# 4 – MARKET RESEARCH# 4 – MARKET RESEARCH

Will Your Business Work?Will Your Business Work? Who Are Your Customers?Who Are Your Customers?

CompetitionCompetition Know Your Audience, RegionKnow Your Audience, Region Different Methods of Market Different Methods of Market

ResearchResearch What Results MeanWhat Results Mean

““In the Field” Planned VisitIn the Field” Planned Visit

WHY MARKET RESEARCH WHY MARKET RESEARCH

Prove your idea is good : justify itProve your idea is good : justify it Uncover why your idea needs Uncover why your idea needs

changechange Ground truth your businessGround truth your business Learn about your market, clientsLearn about your market, clients Learn from competitionLearn from competition Learn from role models anywhereLearn from role models anywhere Provides confidence to proceedProvides confidence to proceed Identify red flags / weak links Identify red flags / weak links

NO IDENTIFIED NEED = NO NO IDENTIFIED NEED = NO KNOWN MARKET = KNOWN MARKET = NO NO

SALESSALES

" Until the user indicates interest in something, nothing of value can be returned to them."

5 W’s of Market Research5 W’s of Market Research

FAMOUS LAST WORDS FAMOUS LAST WORDS

““I know I know exactly what exactly what

I’m doing. Why I’m doing. Why do I need to do do I need to do

any market any market research?”research?”

SLOWS THE PROCESSSLOWS THE PROCESS

““Getting into Getting into business is often a business is often a ‘hurry up’ process. ‘hurry up’ process.

Market research Market research slows it down, lets slows it down, lets

you catch your you catch your breath, and get breath, and get

comfortable with your comfortable with your idea.”idea.”

Here’s A Real ExampleHere’s A Real Example

SOURCES OF SOURCES OF RESEARCH RESEARCH

Internet Internet CompetitionCompetition Role modelRole model Trade fairsTrade fairs ReportsReports MediaMedia Trade Trade

magazinesmagazines Networking Networking

groups groups

Focus groupFocus group Outside opinionOutside opinion Survey Survey Mentor Mentor Field workField work Resource Resource

networks – Small networks – Small Business BC, Business BC, Library, etc Library, etc

MOREMORE SOURCES SOURCES Government Government

agents agents Yellow PagesYellow Pages Chamber of Chamber of

CommerceCommerce Trade Trade

associationsassociations Specialty booksSpecialty books Statistics Statistics

Community Community FuturesFutures

Women’s Women’s Resource Resource CentersCenters

Observation Observation Mystery shopperMystery shopper Telephone Telephone

interviewsinterviews Product Product

samplingsampling

NO ROSE COLOURED NO ROSE COLOURED GLASSES, PLEASEGLASSES, PLEASE

““In all my In all my business business

planning and planning and research, I research, I

never assume never assume anything. I anything. I

always work to always work to justify my justify my markets.”markets.”

YOUR FOUNDATION YOUR FOUNDATION

““Believable, Believable, trustworthy, fully trustworthy, fully

justified, accurate, justified, accurate, and conservative and conservative

market research is market research is the foundation for all the foundation for all

your planning”your planning”

WHAT DOES IT TELL YOU? WHAT DOES IT TELL YOU? Market sizeMarket size Who your customers Who your customers

areare Profiles of your Profiles of your

customerscustomers Pricing Pricing Competition pricingCompetition pricing Best advertisingBest advertising MarginsMargins Profits Profits

WHO ARE YOUR WHO ARE YOUR CUSTOMERS? CUSTOMERS?

Age group?Age group? Spending habits?Spending habits? Tastes? Tastes? Lifestyle?Lifestyle? Income?Income? Needs?Needs? Currently being serviced Currently being serviced

by…?by…?

MOREMORE CUSTOMER INFO CUSTOMER INFO Ethnicity? Ethnicity? Spending Spending

priorities?priorities? Wealth? Wealth? Cultural Cultural

impact?impact? Basic vs. Basic vs.

discretionary discretionary spending?spending?

DANGEROUS MYTHS DANGEROUS MYTHS

ASKING THE ASKING THE QUESTIONS QUESTIONS

Personal considerations – must satisfy Personal considerations – must satisfy your personal goalsyour personal goalsMarketing considerations – must have Marketing considerations – must have potential for success and fit into the potential for success and fit into the marketmarketProduction considerations – must be Production considerations – must be able to produce, at volumes, at price, able to produce, at volumes, at price, with quality. Same applies for with quality. Same applies for delivering servicesdelivering servicesFinancial considerations – must be Financial considerations – must be profitableprofitable

FAD, OR TREND? FAD, OR TREND? FADFAD

High end fashionHigh end fashionGimmicksGimmicksPet rockPet rockInvisible dollInvisible dollEarthquake kitsEarthquake kitsFluorescent colorsFluorescent colorsOat bran crazeOat bran crazeInstant diets, pillsInstant diets, pills

TRENDTRENDHealth and Health and wellnesswellnessCosmetics, youthCosmetics, youthSafetySafetyMedia, technologyMedia, technologyCommunications Communications NeutraceuticalsNeutraceuticalsBack to natureBack to nature““Me” oriented Me” oriented societysociety

ASK PEOPLE !ASK PEOPLE !

SURVEYSSURVEYS

USING MARKET USING MARKET RESEARCHRESEARCH

Sort by categorySort by category Eliminate extremesEliminate extremes Identify gaps of informationIdentify gaps of information Funnel down the ‘info dump’Funnel down the ‘info dump’ Applicability Applicability Don’t only use what you agree Don’t only use what you agree

with!with! Ask the tough questionsAsk the tough questions Use a sounding board for Use a sounding board for

objectivity objectivity

Market Research…Find Out Why The Market Research…Find Out Why The Chicken Crossed The Road BEFOREChicken Crossed The Road BEFORE

FOR NEXT WEEK..FOR NEXT WEEK..1.1. Identify the sources for your Identify the sources for your

own market researchown market research2.2. Prove your own business Prove your own business

idea(s)idea(s)3.3. Share the results. Feel free Share the results. Feel free

to email me. to email me.