Market Research

brilliant red Consulting

Start your own business Programme

Market Research Session

Ciara MacNeice


Structure of evening

Ciara MacNeice Tea/Coffee break @ 7.30 Close at 9.00 – 9.30


Objectives of session

Understand the importance of market research

Understand the types of researchUnderstand areas to research Where to find information


ContentsIntroduction to market research

DefinitionWhy bother?Types of market research

What to research? Macro environment - PESTMicro environment -

Customers/Competitors/Suppliers/Dists


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


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.”


Small business in Ireland that make things happen


Todds Leap, Ballygawley



“Marketing research provides practical, unbiased

Information, (which) helps firms avoidassumptions & misunderstandings that could result in poor marketing

performance”

Dibb, Simkin, Pride & Farrell


Why bother

with market research?


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


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



Innocent smoothies


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


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.


Areas to research Macro environment

Micro environment


“Change is the only constant”

(A. Toffler)


SME

Suppliers

Microenvironment

Customers

Distributors Competitors

Macro environment

Economic

Social

Technological

Political

Legal

The MarketingEnvironment

Environmental


Scanning the Environment

No business exists in a vacuumEnvironment changes continuouslyNeed to look outwardsMarketing mix is dependent on marketing

environment


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


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


Microenvironmental Factors

Suppliers

Can lead to firm failing to meet promises

to customer

Choice of suppliers important


Question – 10 mins

Key players in your macroenvironment?Key players in your microenvironment?Insert into action plan


How Toyota reacted to its macro & micro environment?


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


Question? 5 mins

What marketing environment forces was Toyota responding to?


Break for Tea/Coffee


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


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


Secondary research

usually easy to findTime and cost economies associated with

secondary data. Examples include:Market research ReportsDatabasesTrade publications/magazinesTrade associations


Data generated from research

2 main types of data generated:Qualitative research

Quantitative research


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


Quantitative characteristics

Results are expressed numericallyData such as sales figures, market size,

market share, demographic informationUses large samplesMail questionnairesTelephone interviewsFace to face interviews


Secondary research

Types of data you can find from secondary research?

Where to find secondary research locally?


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?


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


Get grasp on socio-cultural Influences

Environmental issues – green societyHeath concerns – food products/organic


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


Case study Sinclair C5 –15 mins

WHAT HAPPENDED?



Where do we access this information?


Check out….

Invest NI Library, Bedford SquareBedford Street, BelfastEuropean Info Centre

90 239090

Call before going and make an appointment.


Invest NI library services

MintelKeynoteEuromonitorVision netKompass IrelandIrish times online archiveAccess to Business magazines online


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


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


View websites....keynote.co.uk


Mintel.com


Euro monitor

Euro monitor – intelligence on vast array of industry, countries and consumers


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


Relevant Trade associations/bodies

Irish Tourist Industry Confederation

Tourism Ireland

www.itic.ie

www.ireland.ie


Tap into useful websites

Central Statistics Office - www.cso.ieEconomy statistics Population statistics

Census information & percentage changeHousehold budget


5 mins....What do you need to know about competitors?


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


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.


Classifications of competitive data

Recorded data Secondary Trade press Annual reports Government sector

reports

Observable data Competitors

promotions Competitors

advertising Mystery shopping


Sources of competitive data

Suppliers Customers Conferences Trade shows


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.


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


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


Answer…. Where?

Invest NI


Case study

Bladonmore


Survey research Design Tips

1. Survey who? Current customers Potential customers

2. Objective of survey?

3. How?


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


Check out research buyers guide www.rbg.org.uk


Sample agency – perceptive insight market research


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


Surveys

Surveys


Exercise

Who would you like to survey & where?


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


Exercise

What do you want to discover?


Sampling Method

Telephone PostalOne to oneInternet


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


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


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


www.surveymonkey.com


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.


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?


Exercise – 5-10mins

Write down survey questions appropriate to your business/idea


Key learning outcomes?

Key points learnt tonight

Action plan development

Market Research

Documents

marketing research

types of research

market research definition

importance of market

types of market research

scratch secondary research

primary research economical

market trends