How To Conduct Market(Ing) Research

How to Conduct

Market(ing) Research

Presented by:

Edward M. Erasmus, MA

What we will do during the next 40

minutes….

Presentation by Edward Erasmus

Have a conversation about Market(ing) Research…

• Discuss what, why, when, how…

• Highlight some important elements

• Discuss creative ways to do ‗quick scans‘

• Have a look at (online) resources

• Offer some tips

• Some final thoughts

• Q&A


So let‘s get started….



―Would you tell me, please, which way I ought to

go from here?‖

―That depends a good deal on where you want to

get to,‖ said the Cat.

―I don‘t much care where—‖ said Alice.

―Then it doesn‘t matter which way you go,‖ said

the Cat.

(Alice‘s Adventures in Wonderland, Lewis Carroll)


What can entrepreneurs learn

from this?

Don’t do things just for doing, but ask first

where you want to take your business, and

subsequently choose the right path to

reach that destination.


In simple terms….


STRATEGY

…articulates the direction a business will pursue

and the steps it will take to achieve its goals…


You cannot develop a strategy without

proper knowledge on key aspects of your

business and/or industry…

…And here is where Market(ing) Research

comes in…

STRATEGY


MARKET(ING)

What is it?

Market Research: Involves researching specific industry‘s

or markets.

Marketing Research: Marketing Research goes further.

Marketing Research faces problems about consumers,

products, services, market competition, sales promotion,

etc.

Market and Marketing Research are nowadays used interchangeably

MARKET(ING) RESEARCH


―Marketing research is the function that links the consumer,

customer, and public to the marketer through information -

used to identify and define marketing opportunities and

problems; generate, refine, and evaluate marketing actions;

monitor marketing performance; and improve understanding

of marketing as a process. Marketing research specifies the

information required to address these issues, designs the

methods for collecting information, manages and implements

the data collection process, analyzes, and communicates the

findings and their implications.‖

American Marketing Association (AMA) - Official Definition of

Marketing Research

MARKETING RESEARCH


Marketing research is the collection and

analysis of relevant information to enable

you to make informed business decisions.

MARKETING RESEARCH


So basically Marketing Research

(if done correctly and consistently)

helps your company reach…


Conducting marketing research is about

gathering facts and opinions in an orderly,

objective way to find out what people want to

buy, not just what you want to sell them…

In essence….


Marketing Research…

a few more things you

should know about it…


Marketing Research: when?

• Startups

• Established


Marketing Research: who?

• Small enterprises • Big corporations


Marketing Research: purpose?

• Problem

identification

• Problem

solving



• When sales are on

the rise

• When sales are

way down



• In times of

economic growth…

• In times of

economic turmoil…


Marketing Research: $$$?

• Zero-budget • Sky-is-the-limit


Marketing research can be an effective tool

at any point in the planning process.

It may be used in investigating, evaluating,

starting, developing, consolidating,

diversifying or even reducing the size of

your business.

Marketing research…


Why do marketing research?

Identify potential customers

Understanding your existing customers

Set realistic targets

Examine and solve business problems

Prepare for business startup or expansion

Identify business opportunities

Develop effective strategies

Why do marketing research?


―In 2006: 671,800 new small

businesses opened in the U.S., but

544,800 small business closed in

that same year.‖ Source: The US Small Business Administration.

Interesting data…


―80 percent of new businesses fail within

the first five years...‖

Source: Inc. magazine and the National Business

Incubator Association (NBIA).

Interesting data…


Top 3 leading causes for small business

failure in the U.S.: • Choosing a business that isn‘t very profitable;

• Failure to clearly define and understand the market,

customers and their buying habits;

• Failure to price products or services correctly.

Source: The US Small Business Administration.

Interesting data…


Companies that survived – or even thrived

during the times of crisis were the ones

that kept investing in effective marketing

and market research….

Interesting data…


Interviews conducted by Commission Nation of

Innovation with commercial banks (2009) :

What’s the leading cause of failure for starting

businesses in Aruba?

The most common answer…:

“Poor market research leading to an inaccurate

understanding of the target customers wants and

needs”.

Nos Aruba 2025


MARKETING RESEARCH

QUESTIONS….


In the case of a new business:

• Do people want your product or service?

• What characteristics do they seek; for example, what size, color,

and what features?

• What are they willing to pay for it?

• Who is most likely to purchase it?

• What are the best promotion methods to reach them?

• Will the demand be sufficient to sustain the business?

Possible questions?...


