ARE WE RESEARCHING? DO WE DOT IT? ARE WE DONE? Doing Marketing Research

What are they looking for? What are the problem?  How big is it?

How BIG is our market? Good to show our entire market  Target a subset  $ for units Desirable (Necessary?) to show some verifiable data Competition (is the Market now)  Market share data  Strategies  Strengths & weaknesses Do not forget the “Effective reach”!)

Identifying your Market Define the industry Identify the segments Target the segments Qualify the customers Estimate the demand Name the competitors Develop position

Market Segmentation It is relevant? Does it impact desirability of our product? Does it impact our strategy? In the market big enough to matter? What segmentation variables might we use?

Criteria for Segmentation Product/service features Buying habits Ability/method/timing to reach Pricing/ability to pay  Careful about “Crossover effects” Size of market

Choosing target segment Competition Homogeneity Growth Capacity to serve Fit between our capabilities and customers needs

Market research process Given our product and target market Develop a set of questions that we must answer Collect data Analyze data Draw conclusions and develop strategies

Types of questions Size of market Relevant segments Major customers  Their needs (potential value proposition)  Their decision making process  Appropriate channels of distribution Existing and potential competition  Strengths and weaknesses

Market Research Nothing beats primary data! 1-on-1, face-to-face customer meetings 1-on-1 customer telephone interviews Beta test experiences Customer focus groups Customers survey Trade shows and conferences Competitors Distributors Trade publication journalists

Market Research Secondary data Trade and general press Competitors’ Annual reports or IPO filings Industry research reports Stock analyst research reports  Company/competitors specific  General industry reports Federal and state complied statistics

How much research is enough? Depends on many factors Timing Resource commitment required How many other people need to be convinced? May do enough to get started, the develop Ask yourself:  What might I do differently if I knew?

Credibility Need some verifiable facts Good to show some primary data Hard to beat testimonials! Need consistency

Typical elements of a Marketing Plan Market opportunity  User benefit (value proportion)  Size of market (Evidence of need)  Target customer segments  Competition Product definition/description Market Analysis and strategy Marketing Mix  4P’s