Market Research Today - fast, lean, flexible

2016 Dr. Ute Hillmer www.better-reality.com
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Market Research (MR)
Day 2:
Market Research:Customer Discovery
21.1.2016
SIBE-Management-Master
Dr. Ute Hillmer
© 2015 School of InternationalBusiness andEntrepreneurship(SIBE) der Steinbeis-HochschuleBerlin I www.steinbeis-sibe.de I Dr. Ute Hillmer
New Ways of gaining
Market Insight:
Lean, fast, agile!

Market Research
Lecture
SIBE 21.01.2016
Dr. Ute Hillmer

What’s Ute’s
STORY?Iam in business to change
the lives of my technology
clients by finding them
hungry customers that get
them into sustainable growth!

and turn their customers into raving fans!

WHO is Dr. Ute
Hillmer? anexpertinpositioning andpromoting technology
products, withacarvingforinnovativeproducts that
arenotself-explaining.
Withsuchproducts,humanbehavior isoftenoutsidethe
boundaries ofrationality -despiteitseconomiccontext.
Buyingbehaviorisheretypicallyaresult ofsocial,cognitive
andemotionalfactors, alongwiththeeconomicones.

What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economicsin
technology marketing: TechnologyAcceptancein Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe,Asia)
• Product-, program-, channel-, partnermarketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993

To take the most
out of this lecture
… be in
STATE!

Agenda1. Changes in Market Research
2. What is Market Research good
for?
3. What should you Research?
4. Market Segmentation and Target
Markets
5. Find your most important
Questions
6. Where to get Answers
5. How to get your Most Important
Answers
• Qualitative Research Today
Google + Amazon Analysis
The Problem with Traditional
Quantitative Research
• Quantitative Research Today
• Interviewing People

Thislectureisabout…
• Understanding why market research is changing
• Understanding customer discovery
• The 5 big Q‘s of market research
• What do you want to learn?
• Who do you want to learn from?
• How will you get to them?
• How can you ensure to be effective?
• How do you make sense of what you learn?

The New Market Research Manifesto
1. New media allows for new methods in market research
2. New managementmethods require new methods in market
research.
3. Learning first hand about the customer, the value he is willing
to pay for and to develop a product or service that delivers this
value is called CUSTOMER DISCOVERY.
4. Customer Discovery is NOTABOUT statistically relevant
answers. It is about the questions: Where do we find hints and
patterns what our customers want and what they are willing to
pay for
5. Customer Discovery is all about fast, agile and lean.
6. Customer Discovery is a way to built market focused
innovations, that don‘t take forever and that don‘t eat an
endless research budget.

What is Market
Research good
for?

TheProblemandtheOpportunity inMarketing
Enhancing a Product: „Customer needs and motives for buying are
difficult to determine“ Kottler+Armstrong 2015
the understanding is required by companies to obtain customerand
market insight
Developing a new Product: “Fresh understanding of customers and the
market derived from marketing information” Kottler+Armstrong2015
Becomes the basis for creating customervalue and relationships

Elements in a Customer Driven
Marketing Strategy
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014

PSA2: Goal Definition + Communication Planning

What should
you Research?WhataretheQuestions, youneedanswered?

Weaknesses
Remove (internal)
WEAKNESSES to use
opportunities
Strengths
Use Chances with own
(internal) STRENTH
Opportunities
OPPORTUNITIES that can
be taken
Threads
THREADS that must be
overcome
Internal
/
today
External
/

tomorrow
ASWOT of your Product or Project

Toget the SWOT right, you need toResearch the
Marketing Environment
Company
Suppliers Customers
Distributers
Competitors
Micro-‐
Environment
Economic
Political
/
Legal
Social/
Cultural
Technology
Macro-‐
Environment
Ecological/
Physical

Weaknesses
Remove (internal)
WEAKNESSES to use
opportunities
Strengths
(internal) STRENTH
Opportunities
be taken
Threads
overcome
Internal
/
today
External
/

tomorrow
Market Research

Gain Customer Insight
Company
Suppliers Customers
Distributers
Competitors
Micro-‐
Environment
Economic
Political
/
Legal
Social/
Cultural
Technology
Macro-‐
Environment
Ecological/
Physical

