Market Research Entrepreneurial Marketing 445

Guest Speaker: Kaiping Zhang Business Librarian Secondary Market Research Resources

Why Market Research? Continually recognize emerging opportunities Effectively capitalize on the most promising Decisions about product features, target audiences, prices, communication methods, distribution approaches and much more…

Continually recognize emerging opportunities

Effectively capitalize on the most promising

Decisions about product features, target audiences, prices, communication methods, distribution approaches and much more…

Market Research Any reliable information that improves marketing decisions Trade offs (how much information is collected, from which sources, collected in what manner, at what cost, and completed by what date)

Any reliable information that improves marketing decisions

Trade offs (how much information is collected, from which sources, collected in what manner, at what cost, and completed by what date)

Market Research as a Logical Process The set up Recognize and define managerial problem Set Research Objectives Establish simple hypotheses Identify information needed

The set up

Market Research as a Logical Process The measurement Perform secondary data search Internal/external Obtain primary data Develop research design Determine sampling strategy Design questionnaire or measure instrument Collect data Analyze data

The

measurement

Market Research as a Logical Process Secondary data: information that has been previously collected, such as government reports, trade association studies, past marketing research studies or internal company data files. Primary data: new information generated by the by the researcher to address a particular problem.

Secondary data: information that has been previously collected, such as government reports, trade association studies, past marketing research studies or internal company data files.

Primary data: new information generated by the by the researcher to address a particular problem.

Market Research as a Logical Process The management decision Write report Select the most appropriate decision alternative

The

management

decision

Backward Approach The set up Determine the key management decisions to be made Specify information inputs that would lead to one decision alternative versus other decision alternatives Prepare sample tables or short report containing the kinds of information that would best help make the managerial decision Determine the analysis that will be necessary to fill in the tables or report Determine what questions must be asked to provide the data required by the analysis Ascertain whether needed questions have been answered already

The set up

Backward Approach The measurement Design sample Implement research design Analyze data

The

measurement

Traditional vs. Entrepreneurial Research Surveys Large sample Professional firm Customers rational Start with product: attributes, features, benefits Analytical and quantitative Richer insights Lower cost Less complexity Customers emotional Tap unconscious mind of buyers Start with consumer

Surveys

Large sample

Professional firm

Customers rational

Start with product: attributes, features, benefits

Analytical and quantitative

Richer insights

Lower cost

Less complexity

Customers emotional

Tap unconscious mind of buyers

Start with consumer

Principles to Guide the Entrepreneurial Research Process Think Like a Guerrilla: unconventional tactics and unorthodox practices Make Use of Your Surroundings Find Insights in the Ordinary Explore the Unconscious Build Research into Daily Operations Use Technology Creatively Create and Mine Databases

Think Like a Guerrilla: unconventional tactics and unorthodox practices

Make Use of Your Surroundings

Find Insights in the Ordinary

Explore the Unconscious

Build Research into Daily Operations

Use Technology Creatively

Create and Mine Databases

Low Cost Effective Research Qualitative Observe Customers in Action Garbology In-depth Interviews Individual (Lead User Research) Focus Groups Projective Techniques

Qualitative

Observe Customers in Action

Garbology

In-depth Interviews

Individual (Lead User Research)

Focus Groups

Projective Techniques

Snowball Sampling Identify one or more contacts inside the buying organization. The initial contact is telephoned and asked to identify four people inside the organization who would be meaningfully involved in a buying decision. Tally the two or three names that are mentioned the most times. Create a qualified sample from the ground up.

Identify one or more contacts inside the buying organization. The initial contact is telephoned and asked to identify four people inside the organization who would be meaningfully involved in a buying decision. Tally the two or three names that are mentioned the most times. Create a qualified sample from the ground up.

Other inexpensive methods Garbology: Study of a market by examining what it discards. Monitor weblogs: A blog is a website that includes user-generated content, typically on some focused topic.

Garbology: Study of a market by examining what it discards.

Monitor weblogs: A blog is a website that includes user-generated content, typically on some focused topic.

