2. Agenda
QUICK GROUP PRESENTATIONS
WHAT ARE YOU WORKING ON
HOW WILL YOU WORK ON YOUR MARKET ESTIMATION
MARKET RESEARCH
DIFFERENT TYPES OF MARKET RESEARCH
CUSTOMER SEGMENTS, TARGETING & POSITIONING
MARKET ESTIMATION
WORKING ON THE PROJECTS
PROJECT STRUCTURE
GROUP SUPERVISION
6. Definition
Marketing Research is:
”The process of designing, gathering, analyzing
and reporting of information that may be used
to solve a specific marketing problem”
(Burns & Bush, 2000)
7. Before doing market research, one
should have:
• A clear objective as to what the organization is
aiming to achieve – both through marketing and
corporate objectives
• A reasonable understanding of the targeted
segments, and thus an ability to position the
product or service
9. MARKET RESEARCH TOOLS
Primary Research Methods
Observations (going native + antropology)
Focus Groups
In-Depth Interviews (In person, mobile, Skype or by using
video conference)
Questionaries (personal, mobile, online, e-mail)
10. MARKET RESEARCH TOOLS
Secondary Research Methods
(Desk Research)
Intern information (sale, payment, inventory)
External information (Published or Commercial
market research reports, Information about
competitors, Government reports, Industry
specific homepages
11. Market Research
1. Ask the customers what they want
2. Ask the customers what they dream of
3. Talk to ”non-customers”
4. Talk to competitors
5. Understand the competitors’ business model
6. Know the positioning map of the industry
7. Talk to distributors
8.TEST!!!
13. STP)
Segmentation
– Determinations of variables that will influence which
customer segment you focus on
Targeting
– How many segments should you target?
– Which segment should you target?
Positioning
– Which position within a segment do you want to obtain?
14. Definition
Segmentation is the ability to:
”…divide the markets into groups, or clusters,
of customers based upon realistic and
meaningful criteria so as to offer clear,
targeted benefits to every customer”
(Wright, 2004)
15. SEGMENTING BY MARKET TYPES
• Mass Market = Undifferentiated
• Segments = Homogeneous groups
• Niche = Specialized customer segments
• Multiple segments = You serve multiple segments at
once – examples could be Google or even Golf
courses
• Customized or individual = Dell
• Local customer groups = You tailor the offering to
meet local needs
16. Targeting
• Targeting = Which customer segment should
we aim at?
• Can we spot any gaps in the market?
• Look for fit between strategy and resources
17. Positioning
• The percieved position of the brand!
• Does it differentiate from competitors
• Is there enough customers in that place?
• Multiple positioning strategy = Procter &
Gamble
22. Estimating Market
Potential Check-List
Estimating the market or market potential for a new business or business
expansion is critical in determining the economic feasibility of a venture.
Estimating the market potential will determine if the market is large enough to
support your businesses.
• What type of customer will buy the product or service?
• Where are these customers located?
• How many potential customers (N) are there?
• How often do they consume or use it?
• What is the Competition?
• What are people paying?
• What is the Potential for the Market to Develop?
• What is my share of the Market
24. Estimating Market
Potential:
Key Steps in Estimating Market Potential:
1. Define your target market and market segments.
2. Define the geographic boundaries of your market.
3. Derive average expenditures for the category.
4. Determine the average household income for the
area and state.
5. Estimate market share
25. Estimating Market
Potential:
MP = market potential
N = number of possible buyers
P = average selling price
Q = average annual consumption
FORMULA: MP = N x P x Q
26. Estimating Market
Potential:
EXAMPLE : Agritourism Market Potential Analysis
Situation - estimate the market potential for a new corn maze in Wake County, Georgia. The
facility will have a maze and hayride. Other activities include pig races, hay bale play grounds,
and a petting zoo. The average price for corn mazes in the area is $8.00 per person. They plan to
target children 8 years old and under. There are two other competing corn maze operations.
These operations have been in business for over five years and have established a clientele.
Estimating Market Potential:
MP = market potential
N = number of possible buyers
P = average selling price
Q = average annual consumption
Number of potential customers (target market) =101,600 people under 9 years of age
P - average selling price = $8.00 per person
Q - consumption - assumes an average of 1.5 visits per year per child= 1.5
MP= 101,600 * $8.00 * 1.5 = $1,219,200.00
27. Estimating Market
Potential:
EXAMPLE : Agritourism Market Potential Analysis
Adjustment: It is unrealistic to assume that the operation will capture 100% of the market given
they are new and there are established operations in the area. Need to estimate our market share
of the corn maze business in the county.
Market share = Market potential * percent of the market captured.
Assume each corn maze obtains 33% of the market
Market Share = $1,219,200.00 * 33% = $402,336
Use 20% and 10% to see how sensitive the market share number is and if these figures will
support your business.
Market Share = $1,219,200.00 * 20% = $243,840
Market Share = $1,219,200.00 * 10% = $121,92
29. HOW TO - Calculating The Price:
1) Cost-plus pricing. Used mainly by manufacturers, assures that all costs (fixed and variable)
are covered and includes a desired level of profit.
2) Demand pricing. Used by companies that sell their product through a variety of sources at
differing prices based on demand.
3) Competitive pricing. Price according to your competitors. Used in competitive markets with
little product differentiation.
4) Mark-up pricing. Adds a level of profit to the cost of the product being retailed. Also good
for products that are co-packed.
Evaluating Price Competitiveness:
Investigate your competition. Are your prices in alignment with theirs? What is the
value of your product relative to theirs? Do not be a price taker or implement a “me, too”
pricing strategy if your product can be differentiated and offers a higher value than
competing products. If your price is too high to compete directly in the market, look for a
niche market that desires your product’s attributes and charge accordingly.
30. How do I KNOW IF MY
PRODUCT IS
DIFFERENTIATED ?
31. 3 criteria needs to be fulfilled
1. Does my value proposition differ from what is
currently being offered to the market?
2. Is the segment large enough for my value
proposition?
3. Is it hard for competitors to imitate, copy or
replace my value proposition?
32. 1. OK quality – BETTER in price and size
2. OK price – BETTER in design
3. OK service – BETTER in price
4. Ok speed – BETTER in price and size
41. TOP TIP on corporate bloGGING
“…businesses with corporate blogs
receive 55 percent more traffic than
small businesses that don’t blog”
Source: http://mashable.com/2010/07/20/corporate-blogging-tips/
51. Mini Task
Which channels are you going to use?
– Find 2 potential channels for your company
– Describe why you have chosen these channels?
– How would you use them?
– What are you going to use it for?