Weaknesses
Remove (internal)
WEAKNESSES to use
opportunities
Strengths
(internal) STRENTH
Opportunities
be taken
Threads
overcome
Internal
/
today
External
/

tomorrow
Competitive Intelligence

Understandthe Dynamics intheMarketplace
Company
Suppliers Customers
Distributers
Competitors
Micro-‐
Environment
Economic
Political
/
Legal
Social/
Cultural
Technology
Macro-‐
Environment
Ecological/
Physical

What are your most important and most risky
assumptions you are making?
• How you reach your customers
Quelle:businessmodelgeneration.com
• What do customers really want?
… need?
• How you make money (generate
usage)

Internal
/
today
External
/

tomorrow
The Macro-Environment
Weaknesses
Remove (internal)
WEAKNESSES to use
opportunities
Strengths
(internal) STRENTH
Opportunities
be taken
Threads
overcome
What Forces must be looked at?

Analyzing Major Forces in
the Projects Macro-Environment
3-28
Kotler / Armstrong 2016
D. Jobber 2010

You are a Cinema Owner:
How is the Macro Environment Changing?
3-29
D. Jobber 2010

Task: Part-Time MBA
3-30
D. Jobber 2010
Teams
of
4,

20
Minutes,
draw
a
poster

of
the
changes,
present

Task: Your Study Project (PSA2):
3-31
D. Jobber 2010
By
yourself,

5
Min,

write
down
the

key
forces
in

your
project,

explain
to
your

neighbor

(2
Min
each),

get
feedback
(1

Min)

PoliticalandLegalForces
• EU + national laws
• Codes of practice

Economic
• Economic growth
• Unemployment
• interest and exchange rates
• global economic trends (growth of some countries)

Ecological/PhysicalEnvironmental
• Global warming
• pollution, energy and other scarce resources; environmentally
friendly ingredients + components
• recycling and non-wastefulpackaging

Social/Cultural
• Changes in world population, age distribution + household
structure
• attitude and lifestyle changes
• subcultures within and across national boundaries
• consumerism
• + Graphic: Management-stiles US+Europe (Jobber 2010)

Technological
• New product technologies
• New process technologies
• New materials

Weaknesses
Remove (internal)
WEAKNESSES to use
opportunities
Strengths
(internal) STRENTH
Internal
/
today
External
/

tomorrow
The Micro-Environment
Opportunities
be taken
Threads
overcome

Analyzing Major Forces in
the Micro-Environment
3-38
Porters 5 Forces
MarketAnalysis
CustomerAnalysis
CompetitorAnalysis
SupplierAnalysis
DistributionAnalysis

You are aCinema Owner:
How is the Micro Environment Changing?
3-39
Porters 5 Forces
MarketAnalysis
CustomerAnalysis
CompetitorAnalysis
SupplierAnalysis

Task: Part-Time MBAProvider
How is the Micro Environment Changing?
3-40
Porters 5 Forces
MarketAnalysis
CustomerAnalysis
CompetitorAnalysis
SupplierAnalysis
Teams
of
4,

20
Minutes,
draw
a
poster

of
the
changes,
present

Task: Your Study Project (PSA2):
3-41
Porters 5 Forces
MarketAnalysis
CustomerAnalysis
CompetitorAnalysis
SupplierAnalysis
By
yourself,
5
Min,

write
down
the
key
forces
in
your

project,
explain
to
your
neighbor

(2
Min
each),
get
feedback
(1
Min)

Market
• Size
• growth rate
• trends

Customers
• Who they are
• their choice criteria
• how, when and where they buy
• how they rate us vs. the competition on product, promotion,
price, distribution, service, whole product
• how customers group (market segments) and what benefit each
group seeks
• trends

Distributors
• Channelattractiveness
• distributor decision-making unit
• decision-making process + choice criteria
• strength and weaknesses
• power changes
• physical distribution methods
• trends

Competitors
• Who are the major competitors (actual and potential)
• their objectives + strategies
• strength + weaknesses
• size, market share and profitability
• entry barriers to new competitors
• trends

