Module 7 Marketing Research and Planning

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SBDC Counselor Training ManualModule 7 Marketing Plans and Market Research

Table of Contents

1. Performance Objectives

2. Why Marketing Plans and Market Research?

3. The Marketing Plan

4. Marketing Research and the WMRC

5. Database Resources Available to the WMRC

6. Online Resources

7. Additional Sources of Information

8. WMRC Partners

9. Sample Electronic Files

a. BizMiner Reports

b. Demographic Reports

c. Dun & Bradstreet Examples

d. GIS Mapping Examples

e. Market Research Sample Reports

f. Psychographic Reports

g. Research Request Information

h. Sample Marketing Plans

i. Web Optimization

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Marketing Plans and Market Research

Performance Objectives:

Training participants will:

Be able to determine marketing needs of clients by asking appropriatequestions.

Be able to assist client in setting and reaching market research andplanning goals.

Be able to assist client in developing a reasonable and actionable

Marketing Plan. Be familiar with market research resources available and the services

of the Wyoming Market Research Center (WMRC). Be able to develop a request for information through the WMRC.

Evaluation:

Proficiency in market research and planning will be evaluated as follows:

Demonstrate how to take a client through a well considered marketingplan.

During the mentoring session, correctly answer case study questionsconcerning market research and planning.

Be able to explain the services and resources of the WMRC. Be able to develop a proper request for information through the WMRC.

Required:

Requirements for completion:

Attend SBDC counselor training session on marketing. Read Module 7 thoroughly becoming familiar with services and

resources available. Take part in client counseling with mentor. Analyze marketing sections of the Business Plan and review with

clients.

Introduction

Why Marketing Plans and Market Research?

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"Nothing happens until the product is sold" is an old adage that is still verytrue. Employees will be idle, records blank, and inventory will sit on theshelves.

The purpose of this module is to provide a basic blueprint from which toguide your client, not to teach marketing to you. If you find you aren'tfamiliar with the concepts in this module, you must make a concerted effort

to gain this knowledge before counseling a marketing client. This can beaccomplished by taking marketing courses offered by your university, co-counseling with your center's marketing expert, participating in the otheractivities required in this module, logging into and taking courses onSmallBizU or other on-line courses, and attending SBDC marketingworkshops.

Marketing may well be the most demanded area of assistance. Clients mayeither be ready to rush out and spend thousands of dollars on advertising orthey may be afraid to spend a dime. In either case, chances are they haveno idea of what their typical customer profile may be, if they should

advertise in the newspaper, or hire a salesperson. Your job will probably be toslow the client down to first do some planning, and then budgeting.

When you start working with a marketing client, you may find you can bestlearn and understand their marketing efforts by developing a roughmarketing plan. This will give you the blueprint from which you can thenbegin guiding the client to improvements. You may first need to assist theclient to research their market or industry.

A sample marketing plan outline and a discussion of the resources availablethrough the Wyoming Market Research Center and other sources areincluded in this module.

So you have a product (or service) and it isnt selling

Just because an innovator develops a new mousetrap that is unlike any other

mousetrap that has ever been built, he/she should not assume that there will

be no competition. Competitors can take on several faces. They can be

anybody that can potentially have a share of your market. Market research

can reveal these hidden competitors.

Additionally, businesses always need to know about current trends in their

industry. Trends can include a general overview of the market, major players,

global influences and market size. Is their product in the early stages of the

product life cycle or is it in a mature stage? Are there similar product lines?

This becomes important when you determine who your competitors are.

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What are current trends in packaging and distribution channels for your

product? Having industry information will have significant impact as you

develop your marketing plan.

Demographic and psychographic information will uncover potential

consumer groups so that marketing strategies can be focused. Perhaps an

entrepreneur has an idea for a new kind of organic food product, but theyarent real sure about who would buy that product. New customer markets,

besides the most obvious ones, can be sought out through market research.

