Entrepreneurship:

A Catalyst in Nation Building

Group Assignment

Submit the following:

1. Business Name
2. Business’ Vision and Mission
3. Objectives
Chapter 3:
Getting to Know the Market
 Market Research

The process of gathering, analyzing and interpreting

information about a market, about a product or
service to be offered for sale in that market, and about
the past, present and potential customers for the
product or service; research into the characteristics,
spending habits, location and needs of your business's
target market, the industry as a whole, and the
particular competitors you face .
Basic Questions in Market
Research
 Market Research
Methodologies
• Sales Data Mining

• Focus Group Discussion

• Observation Technique

• Survey Research
Sales Data Mining

is a process used by companies to turn raw data into

useful information. By using software to look for
patterns in large batches of data, businesses can learn
more about their customers and develop more effective
marketing strategies as well as increase sales and
decrease costs.
 Selling Hotdogs
Male Female
Hotdog
Time Bought 12 20 12 20
13 – 19 13 – 19
below above below above
7 – 8am
9 – 10am
11 – 12nn
1 – 2pm
3 – 4pm
5 – 6pm
Total
Data Analysis
HISTOGRAM PIE CHART

Hotdog Sales Hotdog Sales

25 7 - 10 am 11 - 2 pm 3 - 6 pm

20 16%
Hotdog Sold

15
39%

10

5
45%
0
7 - 10 am 11 - 2 pm 3 -6 pm
Focus Group Discussion

A controlled group interview of a target audience

demographic, often led by a facilitator. A set series of
questions or topics are covered, and the results are
used to guide marketing efforts.
Focus Group Discussion

 FGD can be used to address substantive issues such as:

• understanding consumers’ perceptions, preferences,
and behavior concerning a product category;
• obtaining impressions on new product concepts;
• generating new ideas about older products;
• developing creative concepts and copy material for
advertisements;
• securing price impressions; and
• obtaining preliminary consumer reaction to specific
marketing programs.
Focus Group Discussion
 Lasting for an hour and a half up to three hours, the FGD is
an interview by a facilitator of a small group of people who
are selected because of their knowledge about the topic.

 There are four key decisions to be made in an FGD: (1)

respondent selection; (2) sample size; (3) data gathering;
and (4) data analysis.

 Respondent selection includes: (1) the definition of the

respondents; (2) the classification of the respondents; and
(3) the screening of respondents.
Focus Group Discussion

 Data gathering methods in FGD involve: (1)

the selection and preparation of the venue
and equipment; (2) the formulation of the
discussion agenda; and (3) a facilitator who is
very skilled in moderating and possesses the
ability to draw out significant insights from
the participants.
Focus Group Discussion

 Data analysis includes: (1) the integration of

the information gathered; (2) some
observations on respondent behavior; and (3)
listing of recommendations and report
writing.
 Focus Group Discussion
 Nine steps in conducting a focus group discussion:
 1. Develop the research objectives. What is the research all about?
 2. Determine the participants’ profile. Who are the most knowledgeable or most
relevant participants?
 3. Determine the appropriate token or “compensation” for the participants.
 4. Develop a participant screener questionnaire.
 5. Recruit the participants.
 6. Select a good facilitator. The key qualities of a good facilitator are:
 • kindness with firmness
 • involvement and encouragement
 • complete understanding
 • flexibility
 • sensitivity
 7. Develop a facilitator’s discussion guide.
 8. Arrange for the venue and logistics.
 9. Analyze the results of the focus group discussion.
Focus Group Discussion
 Observation Technique

 Prior to doing the observation, it is important for the

researcher to ensure that the following conditions are
met:
1. The needed information must be observable or
inferable from the behavior that can be observed.
2. The subject matter contains some sensitivity that
needs detached observation.
3. The behaviors of interest must be repetitive, frequent,
or predictable in some manner.
4. The behaviors of interest must be of a relatively short
duration.
Observation Technique
 The advantages of observation research are:
1. It allows the researcher to see what customers
actually do rather than rely on what they say
they do.
2. It allows the researcher to observe customers in
their natural setting.
3. It does not subject the researcher to the
unwillingness of customers or their inability to
reply to certain questions.
4. Some information are better gathered quickly
and accurately through observation.
Observation Technique

 The disadvantages of observation research are:

1. The researcher cannot get the reasons behind
the behavior.
2. The researcher can only focus on the “here and
now.” It cannot cover the past nor cover the
future.
3. Finally, the observation technique may border on
the unethical because the respondents have not
agreed to be observed.
Observation Technique
 Below are the guidelines in conducting observation
research.
1. Determine the pre-observation objectives.
2. Prepare your pre-observation tips:
a. Prepare and clarify your observation points
and issues.
b. Prepare your observation materials.
c. Identify the persons to be observed.
d. Position yourself strategically without being
noticed.
Observation Technique

3. Focus on what you want to observe:

a. Is it customer demographics?
b. Customer buying behavior?
c. Customer usage behavior?
d. Other customer information?
Observation Technique

4. Observation proper:
a. Observe keenly and listen intently.
b. Be mindful of the surroundings.
c. Be alert for obvious movements.
d. Be sensitive to subtle movements.
e. Look at the customer when the customer is
not looking.
f. Do not be obvious.
g. Observe and take note of other things that
you feel are important.
Observation Technique

5. Post-observation tips:
a. Review your notes.
b. Make sure that the flow is correct.
c. Tabulate what needs to be tabulated.
d. Interpret and analyze your data.
e. Make a formal report.
Survey Research

 The respondents are asked a variety of

questions which are often about their personal
information, their motivations, and their
behavior.
 In planning a survey, there are three important
concerns that one has to look into:
1. Sampling technique
2. Getting the sample size
3. Designing the questionnaire
Survey Research

 Steps in Conducting a Survey Research

1. Develop the research objectives.
2. Determine your sample.
3. Choose the interviewing methodology.
4. Create your questionnaire.
5. Pre-test the questionnaire.
6. Conduct interviews and enter data.
7. Analyze the data.
Customer Profiling
Methods of Customer Profiling

 Demographics

 Psychographics

 Tecnographics
Demographics
 In demographic classification, we categorize
customers into the following:
1. Age
2. Income classes
3. Social classes/Reference groups
4. Ethnic backgrounds
5. Religious beliefs
6. Occupations
7. Domiciles
Psychographics

Psychographics defines the customer’s:

1. Motivations
2. Perceptions
3. Preferences
4. Lifestyle
Technographics

Technographics classifies people according to their

level of expertise in using a product or a service. For
example:
1. Sports beginners might just want basic
equipment.
2. Sports regulars may be looking for more
sophisticated equipment.
3. Finally, sports professionals would want the best
of the best for competitive purposes.
 Application of Customer Profiling
1. The first way is to develop a product or service to test out in the
marketplace.
a. The customers most attracted to the product or service can
then be profiled.
b. After profiling, the next step is to find out how huge this
market is for exploitation purposes.
2. The second way is to profile the different types of customers in a
given industry or area as to their needs and wants.
a. From these types, the entrepreneur could then choose the
customer group with the best potentials.
b. Products or services can be developed by the entrepreneur
to match this chosen customer group.
Market Segmentation
Market Mapping
 Market mapping refers to grouping customers and products
according to certain market variables.

 The purpose of market mapping is to provide the market

analyst a better understanding of the market as a whole and
to paint a clearer picture of where the different competitors
are relative to the different market segments.

 Market mapping would also allow entrepreneurs to discover

market segments that are relatively unserved or underserved.
They could then develop products and services that fulfill the
gaps in the marketplace.
 Market Mapping of Drinks
Strong Flavor

Soft drinks
Energy drinks e.g. Coca cola
e.g. Monster

Trendy Value relative to

Price
Sports drinks
Tea and Coffee e.g. Gatorade
e.g. Nestle (French
Vanilla)
Flavored Water Juice
e.g. Blue e.g. Coca cola

Health Conscious
Individual Activity

Make a Market Map of the following:

G1: Ice Cream
G2: Clothing Stores
G3: Coffee Shops
G4: Restaurants (serving Filipino dishes)
G5: Burgers
 High Quality

Low Price High Price

Low Quality
Individual Activity

Write on a piece of paper the following:

1) Define:
1. Demographic
2. Psychographic
3. Technographic
2) Give example for each methods.
3) What is the importance of Market Segmentation?
4) What is the significance of customer profiling?
5) Define Market Mapping and explain it
significance.
Individual Activity

1. What are the 7 P’s of Marketing?

2. What are the 4 types of products marketed
by enterprises? Give example for each type of
product.
3. What are the important purposes of
packaging?