Suppliers
• Who they are and location
• strength and weakness
• power changes
• trends

Find your most
important
Questions

Finding the Most Critical Questions
• Size of the market
• Market trends
• Customer Needs
• Evaluation of
Strategies/promotions
• Assessing marketing mix
• Forecasting
• Planning
• Identifying market segments
• Identifying consumer needs
• Identifying competition
• Identifying opportunities/gaps
in the market
• Reduce risk
Cartoon copyright of Giff Constable, „Talking to Humans“

What aretheCriticalAssumptions
inyourBusinessModel?
source: businessmodelgeneration.com
How you reach your customers?
How you make money?
(generate usage)
What do customers want? What do customers need?
https://youtu.be/QoAOzMTLP5s

ABriefIntroductionto the
BusinessModelCanvas
https://cdnsecakmi.kaltura.com/p/506471/
sp/50647100/playManifest/entryId/0_7lgk4
yf5/format/url/protocol/https/flavorParamId/
457711/video.mp4?ts=1446678185

What are your Most Critical Assumptions about your
Customer?
Pains describe bad
outcomes, risks, and
obstacles related to
customer jobs.
Gains describe the
outcomes customers want
to achieve or the concrete
benefits they are seeking.
Customer
Jobs
describe what
customers
are trying to
get done in
their work
and in their
lives, as
expressed in
their own
words.What urgent needs do they have?
What are their compelling desires?

What JobistheMoviegoertrying togetdone?
describe the things your customers are trying to get done in their work or
in their life. Look at the world though their eyes!
- the task they try to perform or complete
- the problems they are trying to solve
- the needs they are trying to satisfy
Functional Jobs:
perform or complete a specific task or solve a specific problem. (mow the lawn, eat
healthy, write a report, help clients as a pro)
Social Jobs:
How to be perceived by others; Try to look good, gain power or status.
Emotional Jobs:
Seek a specific emotional state, such as feeling good or secure
List the jobs, make them specific, then rank them by importance!

What drivesaMoviegoer?
• What value is a moviegoer looking for?
• What’s supporting it?
• What can be in the way?

Your Cinema Customer
as aTheater Chain Owner
Looking at it the old fashioned way:
Movie Behavior:
• Prefers action movies
• Likes popcorn and coke
• Does not like waiting in line
• Buys tickets online
• Goes once every 2 month
Psychographic Profile:
Jane Moviegoer
20-30 years old
upper middle class,
earns 80K/year
married
2 kids

YourCinema Customer MarketTodayis
Segmented!
Is strongly influenced by the context he/she finds herself in.
Which current job matters more or less?
…

What driveseachMoviegoer Segment?
• What value is this moviegoer segment looking for?

Segmenting a
Market

What isMarket Segmentation?
Market segmentationrequires dividing a market into smaller
segments with distinct needs, characteristics, or behaviors that
might require separate marketing strategies or mixes.
Kottler,Armstrong 2014
Segmentation is used to identify and further define your ideal
customer

• Segmenting consumer markets?
• Segmenting business markets?
• Segmenting international markets?
• Effective segmentation?
Criteria for

SegmentingConsumer Markets
• The big 4
Geographic

segmentation
Demographic

segmentation
Psychographic

segmentation
Behavioral

segmentation
Copyright
©
2016
Pearson
Education,
Inc.

Geographic Segmentation
Regions following ACNielsen
Geographic
segmentation
divides the market
into different
geographical units
such as nations,
regions, states,
counties, cities, or
even neighborhoods.

Demographin Segmentation
Age and Gender
Demographic
segmentation
divides the market
into segments based
on variables such as
age, life-cycle stage,
gender, income,
occupation,
education, religion,
ethnicity, and
generation.

Demographin Segmentation
Age, Gender, Income, …
Age and life-cycle stage segmentation divides a
market into different age and life-cycle groups.
Gender segmentation divides a market into
different segments based on gender.
Income segmentation divides a market into
different income segments.

Psychographic Segmentation
Sinusmilieu
Psychographic
segmentation divides
a market into different
segments based on
social class, lifestyle,
or personality
characteristics.