Low Cost Quantitative Research Survey Research Web based Consumer panels Experimentation Archival Studies (secondary data) Internal archives (company records) External archives

Survey Research

Web based

Consumer panels

Experimentation

Archival Studies (secondary data)

Internal archives (company records)

External archives

Lead User An Individual who has needs for which no solution exists and who often has ideas for effective products that have not yet been developed.

An Individual who has needs for which no solution exists and who often has ideas for effective products that have not yet been developed.

Ethnography Use of field work to capture behavior and human reactions in the natural setting as they occur.

Use of field work to capture behavior and human reactions in the natural setting as they occur.

Environmental Scanning Environmental Change Environmental Complexity Resource Scarcity Uncertainty Characteristics of Changing External Environments

Environmental Change

Environmental Complexity

Resource Scarcity

Uncertainty

The Role of the Macroenvironment

HBR Scanning the Periphery Mattel Barbie vs. Bratz Avoid being blindsided See changes sooner and capitalize on them “ What don’t we know that might matter?” Improving Peripheral Vision

Mattel Barbie vs. Bratz

Avoid being blindsided

See changes sooner and capitalize on them

“ What don’t we know that might matter?”

Improving Peripheral Vision

HBR Scanning the Periphery Define Scope Match capability with need Companies in complex, rapidly changing environments require well-develop peripheral vision. Companies in relatively simple, stable environments have less of a need.

Define Scope

Match capability with need

Companies in complex, rapidly changing environments require well-develop peripheral vision.

Companies in relatively simple, stable environments have less of a need.

HBR Scanning the Periphery Learning from the past “What have been our past blind spots? What is happening in these areas now?” Is there an instructive analogy from another industry? (Nanotech and GMO) Who in your industry is skilled at picking up on weak signals and acting on them ahead of everyone else?

Learning from the past

“What have been our past blind spots? What is happening in these areas now?”

Is there an instructive analogy from another industry? (Nanotech and GMO)

Who in your industry is skilled at picking up on weak signals and acting on them ahead of everyone else?

HBR Scanning the Periphery Examining the Present What important signals are you rationalizing away? (cheaper products?) What are your mavericks and outliers trying to tell you? (Organon drug company, secretary and cheerful allergy patients) What are peripheral customers and competitors really thinking? (Complainers and defectors)

Examining the Present

What important signals are you rationalizing away? (cheaper products?)

What are your mavericks and outliers trying to tell you? (Organon drug company, secretary and cheerful allergy patients)

What are peripheral customers and competitors really thinking? (Complainers and defectors)

HBR Scanning the Periphery Envisioning New Futures What future surprises could hurt (or help) us? What emerging technologies could change the game? (focus on customer conditions: over served, underserved and unable) Is there an unthinkable scenario?

Envisioning New Futures

What future surprises could hurt (or help) us?

What emerging technologies could change the game? (focus on customer conditions: over served, underserved and unable)

Is there an unthinkable scenario?

Key Ideas Entrepreneurial marketer has two overarching responsibilities: Continually recognize emerging opportunities Effectively capitalize on the most promising

Entrepreneurial marketer has two overarching responsibilities:

Continually recognize emerging opportunities

Effectively capitalize on the most promising

Key Ideas Firms must be proactive in gathering and interpreting inputs from the external environment Ongoing intelligence on customers, markets, distributors and competitors. Changes about product features, target audiences, prices, communication methods, distribution approaches and much more…

Firms must be proactive in gathering and interpreting inputs from the external environment

Ongoing intelligence on customers, markets, distributors and competitors.

Changes about product features, target audiences, prices, communication methods, distribution approaches and much more…

Key Ideas Market research reduces uncertainty surrounding managerial decisions. Best to use a logical process. Entrepreneurial: lower cost and greater ingenuity. Calculated part of calculated risk-taking

Market research reduces uncertainty surrounding managerial decisions.

Best to use a logical process.

Entrepreneurial: lower cost and greater ingenuity.

Calculated part of calculated risk-taking