For existing businesses market research can provide:

• A continuing awareness of customer needs

• Information on market and competitor performance

• Information on current and future trends

• Identification of problems and how to overcome them

• The changes required to increase demand for your product

• An evaluation of planned changes to your product or service

• An evaluation of the effectiveness of your advertising.

Possible questions?...


How to conduct

market research?

Step One - Define Marketing Problems and Opportunities

Step Two - Set Objectives, Budget and Timetables

Step Three - Select Research Types and Methods

Step Four - Design Research Instruments

Step Five - Collect Data

Step Six - Organize and Analyze Data

Step Seven - Present and Use Marketing Research Findings

The Process


• The problem should be clearly identified and

defined.

• Examples of problem definition: – Launching a new product or service.

– Low awareness of your company and its products or services.

– A poor company image and reputation.

Step One - Define Marketing

Problems and Opportunities


• Objective: set objectives for your market

research operations.

• Budget: How much money are you willing to

invest in your market research? How much can

you afford?

• Timetables: Prepare a detailed, realistic time

frame to complete all steps of the market

research process.

Step Two - Set Objectives, Budget

and Timetables


• Types: primary or secondary?

• Methods: quantitative or qualitative?

Step Three - Select Research

Types and Methods


• Instruments: questionnaires, interviews,

observation or experiment?

• Some tips for questionnaires are provided in

handouts.

Step Four - Design Research

Instruments


• Before beginning the collection of data, it is

important to train, educate and supervise your

research staff (if applicable).

• Test your instrument first…evaluate if it works.

• Stick to the objectives.

Step Five - Collect Data


• Once your data has been collected, it needs to

be ―cleaned.‖ Cleaning research data involves

editing, coding and the tabulating of results.

• Look for relevant data that focuses on your

immediate market needs.

• Quantify your results; look for common opinions

that may be counted together.

• Discuss your findings with your staff.

Step Six - Organize and Analyze

Data


• Present results and conclusions in an organized

manner.

• Discuss the information with your staff.

• Make decisions!

Step Seven - Present and Use

Marketing Research Findings


Quick scanning your business

• No time or budget to do extensive research?

• There are some quick and creative ways to

gather information for decision making….

CREATIVE WAYS TO

GATHER INFORMATION


• Talk to customers

• Talk to employees

• Observe activities in your store

• Look at sales records

• Product return data

• Customer complaints

INTERNAL


Here‘s a recommendation…

Invest in a good Point-of-sale software:

• Keep track of sales

• Movement of goods

• Maintain a customer database

INTERNAL


• Visit your competitor(s)…what/how are they

doing?

• Look for secondary research (data already

available)

• Read the newspapers

• Read global news (online)

• Attend lectures and workshops (UA, Chamber of

Commerce, AIB, NCIC, etc.)

EXTERNAL


• It‘s a quick scan

• It provides limited and unstructured information

• It‘s no replacement for formal research…

BUT BE AWARE..


Resources and Tips

Online Resources


Online Resources


Online Resources


Online Resources


Online Resources


Online resources

• http://www.marketresearchworld.net/

• http://www.sbtdc.org/

• http://www.markettools.com/KnowledgeCenter

• http://www.sba.gov

• http://freeonlinesurveys.com/

• http://www.surveymonkey.com/


http://www.marketresearchworld.net/

http://www.sbtdc.org/

http://www.markettools.com/KnowledgeCenter

http://www.sba.gov/

http://freeonlinesurveys.com/

http://www.surveymonkey.com/

Books on marketing research


http://www.amazon.com/gp/reader/0803958579/ref=sib_dp_pt

http://www.amazon.com/gp/reader/0749450282/ref=sib_dp_pt

And if you‘re too busy….


Be proactive;

Make marketing research a habit;

When doing research: don‘t just rely on family

and friends;

Don‘t just collect data…do something with it!;

Know your industry…inside and out…;

Always keep the main thing, the main

thing: focus on your customers!

Sharing some wisdom


Final thoughts…

―He who asks is a fool for five

minutes. He who does not ask is a

fool forever.‖ ~ Chinese proverb

Final thoughts…

―Advertising people who ignore

research are as dangerous as

generals who ignore decodes of

enemy signals.‖

~David Ogilvy, advertising pioneer and

founder of Ogilvy Group

S – Strategize

M – Maintain market spend

A – Assess and allocate the budget

R – Research customer thoroughly

T – Target and reach out to them

Start doing SMART marketing



Questions


mailto:[email protected]

mailto:[email protected]

Date post:	10-May-2015
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How To Conduct Market(Ing) Research

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