Market Research: 8 Sure-Fire Ways to Make Sure Your Business, Product or Service Idea is Successful from the Start!

Transcription

1 Market Research: 8 Sure-Fire Ways to Make Sure Your Business, Product or Service Idea is Do you have a business, product, or service idea that you want to put to the test? Inside you ll learn how to: Figure out whether your idea is viable Determine your competitive edge Create a research plan for quantifiable results Assess your idea for marketability Includes a sample case study and tips for easy, effective and rewarding market research. Wendy Marlow Marketing & Sales Strategist Certified Sales Professional Certified Networker

2 Copyright Wendy Marlow, 2016 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical photocopying, recording, or otherwise (except for brief passages for purposes of review) without the prior permission of The Art of Marketing Inc. Permission to photocopy should be requested from the Canadian Copyright Licensing Agency. Publisher: The Art of Marketing Inc. Library and Archives Canada Market Research: 8 Sure Fire Ways to Make Sure Your Business, Product or Service Idea is ISBN Electronic book text CONTENTS Overview 3 Where to Start How to Brainstorm Your Ideas! 3 1. Define your Customers 2. Research the Competition 3. Determine Where You Would Sell the Product 4. Determine the Product s Edge 5. Consider Marketability Factors Market Research The Process 5 Step One: Define the problem Step Two: Define research objectives Step Three: Develop the research plan Step Four: Collect the information Step Five: Analyze the information Step Six: Present the findings Step Seven: Act on decisions Small Business Owner s Marketing Handbook Page 2 of 14

3 Market Research: 8 Sure Fire Ways to Make Sure Your Business, Product or Service Idea is Successful from the Start! Overview: According to the Small Business Resource Network: 5% of new product ideas make it to the development stage 5% of those make it to product launch 5% of those are commercial successes Those are pretty scary statistics! The bottom line is it s your job to prove that you have a viable business idea. Just because friends and family say, hey, that s a great idea, doesn t mean it is. The more research you do: the more comfortable and confident you will become the more time and money you ll save the more successful you ll be Start with preliminary research such as this: Step 1: Where to start: how to brainstorm your ideas! First: Second: Third: Fourth: Fifth: Define Your Customers Research the Competition Determine Where You Would Sell the Product Determine the Product s Edge Consider Marketability Factors First: Define Your Customers Find out as much as you can about the customers you ll be selling your products and services to: Small Business Owner s Marketing Handbook Page 3 of 14

4 Where are they located? What do they buy now? How much do they spend? What would entice them to buy your products or services? Second: Research the Competition Find out about the competition. Direct competitors sell exactly the same thing, e.g., grocery stores. Indirect competitors are other places where you can buy food, e.g., convenience stores, gas stations, street vendors. Is there a similar product/service available on the market now? Who are the direct and indirect competitors? What makes your idea different? Why would the target market benefit from doing business with you? Third: Determine Where You Would Sell the Product Will you distribute the product over the internet (your own website, ebay, other online stores), in a wholesale or retail environment, or in a specialty store? How/where would potential customers buy the product? Will you require a sales force? What distribution methods would make it easier for customers to buy? How would customers want the product packaged? Fourth: Determine the Product s Edge There may be nothing like your product on the market or there may be many (i.e., infant car seats). It s critical that you understand what makes your product better than anyone else s. Small Business Owner s Marketing Handbook Page 4 of 14

5 Why would someone buy this product? What makes it different from anything else on the market? What do customers like or dislike about the product? Would you buy it? Why? Fifth: Consider Marketability Factors Consider these questions related to the marketability of your product. Does the product have seasonal or year-round appeal? Would it sell better in a specialty store? How much are customers willing to pay? Would you make a profit at that selling price? The definition of marketing is: Satisfying customer needs profitably. Market Research (The Process) Market research is about discovering what motivates or could motivate people to do business with us (either B2B business to business, or B2C business to consumer). What would entice them to buy from us? Here is a Seven Step process that will help you define the information you re looking for. Knowledge is power. Relevant and factual information will provide you with the focus and direction you re looking for! Small Business Owner s Marketing Handbook Page 5 of 14

6 Step One: Step Two: Step Three: Step Four: Step Five: Step Six: Step Seven: Define the problem, issue, or opportunity Define your research objectives Develop the research plan Collect the information Analyze the information Present the findings Act on decisions Step 1: Define the problem, issue, or opportunity A problem well defined is half solved. Decide what it is that you want to know, then write it down. Define your problem, issue or opportunity here: Case Study: Krysten s Burgers n Cones is a Burlington based fast-food restaurant that wants to improve its market share in the local fast-food market. Management has noticed that diners are choosing other venues for eating out, including take-out sections in grocery stores; fast food outlets that deliver (pizza, Chinese, subs); food courts in malls; casual, family and fine dining restaurants. Knowing that the quality of products and services greatly influences choice, management wants to determine the most appropriate services to offer in order to expand its business beyond its base of loyal customers. Problem definition: Too narrow: Find out what additional services customers want during visits to Krysten s Burgers n Cones. Too broad: Find out everything related to people who eat out. Appropriate: Why do people eat out? What are their needs and wants? What will satisfy them? Small Business Owner s Marketing Handbook Page 6 of 14

