Market Research 100 Presentation

8/3/2019 Market Research 100 Presentation

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Market Research and CompetitiveAnalysis for Start up Companies

Kresnayana Yahya

Maret 2007


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DEMOGRAPHICDEMOGRAPHIC--BUSINESS CYCLEBUSINESS CYCLE

Social Economic

DemographyDemography PEOPLE Who have Market to buy

ProductServiceIdea

InstitutionPersonPlace

BusinessBusiness

Ability

Willingness

Life - StylePsychography

PRODUCT


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Proyeksi penduduk Jatim 202541.236.5

31.5

18.1

30.1

34.6

30.1

15.6

25.2

22.6 20.3

19.919.0

25.8

32.9

27.6

30.2

35.9 36.4 35.3

30.7

30.729.627.9

25.2

21.121.221.8

6.9

9.411.5

13.2 14.1

26.0

22.719.2

1971 1980 1990 2000 2005 2010 2015 2020 2025

< 15 tahun 15 - 34 tahun 35 - 54 tahun 55 + tahun

Laki dan perempuan


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What is New

Economy

Networked

Economy+

C-Scenarios

Marketplace

Workplace

Digital

Economy+

Personalization

Self-service

Knowledge

Economy+

Rapid Know-

ledge Transfer Best Practices

New

Economy

.Integrated

Enterprise

Applications

Old

Economy

HYPERCOM

PETITION


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Trends: Communication Sector

The InternetThe InternetFixedFixed

Telecom.Telecom.

BroadcastersBroadcasters

Cable TVCable TV

OthersOthers

InformationInformation

TechnologiesTechnologies

WirelessWireless

TechnologiesTechnologies

MobileMobile

Telecom.Telecom.

ConvergenceConvergence


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Essential Questions forProduct Development

andEffective

Marketing Strategies Who are my customers and potential customers? What kind of people are they? Where do they live?

Can and will they buy? Am I offering the kinds of goods or services they want - at the bestplace, at the best time and in the right amounts?

Are my prices consistent with what buyers view as the product'svalue?

Are my promotional programs working? What do customers think of my business? How does my business compare with my competitors?

Source: Small Business Administration, http://www.sba.gov/starting_business/marketing/research.html


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Competitive Analysis Business takes place in a highly competitive, volatileenvironment, so it is important to understand thecompetition.

Who are your five nearest direct competitors? Who are your indirect competitors?

Is their business growing, steady, or declining?

What can you learn from their operations or fromtheir advertising?

What are their strengths and weaknesses?

How does their product or service differ from yours?


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Collecting Competitor Information Start a file on each of your competitors

and collect information on: Advertising

Promotional materials

Pricing strategies Hours of operation

Marketing channels

Packaging


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What

This Can

Tell Us

How often competitors advertise

Do they sponsor promotions Do they offer sales

Seasonality - when they advertise

Sales strategies

Target Market

Marketing mix


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What

Else Can it

Tell Us? The most popular package size.

Where customers are looking for the product

or service. Product extension opportunities

Whether market is expanding or contracting

Whether the product is a commodity ordifferentiated product

Opportunities to improve existing products


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Target Market Your current customer base: age, sex, income, neighborhood

How your customers learn about your product or service -advertising, direct mail, word of mouth, Yellow Pages

Patterns or habits your customers and potential customersshare - where they shop, what they read, watch, listen to

Qualities your customers value most about your product orservice - selection, convenience, service, reliability, availability,affordability

Qualities your customers like least about your product orservice - can they be adjusted to serve your customers better?

Prospective customers whom you aren't currently reaching

Source: Small Business Administration, http://www.sba.gov/starting_business/marketing/research.html


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New business Opportunities First Step is ID Target Market

Target Market A segment of the population that is mostlikely to use your product or service.

Usually described using demographic variables like,Gender, Income, Race, Age, Location, Lifestyle,Psychograpic, Technographic, Sociographic

Used to: Determine market potential

Develop product packaging

Choose marketing channels

Develop marketing mix and advertising strategy


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The way that products and services

can enhance the way people live

FROM ONE TO ONE ; FUTUREIS ALL TO ONE


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1. KEKAYAAN AKAN INFORMASI KEMUDAHANMENDAPAT INFORMASI, PASAR UNTUK RISKMANAGEMENT MENJADI MAKIN EFICIENT

