05 market research a..


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05 market research a..

  1. 1. Entrepreneurship I Class #4 Market Research and Marketing
  2. 2. Market <ul><li>Group of potential customers who have purchasing power and unsatisfied needs. </li></ul><ul><li>A new venture will survive only if a market exists </li></ul><ul><li>Market research involves gathering information about a particular market, followed by an analysis of that market </li></ul>
  3. 3. Market research <ul><li>Analyze the market </li></ul><ul><ul><li>understand the nature of the opportunity </li></ul></ul><ul><li>Segment </li></ul><ul><li>Target </li></ul><ul><li>Position </li></ul><ul><li>Marketing plan </li></ul>
  4. 4. Market analysis <ul><li>Define </li></ul><ul><li>Evaluate </li></ul><ul><li>Describe: </li></ul><ul><ul><li>size </li></ul></ul><ul><ul><li>growth </li></ul></ul><ul><ul><li>drivers </li></ul></ul><ul><ul><li>trends </li></ul></ul><ul><ul><li>players </li></ul></ul><ul><ul><li>competition </li></ul></ul>
  5. 5. Competitive analysis <ul><li>Market share </li></ul><ul><li>Strengths/weaknesses </li></ul><ul><li>New entrants/mergers </li></ul><ul><li>Stable/increasing/decreasing </li></ul><ul><li>Barriers to entry for you </li></ul><ul><li>Barriers to entry for others (assuming you are in the market) </li></ul>
  6. 6. Segment <ul><li>Sub-markets </li></ul><ul><ul><li>allow entry best suited to limited resource base </li></ul></ul><ul><li>Various ways of segmenting market: </li></ul><ul><ul><li>product </li></ul></ul><ul><ul><li>customer </li></ul></ul><ul><ul><li>geography </li></ul></ul><ul><ul><li>distribution </li></ul></ul>
  7. 7. Segment
  8. 8. Crossing the chasm Geoffrey A. Moore
  9. 9. Creating a new market <ul><li>Influence chain </li></ul><ul><ul><li>seminal authors </li></ul></ul><ul><ul><li>early eustomers </li></ul></ul><ul><ul><li>industry analysts </li></ul></ul><ul><ul><li>press (trade and business) </li></ul></ul><ul><ul><li>most customers </li></ul></ul>
  10. 10. Targeting <ul><li>Rank segments </li></ul><ul><li>Dominate a segment </li></ul><ul><li>Jump to other segments </li></ul>
  11. 11. Positioning <ul><li>Make the company the preferred provider (in that segment) </li></ul><ul><li>Unique </li></ul><ul><li>Leverage strengths of firm/product/ service </li></ul><ul><li>Sustainable </li></ul><ul><li>Deliver value to customer better than competitors </li></ul>
  12. 12. Marketing <ul><li>Understanding customer needs </li></ul><ul><li>Determine benefits/value </li></ul><ul><li>Communicate </li></ul><ul><li>Objections </li></ul><ul><li>Plan of attack </li></ul>
  13. 13. Success Factors <ul><li>Excellence in your people </li></ul><ul><li>Excellence in your product/service </li></ul><ul><li>Excellence in your organization </li></ul>
  14. 14. 4 Ps Product Promotion Price Place
  15. 15. Marketing Plan <ul><li>Recognize a need </li></ul><ul><li>Develop a solution to fill the need </li></ul><ul><li>Understand the benefits to the customer </li></ul><ul><li>Create a sales/distribution strategy </li></ul><ul><li>Formulate a promotional program </li></ul><ul><li>Establish a sustainable market position </li></ul><ul><li>Establish pricing </li></ul>
  16. 16. The Need <ul><li>How many have the need? </li></ul><ul><li>How much will they pay for a solution? </li></ul><ul><li>How do they get along now? </li></ul><ul><li>How well do you know this area? </li></ul><ul><li>Is this a window of opportunity or a long felt need? </li></ul>
  17. 17. The Solution <ul><li>Can a product or service be designed? </li></ul><ul><li>Can it be developed at an acceptable cost and time? </li></ul><ul><li>Can the risks be minimized or eliminated? </li></ul><ul><li>Can it be produced at a cost that will generate profits? </li></ul><ul><li>Can it be differentiated from existing solutions? </li></ul>
