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Market Research and Value Proposition


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Determining the value and benefits of market research and what it can do to help you grow your business.

Published in: Education, Business

Market Research and Value Proposition

  1. 1. Market Research’s Value d i r e c t i o n
  2. 2. What is Market Research? <ul><ul><li>Purpose </li></ul></ul><ul><ul><ul><li>The aim of market research is not knowledge for the sake of knowledge but knowledge for the sake of action. </li></ul></ul></ul><ul><ul><li>Thinking, seeing , measuring and investigating. </li></ul></ul><ul><ul><li>Evidence Based Marketing </li></ul></ul><ul><ul><ul><li>Decisions </li></ul></ul></ul><ul><ul><ul><li>See Market Directions White Paper on Evidence Based Marketing </li></ul></ul></ul><ul><ul><ul><ul><li>Knowledge is the antidote to fear. </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Ralph Waldo Emerson </li></ul></ul></ul></ul>Without a clear direction we slow down, uncertain of where to head. Market Research provides direction with clarity that allows for focused effort and speed . Its all about the customer-- the more you know about the customer the more likely it is you can offer the right product, at the right time, at the right place, with the right price <ul><ul><ul><ul><li>What we see depends mainly on what we look for . </li></ul></ul></ul></ul><ul><ul><ul><ul><li> John Lubbock </li></ul></ul></ul></ul>
  3. 3. Benefits of Market Research <ul><li>Discovers what your customers want and value </li></ul><ul><li>Discovers loyalty drivers </li></ul><ul><li>Discovers competitive position </li></ul><ul><li>Basis for marketing plans </li></ul><ul><li>Gathers evidence in support of actions </li></ul><ul><li>Keeps marketing plans on track </li></ul><ul><li>Did we meet our goals? </li></ul><ul><li>Were our goals reasonable in relation to market? </li></ul><ul><li>Do we need to change direction as environment changes? </li></ul><ul><li>Applies universal findings to sample markets and segments </li></ul><ul><li>Enables you to benchmark </li></ul><ul><li>Strengths, Weakness, Opportunities, Threats--- relative to competition </li></ul><ul><li>Avoids cost of bad marketing campaign </li></ul><ul><li>Saves costs by targeting right message to right audience </li></ul><ul><li>Improves effectiveness of marketing campaigns </li></ul><ul><li>Is a learning and educational tool. </li></ul>After hiring an experienced, qualified market research firm you should be able to understand your customers better, identify market opportunities, make informed marketing decisions, formulate business planning and use the data to justify more creative and bolder business decisions .
  4. 4. Discovery Provoke Insights Trends Final thoughts can go here Research – More than nice to know. Evidence Are observations supported by data?---Patterns/associations/ behavior? Hypothesis Are we ready to go where the evidence/data points? What is the plan of action? Problems Challenges Opportunity Evoke Is Benefit > Cost? An event or change occurs which provokes action. <ul><li>Proactive </li></ul><ul><ul><li>New Products </li></ul></ul><ul><ul><li>New Markets </li></ul></ul><ul><ul><li>Customer Satisfaction </li></ul></ul><ul><ul><li>Mature Product Life Cycle </li></ul></ul><ul><ul><li>New Marketing Strategies </li></ul></ul><ul><ul><li>Competitive Intelligence </li></ul></ul><ul><li>Reactive </li></ul><ul><ul><li>Decrease Revenues </li></ul></ul><ul><ul><li>Customer Dissatisfaction </li></ul></ul><ul><ul><li>New Technology </li></ul></ul><ul><ul><li>Legislative Change </li></ul></ul><ul><ul><li>Economic Change </li></ul></ul><ul><ul><li>Mergers/Acquisitions </li></ul></ul>A new idea or product evokes action. Market Research is considered when : … . unexpected challenges or problems arise or … . considering future (unknown) opportunities and growth.
  5. 5. Market Research Identifies Value – <ul><ul><li>Reliability </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li>Ease of Use </li></ul></ul><ul><ul><li>Operating Costs </li></ul></ul><ul><ul><li>Expected Outcome </li></ul></ul><ul><ul><li>Literal </li></ul></ul><ul><ul><li>Feature & Benefits </li></ul></ul><ul><ul><li>Quality </li></ul></ul><ul><ul><li>Service Levels </li></ul></ul>Value – Benefits derived from burdens endured . It is what each customer perceives it to be.