2. PENURUNAN NILAI DARI OBYEK YANG TAMPAK

SECARA FISIK, MENDORONG PENGHARGAANYANG SANGAT TINGGI PADA GAGASAN( IDEAS).ADA KELANGKAAN IDEAS, BAHKAN SEBELUMJADI COMMERCIAL PRODUCT

3. PERDEBATAN TENTANG COPYRIGHT,CRYPTOGRAPHY, PRIVACY LAWS. TERJADIMISMATCH ANTARA SOCIAL CAPITAL DALAMERA INDUSTRI DAN ERA NEW ECONOMY


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Product Price

Promotion Place

Marketing

Interaction

Sales

Interaction

ServiceInteraction

SupportInteractions

CustomerConsideration

AndPotentialPurchase

CustomerSatisfaction,

Loyalty,And value

Traditional marketing Focus

Customer Experience Focus

ProviderParity

CustomerDifferential


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Sense

ThinkAct

Relate

SENSE

FEEL

THINK

ACT

RELATE

SENSE

FEEL

THINK

ACT

RELATE

Strategic Experiential Modules (SEMs)Strategic Experiential Modules (SEMs)

Feel


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Integration Core

Strategy Technology AgencyComplimentary

TransitoryPointSolutions

NewSkills

PremiumCapabilities

Changing approaches to outsourcing


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Subsistencemarketing,unconnectedmass marketing

Consumers aresegmented,interactivity

begins

Personalizedservice,lifestyle andbehavior

Consumersadvocates,buildingrelationshipvehicles

The all to one

culture; fullintegrated

Co

mpetiti

ve

ad

vantag

e Interactivity of execution

1 2 3 4 5

broadcast

interactive

personalized

memberrelationship

Fully integrated

BIKIN PROGRAM


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Product driven

Bombards the customer with messages

Capture Sales

Information flow is primarily one wayResponsibility of marketing department

Mass marketing model

Closely held resistant

New-technology resistantUnknown prospects and customer

Single-channel distribution

Indirect, imprecise accountability

Relationship driven

Maintains dialogue with the consumer

Captures sales and data

Information flow is two wayResponsibility of entire company

Direct mass marketing

Partners welcomed

New-technology friendlyAddressable prospect and customers

Multichannel distribution

Real-time accountability

Traditional Marketing Max-e-Marketing

Difference between traditional marketing and theMax-e-Marketing way of doing it


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In the Net economy, the buying process itself doesntchange. Predictably, it involves a logical progression:

Suspect Prospect Customer Advocate Partner

The process also involves activity phases that often lead to such conversion:

BrandAwareness

Passiveinterest

ActiveShopping

Purchase

Maximizing customer value and creating true advocates and even partnersrequires:

CustomerDevelopment

CustomerRetention

Reshopping Repurchase


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S U S P E C T S

PROSPECTS

CUSTOMERS

CLIENTS

ADVOCATES

PARTNERSPROFIT

STARTS

HERE

THE LOYALTY PYRAMID

B

RA

NDawa

reness

PUR

CHASE

RE- shoppingRE -purchase

REPEAT orders


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TRADITIONAL NEW OPERATORSCompliance driven Deregulated, privatized

Orders to a particular line Integrated turnkey solutions

Knowledgeable technical Business & marketing driven

High Predictability Lower Predictability

Steady price evolution Rapid price erosion

Focus on product lines Total integrated solutionsSlow delivery Fast delivery

Low level of service High level of service


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Selling Process

Activity

Suspect

Lead

Prospect

Customer

Communication

Informationprovision

Orientation

Transaction

Buying Process

Activity

Need

Interest

Information

Consideration

Orientation

Informationgathering

Communication

Transaction

Purchase


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Register

Offer

Sell

Collect

Search

Select

Buy

Receive

Marketplace

Seller Buyer


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OFFLINE : PDA

ONLINE : WIRELESS

ALWAYS ON

MAJOR PITFALLS :

Speed killsFashion & Glamour don:t make business

Diffusion of innovation takes time


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THE INNOVATION CIRCLE

Hardware & DeviceInnovations

Demo-Socio-Technographics Speed ofService Simplicity and

Convenience

Changing

CustomerPriorities

Infrastructureinnovation

Network Bandwidth NetworkConvergence PersonalizedBandwidth

MiniaturizationNew ChannelsDevice ConvergenceVoice User Interfaces


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Market Evolution Time & Scope

Value

M-BusinessMulti Device,Multi-Web,Transformation

M-BusinessMulti Device,Multi-Web,Transformation

E-businessWeb _ Enabled

Transformation

E-Commerce

Business

Integration

reengineeringSYSTEMS

INTEGRATIONAutomation

Web Enabled

Commerce


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Who Is or Could Be Your Target ?