  18. 18. Benefits <ul><li>Establish between end-user and customer (who pays you?). </li></ul><ul><li>Why will they buy this? </li></ul><ul><li>What value do you bring (over the competitors)? </li></ul>
  19. 19. Sales/distribution strategy <ul><li>How much can be spent on recurring sales cost? </li></ul><ul><li>What are the best channels now? </li></ul><ul><li>The best channels in the future? </li></ul><ul><li>How will the competition react? </li></ul><ul><li>What sales presentation materials are required? </li></ul><ul><li>How much sales training is required? </li></ul>
  20. 20. Direct selling <ul><li>Direct sales people in regions or at headquarters </li></ul><ul><li>Direct Mail – telemarketing </li></ul><ul><li>Direct response marketing </li></ul><ul><li>Corporate relationships </li></ul>
  21. 21. Indirect selling <ul><li>Distributors </li></ul><ul><li>Agents and sales representatives </li></ul><ul><li>Corporate partnerships </li></ul><ul><li>System houses - value added resellers (VARs) </li></ul><ul><li>System integrators </li></ul><ul><li>Direct mail houses </li></ul><ul><li>Brand name for other corporations </li></ul>
  22. 22. Promotional program <ul><li>How will the product be positioned? </li></ul><ul><li>How will the initial launch be handled? </li></ul><ul><li>Will you advertise - where, how much? </li></ul><ul><li>How will PR be handled? </li></ul><ul><li>Will you use direct marketing? </li></ul><ul><li>Who will be responsible for promotions? </li></ul>
  23. 23. Sustainable market position <ul><li>High cost of entry for others </li></ul><ul><li>Patents, copyright, trade secrets </li></ul><ul><li>Brand name recognition </li></ul><ul><li>Proprietary sales/distribution channels </li></ul><ul><li>Continuing product enhancements </li></ul>
  24. 24. Pricing <ul><li>Selling price = </li></ul><ul><ul><li>Cost to produce the product + </li></ul></ul><ul><ul><li>Expenses to run company + </li></ul></ul><ul><ul><li>Cost of marketing + </li></ul></ul><ul><ul><li>Pretax profit you desire </li></ul></ul>
  25. 25. What Can You Do? <ul><li>Innovation - in your product </li></ul><ul><li>Creativity - in the marketing plan </li></ul><ul><li>Execution - of operating plan </li></ul><ul><li>Persistence - without it, forget it! </li></ul>
  26. 26. Strategies <ul><li>Low cost </li></ul><ul><li>Differentiation </li></ul><ul><li>Customer intimate </li></ul>
  27. 27. Differentiation Points <ul><li>Quality </li></ul><ul><li>Speed </li></ul><ul><li>Reliability </li></ul><ul><li>Service </li></ul><ul><li>Design </li></ul><ul><li>Relationships </li></ul><ul><li>Features </li></ul><ul><li>Personality </li></ul><ul><li>Technology </li></ul>
  28. 28. Customer intimate <ul><li>Establishing relationships that provide value to the customer </li></ul><ul><li>Teams or partnerships </li></ul>
  29. 29. Price vs. Quality High Quality Low Quality High Price Low Price
  30. 30. International marketing <ul><li>Every company needs to consider marketing outside of home territory </li></ul><ul><li>Even start ups should consider what international markets they could address </li></ul><ul><li>Specific new ideas and approaches may be needed to succeed </li></ul>
  31. 31. Market research project <ul><li>Secondary research </li></ul><ul><ul><li>information which already exists somewhere </li></ul></ul><ul><li>Primary research </li></ul><ul><ul><li>Talking to real people: </li></ul></ul><ul><ul><ul><li>customers </li></ul></ul></ul><ul><ul><ul><li>suppliers </li></ul></ul></ul><ul><ul><ul><li>partners </li></ul></ul></ul><ul><ul><ul><li>Experts </li></ul></ul></ul><ul><ul><li>Case study that relates to your business </li></ul></ul>
  32. 32. Questions <ul><li>Open ended questions </li></ul><ul><li>Closed ended questions </li></ul>