Behavioral Segmentation
Behavioral
segmentation
divides a market into
segments based on
consumer knowledge,
attitudes, uses of a
product, or responses
to a product.
• Occasions
• Benefits sought
• User status
• Usage rate
• Loyalty status
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong

Discussion on
Segmenting
Consumer vs.
Business Markets

SegmentingBusinessMarkets
• Consumerand Business have many of the same segmenting
variables.Additional variablesinclude:
Customer

Operating

Characteristics
Situational

Factors
Purchasing

Approaches
Personal

Characteristics
Geographic

segmentation
Demographic

segmentation
Psychographic

segmentation
Behavioral

segmentation

SegmentingInternational Markets
Geographic

location
Economic

factors
Political
and

legal
factors

Cultural

factors

Intermarket segmentation involves forming segments of
consumers who have similar needs and buying behaviors
even though they are located in different countries.
7-‐21
Segmenting International Markets

Requirements forEffective Segmentation
Measurable Accessible Substantial
Differentiable Actionable

WhenSegmenting Markets, watchoutfor:
Measurability
• “otherwise the scheme will not be operational”
• next to impossible in some markets, hard in most markets => most companies use
qualitative and intuitive methods
Substantiality
• “the variable should be relevant to a substantial group of customers”
• Challenge: find the right size / balance: large group segment: risk of diluting
effectiveness
• Too small: you lose the benefits of economies of scale
• Sometime one large customer
Operational Relevance (Actionable)
• Segmentation should enable to offer the suitable product/service to the chosen
segment, e.g. faster delivery service, special 24-hour technical support, etc.
Source: Webster, 2003

Task:
Market Segmentation for MBAEducation
Copyright WPI Foisie School of Business
Copyright Our Education Blog
Teams
of
4,

10
Minutes,
pin
on
the

board
in
groups,
present

Your
Target
Market

SelectingTargetMarket Segments
.
.
.
.
..
.
.
Your target market should be a segment that has urgent
pain and the money / resources to do something about it.
Additionally you have or you plan to have a product or
service to reduce the pain.
A target market is a set of buyers
who share common needs or
characteristics that the company
decides to serve.

Undifferentiated marketing targets the whole
market with one offer
• Mass marketing
• Focuses on common needs rather than
what’s different
Copyright
©
2016
Pearson
Education,
Inc.
Selecting Target Market Segments

Differentiated marketing targets several different
market segments and designs separate offers for
each.
• Goal is to achieve higher sales and stronger
position
• More expensive than undifferentiatedmarketing
Copyright
©
2016
Pearson
Education,
Inc.

Concentratedmarketing/
Niche marketing targets a large
of a smaller market
• Limited company resources
• Knowledge of the market
• More effective and efficient
Niche Marketing
Copyright
©
2016
Pearson
Education,
Inc.

Micromarketingis the
practice of tailoring products
and marketing programs to
suit the tastes of specific
individuals and locations.
• Local marketing
• Individual marketing
Micromarketing
Copyright
©
2016
Pearson
Education,
Inc.

Local marketing
involves tailoring brands
and promotion to the
needs and wants of local
customer segments.
• Cities
• Neighborhoods
• Stores
Copyright
©
2016
Pearson
Education,
Inc. 7-‐32
Micromarketing
Copyright
©
2016
Pearson
Education,
Inc.

Individual marketing involves
tailoring products and
marketing programs to the
needs and preferences of
individual customers.
• Also known as:
– One-to-one marketing
– Mass customization
Micromarketing
Copyright
©
2016
Pearson
Education,
Inc.

Choosing a targeting strategy depends on
• Company resources
• Product variability
• Product life-cycle stage
• Market variability
• Competitor’s marketing strategies
Copyright
©
2016
Pearson
Education,
Inc.

The Moviegoer Market Segments
What drives each Moviegoer Segment?
• What value is this moviegoer segment looking for?

