Reducing Risk - Putting Market Research to Work

Julie Luers, FSMPSDirector of MarketingHGA Architects & Engineers

Goals for Today An overview on the

basics -- types and applications of market research

Provide helpful resources

Give YOU the opportunity to see first-hand the power of research

What is Market Research? The process of using

data to link the customer to the marketer.

Information that is used to identify and define marketing opportunities and problems.

Market research will reduce, not eliminate risk in decision making.

Why Conduct Market Research?It’s good business:

– Financially New business costs

between 10-20% of initial fee

Repeat business costs between 1.5-2.5% of project fee

Firms that use research grow 3 to 10 times faster and are up to 2 times more profitable.

– Competitively 41% research

potential clients 38% research

competition & business leads

28% research emerging markets and new market positions

Types of Research Macro vs. Micro

– International or National markets vs. local markets

– Industries vs. targeted clients

Long-term vs. immediate– Strategic planning

vs. proposal information

Types of Research

Primary research: data you gather specifically to respond to your information needs.

Secondary research: data that has been gathered for another purpose, but is applicable to your needs.

Research Methodologies

Primary data collection methodologies– Telephone – Mail– E-mail– Personal

Interview– Focus Groups

Secondary data collection methodologies– Literature search– Internet search

How Do You Use Research?

Strategic market analysis and trends

Firm positioning and perception– Brand awareness– Competitor analysis

Prospecting Client Satisfaction

How to Use Research

Strategic Market Analysis and Trends– General state of the economy– Legislation pending that will affect your

market– Current trends– Demand and future demand (service or

facility type) based on demographics, financing

How to Use Research

Firm positioning, brand awareness – Primary research

Phone interviews with past, current and prospective clients

Debrief with clients, following up after submitting proposals

– Secondary research Industry trends; compare what you’re doing

with published articles on industry trends. Are you keeping up?

How to Use Research

Competitor Analysis– Primary research

Debrief clients following proposals Talk w/ colleagues

– Secondary research Competitor’s web sites Read press releases and articles published

by competition

Research Data Sources

Primary data sources:– Interview current

or prospective clients

– Proprietary surveys

– Observation

Secondary data sources:– Professional/Trade

Organizations– Market Forecasts– E.D. Agencies – Government

Agencies– Social Media

Research Data Sources Information sources have

not changed; the access to the information has...

Technology has created access to information to the point of overload

Web based searches do not necessarily save you time, and the source of information may not necessarily be credible or current - know your source

How to Use Research

Prospecting and client analysis

New clients Existing clients

Research Resources

Strategic Analysis and Market Trends www.mckinsey.com/insights www.forbes.com/cmo-network www.census.gov

– Public Libraries www.nypl.org/research (New York City Public

Library) www.jjhill.org (James J. Hill Library, Saint

Paul, MN)

Research Resources

Strategic Market Analysis and Trends– Higher Education: Society for College &

University Planners - www.scup.org– K-12 & Post-secondary: American School

& University magazine - www.asumag.com

– Healthcare: Modern Healthcare magazine - www.modernhealthcare.com

– Corporate: CoreNet Global - www.corenetglobal.org

Research Resources

Strategic Market Analysis– Real Estate Advisory Firms

www.colliers.com www.joneslanglasalle.com www.marcusmillichap.com www.cassidyturley.com www.cbre.com www.cushmanwakefield.com

Research Resources Geographic

Expansion– www.citymayors.co

m (City Mayors)

The largest US cities:Nine cities with more than one million peopleNew York City and Los Angeles grow fastestBy Tann vom Hove and Josh J FechtIntroduction to largest US cities | Largest US cities 1 to 100 | Largest US cities 101 to 200 | Fastest growing US cities | The fastest shrinking US cities | Historical ranking of America's largest cities |

These are some of the results of the 2012 survey by the US Census Bureau.

Research Resources

Project Leads– Subscription databases

such as the McGraw Hill network and Onvia

www.onvia.com

– Consultants, vendors, other partners

– News / Google alerts– Your personal network

Research Resources

Client Satisfaction / Branding Studies– Pre/post proposal debrief meetings– Post occupancy evaluation surveys– Survey to clients, potential clients,

vendors, strategic partners to measure brand perception and awareness

The Research Project

When can we do our own research?– Secondary research– Debriefing sessions with prospective or

current clients When do we need to work with an

outside consultant?– Large scale perception and satisfaction

studies– Studies where confidentiality is key

The Research Experience

Let’s Try It: Over the next 20 minutes, you’ll use both primary and secondary resources to experience market research in action, studying and analyzing one of the following topics:New market analysis Positioning for the proposal

Assignment #1

Your firm has expertise in student housing market. Your Principals feel they can leverage this expertise in the condo / apartment market.

Assignment: Conduct a brief market analysis to support this move or show evidence that it may not be the best time to invest.

Assignment #2

You are submitting a proposal for the Regional Sports Stadium at the Rochester Community and Technical College

Assignment:Find information about the selection team – members are from RCTC, the City of Rochester, Lourdes High School, and the Rochester

Amateur Sports Commission. What information about this team could be helpful in your proposal response?

Wrap Up

Were you able to see the potential value in the research?

What challenges did you encounter in this assignment other than the time constraint?

What great resources did you find that you intend to bookmark?

Q / A

Thanks for your time and attention. If you have additional questions, I can be reached at Jluers@hga.com