Psychographic information (lifestyle behaviors) drills down into specific

target markets even further.

Solutionssolutionssolutions

The key to any business is connecting with customers. The challenge is toknow what people are thinking and how they will react to products andservices so this connection can be made.

Determine customer needs beforetrying to connect to them throughmarketing strategies. Once this information is uncovered, the businessowner should focus on differentiating his/her product from similar products.Products and services must be able to give customers an obvious benefitinother words, whats in it for me?

Businesses should appeal to customers. A business should be unique, notonly in the products and services provided, but also in the way the marketingstrategy is approached. This may require changing the way the owner thinksabout the business. Ask this question. How can products be made so uniquepeople will come in to enjoy the experience of shopping in a store? Theanswer will come through market research and planning.

Seventy-five percent of a business plan has to do withmarketing

Business plans, while well intentioned, may be missing critical pieces of

information which tip the scale toward receiving needed financing. Bankers

want to know thorough research has been completed before agreeing to

capital funding. Market research is the workof answering business plan

questions.

The questions below should be answered in a business plan and all can beanswered through market research and analysis:

Who are your clients customers? Who are their competitors? Where should the business locate?

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What is new in the industry and who are the major players?

What is the size of the current market?

Is the plan to profit as a low cost leader or through productdifferentiation?

Has the stage of product life cycle been considered?

What are barriers to entry?

What are strengths of the product? What are weaknesses of the product? What are current opportunities in the industry? What are current threats in the industry?

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c. Competitive Landscapei. Identical productsii. Similar productsiii. Trend in products

IV. The Product/Service Plana. Product/Service Descriptionb. Features/Benefits

c. Life Cycles/Seasonalityd. Trade Area Description

V. Marketing Strategiesa. Location/Distributionb. Price/Quality Relationship

i. Promotional Strategiesii. Packagingiii. Pricingiv. Promotionv. Distribution System

vi. Public Relations/Networking

vii. Advertisingviii. Customer Serviceix. Human Resources

VI. Action Plana. Calendar or schedule of objectives and goals

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Marketing Research and the WMRC:

The Wyoming Market Research Center (WMRC) is a part of theWyomingEntrepreneur.biz network. It was created out of a need to stimulateeconomic development In Wyoming. Existing businesses in this sparselypopulated state struggle with competing markets in the broader region,nationally and globally. Competitive intelligence and industry informationwas needed in order to grow businesses and encourage entrepreneurialpursuits. The Wyoming Business Council and the State of Wyoming saw thisneed and the WMRC was formed. Generally, WMRC services are provided atno charge to clients. The overall mission of the WMRC is to create jobs inWyoming.

The WMRC provides the following services:

Competitive intelligence

Competitive product profiles

Customer markets Construction Project Reports

Industry development and trends

Industry financial data

Website optimization

E-business opportunity analysis

Local, state and national demographic trends

Psychographic information

Focus panels

Survey development

Federal and State Regulations Mailing Lists/Labels

Geographic Information Systems (GIS)

Competitor Mapping

Customer Prospecting

Site Selection

Customer Drive-Time Analysis

Market Penetration

Store Market Analysis

See GIS folder for examples of maps

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Marketing Material Analysis

Website evaluation Brochures and logos

Direct mail pieces

WMRC Specialty Services

Web Optimization

The key to business success is being able to connect with customers. In thisrural State of Wyoming one of the most effective ways to reach regional,national and global customers is through the Internet. Website effectivenesscontinues to be one of the biggest problems confronted by businesses inWyoming. For the WMRC, the number of requests for website analysiscontinues to rise. In response to this demand, web optimization services arenow offered to clients. Web optimization includes analysis of the following:

Keywords Description

Titles

Linking

Images

Loading speed

Usability

Navigation

See the Web Optimization folder for Web Optimization Template

and Guide to Finding a Web Developer.

