Market Research
and
Intelligence Gathering

This presentation is made possible by the support of the American People throu...
Power of Information
•  Strong market
research is very
important
•  Allows you to make
plans with real data
•  Attack big ...
Market Research Sources

•  Primary, direct:
–  Conducting qualitative interviews
–  Informal talks
• 
• 
• 

Customers,
P...
Primary Sources
Traditionally: focus groups & interviews
Now: email, online, website, panels, observation, field
trials, i...
Secondary Sources
•  Traditionally: expensive industry reports
(Gartner, Forrester, IDG)
•  Now: publicly accessible recor...
Types of market intelligence
•  Quantitative:
–  Size of market
–  market demographics & cohorts
–  business characteristi...
Major Corporate Assumptions and Future Goals
•  Assumptions:
–  What do they believe about their reputation and capabiliti...
Product Positioning
Positioning Methods:
•  By attribute
–  BMW known for engineering, Volvo for safety & durability

•  B...
Positioning Measurement
•  Perceptual Mapping

Spatial mapping of brand perception by various individuals

•  Positioning ...
Positioning Statement
Positioning statement breaks down into 4 parts:
1.  Target Market
2.  Your Product/Service
3.  Frame...
Construct a “Day in the life”

•  This is the story telling part of what you do…
• 
• 
• 
• 

What your customers need and...
Research Methods
QUANTITATIVE: CONJOINT
ANALYSIS
Helps analyze thought
process behind preferences.
Identify & describe lev...
Research Methods
QUANTITATIVE: KEY DRIVER
ANALYSIS
Survey method that uses
statistical linear regression to
measure streng...
Competitive Analysis and Frameworks
• 

Investors ask: Who is the competition?

• 

Capabilities:
– 
– 
– 
– 
– 
– 
– 
– 
...
Typical two-axis diagram

•  You define the
axes to show
your strengths
•  You’re always
in the top right
corner

You
SWOT Diagram
• 
• 
• 
• 

Strengths
Weaknesses
Opportunities
Threats

•  Useful for internal and
external analysis
•  Help...
Competitive Analysis:
The Porter Model

Potential
Entrants

Who is your
Competition?

Suppliers

Current
Industry
Structur...
Thinking through the Porter Model
•  Minimizing Substitution Effects:

Potential
Entrants

Suppliers

Current
Industry
Str...
Building Barriers to Entry
• 
• 
• 
• 
• 
• 
• 
• 
• 
• 

High capital investment
Specialized service delivery processes
S...
Conclusion
•  Understand
– 
– 
– 
– 

Target market and segment,
Your industry,
Your customers,
Your competitors

•  Know ...
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3.3 market resarch & intelligence gathering.pptx

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VCs ask "what is the size of your market"? Here is a way to gather that data and present with a defensible answer.

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3.3 market resarch & intelligence gathering.pptx