Customers with extreme needsCustomers that no one else likes to hassle with

Customers who control spending decision

Customers with varying levels of category experience


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Time

Share

E-mail

Chat

WorldWide

Web

WirelessMobile

Internet

Embedded

Internettoday

tomorrow

Information

Appliances

AutosDigitalCameras

Toys

Screen PhoneMP3

MobileTablets

WAPPhones


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Trust

Customer relationship

Customer Identificationwith the Brand

Reliable, Fulfillment,Delivery, and Support

Integrity

ValueEfficient Useof My Time

Ease of

Doing BusinessEase of

Interaction

Ease ofDecision-Making

Innovation Differentiation

BrandPersonality

CoreDriving Idea

Brand Identity : INDOSAT

Catalog

CallCenter

DedicatedRetailStore

Web E-MailPartner

MultiProductStore

E-Market


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StageMarketingas Toolkit

Marketingas Strategy

Marketingas service

Marketingas Culture

Emphasis Marketing Mix Understandthe Customer

ServiceIndustries

and servicedelivery

CustomerRelationship

Elements ProductAdvertisingPromotion

DistributionPrice

SegmentationDifferentiationCompetitive

advantagePositioning

Customerinteraction

Service

encounterService quality

Customerretention

Customer value

ReferralsShareholdervalue


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Listen, analyze

communication

sell

serve

Cross sell

Understandyour customers Consumeracquisition Consumer

retentionMaximizelifetimevalue


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Four Ps Marketing: Products: What youre selling

Price: How much youre charging for the product orservice. Promotion: How youre inducing people to buy it. Place: Where buyers can find it.

Four Ps to focus on the four As of direct massmarketing.

Addressability: how do you identify and reach the bestprospects and customers?

Accountability: How easy is it to measure results? Affordability: How cost effective is it to interact with

the customer? Accessibility: How can you locate the people you want to

reach, and are they ready, willing, and able to receive your

message?


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SenseFeel

ThinkAct

Relate

SENSE

FEEL

ACT

RELATE

SENSE

FEEL

THINK

ACT

RELATE

Strategic Experiential Modules (SEMs)

THINK


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Communications

Visual/verbal

identity and signage

Productpresence

Co-branding

Spatialenvironments

Web sites andelectronic media

People ExperienceProviders

Key Experience Providers (ExPros)


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SENSE

FEEL

THINK

RELATE

ACT

S

E

M

StrategicPlanning

ofExperiential

Marketing

The Experiential Grid


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Agenda Introduction

Market Research

Practical techniques Reiterative points about marketing

Definitions and thought processes

Examples of market research presentation Business plan outline sample

Q&A


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W

hat is market research Just a set of activities? Focused on defined goals Refines the direction of the 5 Ps

Product, promotion, place and price(and positioning)

View into social processes? Who, what, when, where and why!

Necessary? Strategy does not take place in a

vacuum

Valued by organizations? Successful organizations.. Market research supports every

department

The bridge to

the customer!


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Market Research Fallacies MR is boring

MR is unnecessary

MR is for analysis geeks

MR is a waste of timeand $$

MR is easyha!


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Intent of market research What results are you looking for? Define measurement of market potential

Determination of market characteristics

Market share analysis

Sales analysis

Business trends

Refine opportunities to pursue and how

Market segmentation and niche markets

Features and benefits required for market success


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Marketing 101Generic market

definition

Target

Product

Market

Customer or user

need (Niche)Customer type

(segmentation)

Demographics/

Market size

Product or

Service+++


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W

hy do Market Research Knowledge is King Learn from othersyou will have plenty of your own lessons

Find strategic competitive advantages What are your barriers of entry? What are the competitors?

Develop competitive differential opportunities Why are you better? How can you be the best?

Understanding of core competencies and core rigidities Develop pricing models Targeted alliances/partnerships that extend reach Create the product roadmap

Features, benefits to fit customer/consumer need Support the creation of the company/product/service vision Feed the machine with information

Identify unmet needs Product extension into current market Extension into new markets


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Market Research is the

Critical component to any business plan Know the self

Know the customer

Know the market

Know the industry

Know the government

OBJECTIVE: To develop an informed

business in a vibrant high growth market

through strategiccompetitive advantages


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Types of market research Exploratory research

Review of literature (pubs, online, mags)

Discussion with experts, officials, friends and family

Study of competitors or case studies in similar industries

Descriptive research Targeted at specific question or hypothesis

Surveys/questionnaires random sample from a relevant population

Focus groups Industry or product specific (usually expensive)

Use your network! As a studentask for help from a targeted CEO

Experimental research Looking for cause and effect (i.e. pharma research)

Watching a user group use the product

Story boarding service offerings/product offerings to group of targetedconsumers


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Targeted research topics and why?

