The document provides an overview of a market research session, including definitions of market research, why it is important, types of research, and areas to research. It discusses both primary and secondary research sources and gives examples such as surveys, focus groups, reports, databases, and trade publications. Key areas for research include the macroenvironment using PEST analysis and the microenvironment including customers, competitors, suppliers, and distributors.

1. Start your own business Programme Market Research Session Ciara MacNeice brilliant red Consulting

2. Structure of evening Ciara MacNeice Tea/Coffee break @ 7.30 Close at 9.00 – 9.30

3. Objectives of session Understand the importance of market research Understand the types of research Understand areas to research Where to find information

4. Contents Introduction to market research Definition Why bother? Types of market research What to research? Macro environment - PEST Micro environment - Customers/Competitors/Suppliers/Dists

5. Contents cont. Low cost research sources, where? Specialist market research sources Databases Government sites Where cont? Competitor information Dublin city library, Invest NI Databases –search competitors Test competitor products

6. Philip Kotler, Professor of International Marketing said; “ There are three types of company; those who make things happen, those who watch things happen, and those who wonder what on earth happened. ”

7. Small business in Ireland that make things happen

8. Todds Leap, Ballygawley

10. “ Marketing research provides practical, unbiased Information, (which) helps firms avoid assumptions & misunderstandings that could result in poor marketing performance ” Dibb, Simkin, Pride & Farrell

11. Why bother with market research?

12. Why bother? Unwise to develop a product & then look for market where it can be sold Market research helps firms understand customers, competitors, market trends, and aspects of the marketing environment Market research provides information on which firms can make more informed decisions

13. Why you should bother! Business success involves meeting the needs of the customer To understand the needs you need to research Identify new product/service opportunities Keep your finger on the industry pulse

15. Innocent smoothies

16. Market research…basics Spent 6 mths working on smoothie recipes In the summer of 1998, they took some of their smoothies to a local jazz festival to try out their idea. They put up a big sign above their stall asking ‘ Do you think we should give up our jobs to make these smoothies? ’ After trying the smoothie, drinkers were asked to vote by putting their empty bottle into a bin saying ‘ YES ’ or a bin saying ‘ NO ’’ . At the end of the weekend, the ‘ YES ’ bin was full so the three boys all went to work the next day and resigned. Further research and business plan completed Secured investor from USA

17. Where are they now Revenues of £128 m Have 70% stake of smoothie market In April 2010 Coca-Cola increased its stake in the company to 58% from 18% for about £65 million.

18. Areas to research Macro environment Micro environment

19. “ Change is the only constant ” (A. Toffler)

20. SME Suppliers Microenvironment Customers Distributors Competitors Macro environment Economic Social Technological Political Legal The Marketing Environment Environmental

21. Scanning the Environment No business exists in a vacuum Environment changes continuously Need to look outwards Marketing mix is dependent on marketing environment

22. Typical PESTEL factors Political e.g. such as tax policy , labour law , environmental law , trade restrictions , tariffs , and political stability Economic e.g. factors include economic growth , interest rates , exchange rates and the inflation rate - factors have major impacts on how businesses operate and make decisions Social e.g. attitudes to work, health, trends, fashions – Day spas Technological e.g. innovation, new product development e.g. MP3 player Environmental e.g. global warming, environmental issues - waste mgt sector Legal e.g. competition law, health and safety, employment law

23. Microenvironmental Factors Current & Potential Customers Essential that firm finds out what they want Competitors monitor what competition are doing now & try to anticipate what they will do in future

24. Microenvironmental Factors Suppliers Can lead to firm failing to meet promises to customer Choice of suppliers important

25. Question – 10 mins Key players in your macroenvironment? Key players in your microenvironment? Insert into action plan

26. How Toyota reacted to its macro & micro environment?

27. Toyota Prius – environmental, social & technological Hyrid engine – uses petrol & electric power In city driving, at low speeds, it runs off electric motor Fuel economy is doubled & Emissions are lowered £1000 grant – Powershift scheme

28. Question? 5 mins What marketing environment forces was Toyota responding to?

29. Break for Tea/Coffee

30. Types of Market Research Split into 2 broad areas: Primary research ‘ Field research ’ for specific purpose, undertaken from scratch Secondary research Consists of data and info that already exist Less time consuming, efficient, quick to access, can be in-expensive

31. Primary research Economical and timely richness of data - attitudes, beliefs, emotions and perceptions. Examples include: Surveys FOCUS Groups Observational research – mystery shopping Customer feedback forms In-depth interviews

32. Secondary research usually easy to find Time and cost economies associated with secondary data. Examples include: Market research Reports Databases Trade publications/magazines Trade associations

33. Data generated from research 2 main types of data generated: Qualitative research Quantitative research

34. Qualitative characteristics Focuses on developing an understanding of things rather than measuring them Uses small numbers Can result in rich and detailed data Range includes: Survey research Questionnaires Focus groups In-depth interviews Observational techniques

35. Quantitative characteristics Results are expressed numerically Data such as sales figures, market size, market share, demographic information Uses large samples Mail questionnaires Telephone interviews Face to face interviews

36. Secondary research Types of data you can find from secondary research? Where to find secondary research locally?

37. What can you find out from secondary sources Market size Is your market in growth or decline? What are the trends? What are the forecasts? Have you a niche? Have you a business?