7 Step 2: Is your objective to: Define research objectives Answer specific questions? Gather preliminary data to uncover the true nature of the problem? Test cause-and-effect relationship? Define your research objectives here: Case Study: Krysten s Burgers n Cones agreed on the following research objectives: To obtain answers to the following questions: 1. What are the primary reasons 16+ years eat out (pleasure, business, no time, no talent, etc )? 2. What are the demographics of these diners (married, single, double income no kids, over 65, busy executives, etc..) 3. What do these people perceive to be the differences between fast food, food courts, pub grub, family, fine and casual dining restaurants in terms of cost, noise, music, menu, service) 4. What product/services should the company consider incorporating (e.g., singing servers, live entertainment, health conscious menus, allergy alternatives). Step 3: Develop the research plan Consider each of the following: A. Data sources (where will the data come from): o Secondary sources (already collected for another purpose) Internal accounting records Inventory records Sales reports Feedback (compliments and complaints) Employees Previous market research studies Government publications and websites Chambers of Commerce/Boards of Trade Small Business Owner s Marketing Handbook Page 7 of 14

8 Professional and Trade Associations Networking Groups Trade Shows Periodicals, books and directories o Primary Sources (collected for this specific purpose) Define your research plan here: Small Business Owner s Marketing Handbook Page 8 of 14

9 Once you ve defined your research plan, continue by developing the how the methods you ll use to conduct your research: B. Research approaches: o Observation o Focus groups o Surveys o Experimental o Experiential Conducted with internal manpower Contracted to an outside research agency Define your research approaches here: C. Sampling Plan: o Who will be contacted (what kind of people) o How many will be contacted o How will you get in touch with respondents (i.e., newspaper ad, networking groups, members of associations, etc ) o What specific behaviours are you looking for? (observation) * o What specific questions will you ask (questionnaire, survey or focus group)? * o How will you follow up (experimental or experiential)? * * Carefully craft your plan to ensure that you will receive quantifiable results. o o o o Use close ended questions (i.e., yes, maybe, no). Open ended questions can be interpreted differently. Yes, maybe, no leaves no room for error. Provide pick lists for people to choose from. Ask people to prioritize from a list. If you decide to use a scale, use 1-4 rather than 1-5 or The reason is there s no neutral. Example below: Small Business Owner s Marketing Handbook Page 9 of 14

10 Case Study: Sample question: How satisfied are you with the current menu? Very satisfied Somewhat satisfied Slightly disappointed Disappointed Detail your sampling plan here: List your questions here: D. Contact Methods: o Personal interview o Telephone interview o Questionnaires Canada Post Fax Online survey your website Online survey third party (e.g., Survey Monkey) Small Business Owner s Marketing Handbook Page 10 of 14

11 Describe your contact methods here: Small Business Owner s Marketing Handbook Page 11 of 14

12 Step 4: Collect the information Once you have your plan in place, go ahead and begin collecting information according to your plan. Your research should be conducted on a timely basis. If your research is conducted over a long period of time (i.e., more than six months) buyer preferences may change, another product may have been introduced that has captured attention, etc Step 5: Analyze the information Because you took the time to develop and ask quantifiable questions, you ll be able to quickly analyze the information you receive. Findings might be: 73% of people 65+ dine out once a week 57% of those have food sensitivities or allergies 90% believe portion sizes are too large Step 6: Present the findings If you want to put people to sleep in under 5 minutes, show them lots of graphs that are hard to see and difficult to understand. Here s your chance to get creative as you present your findings and recommendations. Cut right to the chase and present only the most powerful findings. Save the others for your written reports. As you re preparing that, keep in mind you know the statistics, the questions, the responses your reader may not. Be very clear on what you ve found and what it means. Small Business Owner s Marketing Handbook Page 12 of 14

13 Step 7: Act on decisions Include information and recommendations for decision making, risk assessment, and action! That s the key word: ACTION! We never plan to fail and yet somehow we fail to plan! With a little time, patience, and perseverance you will complete your research plan, be focused and on your way! With a marketing smile, Wendy About the Author Wendy Marlow is a Marketing & Sales Strategist, Certified Sales Professional, and Certified Networker with more than 16 years of experience working with small business owners. In 1999, Wendy decided to leave corporate life and started The Art of Marketing Inc. She is an intuitive leader and strategic thinker; taking a pragmatic approach to helping small business owners conquer obstacles and achieve results. Wendy generously shares her broad-based business knowledge through diverse corporate experience in administration, sales and marketing. Small Business Owner s Marketing Handbook Page 13 of 14

14 A flexible and enthusiastic team player, Wendy is a top notch communicator as well as a tactful and effective negotiator with a professional work ethic. She also looked like one of the Campbell's Soup Kids when she was a child. What's not to love? Connect with Wendy: Phone: wendy.marlow@artofmarketing.ca Website: Services: Marketing Check-Up Strategic Marketing Program Promotion Ideas Your Marketing Manager Sales Coaching Copywriting & Editing Workshops & Seminars DIY Learning: ebooks Recommended Reading Subscribe: Wendy's Small Business Marketing & Sales Tips Small Business Owner s Marketing Handbook Page 14 of 14