Magnetude Consulting teaches startups how to conduct qualitative market research through interviews.

1. Market Research for Startup
Leaders
Natalie Nathanson
May 2013
Developed for a course at:

2. Market research for start-ups is essential.
Understanding the needs and wants of
your target market can be the difference
between success and failure.

3. Agenda
• Market research 101
• Qualitative startup market research
• Project framework
• Getting started on your own

4. WHAT IS MARKET
RESEARCH?

5. Process of systematically investigating the
market for a given product or service,
gathering and analyzing data regarding the
number and location of customers;
customers’ interests, preferences, and
buying habits; and pricing and price
sensitivity of demand.
…For the purpose of gaining insight about a
market to help a company formulate its
business and marketing strategy.
SOURCE: http://www.startups.co/information/go-big-dictionary/market-research-definition

6. Categories of Market Research
In a Startup Environment…
Primarily
QUANTITATIVE
Primarily
QUALITATIVE
Behavioral research
In-person
surveys
Secondary
Research
1:1 interviewsFocus group
Web or social
surveys

7. QUALITATIVE STARTUP
MARKET RESEARCH

8. When and where is it used?
Concept Alpha Beta MVP Launch Scale Break-even Exit
Market
validation
Market
segmentation
Price analysis Competitive
analysis
Customer
resonance
Revisit from concept
for target market
expansion
Lifecycle of a Startup
Revenue/
A few examples above…

9. • Market validation
• Market segmentation
• Pain point articulation
• Target market prioritization
• Marketing planning
• Competitive analysis
• Price analysis
• Customer resonance
• Product development
• Trend identification
• Influencer & media landscape
What can market research help your startup determine?

10. PROJECT PLANNING &
EXECUTION FRAMEWORK

11. PHASE I
Planning
PHASE II
Implementation
Preparation
PHASE III
Fieldwork
PHASE IV
Analysis
PHASE V
Action
Plan
Identify
goals
2ndary
research
Develop interview
questions
Recruit
interviewees
Conduct
interviews
Collect &
summarize
data
Review
findings
Develop
conclusions
Decide
what to do
differently
Implement!
5 Steps to Conduct Qualitative Market Research

12. Research Differences: B2B vs. B2C
Category Consumers (B2C) Business Users (B2B)
User Type Responder is an end-user Responder is engaging as
part of profession
Population Larger sample population
(generally)
More defined targets
Decision-making Approvals come from self
(or spouse?)
Approvals come from
multiple stakeholders
Interview language Simple, everyday
language is used during
the interviews.
Knowledge of industry
terms may be needed

13. Step 1: Planning
Confirm the questions we are
trying to answer, flesh out
methodology, approach, and
desired outcome.
Activities include:
 Secondary research (online & founder insights)
 Select target audience & qualification criteria
 Prioritize your goals, questions to answer

14. Step 2: Implementation Preparation
Create all needed materials for the
primary research, build & test list of
questions (discussion guide).
Activities include:
 Build and test discussion guide
 Build target interviewee list
 Schedule interviews

15. Discussion Guide Question Types
Warm Up
Questions
E.g. Tell me about your background
Best for: Starting an interview!
Example Use: General market knowledge
Example
Questions
E.g. Give me an example of…
Best for: Complexities - Leading questions, disruptive technologies, etc.
Example Use: Purchase decisions, product development
Direct
Questions
E.g. Where do you go for…
Best for: Factual questions and/or you need a very concrete answer
Example Use: Competitive analysis, influencer identification
Indirect
Questions
E.g. What are the biggest challenges you face around…
Best for: Need to understand their world, want to see language they use
Example Use: Pain point articulation, target market prioritization

16. Step 3: Fieldwork
Activities include:
Conduct interviews (record, record, record)
Review early insights midstream
Summarize interviews
This is where the rubber hits the
road—conduct interviews!

17. Step 4: Analysis
Activities include:
Analysis summary
Bring in broader group
Review analysis & implications
Develop implications on ‘questions to answer’
Aggregate data into findings,
review patterns in the data,
glean insights.

18. Step 5: Build Action Plan
Activities include:
Decide what new hypotheses & realizations you have
Agree on what to do differently
Implement!
Don’t sit on the insights—do
something about it!

19. GETTING STARTED ON
YOUR OWN

20. What to Remember
1. Record the conversation. Don’t transcribe into
your own words.
2. Interviews won’t go as planned. Each interview
will be different.
3. Recruitment isn’t easy. Give yourself enough time,
prepare.
4. Don’t forget your original goals... It’s easy to get
caught up in the conversation.
5. …but be open minded to new insights. Take
everything in, but don’t jump to conclusions.

21. Where to go from here
Approach Pro’s Con’s
Do-it-yourself Least $ expenditure Your time is precious
Responses will be more
biased
Custom
educational
workshop*
Expert guidance
More confidence in
results
Learn to do it
Still have responder bias
Still takes time
Targeted
support*
Get help where you
need in most
Beware of disconnects
Full
outsourcing*
Proven methodology,
objectivity
Spend your time wisely
Most costly in terms of
hard $’s
• Always be talking to
customers (and
documenting it!)
• Determine your highest
priority goals
• A few ways to get
started…
*Services offered by Magnetude Consulting

22. How do we break down our marketing services?

23. What’s YOUR next step?

24. natalie@magnetudeconsulting.com
@_Magnetude
www.magnetudeconsulting.com