1. Analysis of target market
a. segment of the market place are those customers that will most likely purchase ( product or service ) = primary market b. Secondary market = customer outside of the primary market
2. Characterizing the target market
Who is most likely to purchase the product or service?
What do these customers typically buy, how they buy it , and how do they hear about it ? How often do they buy it ? what is their buying pattern?
How can the new venture meet the customers needs ?
Steps in Market Research
Assess your information needs
How will the data be used?
What data need to be collected?
What methods of analysis will be used?
Research secondary sources first
how large is the market?
How can you reach your market?
What market strategies have been successful with these customers? Measure the target market with primary research:
What are the demographics of your customer?
Would they purchase your product or service ? why?
How much would they purchase?
When would they purchase?
How would they like to find the product or service?
What do they like about your competitors products and services? Forecast demand for the product or service:
What do subsitute products/ services tell you about demand for your product/ service? What do customers, end-users and intermediaries predict the demand will be? Can you do a limited production or test market for your product or service?
Define your market research goals:
Business markets can also be described by :
Number of employees
Observation . mail surverys
Mail surveys :
* Interviews :
More opportunity for clarification and discussion
advantage of non verbal communication
reponse rate is high
open- ended questions and more in- depth information
opportunity to network and develop valuable contacts in the industry
Interviews is the best source of valuable information from customers, suppliers , distributors *
* Focus groups:
Efficient way to gain valuable info before investing substantial
Customer profile :
Buying habits – when, where , how much
Where customers typically find your types of products and services How they would like to purchase
Forecasting new product/service demand :
Own market research does have advantage of giving you a clearer sense of your target market and its needs It is helpful to know about demand from 3 different points of view: historical, analogy, propective end –user and intermediaries and your own point of view.
Do a formal Test Market :
When a product is fairly complex and expensive to produce , a formal test market in selected geographic area can provide valuable information about demand for and acceptance of the product before you spend substantial capital.
* The cost/ benefit of Market Research :
Spending too much time on market reseach can cost you a window of opportunity for entering the market.
Many new businesses are using distribution strategy as their competitive advantage
How does EA stay at the forefront of this intensely competive and dynamic industry?
Timing and and on budget
The resource- based view:
Is a model of firm performance that focuses on the resources and capabilities controlled by a firm as sources of competitive advantage.
Resource and capabilities:
Resources in the RBV are defined as the tangible and intangible assets that a firm controls, which it can use to conceive of and implement its strageties. *
* Ex : product ( tangible)
Customers, teamwork (...