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Start your own business Programme
Market Research Session
Ciara MacNeice
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Structure of evening
Ciara MacNeice Tea/Coffee break @ 7.30 Close at 9.00 – 9.30
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Objectives of session
Understand the importance of market research
Understand the types of researchUnderstand areas to research Where to find information
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ContentsIntroduction to market research
DefinitionWhy bother?Types of market research
What to research? Macro environment - PESTMicro environment -
Customers/Competitors/Suppliers/Dists
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Contents cont.
Low cost research sources, where?Specialist market research sources Databases Government sites
Where cont? Competitor informationDublin city library, Invest NI Databases –search competitorsTest competitor products
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Philip Kotler, Professor of International Marketing said;
“There are three types of company;
those who make things happen,
those who watch things happen,
and those who wonder what on earth happened.”
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Small business in Ireland that make things happen
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Todds Leap, Ballygawley
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“Marketing research provides practical, unbiased
Information, (which) helps firms avoidassumptions & misunderstandings that could result in poor marketing
performance”
Dibb, Simkin, Pride & Farrell
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Why bother
with market research?
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Why bother?
Unwise to develop a product & then look for market where it can be sold
Market research helps firms understand customers, competitors, market trends, and aspects of the marketing environment
Market research provides information on which firms can make more informed decisions
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Why you should bother!
Business success involves meeting the needs of the customer
To understand the needs you need to research
Identify new product/service opportunities
Keep your finger on the industry pulse
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Innocent smoothies
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Market research…basics Spent 6 mths working on smoothie recipes In the summer of 1998, they took some of their smoothies to a local
jazz festival to try out their idea. They put up a big sign above their stall asking ‘Do you think we
should give up our jobs to make these smoothies?’ After trying the smoothie, drinkers were asked to vote by putting
their empty bottle into a bin saying ‘YES’ or a bin saying ‘NO’’. At the end of the weekend, the ‘YES’ bin was full so the three boys
all went to work the next day and resigned. Further research and business plan completed Secured investor from USA
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Where are they now
Revenues of £128 mHave 70% stake of smoothie marketIn April 2010 Coca-Cola increased its
stake in the company to 58% from 18% for about £65 million.
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Areas to research Macro environment
Micro environment
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“Change is the only constant”
(A. Toffler)
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SME
Suppliers
Microenvironment
Customers
Distributors Competitors
Macro environment
Economic
Social
Technological
Political
Legal
The MarketingEnvironment
Environmental
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Scanning the Environment
No business exists in a vacuumEnvironment changes continuouslyNeed to look outwardsMarketing mix is dependent on marketing
environment
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Typical PESTEL factors Political e.g. such as tax policy, labour law, environmental law, trade
restrictions, tariffs, and political stability
Economic e.g. factors include economic growth, interest rates, exchange rates and the inflation rate - factors have major impacts on how businesses operate and make decisions
Social e.g. attitudes to work, health, trends, fashions – Day spas Technological e.g. innovation, new product development e.g. MP3 player
Environmental e.g. global warming, environmental issues - waste mgt sector
Legal e.g. competition law, health and safety, employment law
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Microenvironmental FactorsCurrent & Potential Customers
Essential that firm finds out what they want
Competitors
monitor what competition are doing now &
try to anticipate what they will do in future
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Microenvironmental Factors
Suppliers
Can lead to firm failing to meet promises
to customer
Choice of suppliers important
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Question – 10 mins
Key players in your macroenvironment?Key players in your microenvironment?Insert into action plan
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How Toyota reacted to its macro & micro environment?
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Toyota Prius – environmental, social & technological
Hyrid engine – uses petrol & electric power
In city driving, at low speeds, it runs off electric motor
Fuel economy is doubled & Emissions are lowered
£1000 grant – Powershift scheme
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Question? 5 mins
What marketing environment forces was Toyota responding to?
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Break for Tea/Coffee
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Types of Market Research
Split into 2 broad areas:Primary research
‘Field research’ for specific purpose, undertaken from scratch
Secondary research Consists of data and info that already exist
Less time consuming, efficient, quick to access, can be in-expensive
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Primary research
Economical and timely richness of data - attitudes, beliefs, emotions
and perceptions. Examples include:SurveysFOCUS GroupsObservational research – mystery shopping Customer feedback formsIn-depth interviews
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Secondary research
usually easy to findTime and cost economies associated with
secondary data. Examples include:Market research ReportsDatabasesTrade publications/magazinesTrade associations
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Data generated from research
2 main types of data generated:Qualitative research
Quantitative research
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Qualitative characteristics
Focuses on developing an understanding of things rather than measuring them
Uses small numbers Can result in rich and detailed data Range includes:
Survey research Questionnaires Focus groups In-depth interviews Observational techniques
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Quantitative characteristics
Results are expressed numericallyData such as sales figures, market size,
market share, demographic informationUses large samplesMail questionnairesTelephone interviewsFace to face interviews
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Secondary research
Types of data you can find from secondary research?
Where to find secondary research locally?
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What can you find out from secondary sources
Market sizeIs your market in growth or decline? What are the trends?What are the forecasts?Have you a niche? Have you a business?