Your Most Important Questions
What Job isthe Moviegoer trying to get done?
describe the things your customers are trying to get done in their work or
in their life. Look at the world though their eyes!
- the task they try to perform or complete
- the problems they are trying to solve
- the needs they are trying to satisfy
Functional Jobs:
perform or complete a specific task or solve a specific problem. (mow the lawn, eat
healthy, write a report, help clients as a pro)
Social Jobs:
How to be perceived by others; Try to look good, gain power or status.
Emotional Jobs:
Seek a specific emotional state, such as feeling good or secure
List the jobs, make them specific, then rank them by importance!
4
Teams,

different

segments,

5
minutes,
pin
on
the

board,
present

Your Most Important Questions:
What Problems is the Moviegoer trying to Solve?
Describe what annoys your customerbefore, during and after trying to
get a job done. What prevents them from getting a job done? Pain also
describes potential bad outcomes (risks).
Undesired outcomes, problems, and characteristics:
They can be
functional (e.g. solution doesn’t work, doesn’t work well, …)
emotional (“I feel bad every time I do this”)
ancillary (it’s annoying to go to the store for this)
Obstacles:
Prevents from even getting started or it slows them down (lack of time; cant afford
cost)
Risks:
What could go wrong + have important negative consequences? (I might loose
credibility)
List the pains, make them concrete, then rank them by importance!
4
Teams,

different

segments,

5
minutes,
pin
on
the

board,
present

TriggerQuestionsforCustomer Pains
1. How do your customers define “too costly”? “Takes a lot of time”, “costs too much money”, or “requires
substantial efforts”?
2. What makes your customers feel bad? What are their frustrations, annoyances, or things that give
them a headache?
3. How are current value propositions under performingfor your customers? Which features are they
missing?Are there performance issues that annoy them or malfunctions they cite?
4. What are the main difficulties and challenges your customers encounter? Do they understand how
things work, have difficulties getting certain things done, or resist particular jobs for specific reasons?
5. What negative social consequences do your customers encounter or fear?Are they afraid of a loss of
face, power, trust, or status?
6. What risks do your customers fear?Are they afraid of financial, social, or technical risks, or are they
asking themselves what could go wrong?
7. What’s keeping your customers awake at night? What are their big issues, concerns, and worries?
8. What common mistakes do your customers make?Are they using a solution the wrong way?
9. What barriers are keeping your customers from adopting a value proposition?Are there upfront
investment costs, a steep learning curve, or other obstacles preventing adoption?

Your Most Important Questions:
What Gains is the Moviegoer trying to get?
Describe the outcome and benefit your customers want. Some gains are
required, expected or desired, some surprise them.
Required gains:
Without them, the solution does not work.
Expected gains:
Relatively basic gains that are expected from the solution
Desired gains:
They go beyond what we expect and we love to have it. This is what customers
usually come up with, when we ask them.
Unexpected Gains:
They go beyond customer expectation and customers would not typically come up
with them when asked.
List the gains, make them concrete, then rank them by importance!
4
Teams,

different

segments,

5
minutes,
pin
on
the

board,
present

TriggerQuestionsforCustomer Gains
1. Which savings would make your customers happy? Which savings in terms of time, money, and effort
would they value?
2. What quality levels do they expect, and what would they wish for more or less of?
3. How do current value propositions delight your customers? Which specific features do they enjoy?
What performance and quality do they expect?
4. What would make your customers’ jobs or lives easier? Could there be a flatter learning curve, more
services, or lower costs of ownership?
5. What positive social consequences do your customers desire? What makes them look good? What
increases their power or their status?
6. What are customers looking for most?Are they searching for good design, guarantees, specific or
more features?
7. What do customers dream about? What do they aspire to achieve, or what would be a big relief to
them?
8. How do your customers measure success and failure? How do they gauge performance or cost?
9. What would increase your customers’ likelihood of adopting a value proposition? Do they desire lower
cost, less investment, lower risk, or better quality?

Innovation: Understand your Customer beyond your
Solution! What does he/she Value?

Where to get
your Most
Important
Answers(for your Customer Insight)

Where do
you look for
answers?
Who do you ask?

Who doyouwant tolearnfrom?
1. The ideal + typical customer
you envision if you get traction
with your product (or project)
2. Your early adopter = the people
who will take a chance at your
product before anyone else
does
3. Critical partners for distribution,
fulfillment, otherparts of the
business
your job is to think through
the kinds of people who have
the problem you are
interested in solving!