Dodge Construction Reports

Dodge construction reports are a McGraw-Hill product generated through a

database of commercial/industrial and government construction projects. Bid

project information is gathered through local, state and federal permit

systems in WY, UT, MT, SD, NE, and CO. This database is continually updated

and gives weekly notice to contractors, material suppliers and vendors about

upcoming bid projects. The database search criterion includes region,

material type, government agency, project type and cost. Bid reports aresent via email. The WMRC cannot provide bid information to those companies

with more than $5 million in annual sales.

See the Dodge Construction Report folder for instructions on how to

request reports.

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Database Resources Available to the WMRC:

1. Business Analyst by ESRI: GIS Program for mapping includesdemographic information by state, county, zip code, census tract andcensus block group; allows limited data on businesses (by SIC code)and access to limited household information (but not addresses).

2. Claritas: This provides geographically customizable demographic andpsychographic information, including the PrismNE psychographicprofiles of US households.

3. Business Analyst On-Line: Customizable reports on demographics,markets and spending.

4. DialogPro Competitive Intelligence: Databases include ABIInform, Advertising News, Brand News, D&B global information, DialogNewsroom, Market Research from EIU, Frost & Sullivan and others,Public Opinion Online, Red Books Advertisers and Agencies,

Trademarks and demographic information.

5. Dunn & Bradstreet Million Dollar Total Database: Leadingprovider of business information in the US. Competitor and customerlists can be developed using SIC/NAICS codes, keywords, annual sales,number of employees, city, county, state and various other criteria.

6. HillSearch:This is a service of the James J. Hill Reference Library.

7. EuroMonitor: Global database includes company profiles, countryprofiles, global reports, economic indicators, industry growth/market

size and trends.

8. MarketResearch.com: An aggregator of commercial market researchreports including service industries, consumer goods, food andbeverage, heavy industry, life science, public sector and technology &media.

9. Dodge Construction Reports: A McGraw-Hill database ofcommercial/industrial and government construction projects. Bidproject information is based on local, state and federal permit systemsin WY, UT, MT, SD, NE and CO. This database is continually updated

and can give notice to contractors, material suppliers and vendorsabout upcoming projects. Weekly reports are sent via email. Thedatabase search criterion includes region, material type, project typeand cost.

10.High Beam: A business search engine often returning more focusedresults than engines which are more general.

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11.Associations Unlimited: Accessed through the Coe Library, this is adatabase of all associations, trade organizations, etc. around the world.These groups are often excellent sources for information on an industryor type of business.

12.RMA Annual Statement Studies: The WMRC has the electronic

version of the RMA, which give balance and income statementaverages for a wide variety of industries classed by NAICS codes.

13.Bizminer: This source provides marketing and financial benchmarksand data for a wide variety of businesses, classed by SIC code. Dataincludes balance sheets, profit and loss, volume, sales, trends, marketshare, and failure rates.

14.World Trade Atlas: This resource offers a database of export tradesorted by harmonized trade schedule. Search criteria include

commodity type, state, country and shipping method (air or vessel).

15.Trade Show Network: An on-line database of over 15,000 globalevents. Useful for finding trade shows of interest to businesses.

16.Festival Network: A database of arts and craft shows, and artfestivals, etc.

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On-Line Resources:

Wyoming

100% Wyoming:http://allwyoming.uwyo.edu/Wyoming business directory compiled and maintained byManufacturing-Works.

Wyoming Economic Analysis Division:http://eadiv.state.wy.us/

Wyoming statistics and demographics.

Wyoming Labor Market Information: http://doe.state.wy.us/lmi/

Resources on Wyoming labor and employment.

National

SBDC Net:http://sbdcnet.utsa.edu/ASBDCs national clearinghouse, includes business plans, companyinfo, demographics, e-commerce, finance, franchise, home business,

HR, industry research, international trade, invention, marketing,procurement, small business trends, taxes and accounting, veterans,women and minorities.

US Census: www.census.govA variety of tools including American Fact Finder, Economic Census,Censtats, Quick Facts, Mapping Tools, DataFerrett.

