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entrep lesson :Intro market analysis.pptx
- 1. Market Analysis andSurveying E.M. Erasmus, MA January 28, 2014
- 2. Roadmap • Why doMarket Analysis? • Market Analysis Grid • Research Process • Low-Budget/DIY Market Analysis • Some Helpful Tips and Resources • Final Thoughts
- 3. Why do MarketAnalysis? • A key part of developing your business strategy • Both first-time entrepreneurs and existing companies need market information for new products and services.
- 4. Why do MarketAnalysis? Marketing Analysis can be used to: • Identify & Assess Opportunities • Examine Market Segments • Select Target Markets • Plan & Implement Marketing Mixes • Evaluate Marketing Performance
- 5. Market Analysis Grid CustomerCompetition Context Secondary Primary
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- 7. After first identifyingyour market, you will then need to select a target market to be the focus of your company’s efforts. Target Market and Customer
- 8. • Consumer marketsegmentation is based on geographics, demographics, psychographics, and buying characteristics. • A business can select and serve multiple market segments. Target Market and Customer
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- 10. Target Market andCustomer The target market for your product or service should be: Measurable Large enough to be profitable Reachable Responsive 1 2 3 4
- 11. Creat e Evaluate Forecas t Create a customerprofile. Evaluate customers’ needs. Conduct research to forecast demand. Researching the Target Customer
- 12. Creating a customerprofile (personas) is the first step in targeting your marketing efforts. • Age, gender, lifestyle • Purchasing power • Purchasing process • Frequency of purchase, etc. Creating a Customer Profile
- 13. In order toprovide what the customer wants, you should prepare a customer needs analysis: that is a list of features and benefits of your good or service that the customers value Evaluating Customers’ Needs
- 14. Several methods canbe used to forecast demand: Use historical analogy. Interview prospective customers and intermediaries. Go into limited supply. Forecasting Demand
- 16. • Usually, competingproducts and services are already established in the market. • To succeed, you must be able to capture market share by differentiating your business. The Competition
- 17. Many entrepreneurial companiessucceed by studying the competition to define a niche in the market. The Competition
- 18. The Competition Create aprofile of direct and indirect competitors in the market: • Who are they? • What makes them successful? • What are their weaknesses? • How will they react to new market entrants?
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- 20. Look Understan d Study Look at trendsand patterns of change. Understand industry forces that affect your business. Study industry demographics. Analyzing the business environment
- 21. Local Trends Renewabl e Energy Ageing Population Tourism Demographics Social Media Mobile Gateway/Export GenerationY Recycling/Upcycling Consumer Awareness Creative Industries Sustainable Food Health Consciousness
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- 24. barriers to entry threatsfrom substitute products sources of supply buyers’ ability to bargain technology Industry Forces
- 25. carrying capacity the abilityof industry to support new growth uncertainty the degree of stability or instability in a given industry complexity the number and diversity of contacts with which a business must deal 1 2 3 4 Birth Growth Maturity Decline industry life cycle the current stage of an industry Industry Demographics
- 27. 5 Analyze thedata. 4 Organize the data. 3 Collect primary data. 2 Obtain secondary resources. 1 Identify your information needs. Start the Research Process The Five Steps of an Effective Research Plan
- 28. Research secondary databefore researching primary sources because it is easily obtained and inexpensive. Start the Research Process
- 29. The most commonmethods of gathering primary data are: • observation • interviews • surveys Start the Research Process
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- 31. Low-Budget Market Analysis &Surveying • Use social media • Talk to potential customers • Visit your (potential) competitor • Attend lectures and workshops (UA, KvK, etc.) • Make use of UA students to conduct research • Research and project reports database UA
- 32. Rule of Thumb •The larger your investment, the more extensive your market analysis should be.
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- 37. Online resources • http://www.marketresearchworld.net/ •http://www.bizstats.com/ • http://www.markettools.com/KnowledgeCenter • http://www.sba.gov • http://freeonlinesurveys.com/ • http://www.surveymonkey.com/
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- 39. Books on marketingresearch
- 40. Books on marketingresearch
- 41. • Methodology: shouldbe good enough, not (scientifically) perfect; • Make marketing research a habit; • Don’t just rely on family and friends; • Don’t just collect data…do something with it!; • Know your industry…inside and Sharing some wisdom
- 42. Always Remember • MarketAnalysis & Surveying is a tool. • It assists entrepreneurs in their decision making. • IT IS NOT A REPLACEMENT FOR ENTREPRENEURIAL JUDGEMENT!!
- 43. Final thoughts… “He whoasks is a fool for five minutes. He who does not ask is a fool forever.” ~ Chinese proverb