Your Ideal
Customer

What isan“IdealCusomer”?
This isn’t about your most common customer – it’s about who
you want as your most wanted customer! The 20% that create
80% of your revenue. If you have more than one ideal customer,
define more than one, but set a limit to 3-5 max.
Your most hungry customer!

Gain trueCustomer Insight
• In-depth knowledge of customers = successful marketing
• Understand consumer behavior and organizationalbuying
behavior
Who is important in the buying decision?
How do they buy?
What are their choice criteria?
Where do they buy?
When do they buy?

Gain trueCustomer Insight forInternalProjects
• In-depth knowledge of customers = successful marketing
• Understand consumer behavior and organizationalbuying
behavior
Who is important in the
buying decision?
How do they buy?
What are their choice
criteria?
Where do they buy?
When do they buy?
Who is important in the
usage decision?
How do they use it?
What are their choice
criteria?
Where do they use it?
When do they use it?

YourIdealCustomer Profile -Outline

YourIdealCustomer Profile- Motivations

YourIdealCustomer Profile–BusinessGoals

YourIdealCustomer Profile–Narrative +Letter

How to get
Answers
(for your Customer Insight)

Quantitative ResearchToday
Start with available Information. Test your assumptions through
Secondary Research
• Analyzing available Data
Social Media Monitoring (SMM)Google Tools:
• GoogleAdvanced Search
• Google Keyword Planner
Google Trends (Insight)
• GoogleAnalytics
Amazon Tools:
• Booktitel Search
• 3-Star Search

Qualitative ResearchToday
Test your assumptions through Qualitative Research
• Asking people
• Watching people
• Go through the experience yourself
• Test Markets
Questionnaire
Focus Groups
User Groups
Postal Survey
TelephoneSurvey
Social Media Monitoring
Customer Interviews
Test Markets
Internet feedback

Whereto getAnswers
Quick Content Analysis:
Find the right Product/Problem description
1. Google Search
– what come up in autofill?
– Google Advanced Search (erweiterte Suche)
2. Google Keyword Planner
Detailed Content Analysis:
What exactly are people looking for?
1. Amazon Booktitel-Search
2. Amazon 3-Star Search
3. GoogleAnalytics
Interviews: In-Depth Understanding

Task: Do aGoogle Search Analysis
(Part-Time) MBA: Job –Problems - Gains
Take your product/project description to Google Search
1. What wording does Google-Autofill suggest?
2. What topics, web-pages, blogs, companies come up
⇒what is their wording?
⇒what is their content?
⇒Who is there?
3. Results:
– What are your new 2-4 keywords?
– Who are your 3-5 key competitors?
1/3
of
Class:

Teams
of
3,

5
minute
search,
share
in
team;

agree
on
Top
3

in
each
category,
present

GoogleAdvancedSearch
Video: https://www.youtube.com/watch?v=yc6ssZnCyuA

Why Google?
The Online Search Ecosystem 2013

Task: MBA: Job –Problems -Gains
Do aGoogle AdWords Analysis
Take your product/project description to GoogleAdwords
1. Open GoogleAdwords (maybe register), go to → Tools →
Keyword Planer
2. Enter your keywords and take notes:
Keyword mtl.
Search Competition Price
(CPC)
1/3
of
Class:

Teams
of
3,

5
minute
search,
share
in
team;

agree
on
Top
3

in
each
category,
present

Task: Do theAmazon Booktitle Search
MBA: Job –Problems -Gains
1. Start looking for book titles
2. What seems to be the core
concern of people interested
in this topic?
3. Modify the answers and the
wording in your workbook
based on your learnings
1/3
of
Class:

Teams
of
3,

5
minute
search,
share
in
team;

agree
on
Top
3

in
each
category,
present

Do theAmazon3-StarSearch
1. Look at the 3-Star
Reviews
2. What seems to be
the core concern of
people interested in
this topic? What are
they looking for and
praise or can’t find?
3. Make a list of the
core problems
people seem to have

