ENTREPRENEURIAL

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

GROUP
PRESENTATIONS

MARKET
RESEARCH

Why do market research?

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)

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

HOW TO DO
MARKET
RESEARCH ?

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)

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

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!!!

WHAT CAN WE LEARN FROM TOMATO SAUCE ?

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?

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)

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

Targeting
Targeting = Which customer segment should
we aim at?
Can we spot any gaps in the market?
Look for fit between strategy and resources

Positioning
The percieved position of the brand!
Does it differentiate from competitors
Is there enough customers in that place?
Multiple positioning strategy = Procter &
Gamble

MINI CASE - 15 min

List of car BRANDS

FORD
FERRARI
BMW
VOLVO
MERCEDES
KIA
TOYOTA

MINI
SEAT
SUZUKI
RENAULT

Positioning map for cars

Niche Market

Safety

Sporty

Mass Market

How to
Estimate the
market
potential?

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

Corn maze in Wake County, Georgia

Estimating Market
Potential:
Key Steps in Estimating Market Potential:
1.
2.
3.
4.

Define your target market and market segments.

Define the geographic boundaries of your market.
Derive average expenditures for the category.
Determine the average household income for the
area and state.
5. Estimate market share

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

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

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

How to dertermine THE

Price LEVEL ?

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 products attributes and charge accordingly.

How do I KNOW IF MY
PRODUCT IS
DIFFERENTIATED ?

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?

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

EKSTRA

Advertising Media
Print Media
Broadcasting Media
Viral Media

Newspapers: National &

Local Newspapers

Magazines: Consumer- &

Professional Magazines

TV & Radio

2 EXAMPLES on virale videos

Corporate Blogs

Personal Blogs

TOP TIP on corporate bloGGING

businesses with corporate blogs

receive 55 percent more traffic than
small businesses that dont blog

Source: http://mashable.com/2010/07/20/corporate-blogging-tips/

Billboard

Billboard

Billboard

Billboard

Billboard Battle

Billboard Battle

Ambient Media

Guerrilla

FLASH MOB VIDEO

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?

Thanks for today