US Department of Labor:http://www.bls.govData on inflation, consumer spending, wages, earnings, employment,occupational outlooks, etc.

Small Business Administration:http://www.sba.gov/advo/research/data.html#stSmall business data and research.

GeoData.gov:http://gos2.geodata.gov/wps/portal/gosLocate government maps, some customization for GIS mapping.

Export.gov:http://www.export.gov/tradedata/index.aspUS Government trade data and analysis.

Small Business Advancement National Center:http://www.sbaer.uca.edu/researchLinks to a variety of small business resources.

Wyoming Geographic Information Advisory Council (WCIAC):http://wgiac2.state.wy.us/html/www.asp

Lists GIS resources on the web. Wyoming Labor Force Trends:

http://doe.state.wy.us/lmi/0103/toc.htm On-line version of the Trends newsletter, with special reports onWyoming labor markets.

Center for Rural Entrepreneurship:http://www.ruraleship.orgCase studies, on-line library, rural resources.

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http://allwyoming.uwyo.edu/http://eadiv.state.wy.us/http://doe.state.wy.us/lmi/http://sbdcnet.utsa.edu/http://www.census.gov/http://www.bls.gov/http://www.sba.gov/advo/research/data.html#sthttp://gos2.geodata.gov/wps/portal/goshttp://www.export.gov/tradedata/index.asphttp://www.sbaer.uca.edu/researchhttp://wgiac2.state.wy.us/html/www.asphttp://doe.state.wy.us/lmi/0103/toc.htmhttp://www.ruraleship.org/http://allwyoming.uwyo.edu/http://eadiv.state.wy.us/http://doe.state.wy.us/lmi/http://sbdcnet.utsa.edu/http://www.census.gov/http://www.bls.gov/http://www.sba.gov/advo/research/data.html#sthttp://gos2.geodata.gov/wps/portal/goshttp://www.export.gov/tradedata/index.asphttp://www.sbaer.uca.edu/researchhttp://wgiac2.state.wy.us/html/www.asphttp://doe.state.wy.us/lmi/0103/toc.htmhttp://www.ruraleship.org/


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The Milken Institute: http://www.milkeninstitute.orgResearch and informational articles on business and economics.

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http://www.milkeninstitute.org/http://www.milkeninstitute.org/


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Additional Sources for Market Research Information: Local Chamber of Commerce Local Economic Development Corporations

Government publications

Trade associations

Business publications

Competitors

WMRC Partners: Wyoming Business Council: http://www.wyomingbusiness.org

University of Wyoming: http://www.uwyo.edu

WSBDC: http://www.wyomingentrepreneur.biz

GRO-Biz: http://www.gro-biz.com

Manufacturing-Works: http://www.manufacturing-works.com

Wyoming Technology Business Center: http://www.uwyo.edu/WTBC

Small Business Innovation Research (SBIR):

http://uwadmnweb.uwyo.edu/sbir Research Products Center (RPC): http://uwadmnweb.uwyo.edu/rpc

Wyoming Womens Business Center: http://www.wyomingwomen.org

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http://www.wyomingbusiness.org/http://www.uwyo.edu/http://www.wyomingentrepreneur.biz/http://www.gro-biz.com/http://www.manufacturing-works.com/http://www.uwyo.edu/WTBChttp://uwadmnweb.uwyo.edu/sbirhttp://uwadmnweb.uwyo.edu/rpchttp://www.wyomingwomen.org/http://www.wyomingbusiness.org/http://www.uwyo.edu/http://www.wyomingentrepreneur.biz/http://www.gro-biz.com/http://www.manufacturing-works.com/http://www.uwyo.edu/WTBChttp://uwadmnweb.uwyo.edu/sbirhttp://uwadmnweb.uwyo.edu/rpchttp://www.wyomingwomen.org/

Documents

Module 7 Marketing Research and Planning