Google KeywordPlanner
adwords.google.com/KeywordPlanner
Know how your customers are searching and talking, get wording
ideas and traffic forecasts
• Keywords are the phrases that customers use to research and
select a product or service
• You want to use the words that your target customers use + look
for
search for keyword and ad groups ideas based on terms that
are relevant to your product or service, your landing page, or
different product categories
Get historical statistics and traffic forecasts

Findinformation inKeywordPlanner
• Keywords, Search Volume, Competitiveness(based on AdWords
competition)
• Note: Only use EXACT match to explore keywords
– Exactmatch = tennis shoes
– Phrasematch = tennis shoes for women –or-
blue tennis shoes size 9
– Broad match = shoes for tennis –or-
tennis racketsand shoes
• Keywords must be compared “apples to apples”
Video: http://youtu.be/bxREkVhzEkw

• useful for casting and short term forecasting of consumer trends
(where statistics is not available or not yet available)
• Free publicly available dataset; search per country, category,
period
• Google taxonomy of 256 categories (“jobs” including “job
listings” “career resources and planning”,“resumes &
portfolios”, “developing jobs)
• Overview of increases and decreases in the use of search
category in real time (normalized within search categories)
1 Exploring statistics from the internet
GoogleTrends http://www.google.com/trends

GoogleTrends

GoogleTrends
Video:

http://youtu.be/4uNrhACTv_c

GoogleAnalytics
• Does daily, monthly, yearly tracking of web visits
– Graphed over time
• Shows which pages visitors go to, how long they stay
– Bounce rate
– Entrance pages
• How they got there
– Search engines and Search terms used
• Location, operating system, monitor resolution
• Over 80 reports available

GoogleAnalytics
How it works
• Sign up for GoogleAnalytics
– https://www.google.com/analytics/
• They return code to you
• You paste the code just below the </body> tag
• Put it on EVERY page
– Edit>Find and Replace is easiest option
• Put it in your template pages, so it will be automatically on every
page
• Go to the Analytics dashboard page to see daily metrics

GoogleAnalytics
Useful Reports
• Visitors:
– Map overlay, Browsers, Operating systems, Screen resolution,
Connection speed
• Traffic sources
– Direct links/Referring links/Search engines, Most frequent search
words used
• Content
– Top content, Site overlay
Video:
http://youtu.be/WC3ONXJn9FQ

Digging Deeper:SocialMedia Monitoring
Social Tracking: Twitter, FB/Xing/LinkedIn Groups

The Problem of
Traditional Quantitative Research
Test your assumptions through quantitative research by using
• Secondary Research
• Do your own primary research
• Analyzing available Data

Interviews
The5bigQ‘s ofInterviewing People
• What do you want to learn?
• Who do you want to learn from?
• How will you get to them?
• How can you ensure to be effective?
• How do you make sense of what you learn?

Interviews:
Talking toPeople
3 Phases
• Pre-planning
• Interviews and other discoveries
• Analysis and Insight

Some Rules when Talking to People
• Do it yourself, don’t use an agency
• One person at a time
• Add a note taker if possible
• Start with a warm-up question and keep it human
• Avoid confirmation bias by hearing what you want to hear
(you can play a game with yourself)
• Ask for stories: “How did you do xyz” “Why?” “What was good
about it?” “What was not so good about it?“
• Are there solution hacks? Ways the customer tried to solve the
problem?

Develop a Question Guideline
Get Stories, not Speculation!
• Watch out for speculations(Would you buy this product? How much
would you be willing to pay? …) …humans are very bad in predicting
their future behavior!
• Instead, ask your interviewpartner to share a story about the past!
• How did you do… in the past?
• How exactly did you do it?
• What worked well? Why do you think this worked? What was really good about it?
What was the most fun about it? …
• What would you like so see improved? What frustrated you most? If you could do it
all over again, what one thing would you change?
• What were the overall “cost” to you (time, money, nerves, …) – watch out for the
words used!
• What were the overall “gains” to you (fun, outcome, …) - …the words used!
• What was the most important reason you bought/used XX at the time?
• …Why ….Why…..Why….Why….Why?

