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BusinessDecision - Know Your Market
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BusinessDecision - Know Your Market

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Grow your markets, lower your acquisition costs and sell to the right customer at the right time with On-Demand Marketing Analytics from BusinessDecision!

Grow your markets, lower your acquisition costs and sell to the right customer at the right time with On-Demand Marketing Analytics from BusinessDecision!

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  • 1. Turning Data into Information Small Business Growth and Development CIVICTechnologies www.librariesbuildcommunities.com Copyright. 2007. CIVICTechnologies, Inc. Confidential and Proprietary.
  • 2. Turning Data into Information 2 Page Part 1: What do small businesses need and want? How do libraries meet the challenges faced by small business? Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 3. Turning Data into Information 3 Page What do small businesses want? They want to be profitable. 1. Find new customers to grow 2. Identify the best location 3. Evaluate competitors 4. Control marketing costs by targeting direct mail and ad dollars 5. Meet regulatory and tax requirements 6. Learn how to manage finances 7. Learn how to operate a business day in and day out Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 4. Turning Data into Information 4 Page What do small businesses need to get what they want? > Reliable, predictive information Information to support their business plan • Consumer market data • Market segmentation data • Geographic information systems mapping tools Access to this information • This positions the public library as the trusted intermediary to bridge the data gap Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 5. Turning Data into Information 5 Page What challenges do small businesses face? 1. They don’t know what’s available 2. They don’t know where to find it 3. They can’t afford the time or money to access it Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 6. Turning Data into Information 6 Page What can the library offer to meet small business needs? Consumer market data Market segmentation data Geographic information systems mapping tools Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 7. Turning Data into Information 7 Page Consumer market databases > Focus on business to consumer market Provide information about • Market dynamics • Big picture trends with forecasts • Market characteristics • Who and how much • Consumer expenditures • CEX from the U.S. Department of Labor and private market surveys • Specific industry • Comparing supply and demand Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 8. Turning Data into Information 8 Page Other database types Business to business databases Focus on B-2-B relationship, not B-2-C • DB Million Dollar Database • InfoUSA Original source databases Small business owners and entrepreneurs don’t have time or interest in performing original • Census research • Bureau of Labor Statistics • Other federal and state agencies Full text databases Articles are informational and inspirational and provide models and case studies, but don’t find • InfoTrac new customers or the best place to locate a • Newsbank store Investment databases Great if you’ve already made your money • Standard and Poor’s • Morningstar • Mergent Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 9. Turning Data into Information 9 Page Market dynamics > Is the market growing, static, or shrinking? • Three time periods • Different size study areas and types like rings or drive times • A whole range of data categories Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 10. Turning Data into Information 10 Page Market characteristics > Socioeconomic and demographic fundamentals • Comparative analysis at different local, state, and national scales • Range of data categories • Easily visualized using charts and graphs Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 11. Turning Data into Information 11 Page Consumer expenditure > How big is the market? • Quantify household spending across a range of product and service categories • Customized mapping capability enables the data to be easily visualized Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 12. Turning Data into Information 12 Page Market potential > By industry product or service category • Cross compare categories • Determine if there is sufficient market size • Compare with a national index • Identify amount spent per household and for all households in a study area Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 13. Turning Data into Information 13 Page What can the library offer to meet small business needs? Consumer market data Market segmentation data Geographic information systems mapping tools Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 14. Turning Data into Information 14 Page What is psycho-demographic market segmentation? Classifies U.S. neighborhoods into 65 segments Each segment defines distinctive households using over 80 data attributes • Demographic, socioeconomic, residential, lifestyle preferences Analyzed geographically • County, city, zip code, census tract, census block group > Tapestry is a type of market segmentation system Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 15. Turning Data into Information 15 Page Three examples of the 65 Tapestry market segments Laptops and Lattes • Residents are single persons who live alone or with a roommate • Have a median income of more than $87,000 • Prefer to live in major metropolitan areas • Choose to shop at upscale establishments Aspiring Young Families • Residents are young with a median age of 30 years • Many are start-up families, either married couples or single parents, with children • They live in large, growing metropolitan areas in the South and West • Half are renters; many reside in townhouses International Marketplace • This market is the cutting edge of immigration • Represents a blend of cultures and household types • Most are renting apartments in multi-unit buildings, but over 30% have purchased a home • Primarily located in gateway states on the coasts Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 16. Turning Data into Information 16 Page Who uses market segmentation and what do they do with it? > In a word, most big companies to be more profitable Banking • Profile customers by branch trade area Retail • Stock store merchandise by consumer type Government • Determine usage of services by population segments Health care • Develop community outreach programs Insurance • Create products by life-stage Utilities • Understand product usage by household Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 17. Turning Data into Information 17 Page And this is the dirty little secret of market segmentation It is used by most large companies > But not even known by small business Public library distribution can change this equation and level the playing field for small business Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 18. Turning Data into Information 18 Page What can the library offer to meet small business needs? Consumer market data Market segmentation data Geographic information systems mapping tools Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 19. Turning Data into Information 19 Page Geographic information systems (GIS) Sophisticated mapping tools for the non-expert • Popular web applications are the tip of the iceberg Thematic maps are the key They display data from a range of databases • Census 2000 • 2007/2011 demographic data • Tapestry market segmentation system • Consumer expenditures • Retail marketplace Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 20. Turning Data into Information 20 Page Consumer market analysis and GIS > Thematic maps are organized: Around a site • Enables “drill down” • Address, street intersection, dot on the map • Study area analyses types • Rings • Drive-time • Unique territory In a geographic area • Enables “breadth” • CBSA, DMA, Congressional District, County, City/Place, Zip Code, Census Tract Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 21. Turning Data into Information 21 Page Part 1 Summary > How can the library meet the challenges faced by small business? 