Advertising research Motivation research Ad effectiveness

Business Economics and

Corporate research Forecasting Business Trends Pricing studies Acquisition/merger research

Product research Product acceptance or potential Competitive product studies Testing of existing products Packaging design, etc.

Sales and Marketresearch Market potential Market share analysis Market characteristics Sales Analysis Distribution sales channel studies Test marketing/focus groups Promotional research and studies

Financial research Turnover and ratio analysis (public

companies annual reports)


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Competitive research Direct competition important Indirect competition critically important What to look for..

Map their strategy Differentiate your offering Find pricing advantages Develop barriers to entry How to fill the whole need for customer/consumer

Financial stability Market share and focus on new markets

where are they going

Take the short and long term view


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Short term advantages

Refined tactics for customer reach

Measurement of market potential

Market characteristics Market share

New product acceptance

Produce evaluation Improvements

Extensions


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Long range advantages

Planning, goal setting, developing strategies

Understanding business trends

Global market opportunities

Forecasting growth Management uses MR to reduce errors in

decision marketing, expand sales and locate

new opportunities Uninformed decisions can be failuresMarket research is done so that all marketing efforts can bestrategically integrated into the wants and needs of customers.


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Gorilla market research School libraries and Internet

Observation

Customer visits

Listening to tech support calls

Opinions of sales personnel

Networking

Use your gut feelings (intuition)


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More expensive options Scientific methods

Systematic and accurate investigation with objectiveanalysis of results

Goal to reduce uncertainty and risk of error

Research is reliable only if it can be repeated by anotherwith the same results

Surveys

Mail, mall, telephone, focus groups

High priced information 3rd party market analysis

Gartner group, IDS, Industry specific ($5,000-$100,000)


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Primary Market Research Surveys

Telephone, mail, in-person, (email)

Focus groups

Random sampling of population Scientific approach for primary market research

Define the problem Dont confuse problems w/a symptom

Analyze the situation What do you already have and what do you need Use secondary data

Refine the specific problem

Attain and interpret the data

Solve the problem


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Secondary Market research tools The internet

Competitive research White papers Press releases (statistics

Industry tradeshows

School databases Industry analysts

Gartner Group IDS

Internal records (sales, etc) Libraries

Government SIC codes/Industry codes Demographics

Commercial firms (competitors, partners, like companies) Press releases, conferences, tradeshows AC Nielsen, Dun and Bradstreet

Trade, professional and business associations


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Decisions driven by market research

Overall company vision

Product or service positioning

Product or service innovations/extensions Investment in marketing at segments of market

Understanding of potential distribution channels

Branding Credibility

Lock in or switching costs


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What are you looking for Basic understanding, knowledge, facts, trends

Markets are uncertain find your niche Technology is complicated find your focus Competitors are moving targets understand them

Demographics who, what, when and why Where you fit in the product/service life cycle

Introduction of new idea, growth market, shakeout (M&A opportunity), maturemarket (commodity) or declining market

Who are your target markets? The adoption process Innovators, early adopter, early majority, late majority or laggards

(Crossing the chasmGeoffrey Moore)

Answers will effect yourWHOLE marketing strategyif you dont understandthese concepts and where you fit inenter at your own risk


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SWOT Analysis Strengths

Your competitive strengths (would include barriers to entry) Patents, management team, financial resources, market leader, etc.

Weaknesses Your weaknesses (competitor strengths)

Funding, branding, lack of partners, etc.

Opportunities Market opportunities

Logical product extensions, high growth market

Threats Competitive threats

Microsoft is a competitor

Economic, demographic, etc. Baby boom retirement, interest rates, etc.

Strengths Weaknesses Opportunities Threats


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g pp

Ease of use (intuitive

GUI).

Funding need asap Logical product

extensions exist.

Competition is well

funded.

Product champions exist;excellent early

testimonials.

Ability to brandgoodproduct names are

taken.

High growth market Time to market iscritical path to

success.

Switching costs

(emotional and time)

Initially it is a low

margin product.

Volume and market

share are critical.

No existing market leader

yet.

