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

Market Research

Pamela J. Brown, Ph.D.Associate Professor & Extension

Entrepreneurship SpecialistTucumcari WorkshopIntermediate Track

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

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.

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.

When to use Market Research

Before opening businessOR

Ongoing?The ANSWER. . .

BOTH

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

Research Doing Business Online

• Search for:– Industry – Location– New suppliers– Product ideas– Marketing ideas– Better prices– Trends

Activity

Search for ‘new’ suppliers for your business

Use one or more search engines:Google AltaVistaYahoo HotBotInfoseek Northern LightExcite Lycos

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?

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

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?

Think!

• Advantages of surveying current customers:– Dependable – Accurate – Current – Reachable – Defined

• Advantages of surveying potential new customers:– New perspective– Unbiased – More

representative

What and how to ask?

• Avoid bias • Use email• Avoid too many open ended

questions• Use existing information• Keep it simple

What is market potential?

• Search for reliable sources: SBA, Census, industry data http://www.thomas.net

• Search beyond local data

Activity

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

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.

Call customers

• IS your product the “Best thing since sliced bread?”

• Learn what customers are passionate about

• Call, ask, rank, make better

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

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?

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

Activity

Search for your competition and suppliers.

Find at least one of each.

HINT: Needed for I Plan session Friday!

Market Research – Legal Issues

• Better Business Bureau– http://www.bbb.gov

• Federal Trade Commission– http://www.ftc.gov

• Risk management– PERI – Public Entity Risk Institute

• http://www.riskinstitute.org/test.php?pid=pubs&tid=1126

More

• http://www.riskinstitute.org/FP_DOCS/RMSBAdditionalResources.pdf

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

Choice is yours

• Make INFORMED decisions• Base decisions on FACT• Stay current• Read resources daily • Expand to multiple media

American Idle?Successful businesses don’t sit still

- they seek opportunities!