  1. 1. Market Research and Intelligence Gathering This presentation is made possible by the support of the American People through the United States Agency for International Development (USAID). The contents of this presentation are the sole responsibility of Rasmussen International and do not necessarily reflect the views of USAID or the United States Government.
  2. 2. Power of Information •  Strong market research is very important •  Allows you to make plans with real data •  Attack big markets •  Minimize competitive threats
  3. 3. Market Research Sources •  Primary, direct: –  Conducting qualitative interviews –  Informal talks •  •  •  Customers, Prospects, Suppliers & vendors •  Secondary, indirect: –  Published sources help you gather general information about your target market, industry, and competition
  4. 4. Primary Sources Traditionally: focus groups & interviews Now: email, online, website, panels, observation, field trials, informal beta-user groups, customer panels, interviews, survey monkey…
  5. 5. Secondary Sources •  Traditionally: expensive industry reports (Gartner, Forrester, IDG) •  Now: publicly accessible records –  Local/Regional markets & industry sectors: •  •  •  Business Associations & Chambers of Commerce Trade Associations & Industry groups Business journals & Academic institutions –  International markets, add to the above: •  •  Chambers of Commerce of your target country Embassies and Consulates
  6. 6. Types of market intelligence •  Quantitative: –  Size of market –  market demographics & cohorts –  business characteristics, trends •  Qualitative: –  Understanding customer behavior, –  Perceptions and buying patterns –  Market opportunities & threats •  •  •  •  Product/service features Are expectations met/going to be met? Perceptions on competitive advantage? Follow up – any action items to tweak product/service?
  7. 7. Major Corporate Assumptions and Future Goals •  Assumptions: –  What do they believe about their reputation and capabilities? –  Who are their key decision makers? Functional backgrounds? –  What is their attitude toward change and risk? •  Future Goals: –  –  –  –  Financial goals (ROI, share price, sales volume?) Incentive systems for management? Who is on their board of directors? What are their governmental constraints? Where can you obtain these answers? Public and private…
  8. 8. Product Positioning Positioning Methods: •  By attribute –  BMW known for engineering, Volvo for safety & durability •  By price & quality –  Walmart vs. Neiman Marcus •  By application –  Morning blend coffee •  By user type –  Johnson & Johnson baby shampoo repositioned for adult use as mild shampoo •  Vis-à-vis competitor –  Avis – “We’re #2 so we try harder”) •  As solution provider for a specific problem
  9. 9. Positioning Measurement •  Perceptual Mapping Spatial mapping of brand perception by various individuals •  Positioning to a Segment includes all the options a target market has to fulfill need for a product/service, including substitute products •  Positioning Map chart different products & services to enable comparison and contrast easily axes of map – price vs. quality, comfort vs. price, expertise vs. price any gaps on the map can point to areas of new product development
  10. 10. Positioning Statement Positioning statement breaks down into 4 parts: 1.  Target Market 2.  Your Product/Service 3.  Frame of Reference/Category includes all the options a target market has to fulfill need for a product/service, including substitute products 4.  Point of Difference or Uniqueness the benefit that buyers get from your product uniquely
  11. 11. Construct a “Day in the life” •  This is the story telling part of what you do… •  •  •  •  What your customers need and what they care about How they will use your type of product/service How they gain value How they will be happy to pay you      
  12. 12. Research Methods QUANTITATIVE: CONJOINT ANALYSIS Helps analyze thought process behind preferences. Identify & describe levels of product attributes or characteristics. Measure relative utility and relative importance of the attributes. The relative value of product/ service attributes can be analyzed statistically.
  13. 13. Research Methods QUANTITATIVE: KEY DRIVER ANALYSIS Survey method that uses statistical linear regression to measure strength of multiple attributes (variables) relative to a strategic characteristic (dependent variable). Useful in answering: •  What is driving the brand it its market segment? •  What would make its market share rise? •  What makes a competitor’s market share rise?
  14. 14. Competitive Analysis and Frameworks •  Investors ask: Who is the competition? •  Capabilities: –  –  –  –  –  –  –  –  –  –  •  Products and Services offered Marketing and selling Dealers and distributors Facilities and locations Operations Technology Overall cost position Financial strength Organizational culture Managerial capacity Strategy –  –  –  Corporate portfolio and SBUs Political ties and other special advantages Strategic direction? Growth, harvest…?
  15. 15. Typical two-axis diagram •  You define the axes to show your strengths •  You’re always in the top right corner You
  16. 16. SWOT Diagram •  •  •  •  Strengths Weaknesses Opportunities Threats •  Useful for internal and external analysis •  Helps shape thoughts on competitive environment
  17. 17. Competitive Analysis: The Porter Model Potential Entrants Who is your Competition? Suppliers Current Industry Structure (rivalry amongst competitors) Substitutes Customers
  18. 18. Thinking through the Porter Model •  Minimizing Substitution Effects: Potential Entrants Suppliers Current Industry Structure Customers (rivalry amongst competitors) –  How easy is it for a customer to substitute your product/service? Substitutes Potential Entrants •  Minimizing Supplier issues: –  How easy is it for Suppliers to drive up prices? Suppliers Current Industry Structure Customers (rivalry amongst competitors) Substitutes •  Reducing bargaining power of customers Potential Entrants Suppliers Current Industry Structure (rivalry amongst competitors) Substitutes Customers
  19. 19. Building Barriers to Entry •  •  •  •  •  •  •  •  •  •  High capital investment Specialized service delivery processes Special distribution channels Unique image or brand awareness Patented or difficult to copy features Geographical location advantages Specialized sources of supply (supplies and labor) Special purpose machinery or software Special financing techniques Experience curve knowledge Results in higher profitability and less risk
  20. 20. Conclusion •  Understand –  –  –  –  Target market and segment, Your industry, Your customers, Your competitors •  Know how to position yourself and your products and services to pinpoint your messaging •  Reduce business risk and increase revenue & profitability

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