Where can you get the information to complete the market research section of your business plan? Here are some sources - most free, some fee based - to get you started.

1. Market Research
for Business Plans
Research Edge
May, 2014

2. Some background
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3. The goal….to maximize your profits
The strategy…to determine your ideal
positioning, given
• Your industry’s dynamics
• Your competition
• Your potential customers
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4. Research methodologies
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Primary -
New research to answer a specific question
Secondary –
Information previously researched for other purposes
and publicly available.

5. Sources of information
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Observation
Surveys – mail, phone, online, personal interview
Newsletters and journals
Professional and trade associations
Websites, Blogs
Social media platforms
Market research reports
Business databases

6. Some research tips
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Research is a treasure hunt
Who cares?
Use effective techniques http://bit.ly/1pv9HC3

7. NAICS codes
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The North American Industry Classification System
(NAICS) is the standard used by Federal statistical
agencies in classifying business establishments for the
purpose of collecting, analyzing, and publishing statistical
data related to the U.S. business economy.
Use for accessing government data and company lists.

8. Environmental Scan
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9. Industry Dynamics
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10. Industry
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11. Industry – types of
information
Market size ($)
Market share
Recent trends
Growth potential
Stability/volatility
Seasonality
Political/legal
Socio-cultural
Technological development
Global issues
Patents/intellectual property
Environmental issues
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12. Industry resources -
governmental
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Industries at a Glance Bureau of Labor Statistics. Industry
breakdown, workforce statistics, earnings, etc.
Economic Census Census Bureau. Number of
establishments, receipts, annual payroll, total
employment. Trends over time.
County Business Patterns Data available at county and zip
code level. number of establishments, employment,
payroll

13. Industry resources – market
reports
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Sbdcnet provides free market research for many common
small businesses
Check out the Small Business Snapshots and Market
Research Links sections
Inconsistent content, but may have Industry Overview,
News & Trends, links to industry associations, statistics,
customer profiles.

14. Industry research – other free
sources
Google Scholar – search engine for research documents
Magportal – searchable database of magazine articles
HighWire – free full text scientific articles
Directory of Open Access Journals - scholarly
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15. Industry resources – fee based
reports
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• Hoovers
• First Research
• Avention (formerly One Source)
• Marketline (formerly Datamonitor 360)
Some excerpts are free; full reports in $129 - $139
range.

16. Industry resources - news
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Many free newsletters are available – search for one in
your industry
SmartBrief Hundreds of free industry based topics –
healthcare, construction, energy/chemicals, education,
retail, media, technology, finance, food & beverage,
hospitality, etc.

17. Industry resources – online
search
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MY INDUSTRY news OR “market research” OR “industry
report” OR overview
MY INDUSTRY forecast OR trends OR projections
MY INDUSTRY association OR “trade group” Many have a
Resources section with free information.

18. Competition
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19. Competition - types of
information
Strengths
Weaknesses
Market share
How long in business
Product mix
Sales volume
Pricing
Marketing strategy
Distribution channels
Suppliers
Primary clients
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20. Identify your competitors
Observation
Web search
Yellow pages
Business database
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21. Database advantages
Complete set of businesses
Can target specifically via NAICS codes
Can specify exact geographies – not restricted to locality
Includes “non brick and mortar” types of businesses
Includes wealth of information – number of employees,
sales volume, estimate of credit worthiness, corporate
affiliations, etc.
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22. ReferenceUSA via public
library
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23. ReferenceUSA detail
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24. Research competitors
Company website
Personal visit
Social media pages
Online reviews
Comments in social media
More information on company research
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25. Other business databases
Free
LA Secretary of State
Manta
CrunchBase (technology)
ThomasNet (suppliers)
Fee
Hoovers (D&B)
InfoUSA
zoominfo
USAData
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26. Customers
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27. Target market
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The consumers a company wants to sell its products and
services to, and to whom it directs its marketing efforts. A
target market can be separated from the market as a whole
by geography, buying power and demographics, as well as by
psychographics. (Investopedia)

28. Define your niche
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Based on the research of your industry and your
competition, where is your advantage? How will you
compete? Cheaper, more convenience, additional
features, better customer service? Who are the customers
in this market? Is the market big enough to allow a profit?
Is it the same market as your competitors? How will you
stand out? What percentage share would you need to
divert? If a different market, is it viable?

29. Refining the target market
Business
Type of business
Size (revenue)
# of employees
# of locations
Business structure
Years in business
Individuals
Geographic scope – neighborhood,
city, state/region, national
Demographic – age, gender, income,
education, occupation, marital/family
status, ethnic background
Psychographic – personality, attitudes,
values. Lifestyles, interests/hobbies,
behavior
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30. Segmentation
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A marketing term referring to the aggregating of prospective buyers
into groups (segments) that have common needs and will respond
similarly to a marketing action. Market segmentation enables
companies to target different categories of consumers who
perceive the full value of certain products and services differently
from one another. Generally three criteria can be used to identify
different market segments:
1) Homogeneity (common needs within segment)
2) Distinction (unique from other groups)
3) Reaction (similar response to market) (Investopedia)

31. How to research customers
Primary
Surveys
Blogs, forums
Comments in social media
Competitor websites
Secondary
Market research reports
Suppliers
Industry or trade
associations
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More information on target markets

32. (C) RESEARCH EDGE 2014
Research Edge is a New Orleans based consulting firm
specializing in business research and strategy. We
help clients understand their customers, their
competition, and the environment in which their
business operates so they can make smart decisions.
Cynthia B. Fromherz, Principal
Contact us at: Info@ResearchEdgeConsulting.com