E mpowering I magination A pplying K nowledge E xploring I nnovations T omorrow S eizing O pportunities A ccelerating B usiness I nspiring I nnovations E mpowering I magination A pplying Knowledge Explore S eizing O pportunities A ccelerating B usiness I nspiring T omorrow E mpowering I magination A pplying K nowledge E xploring Innovation T omorrow S eizing O pportunities A ccelerating Business I nspiring T Market Research and Analysis

The purpose of market research is to help the entrepreneur determine the market potential for the product or service.  Will anyone purchase the product/service?  Does the product/service meet customers needs?  Is the product/service different than existing ones?  How many competitors exist?  How do competitors market their products/services?  How large is the market?

Market Research and Analysis Local Sources  Libraries  Colleges and Universities  Chambers of Commerce  Government agencies  Incubators  SBDC  Small Business Development Center  SCORE  Counselors to Americas Small Business

Market Research and Analysis Trade Associations and Journals  Market statistics  Customer demographic information  Trade magazine editors  National conventions  Financial information

Market Research and Analysis Demographic Information  U.S. Census population data  State and county business patterns  American Demographic Magazine  “Annual Survey of Buying Power” (Sales and Marketing Management magazine)

Market Research and Analysis Internet Resources IDED: Profiles: SBDC: SBA:

Market Research and Analysis Computer Sources Check out CEL’s EntreWorld web site for:  Screened content representing best-of-the-web information for entrepreneurs  National calendar of events: seminars, conferences, courses, etc. of interest to entrepreneurs  Various channels for information on starting a business vs. running a business

Market Research and Analysis Competition  Yellow Pages  Business Directories  “Competition at a distance”  Competitor’s customers  Suppliers  Infrastructure

Market Research and Analysis  Short questionnaires  Postcards  Telephone surveys  Mail surveys  Customer visits  Customer lists

Market Research and Analysis Industry Profile:  Current market size  Growth potential of the market  Industry trends  Seasonal Factors  Existing Distribution Networks  Basis of Industry Competition

Market Research and Analysis Market Target Market Segment

Market Research and Analysis You can’t meet every target market’s needs, so don’t. Pick the easiest target markets to start with. Try to avoid price sensitive markets.

Market Research and Analysis The Four Who’s of Marketing 1. The User 2. The Decision Maker 3. The Buyer 4. The Influencer

Market Research and Analysis The Customer Profile  Demographics  Age, gender, income  Psychographics  Innovative, risk-averse, etc.  User-term Characteristics  Heavy/passive users, level of usage

Market Research and Analysis The Customer Profile Continued  Buying Behavior Where? When? What? How? Why?  What problem(s) are you solving?

Market Research and Analysis Knowing Your Competition  Who are they  Where are they  What are their strengths and weaknesses  Who are their customers  How do they advertise and promote  What is the basis of competition