  6. 6. … for you and your customers Creating a Value Proposition <ul><li>Evaluation Process </li></ul><ul><ul><li>What do we do for our customers? </li></ul></ul><ul><ul><li>What’s in it for the customer? </li></ul></ul><ul><ul><li>Who is our target market? </li></ul></ul><ul><ul><li>How can customers be identified? </li></ul></ul><ul><ul><li>How do we reach our customers? </li></ul></ul><ul><ul><li>How do we want to be perceived? </li></ul></ul><ul><ul><li>What’s in it for us? </li></ul></ul><ul><li>Market Research Answers Questions With </li></ul><ul><ul><li>Internal Surveys v Customer Perceptions </li></ul></ul><ul><ul><li>Observation/Surveys </li></ul></ul><ul><ul><li>Secondary Research </li></ul></ul><ul><ul><li>Information Analysis </li></ul></ul><ul><ul><li>Media Analysis </li></ul></ul><ul><ul><li>Internal Surveys/Interviews </li></ul></ul><ul><ul><li>Financials—Pricing, Margin, ROI, etc. </li></ul></ul>Offer Product/Service ROI for the Business Value Return on Experience for the Customer Delivery Channel/Process Customer Goals Business Goals
  7. 7. Value Proposition <ul><li>Is not </li></ul><ul><ul><li>Elevator Pitch </li></ul></ul><ul><ul><li>Tag Line </li></ul></ul><ul><ul><li>Company Messaging, i.e. mission statement </li></ul></ul><ul><ul><li>Product Positioning, i.e. “We are the Best” </li></ul></ul><ul><ul><li>Internally Driven </li></ul></ul><ul><ul><li>Customer Centric </li></ul></ul><ul><li>Is </li></ul><ul><ul><li>Essential </li></ul></ul><ul><ul><li>Deliberate </li></ul></ul><ul><ul><li>Specific </li></ul></ul><ul><ul><li>A commitment </li></ul></ul><ul><ul><li>Profitable </li></ul></ul><ul><ul><li>Relevant </li></ul></ul><ul><ul><li>Measurable </li></ul></ul><ul><ul><li>Competitive </li></ul></ul>Value Proposition – A commitment to deliver a specific experience, profitably and competitively.
  8. 8. Uncover Your Value Proposition– with Market Research <ul><li>Determine- </li></ul><ul><ul><li>your customer’s definition of value </li></ul></ul><ul><ul><li>your customer’s principal purchase criteria </li></ul></ul><ul><ul><ul><li>Why, Who, Where, When, How </li></ul></ul></ul><ul><ul><li>buyer’s success criteria </li></ul></ul><ul><ul><ul><li>How do they measure? </li></ul></ul></ul><ul><ul><ul><li>How are they measured? </li></ul></ul></ul><ul><li>Characterize-- </li></ul><ul><ul><li>who your customers/prospects are: </li></ul></ul><ul><ul><ul><li>Market Segment </li></ul></ul></ul><ul><ul><ul><li>Industry </li></ul></ul></ul><ul><ul><ul><li>Decision maker </li></ul></ul></ul><ul><ul><ul><li>End-user </li></ul></ul></ul><ul><ul><li>decision process </li></ul></ul><ul><ul><ul><li>Group </li></ul></ul></ul><ul><ul><ul><li>Individual </li></ul></ul></ul><ul><ul><ul><li>Budgeted </li></ul></ul></ul>Its all about the customer-- the more you know about the customer the higher the probability that you can offer the right product, at the right time, at the right place, with the right price. <ul><li>Benefits of Value Proposition </li></ul><ul><ul><li>Differentiate Offering </li></ul></ul><ul><ul><li>Enable Customer’s Justification </li></ul></ul><ul><ul><li>Shorten Sales-Cycle </li></ul></ul><ul><ul><li>Value Pricing </li></ul></ul><ul><ul><li>Increase Customer Satisfaction </li></ul></ul><ul><ul><li>LTV of Customer Increase </li></ul></ul>
  9. 9. Market Directions’ Value Proposition– Our promise to you. <ul><li>“ We Accelerate Growth” </li></ul><ul><li>In order to accelerate your growth, Market Directions equips you with information to help you build and sell offerings that your customers value. The result of our work will help you understand your customers and your business in a whole new way by experiencing your products and services as your key customers do. Market Directions’ customized solutions, proactive communication, high quality data and exceptional project management is your solution for cost effective market research with competitive advantages that deliver optimum client satisfaction. </li></ul>