1.Show small business customers what’s available 2.Show small business customers where to find it 3.Provide small business customers with access to information to support their business plan • Consumer market data • Market segmentation data • Geographic information systems mapping tools Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 22. Turning Data into Information 22 Page Part 2: Case study Demonstrate what’s available in GIS-based consumer market and market segmentation databases Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 23. Turning Data into Information 23 Page Case study background info > “I found BusinessDecision on the local library’s web site!” • Yoga studio • Located in Los Angeles County • New business owner • Woman, married with two kids 7 and 10 • Never before owned or planned a business • Compiled two 3” notebooks of BusinessDecision reports and maps plus her own Excel tables Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 24. Turning Data into Information 24 Page Competitor analysis > Understand your competitors success factors and identify their weaknesses Who and where they are located • Eight competitors clustered together but located five miles away Anecdotal information • Lesson price competitive at $15 • Value added features offered: juice bar, child care, nutrition counseling, etc. Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 25. Turning Data into Information 25 Page How big is the market? > Number of people in the catchment area • Range of data categories • Tracks change over time: Census 2000, current year estimate, five year forecast • Tracks counts across study areas (e.g., radius, drive time) Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 26. Turning Data into Information 26 Page How many people take yoga lessons? > Market penetration: percentage of people who “buy” yoga services • Demonstrates market share as a percent of adults Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 27. Turning Data into Information 27 Page How many people take yoga lessons? > Market penetration: percentage of people who “buy” yoga services • Calculates yoga market share unique to each competitor Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 28. Turning Data into Information 28 Page Target market > Sex and age • Women age 18 to 30ish without kids • Women age 30ish + with kids • Tracks change over time Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 29. Turning Data into Information 29 Page Target market: women > Sex and age • Compares age groups for each competitor • Allows for cross comparisons between competitors and age groups Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 30. Turning Data into Information 30 Page Target market: families with disposable income for lessons > Consumer spending • Detailed report on recreation expenditures • Yoga lesson fees are a subset of Fees for Recreational Lessons • This report indicates market size by expenditure and comparison to national average Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 31. Turning Data into Information 31 Page Target market: families with disposable income for lessons > Consumer spending • Generalized report • Enables targeting of households by disposable income Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 32. Turning Data into Information 32 Page Market segmentation analysis using Tapestry 1, 3, and 5 mile radii around each competitor Identify the top segments Compare these to alternative locations to find one that matches Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 33. Turning Data into Information 33 Page Typical segmentation report > One mile radius around each competitor • In a one mile radius, over half of the market, 53.5 percent of households are “Trendsetters” • The top three segments account for 80 percent of households Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 34. Turning Data into Information 34 Page Segmentation summary for competitors and possible location > Compare segments between competitors Segments most likely to practice yoga • Trendsetters • Urban Chic • Laptops & Lattes • Pacific Heights Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 35. Turning Data into Information 35 Page Yoga studio site selection Analyzed preferred and alternative sites • Comparable Tapestry segments • Target sex, age, and income profiles Gathered key data to feed into business plan revenue model • Market size • Market share taking yoga lessons • Projected revenue Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 36. Turning Data into Information 36 Page Revenue model How much revenue will a business make, realistically? • This is one of the most difficult things an entrepreneur has to calculate • With consumer market and market segmentation data, there is a reliable way to figure it out 1. Market size = number of people in one mile radius x yoga market share 23,606 people x 5.9% share = 1,392 people 2. Number of visits per month = market size x participation frequency 1,392 people x two lessons per month x 12 months = 33,408 lessons 3. Projected revenue = number of lessons x price of lessons 33,408 lessons x $15 per lesson = $501,120 projected revenue Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 37. Turning Data into Information 37 Page Part 2: case study conclusions The library put information in the hands of an entrepreneur to demonstrate the viability of a new business Without the library, this patron would not have had access to the information she needed to evaluate the potential business opportunity “I found BusinessDecision through the local public library website. I was amazed at the detailed information accessible to me, information I could not find elsewhere and, as it turns out, couldn’t have afforded on my own. “BusinessDecision let me, an individual, take my business concept and test it through in-depth demographic and Tapestry segmentation reports. The data I’ve gathered through BusinessDecision has given me the proof I needed to develop my business plan and the confidence to seek financing to realize my dream. The library is providing an incredible service to entrepreneurs like me by offering BusinessDecision.” - Alexia Cirino Library Patron, a California Public Library Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.
  • 38. Turning Data into Information 38 Page Contact information Marc Futterman, president/ceo Toll free: (888) 606-7600 maf@civictechnologies.com www.librariesbuildcommunities.com If you would like to view this presentation digitally visit: www.librariesbuildcommunities.com www.businessdecision.info Small Business Connections, June 8, 2007 CIVICTechnologies ULC Audio Conference: Copyright. 2007. CIVICTechnologies, Inc. All Rights Reserved.