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How To Conduct Market(Ing) Research
 

How To Conduct Market(Ing) Research

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Slide presentation for day 2: Small Business Week (Aruba 2011). How Small Can Create a Big Presence in the Market. Presentation 2: How To Conduct Market(ing) Research.

Slide presentation for day 2: Small Business Week (Aruba 2011). How Small Can Create a Big Presence in the Market. Presentation 2: How To Conduct Market(ing) Research.

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    How To Conduct Market(Ing) Research How To Conduct Market(Ing) Research Presentation Transcript

    • How to ConductMarket(ing) Research Presented by: Edward M. Erasmus, MA
    • Presentation by Edward ErasmusWhat we will do during the next 40 minutes….
    • Presentation by Edward ErasmusHave a conversation about Market(ing) Research…• Discuss what, why, when, how…• Highlight some important elements• Discuss creative ways to do ‗quick scans‘• Have a look at (online) resources• Offer some tips• Some final thoughts• Q&A
    • Presentation by Edward ErasmusSo let‘s get started….
    • Presentation by Edward Erasmus
    • Presentation by Edward Erasmus―Would you tell me, please, which way I ought to go from here?‖ ―That depends a good deal on where you want to get to,‖ said the Cat. ―I don‘t much care where—‖ said Alice. ―Then it doesn‘t matter which way you go,‖ said the Cat. (Alice‘s Adventures in Wonderland, Lewis Carroll)
    • What can entrepreneurs learn from this?
    • Presentation by Edward ErasmusDon’t do things just for doing, but ask firstwhere you want to take your business, andsubsequently choose the right path toreach that destination.
    • Presentation by Edward ErasmusIn simple terms….
    • Presentation by Edward Erasmus STRATEGY…articulates the direction a business will pursue and the steps it will take to achieve its goals…
    • Presentation by Edward Erasmus STRATEGY You cannot develop a strategy without proper knowledge on key aspects of your business and/or industry……And here is where Market(ing) Research comes in…
    • MARKET(ING) What is it?
    • Presentation by Edward Erasmus MARKET(ING) RESEARCHMarket Research: Involves researching specific industry‘s or markets.Marketing Research: Marketing Research goes further. Marketing Research faces problems about consumers, products, services, market competition, sales promotion, etc.Market and Marketing Research are nowadays used interchangeably
    • Presentation by Edward Erasmus MARKETING RESEARCH―Marketing research is the function that links the consumer,customer, and public to the marketer through information -used to identify and define marketing opportunities andproblems; generate, refine, and evaluate marketing actions;monitor marketing performance; and improve understandingof marketing as a process. Marketing research specifies theinformation required to address these issues, designs themethods for collecting information, manages and implementsthe data collection process, analyzes, and communicates thefindings and their implications.‖ American Marketing Association (AMA) - Official Definition of Marketing Research
    • Presentation by Edward Erasmus MARKETING RESEARCHMarketing research is the collection andanalysis of relevant information to enableyou to make informed business decisions.
    • Presentation by Edward Erasmus So basically Marketing Research(if done correctly and consistently) helps your company reach…
    • Presentation by Edward Erasmus In essence….Conducting marketing research is aboutgathering facts and opinions in an orderly,objective way to find out what people want tobuy, not just what you want to sell them…
    • Presentation by Edward ErasmusMarketing Research…a few more things youshould know about it…
    • Presentation by Edward Erasmus Marketing Research: when?• Startups • Established
    • Presentation by Edward Erasmus Marketing Research: who?• Small enterprises • Big corporations
    • Presentation by Edward ErasmusMarketing Research: purpose?• Problem • Problem identification solving
    • Presentation by Edward Erasmus Marketing Research: when?• When sales are on • When sales are the rise way down
    • Presentation by Edward Erasmus Marketing Research: when?• In times of • In times of economic growth… economic turmoil…
    • Presentation by Edward Erasmus Marketing Research: $$$?• Zero-budget • Sky-is-the-limit
    • Presentation by Edward Erasmus Marketing research…Marketing research can be an effective toolat any point in the planning process.It may be used in investigating, evaluating,starting, developing, consolidating,diversifying or even reducing the size ofyour business.
    • Why do marketing research?
    • Presentation by Edward ErasmusWhy do marketing research? Identify potential customers Understanding your existing customers Set realistic targets Examine and solve business problems Prepare for business startup or expansion Identify business opportunities Develop effective strategies
    • Presentation by Edward Erasmus Interesting data…―In 2006: 671,800 new smallbusinesses opened in the U.S., but544,800 small business closed inthat same year.‖ Source: The US Small Business Administration.
    • Presentation by Edward Erasmus Interesting data…―80 percent of new businesses fail withinthe first five years...‖ Source: Inc. magazine and the National Business Incubator Association (NBIA).
    • Presentation by Edward Erasmus Interesting data…Top 3 leading causes for small businessfailure in the U.S.:• Choosing a business that isn‘t very profitable;• Failure to clearly define and understand the market, customers and their buying habits;• Failure to price products or services correctly. Source: The US Small Business Administration.
    • Presentation by Edward Erasmus Interesting data…Companies that survived – or even thrivedduring the times of crisis were the onesthat kept investing in effective marketingand market research….