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Get grasp on Economic Influences
General Economic climate Interest rates Economic recession in 1980’s caused increase
in unemployment and affected customers willingness to buy
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Get grasp on socio-cultural Influences
Environmental issues – green societyHeath concerns – food products/organic
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Sir Clive Sinclair….
Member of British Mensa! High marks for innovation, low marks for
marketing1981 – Sinclair computers formed ZX Spectrum (1982) http://en.wikipedia.org/wiki/Clive_Sinclair Selling 12,000 a week Company made £8.55 m profit with turnover of £27m 1986 – sold to Amstrad for £5m
Then……in the 1980’s
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Case study Sinclair C5 –15 mins
WHAT HAPPENDED?
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Where do we access this information?
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Check out….
Invest NI Library, Bedford SquareBedford Street, BelfastEuropean Info Centre
90 239090
Call before going and make an appointment.
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Invest NI library services
MintelKeynoteEuromonitorVision netKompass IrelandIrish times online archiveAccess to Business magazines online
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Excellent Secondary Information Sources
Mintel/Keynote Produce Market intelligence reports on various
market sectors providing extensive info on: Market size – growth or decline Typical Customer profile PEST analysis Competitors/share of the market and
profiles Market forecasts
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Mintel & Keynote Reports
Based on:Exclusive consumer research Key trade interviewsan up-to-date overview of the marketplace,
looking at changing trends in an industry Backed up by formal desk research from
trade and government sources
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View websites....keynote.co.uk
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Mintel.com
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Euro monitor
Euro monitor – intelligence on vast array of industry, countries and consumers
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Databases
Kompass IrelandMajor database directory of businesses or
suppliers throughout Ireland by product/service, location, no of employees
Vision net online – companies reg officeProfit/loss, address
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Relevant Trade associations/bodies
Irish Tourist Industry Confederation
Tourism Ireland
www.itic.ie
www.ireland.ie
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Tap into useful websites
Central Statistics Office - www.cso.ieEconomy statistics Population statistics
Census information & percentage changeHousehold budget
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5 mins....What do you need to know about competitors?
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Why monitor competitors?
Extremely importantKey piece of the market research jigsawCustomer's usually know the differences
between companies - They know that company A is cheaper than company B
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Competitor Analysis
Who are they?What are their strengths?What are their weaknesses?Do you have up-to-date information on
their products, services etc.
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Classifications of competitive data
Recorded data Secondary Trade press Annual reports Government sector
reports
Observable data Competitors
promotions Competitors
advertising Mystery shopping
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Sources of competitive data
Suppliers Customers Conferences Trade shows
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Other sources of info.
Go to exhibitionsAt exhibitions and trade fairs check which of
your competitors are also exhibiting. Note how busy they are and who visits them.
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Organise the info
Put the information into three categories:what you can learn from and do better what they're doing worse than you what they're doing the same as you
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Where to get info? Answer….
First Port of Call Databases Specify top 5-10 in terms of size, by
county etc. Business Name, addresses, area of
business, if available, turnover etc
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Answer…. Where?
Invest NI
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Case study
Bladonmore
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Survey research Design Tips
1. Survey who? Current customers Potential customers
2. Objective of survey?
3. How?
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Me or an agency??
Market research professionals are likely to get better results. They have experience in designing survey questionnaires, running focus groups and asking the right questions.
For small-scale field research, your best option may be a freelance researcher
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Check out research buyers guide www.rbg.org.uk
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Sample agency – perceptive insight market research
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Be careful
Important to be clear regarding the potential sample and to define the population
E.g. do we interview purchasing managers in all textiles companies or only those that employ more than 50 people in NI
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Surveys
Surveys
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Exercise
Who would you like to survey & where?
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Survey research Design Tips cont.
Objectives - What do you want to discover?Satisfaction with current product/service,Suggested product or service improvements,Competitor information e.g. who and why,Price pointsContinue to Purchase in the future
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Exercise
What do you want to discover?
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Sampling Method
Telephone PostalOne to oneInternet
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Survey format
Planning is important Needs to be well structured and flowing Concise 3 types of questions: (best to use a combination)
Yes/nomultiple choice open questions
Pilot survey with a small sample Amend if necessary
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Sample multiple choice question
What factors do you consider to be influential when purchasing services?
What price point do you think is reasonable for this product?
£10-20 £30-40
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Please rank the following factors according to how they would influence your decision whether or not to purchase biodiesel?
Please tick. Very important
important irrelevant
Price
Environmentally friendly
Performance
Availability
Payment methods
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www.surveymonkey.com
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Survey monkey
Worlds most popular web based survey tool
1. Customer Insights Whether you want to measure customer satisfaction. Get
feedback on a new product or learn more about purchase behaviours, Survey Monkey can get you answers fast.
2. Research
Our survey tool is as powerful as it is simple. It can be used for all types of research for marketers and entrepreneurs.
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Sample open ended questions
From the list below what type of services/products do you buy in this sector?
Name suppliers you use and their strengths/weaknesses
What trade shows do you attend?
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Exercise – 5-10mins
Write down survey questions appropriate to your business/idea
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Key learning outcomes?
Key points learnt tonight
Action plan development