Market Analysis and Surveying
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Slides of my presentation during the event organized by foundation “Young Entrepreneurs Stichting, YES” at the Aruba Chamber of Commerce and Industry. January 28th, 2014.
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Market Analysis and Surveying
- 1. E.M. Erasmus, MA January 28, 2014 Market Analysis and Surveying
- 2. Roadmap • • • • • • Why do Market Analysis? Market Analysis Grid Research Process Low-Budget/DIY Market Analysis Some Helpful Tips and Resources Final Thoughts
- 3. Why do Market Analysis? • 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 Market Analysis? Marketing Analysis can be used to: • • • • • Identify & Assess Opportunities Examine Market Segments Select Target Markets Plan & Implement Marketing Mixes Evaluate Marketing Performance
- 7. Target Market and Customer After first identifying your market, you will then need to select a target market to be the focus of your company’s efforts.
- 8. Target Market and Customer • Consumer market segmentation is based on geographics, demographics, psychographics, and buying characteristics. • A business can select and serve multiple market segments.
- 9. Target Market and Customer Market Segmentation geographics buying characteristics demographics psychographics
- 10. Target Market and Customer The target market for your product or service should be: 1 Measurable 2 Large enough to be profitable 3 Reachable 4 Responsive
- 11. Researching the Target Customer Create a customer profile. Evaluate customers’ needs. Conduct Forecast research to forecast demand.
- 12. Creating a Customer Profile Creating a customer profile (personas) is the first step in targeting your marketing efforts. • Age, gender, lifestyle • Purchasing power • Purchasing process • Frequency of purchase, etc.
- 13. Evaluating Customers’ Needs In order to provide 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
- 14. Forecasting Demand Several methods can be used to forecast demand: Use historical analogy. Interview prospective customers and intermediaries. Go into limited supply.
- 16. The Competition • Usually, competing products and services are already established in the market. • To succeed, you must be able to capture market share by differentiating your business.
- 17. The Competition Many entrepreneurial companies succeed by studying the competition to define a niche in the market.
- 18. The Competition Create a profile 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?
- 20. Analyzing the business environment Look at trends and patterns of change. Understand industry forces that affect your business. Study industry demographics.
- 21. Local Trends Ageing Population Renewable Energy Social Media Generation Y Tourism Demographics Health Consciousness Gateway/Export Creative Industries Consumer Awareness Mobile Sustainable Food Recycling/Upcycling
- 22. Global Trends
- 23. Global Trends
- 24. Industry Forces barriers to entry threats from substitute products sources of supply buyers’ ability to bargain technology
- 25. Industry Demographics carrying capacity the ability of industry to support new growth industry life cycle the current stage of an industry 1 Birth 2 Growth 3 Maturity 4 Decline uncertainty the degree of stability or instability in a given industry complexity the number and diversity of contacts with which a business must deal
- 27. Start the Research Process The Five Steps of an Effective Research Plan 5 4 3 2 1 Analyze the data. Organize the data. Collect primary data. Obtain secondary resources. Identify your information needs.
- 28. Start the Research Process Research secondary data before researching primary sources because it is easily obtained and inexpensive.
- 29. Start the Research Process The most common methods of gathering primary data are: • observation • interviews • surveys
- 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.
- 34. Online Resources
- 35. Online Resources
- 36. Online Resources
- 38. Online resources
- 39. Books on marketing research
- 40. Books on marketing research
- 41. Sharing some wisdom • Methodology: should be 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 out…;
- 42. Always Remember • Market Analysis & Surveying is a tool. • It assists entrepreneurs in their decision making. • IT IS NOT A REPLACEMENT FOR ENTREPRENEURIAL JUDGEMENT!!
- 43. Final thoughts… “He who asks is a fool for five minutes. He who does not ask is a fool forever.” ~ Chinese proverb