    • Presentation by Edward Erasmus Nos Aruba 2025Interviews conducted by Commission Nation of Innovation with commercial banks (2009) : What’s the leading cause of failure for starting businesses in Aruba?The most common answer…: “Poor market research leading to an inaccurate understanding of the target customers wants and needs”.
    • Presentation by Edward ErasmusMARKETING RESEARCH QUESTIONS….
    • Presentation by Edward Erasmus Possible questions?...In the case of a new business:• Do people want your product or service?• What characteristics do they seek; for example, what size, color, and what features?• What are they willing to pay for it?• Who is most likely to purchase it?• What are the best promotion methods to reach them?• Will the demand be sufficient to sustain the business?
    • Presentation by Edward Erasmus Possible questions?...For existing businesses market research can provide:• A continuing awareness of customer needs• Information on market and competitor performance• Information on current and future trends• Identification of problems and how to overcome them• The changes required to increase demand for your product• An evaluation of planned changes to your product or service• An evaluation of the effectiveness of your advertising.
    • How to conductmarket research?
    • Presentation by Edward Erasmus The ProcessStep One - Define Marketing Problems and OpportunitiesStep Two - Set Objectives, Budget and TimetablesStep Three - Select Research Types and MethodsStep Four - Design Research InstrumentsStep Five - Collect DataStep Six - Organize and Analyze DataStep Seven - Present and Use Marketing Research Findings
    • Presentation by Edward Erasmus Step One - Define Marketing Problems and Opportunities• The problem should be clearly identified and defined.• Examples of problem definition: – Launching a new product or service. – Low awareness of your company and its products or services. – A poor company image and reputation.
    • Presentation by Edward Erasmus Step Two - Set Objectives, Budget and Timetables• Objective: set objectives for your market research operations.• Budget: How much money are you willing to invest in your market research? How much can you afford?• Timetables: Prepare a detailed, realistic time frame to complete all steps of the market research process.
    • Presentation by Edward Erasmus Step Three - Select Research Types and Methods• Types: primary or secondary?• Methods: quantitative or qualitative?
    • Presentation by Edward Erasmus Step Four - Design Research Instruments• Instruments: questionnaires, interviews, observation or experiment?• Some tips for questionnaires are provided in handouts.
    • Presentation by Edward Erasmus Step Five - Collect Data• Before beginning the collection of data, it is important to train, educate and supervise your research staff (if applicable).• Test your instrument first…evaluate if it works.• Stick to the objectives.
    • Presentation by Edward Erasmus Step Six - Organize and Analyze Data• Once your data has been collected, it needs to be ―cleaned.‖ Cleaning research data involves editing, coding and the tabulating of results.• Look for relevant data that focuses on your immediate market needs.• Quantify your results; look for common opinions that may be counted together.• Discuss your findings with your staff.
    • Presentation by Edward Erasmus Step Seven - Present and Use Marketing Research Findings• Present results and conclusions in an organized manner.• Discuss the information with your staff.• Make decisions!
    • Quick scanning your business
    • Presentation by Edward Erasmus CREATIVE WAYS TO GATHER INFORMATION• No time or budget to do extensive research?• There are some quick and creative ways to gather information for decision making….
    • Presentation by Edward Erasmus INTERNAL• Talk to customers• Talk to employees• Observe activities in your store• Look at sales records• Product return data• Customer complaints
    • Presentation by Edward Erasmus INTERNALHere‘s a recommendation…Invest in a good Point-of-sale software:• Keep track of sales• Movement of goods• Maintain a customer database
    • Presentation by Edward Erasmus EXTERNAL• Visit your competitor(s)…what/how are they doing?• Look for secondary research (data already available)• Read the newspapers• Read global news (online)• Attend lectures and workshops (UA, Chamber of Commerce, AIB, NCIC, etc.)
    • Presentation by Edward Erasmus BUT BE AWARE..• It‘s a quick scan• It provides limited and unstructured information• It‘s no replacement for formal research…
    • Resources and Tips
    • Presentation by Edward ErasmusOnline Resources
    • Presentation by Edward ErasmusOnline Resources
    • Presentation by Edward ErasmusOnline Resources
    • Presentation by Edward ErasmusOnline Resources
    • Presentation by Edward ErasmusOnline Resources
    • Presentation by Edward Erasmus Online resources• http://www.marketresearchworld.net/• http://www.sbtdc.org/• http://www.markettools.com/KnowledgeCenter• http://www.sba.gov• http://freeonlinesurveys.com/• http://www.surveymonkey.com/
    • Presentation by Edward ErasmusBooks on marketing research
    • Presentation by Edward ErasmusAnd if you‘re too busy….
    • Presentation by Edward Erasmus Sharing some wisdom Be proactive; Make marketing research a habit; When doing research: don‘t just rely on family and friends; Don‘t just collect data…do something with it!; Know your industry…inside and out…; Always keep the main thing, the main thing: focus on your customers!
    • Final thoughts…―He who asks is a fool for fiveminutes. He who does not ask is afool forever.‖ ~ Chinese proverb
    • Final thoughts…―Advertising people who ignore research are as dangerous as generals who ignore decodes of enemy signals.‖ ~David Ogilvy, advertising pioneer and founder of Ogilvy Group
    • Presentation by Edward ErasmusStart doing SMART marketingS – StrategizeM – Maintain market spendA – Assess and allocate the budgetR – Research customer thoroughlyT – Target and reach out to them
    • Presentation by Edward Erasmus
    • Questions
    • Presentation by Edward Erasmus