Market survey tools & Techniques

V B Rajendra Prasad
Market Survey - why?
• Market survey is the systematic study of data relating to the market.

• The purpose is to obtain information which helps the entrepreneur

in assessing

 Market potential and market share;

 Understand purchase behavior and consumers’ satisfaction

 Measure the effectiveness of pricing, product, distribution and

promotion activities in specific markets.
 Market Survey
Process of conducting a market survey
• Defining survey objectives
• Identify specific information needs
• Identify the sources of information
• Estimating the time required for the study and the cost involved
• Developing the methodology
• Selecting sample size and also determining whom to contact and when
• Preparing questionnaire for the survey
• Actual data collection
• Analysis and interpretation of data
• Preparation of the report based on analyzed data
Types of Market Research

Primary Research
Primary research is the pursuit of first-hand information about your market
and the customers within your market.

Secondary Research

Secondary research is all the data and public records you have at your
disposal to draw conclusions from (e.g. trend reports, market statistics,
industry content, and sales data you already have on your business).

Secondary research is particularly useful for analysing the competitors

Market research
 why consumers will buy your product ?
to understand the reasons…………

Who are your customers?

What do they buy now?
Why do they buy?
What will make them buy from you?
Types of Market Research
1. Interviews
2. Focus Groups
3. Product/ Service Use Research
4. Observation-Based Research
5. Buyer Persona Research
6. Market Segmentation Research
7. Pricing Research
8. Competitive Analysis Research
9. Customer Satisfaction and Loyalty Research
10.Brand Awareness Research
 Market survey schedule (Check list for information collection)
• The product and the physical characteristics, their alternative uses, substitute products and their merits, and
product variations.

• Knowledge about the customers belonging to different segments and their probable rough share in each of
the segments.

• Knowledge about the competitors, their market position and their financial strength.

• Sales trend of major competitors in the last 5 to 7 years and also study the sales/demand for the past 5 to 7
years for all brands together for making market projection for future sale/demand.

• Find out the nature of demand in terms of elasticity, seasonality and the major influencing factors.

• The supply position in the market.

• Competitors’ promotional methods including their packaging strategies.

• Find out the reasons for good performance of their competitors.

• Find out the distribution channels used by the competitors; their trade terms, conditions and their discount
structure.

• The competitors’ after sales servicing methods.

• The competitors’ pricing policies.

• The problem areas which your firm is likely to face and methods of tackling them.

• Determine the influence of Government policy on marketability.

Questionnaire …….

• Demographic questions
• Business questions
• Compétition questions
• Industry questions
• Brand questions
• Product questions
 Five Forces Analysis

• Competitive rivalry
• Threat of new entrants
• Threat of substitution
• Buyer power
• Supplier power
 SWOT

Strengths Weaknesses

Opportunities Threats
STEPS FOR STARTING BUSINESS
• Scanning of Business Environment
• Selection of the Product
• Selection of Location and Site
• Designing Capital Structure
• Acquiring Manufacturing Know-How or Technology
• Preparation of Project Report
• Registration as a Micro/Small Scale Enterprise (Udyog
Aadhar)
• Obtaining Statutory License
• Apply for Power Connection
• Arrangement of Finance
• Installation of Machinery
• Recruitment of Manpower
• Procurement of Raw Material