38. Get grasp on Economic Influences General Economic climate Interest rates Economic recession in 1980 ’ s caused increase in unemployment and affected customers willingness to buy

39. Get grasp on socio-cultural Influences Environmental issues – green society Heath concerns – food products/organic

40. Sir Clive Sinclair…. Member of British Mensa! High marks for innovation, low marks for marketing 1981 – Sinclair computers formed ZX Spectrum (1982) http://en.wikipedia.org/wiki/Clive_Sinclair Selling 12,000 a week Company made £8.55 m profit with turnover of £27m 1986 – sold to Amstrad for £5m Then……in the 1980 ’ s

41. Case study Sinclair C5 – 15 mins WHAT HAPPENDED?

43. Where do we access this information?

44. Check out…. Invest NI Library, Bedford Square Bedford Street, Belfast European Info Centre 90 239090 Call before going and make an appointment.

45. Invest NI library services Mintel Keynote Euromonitor Vision net Kompass Ireland Irish times online archive Access to Business magazines online

46. Excellent Secondary Information Sources Mintel/Keynote Produce Market intelligence reports on various market sectors providing extensive info on: Market size – growth or decline Typical Customer profile PEST analysis Competitors/share of the market and profiles Market forecasts

47. Mintel & Keynote Reports Based on: Exclusive consumer research Key trade interviews an up-to-date overview of the marketplace, looking at changing trends in an industry Backed up by formal desk research from trade and government sources

48. View websites....keynote.co.uk

49. Mintel.com

50. Euro monitor Euro monitor – intelligence on vast array of industry, countries and consumers

51. Databases Kompass Ireland Major database directory of businesses or suppliers throughout Ireland by product/service, location, no of employees Vision net online – companies reg office Profit/loss, address

52. Relevant Trade associations/bodies Irish Tourist Industry Confederation Tourism Ireland www.itic.ie www.ireland.ie

53. Tap into useful websites Central Statistics Office - www.cso.ie Economy statistics Population statistics Census information & percentage change Household budget

54. 5 mins....What do you need to know about competitors?

55. Why monitor competitors? Extremely important Key piece of the market research jigsaw Customer's usually know the differences between companies - They know that company A is cheaper than company B

56. Competitor Analysis Who are they? What are their strengths? What are their weaknesses? Do you have up-to-date information on their products, services etc.

57. Classifications of competitive data Recorded data Secondary Trade press Annual reports Government sector reports Observable data Competitors promotions Competitors advertising Mystery shopping

58. Sources of competitive data Suppliers Customers Conferences Trade shows

59. Other sources of info. Go to exhibitions At exhibitions and trade fairs check which of your competitors are also exhibiting. Note how busy they are and who visits them.

60. Organise the info Put the information into three categories: what you can learn from and do better what they're doing worse than you what they're doing the same as you

61. Where to get info? Answer…. First Port of Call Databases Specify top 5-10 in terms of size, by county etc. Business Name, addresses, area of business, if available, turnover etc

62. Answer…. Where? Invest NI

63. Case study Bladonmore

64. Survey research Design Tips Survey who? Current customers Potential customers Objective of survey? How?

65. Me or an agency?? Market research professionals are likely to get better results. They have experience in designing survey questionnaires, running focus groups and asking the right questions. For small-scale field research, your best option may be a freelance researcher

66. Check out research buyers guide www.rbg.org.uk

67. Sample agency – perceptive insight market research

68. Be careful Important to be clear regarding the potential sample and to define the population E.g. do we interview purchasing managers in all textiles companies or only those that employ more than 50 people in NI

69. Surveys Surveys

70. Exercise Who would you like to survey & where?

71. Survey research Design Tips cont. Objectives - What do you want to discover? Satisfaction with current product/service, Suggested product or service improvements, Competitor information e.g. who and why, Price points Continue to Purchase in the future

72. Exercise What do you want to discover?

73. Sampling Method Telephone Postal One to one Internet

74. Survey format Planning is important Needs to be well structured and flowing Concise 3 types of questions: (best to use a combination) Yes/no multiple choice open questions Pilot survey with a small sample Amend if necessary

75. Sample multiple choice question What factors do you consider to be influential when purchasing services? What price point do you think is reasonable for this product? £10-20 £30-40

76. Please rank the following factors according to how they would influence your decision whether or not to purchase biodiesel? Please tick. Very important important irrelevant Price Environmentally friendly Performance Availability Payment methods

77. www.surveymonkey.com

78. Survey monkey Worlds most popular web based survey tool 1. Customer Insights Whether you want to measure customer satisfaction. Get feedback on a new product or learn more about purchase behaviours, Survey Monkey can get you answers fast. 2. Research Our survey tool is as powerful as it is simple. It can be used for all types of research for marketers and entrepreneurs.

79. Sample open ended questions From the list below what type of services/products do you buy in this sector? Name suppliers you use and their strengths/weaknesses What trade shows do you attend?

80. Exercise – 5-10mins Write down survey questions appropriate to your business/idea

81. Key learning outcomes? Key points learnt tonight Action plan development