E.M.

Erasmus, MA
January 28, 2014

Market Analysis and Surveying

Roadmap
• Why do Market Analysis?
• Market Analysis Grid
• Research Process
• Low-Budget/DIY Market Analysis
• Some Helpful Tips and Resources
• Final Thoughts
 Why do Market Analysis?

• A key part of developing your business

strategy
• Both first-time entrepreneurs and existing
companies need market information for
new products and services.
 Why do Market Analysis?

Marketing Analysis can be used to:

• Identify & Assess Opportunities
• Examine Market Segments
• Select Target Markets
• Plan & Implement Marketing Mixes
• Evaluate Marketing Performance
 Market Analysis Grid

Customer Competition Context

Secondary

Primary
CUSTOMER ANALYSIS
 Target Market and Customer

After first identifying your market, you will

then need to select a target market to be
the focus of your company’s efforts.
 Target Market and Customer

• Consumer market segmentation is

based on geographics, demographics,
psychographics, and buying
characteristics.
• A business can select and serve multiple
market segments.
 Target Market and Customer

Market Segmentation

geographics

buying
demographics
characteristics

psychographics
 Target Market and Customer

The target market for your product or

service should be:

1 Measurable

2 Large enough to be profitable

3 Reachable

4 Responsive
 Researching the Target
Customer

Create a customer profile.

Evaluate customers’ needs.

Forecast research to forecast demand.

Conduct
 Creating a Customer
Profile

Creating a customer profile (personas) is the

first step in targeting your marketing efforts.
• Age, gender, lifestyle
• Purchasing power
• Purchasing process
• Frequency of purchase, etc.
 Evaluating Customers’
Needs

In order to provide what the customer wants,

you should prepare a customer needs analysis:
that is a list of features and benefits of your
good or service that the customers value
 Forecasting Demand

Several methods can be used to forecast

demand:
Use historical analogy.
Interview prospective customers and
intermediaries.
Go into limited supply.
 The Competition

• Usually, competing products and

services are already established in the
market.
• To succeed, you must be able to capture
market share by differentiating your
business.
 The Competition

Many entrepreneurial companies succeed

by studying the competition to define a
niche in the market.
 The Competition

Create a profile of direct and indirect

competitors in the market:
• Who are they?
• What makes them successful?
• What are their weaknesses?
• How will they react to new market entrants?
BUSINESS CONTEXT (ENVIRONMENT)
 Analyzing the business
environment

Look at trends and patterns of change.

Understand industry forces that affect your business.

Study industry demographics.

 Local Trends

Ageing
Generation Y
Renewable Population
Energy
Tourism Consumer
Demographics Awareness
Social Media
Mobile
Health Consciousness

Gateway/Export Sustainable Food

Creative Industries Recycling/Upcycling

Global Trends
Global Trends
 Industry Forces

barriers to entry

threats from substitute products

sources of supply

buyers’ ability to bargain

technology
 Industry Demographics

carrying capacity
industry life cycle
the ability of industry to support
new growth the current stage of an industry

1 Birth
uncertainty
the degree of stability or instability
in a given industry 2 Growth

3 Maturity
complexity
the number and diversity of
contacts with which a business 4 Decline
must deal
 Start the Research Process

The Five Steps of an Effective Research Plan

5 Analyze the data.

4 Organize the data.

3 Collect primary data.

2 Obtain secondary resources.

1 Identify your information needs.

 Start the Research Process

Research secondary data before

researching primary sources because it is
easily obtained and inexpensive.
 Start the Research Process

The most common methods of gathering

primary data are:
• observation
• interviews
• surveys
LOW-BUDGET/DIY MARKET ANALYSIS
 Low-Budget Market Analysis
& Surveying

• Use social media

• Talk to potential customers
• Visit your (potential) competitor
• Attend lectures and workshops (UA, KvK, etc.)
• Make use of UA students to conduct research
• Research and project reports database UA
 Rule of Thumb

• The larger your investment,

the more extensive your
market analysis should be.
RESOURCES AND TIPS
Online Resources
Online Resources
Online Resources
 Online resources

• http://www.marketresearchworld.net/
• http://www.bizstats.com/
• http://www.markettools.com/KnowledgeCenter
• http://www.sba.gov
• http://freeonlinesurveys.com/
• http://www.surveymonkey.com/
Online resources
Books on marketing research
Books on marketing research
 Sharing some wisdom

• Methodology: should be good enough,

not (scientifically) perfect;
• Make marketing research a habit;
• Don’t just rely on family and friends;
• Don’t just collect data…do something
with it!;
• Know your industry…inside and out…;
 Always Remember

• Market Analysis & Surveying is a tool.

• It assists entrepreneurs in their
decision making.
• IT IS NOT A REPLACEMENT FOR
ENTREPRENEURIAL JUDGEMENT!!
Final thoughts…

“He who asks is a fool for five minutes.

He who does not ask is a fool forever.”
~ Chinese proverb