How To Conduct Market(Ing) Research

How to Conduct
Market(ing) Research

Presented by:
Edward M. Erasmus, MA

Presentation by Edward Erasmus

What we will do during the next 40
minutes….


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…


STRATEGY
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…


MARKET(ING) RESEARCH
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


MARKETING 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.


So basically Marketing Research
(if done correctly and consistently)
helps your company reach…


In essence….
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…


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 • Problem
identification solving


• When sales are on • When sales are
the rise way down


• In times of • In times of
economic growth… economic turmoil…


Marketing Research: $$$?
• Zero-budget • Sky-is-the-limit


Marketing research…

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.


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


Interesting data…

―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….


Nos Aruba 2025
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”.


MARKETING RESEARCH
QUESTIONS….


Possible 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.

How to conduct
market research?


The Process
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


Step One - Define Marketing
Problems and Opportunities
• 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 Two - Set Objectives, Budget
and Timetables
• 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 Three - Select Research
Types and Methods
• Types: primary or secondary?
• Methods: quantitative or qualitative?


Step Four - Design Research
Instruments
• Instruments: questionnaires, interviews,
observation or experiment?
• Some tips for questionnaires are provided in
handouts.


Step Five - Collect Data

• 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 Six - Organize and Analyze
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 Seven - Present and Use
Marketing Research Findings
• Present results and conclusions in an organized
manner.
• Discuss the information with your staff.
• Make decisions!


CREATIVE WAYS TO
GATHER INFORMATION
• No time or budget to do extensive research?
• There are some quick and creative ways to
gather information for decision making….


INTERNAL
• 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


EXTERNAL
• 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.)


BUT BE AWARE..
• It‘s a quick scan
• It provides limited and unstructured information
• It‘s no replacement for formal research…


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/


Books on marketing research


And if you‘re too busy….


Sharing some wisdom
 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!

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


Start doing SMART marketing

S – Strategize
M – Maintain market spend
A – Assess and allocate the budget
R – Research customer thoroughly
T – Target and reach out to them

How To Conduct Market(Ing) Research

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