. Analyze Conclusions How will the info be used? Maggie concluded she can make a profit… Ways to let people know? Step 5: Ask yourself these questions to help judge your chances of having a successful business. Is there a market? How big is it? Will the industry support such a business? What do substitute products/services reveal about demand for the product/service? What do customers, end users, and intermediaries predict the demand will be?