Microsoft has low

barriers to entry

Management team has

taken companies

public

Lackof strategic

partnerships with

other companies for

bundling.

Ability to position

company as an

acquisition

candidate.

Economy in the

technology

industry

Barriers to entry - patents. Traction in distribution

channels

Superior engineering

skills.


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Competitive Grid

XZY Inc. Microsoft MailFrontier Cloudmark Brightmail Banter

End UserProduct Yes Yes Yes Yes No No

Personalization Yes Yes Yes No No ?

Accuracy 90%+ 10%-25% 10% - 75%

10% -

75% 80% ?

Adaptive Learning Yes No No No No ?

Classify beyondspam

Yes Yes No No No Yes

Individual client Yes Yes YesN

oN

o ?

Enterprise server Yes No No P2P Yes Yesw/ integration

Price Point $39/seatFree, butpainful

Free Free ~$4,900$75,000 +$750/seat


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Presentation of Market Research

filtering

classification

rules/signature based machine learning

prioritization

functionality

technology

Banter

intelliMailBrightmailVipuls Razor

Inbox ProtectorMcAfee Spamkiller

Mail Frontier

Cloudmark SpamNet


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Viewed as Situation Analysis

External forces Customer Competitor

Government/Political

Economy

Funding trends

Environment trends

Social trends

Technology trends

Pain points

Market

Segmentation

Niche (very focused)

Motivations whatwill make them buy!

Strategies/objectives

Financial condition

Market share

Target markets

OT (part of SWOT)

Know the operating environment!


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Sample Business Plan Outline Executive summary

Company description Organizational plan

Outsourcing, in-sourcing Management

Product

Industry Analysis and Trends

T

arget Market Segmentation Niche

Competition Competitive Grid Summary of OT (part of SWOT)

Strategic position and risks

SWOT analysis Marketing strategy

5 Ps

Financial projections Important: Market share will feed

financial forecast

Potential exhibits Management bios Product technology overview Product timeline (if applicable) Screen shots (if applicable) Organizational structure (org chart) Product pricing

Detail of distribution channels Detail competitive threats and resolutions

Competitive core competencies Barriers of entry and detail

Other deals that are critical to your success


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General starting points for market research

Business magazines Business Week Business 2.0

Fast Company General business pubs Wall Street Journal Red Herring Economist

Industry trade pubs PC Week Info Week Retail specific

Government pubs SIC industry codes

Online

Ask Jeeves, Google, Yahoo! Finance Ratio analysis and

competitive analysis

SJSU libraries D&B reports


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Definition

Marketing research is the systematic and

objective process of designing,gathering, analyzing, and reporting

information to aid in making marketing

decisions.


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Purpose of Marketing Research

CustomersConsumers

Public

Marketer

Decision-maker

Firm

INFORMATION


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Implementing the Marketing Concept

CUSTOMER RELATIONSHIP MARKETING (CRM) -the idea that a major goal of marketing is to build long-

term relationships with the parties who contribute to thecompanys success.

Marketing research helps marketers to managerelationships with customers they already have, as well

as to attract new customers How? By filling information gaps between needs, wants,

expectations and current offerings


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Uses of Marketing Research

Identify and Evaluate Opportunities1) Detect trends in the marketing environment

Demographic Socio-economic

Cultural

Technological

Competitors

2) Estimate market potential for new ideas


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Analyze and Select Target Markets

Identify groups of consumers who possess similar

needs, characteristics and preferences and selecttarget markets

Determine how to effectively segment the targetmarket to create competitive advantage


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Plan and Implement the Marketing Mix1) Product Research

2) Pricing Research3) Distribution Research

4) Promotion Research

5) Integrated Marketing Communications (IMC)


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Analyzing Marketing Performance

1) Performance-monitoring research (e.g., service

quality, customer satisfaction, sales & marketshare)

2) Exploring failures to explain in further detail thesource of problems


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Threats to the Value of Marketing Research

Garbage

IN

Garbage

OUT

Nonuse

inappropriate use

Biased objectives


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Questions to ask?

Who are your biggest competitors?

Who are your customers?

What does it take to get to your customer?

What does your product/service solve?


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Sample of


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Words of wisdom

What counts most is not being right the first time, buthow quickly a company can learn and modify its path.Jakki Morr, Marketing of High TechnologyProducts and Innovations

Grey markets are the most importantthat area notfully understood must be respected.Prof. Charles White, Golden Gate University

Knowledge is a weaponuse it to win. Unknown


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Documents

Market Research 100 Presentation