1. Market Research Pamela J. Brown, Ph.D. Associate Professor & Extension Entrepreneurship Specialist Tucumcari Workshop Intermediate Track

2.  What is market research  How to learn about customers, competition and resources  How to save and make money finding new product sources  How is networking - competitive intelligence  Are their legal issues  Online activities Market research - Online

3. DEFINITION Marketing research - includes all aspects gathering, recording, and analyzing data related to the business environment, including competitors and consumers’ preferences for products and services. Focus - competitors, customers, trends and factors that impact your online business.

4. Why use market research? 1.It is impossible to sell products and services to customers that do not want them. 2.Learn what customers want. 3.Learn from your competition. 4.Package and present products and services in ways customers demand.

5. When to use Market Research Before opening business OR Ongoing? The ANSWER...

6. BOTH

7. How market research helps Focus and organize marketing information Provides timely and useful information Helps entrepreneurs to: –Reduce business risks –Spot problems –Identify opportunities –Develop action plans

8. Research Doing Business Online Search for: –Industry –Location –New suppliers –Product ideas –Marketing ideas –Better prices –Trends

9. Activity Search for ‘new’ suppliers for your business Use one or more search engines: GoogleAltaVista YahooHotBot InfoseekNorthern Light ExciteLycos

10. Investigate customer demand What is your product/service? Who wants it? Why do they want it? What will they pay? When will they purchase? Are there new customers?

11. Source: http://www.PewInternet.org, 2005http://www.PewInternet.org, 2005

12. Current customers Are they internet users? What opportunities are there to attract new customers on the Internet? Collect information on demographics, psychographics and values Why do they buy your product / service?

13. Think! Advantages of surveying current customers: –Dependable –Accurate –Current –Reachable –Defined Advantages of surveying potential new customers: –New perspective –Unbiased –More representative

14. What and how to ask? Avoid bias Use email Avoid too many open ended questions Use existing information Keep it simple

15. What is market potential? Search for reliable sources: SBA, Census, industry data http://www.thomas.net http://www.thomas.net Search beyond local data

16. Activity Find information at http://sba.gov/ http://www.cyberatlas.com

17. Using email Use an established email plan Obtain permission Use surveys, offline anecdotes, track responses to email Ex.: company uses humor…< 0.5% opt out rate Source: VanBoskirk, S. (Mar. 21, 2005). Email marketing FAQs for Beginners, Forrester Research, Inc.

18. Call customers IS your product the “Best thing since sliced bread?” Learn what customers are passionate about Call, ask, rank, make better

19. Sites with added value Analyze data – key performance indicators-KPI –Completed online purchases –First time vs returning buyers –Links visited –Options to buy online or in-store –How customers got to your site

20. Research Your Competition Is your competition across the world or next door? Search engines are the key to finding your online competition What can you do better, or different?

21. Evaluate Your Competition Visit their websites - What are they trying to do online? What do you like or dislike? What can your company do better? Actually SHOP on their site

22. Activity Search for your competition and suppliers. Find at least one of each. HINT: Needed for I Plan session Friday!

23. Market Research – Legal Issues Better Business Bureau –http://www.bbb.govhttp://www.bbb.gov Federal Trade Commission –http://www.ftc.govhttp://www.ftc.gov Risk management –PERI – Public Entity Risk Institute http://www.riskinstitute.org/test.php?pid=pu bs&tid=1126http://www.riskinstitute.org/test.php?pid=pu bs&tid=1126

24. More http://www.riskinstitute.org/FP_D OCS/RMSBAdditionalResources.pdf

25. SUMMARY Broadband access will change who and how Internet is used –Demographics will change –Watch out for youngsters –International customers Businesses have to think differently –Responsive –Out of the “box” –Engage the customer –On top of IT changes

26. Choice is yours Make INFORMED decisions Base decisions on FACT Stay current Read resources daily Expand to multiple media

27. American Idle? Successful businesses don’t sit still - they seek opportunities !