More to Develop a Question Guideline
• Ask open questions
• Talk little and get the other person sharing openly (80/20 Rule!)
• Observing uninfluenced behavior upfront, can lead to great
insight and will help you find the right questions.
• Parrot back or misrepresent to confirm
• Do a dry run

Even more to Develop a Question Guideline
• If anything, ask: “If this new product were to solve just one
problem, what would you want it to solve?”
• No Magic Wand Questions:
“If you had a magic wand that makes this product do whatever you
want, what would it do?”
It’s the customers job to explain their behavior, goals and
challenges. It is the product designer's job to come up with
the best solution.

Asking for the Price
Testing for price:
the hardest questions to get answered by qualitative questions are
– „Will people pay?“
– „How much will people pay?“
because answers to these Q‘s are extremely suspect.

Find your Interview Subjects
• Try to get one degree separation away
• Be creative and don’t expect people to come to you
– Where are they waiting and bored? (in line; moms on soccer
tournaments, …)
– Where are they in in their moments of pain?
– Referrals?
– Conferences, trade-shows, meet-ups?
– Social Media Groups?
– What do they enjoy? (pay a café, a manicure, ....)
If something does not work, try something new!

More aboutEnterpriseInterviewSubjects
• Conferences, trade-shows
• Xing, LinkedIn, - know the title of your prospects
• Start in the middle – move up with more experience and
knowledge
• Ask for advice in a relevant chat
• Decide if you want to ask for advice or if you want to sell
• People are willing to grant time to friendly people, more so, if
they are students or researchers
If something does not work, try something new!

Task: You want to develop the Next Generation MBA
Education. Find out, what really adds Value toyour
Customers
Task 1: develop a question GUIDELINE
- What do you want to learn?
- How do you get stories, not fairytales?
- How do you dig deep?
• What value is your segment looking for?
Teams
of
3,

15
minutes

development
in

written
form

Task: You want to develop the Next Generation MBA
Education. Find out, what really adds Value toyour
Customers
Task 2: Do 4 Interviews
(an interviewer,a note taker,an
interviewee + 1x interviewee outside
the class; each one 1x in each role)
- “get out out the building” catch one
person outside this class
- Each one is an interviewer once, each
on is a note-taker once
- Observe what works and what does not
work
Teams
of
3,

60
minutes,
Then
write
down

key
findings
on
the

Value
Proposition

Canvas,
present
+

comment
on

observations.

Data Analysis
How do you make sense of what you learn?
It’s not about scientific significance, its about pattern detection
• To find patterns, you need to track the data
Good working method:
– write down as many patterns and observationsas you saw on post-its
– Put them all on a wall and sortthem
– Discuss the patterns as a team and re-viewyour assumptions,your b-
plan, productplan, projectplan.
• Don’t take one persons comment to literally: look for patterns and
apply judgment! In real life, talking to 50 people is a good amount.
And remember:
• You are an intelligent filter, not an order taker
• People want to be helpful and nice; you want to hear nice things –
keep that in mind!!
Illustration copyright of Steve Blank, „The Startup OwnersManual“

Lean Experimenting your way up
• Only talking to people is not enough; building a live product is
expensive and time consuming. Built your way up, iterating to
the RIGHT product that meets a customer need and that sells.
Source: Chart by Gliff Contable, Talking to Humans

How do you make sense of what you
learn?
Verify your learnings by testing and re-testing our “product”:
Conversations
Mock-up
Prototype
Live Product
Put your product or project in front of customers and watch and
listen to their reactions. customers and get their feedback.

Making more sense of what you learn by
putting people through the actual
experience
• Built a Minimum Viable Product (MVP) that offers the value your
customers value most and get feedback
• Built a landing page test that offers the MVP or tests some
wording and run the analytics of who
- is interested to read more
- asks for material by entering an address
- clicks the “buy now” button

ReCap1. Changes in Market Research
2. What is Market Research good
for?
3. What should you Research?
4. Market Segmentation and Target
Markets
5. Find your most important
Questions
6. Where to get Answers
5. How to get your Most Important
Answers
• Qualitative Research Today
Google + Amazon Analysis
The Problem with Traditional
Quantitative Research
• Quantitative Research Today
• Interviewing People

Dankeschön!

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