CCI Entrepreneurship Curriculum Module 3 Conducting Market Research

CCI Entrepreneurship Curriculum Module 3 - Conducting Market Research

Contents v Unit 1 - Introduction to market research v Unit 2 - Defining the problem and research design v Unit 3 - Tools including quantitative and qualitative research v. Questionnaire Design or Designing a Focus Group

Introduction to Market Research Why should you conduct market research? v v Enables you to assess the potential within your own creative business to develop new markets. Provides you with tools to use in the future as your marketing strategy develops

Introduction to Market Research Using desk-research to support your market research: v Mapping the Future Potential for Development and Growth of the Craft and Design Sector – DCCo. I: http: //www. dccoi. ie/media/press-releases/reports-mapping-thefuture-potential-for-development-and-growth-of-the-craf v Consuming Craft: The contemporary craft market in a changing economy – Craft Council UK: http: //www. craftscouncil. org. uk/content/files/consuming_craft_ful l_report. pdf

Case Study: A Creative Business v This video presents Munsur Ali, a creative Entrepreneur. v Munsur set up Spotlight UK, an independent video and film production company, during his final year at university before formalising it as a company in 2005. v He gives his advice for young entrepreneurs wanting to set up their own creative business. www. youtube. com/watch? v=Fix. J 946 qe. H 8&t=30 s

Introduction to Market Research What is your understanding of marketing and what experience have you had with it to date? What is new market development? v v Why small businesses develop new markets? v How small creative businesses develop new markets? v v How do you move from understanding to action in developing new markets? What needs to be done, by when and by whom.

New Market Development What do we mean by New Market Development? v New market development can be viewed as a developmental or growth strategy that identifies and develops new market segments for current products and services of the business

New Market Development Strategy A New Market Development Strategy targets non-buying customers in currently targeted segments as well as new customers in new segments. New customers can be identified or defined on the basis of: v v v Geography – e. g. a graphic designer expanding from selling in the North East of England to London Demography – e. g. a writer diversifying from writing books for older people to writing children’s books Behaviours – e. g. a design consultancy business broadening its customer base from working with individual customers to working for large corporations

Why Develop New Markets? The benefits of developing new markets are: v v More customers Avoids saturation (i. e. running out of buyers/consumers) It widens your ‘reach’ opening up opportunities for introducing new products It strengthens your brand builds for the future. Outline the benefits for your business in developing new markets

Why Develop New Markets? Research on new market development identifies six general groupings of motivations and drivers: v High levels of competition within the home/domestic market v Maturity of the home/domestic market v v Recession or downturn of the business cycle within the home/domestic market Operating within a market that is already international Personal ambitions and perceptions of the owner-manager or other influencing individuals within the business Inspiration from other businesses, typically personal acquaintances.

How do you Develop New Markets? Stage model The model comes about when a business becomes aware of the potential of developing new markets and only then reacts v In response to an enquiry v A change in circumstances locally or globally v New materials or piece of equipment becomes available Process model The model is instigated by the business owner who sets out to examine a marketing strategy

How do Small Businesses Develop New Markets? v Establish the market development aims and goals v Identify target market(s), sectors and niches v Assess existing sales capacity and capabilities v v Source a suitable prospect database and ensure the data is clean and up to date, and strategic decision-makers are identified Develop and agree a value proposition(s)

How do Small Businesses Develop New Markets? v v v Design your communication(s) and method(s) to generate enquiries Design your sales processes and establish or provide required capabilities Design and provide your required monitoring, measurement and reporting systems v Implement your market development activity v Follow-up the activity

How do you Move from Understanding to Action? v This understanding can be used to help you assess the potential within the business to develop new markets and consider the implications in terms of what needs to be done, by when and by whom. v Marketing tools can help you create an overall picture of the business model and to create a plan for developing new markets.

The Potential v When looking to develop new markets, a business needs to think through the implications on areas such as management, finance and operations. v Current research highlights that businesses who are effective in developing new markets have leaders with a strong vision and commitment who are strategically aware of what is going in their external environment. v Typically business owners in the creative industries are particularly strong on vision and often not so good on administration and finance

Over to You! Before moving on to detailed planning consider the following in relation to your own business: v Your commitment to developing new markets, v The availability of resources v The potential of the product/service, v Internal capabilities and capacity v The available finance

Is it Important to have your own Plan ? SMART Plan v Specific – target a specific area for improvement. v Measurable – quantify or at least suggest an indicator of progress. v Achievable – specify who will do it. v Realistic – state what results can realistically be achieved, given available resources. v Time-related – specify when the result(s) can be achieved.

SMART Table Specifically what do you do? How do you know if you are being successful? Do you think it is possible? Do you think it is probable? How realistic is this ? What is the time scale?

Case Study: CCI Marketing v This video presents Lily Lewis, a creative entrepreneur. v Lewis established his creative enterprise, Ticket to Ride, a company that provides worldwide travel experiences in surfing, skiing and snowboarding. The video presents how he used his passion and skills to develop the business and how he used digital marketing and social media to market his creative enterprise. https: //www. youtube. com/watch? v=8 y. Mw. YEqv 8 Ek&feature=yout u. be

Branding Exercise Looking at the brand of a well known business and discuss the following questions: v Who do you know? v What do they do? v How do you know it is them ? Look at your own brand see if you can express this in the same way

Barriers and Challenges What are the barriers to growth that you experience? Internal Barriers v v Low capacity v Insufficient Finance v Lack of information v Attitudes and motivations of the owner

External Barrier v Lack of understanding about the Creative and Cultural Sector v Political Situation v Legal Requirements v Fashions and Trends

What was Winning your First Order like? v Working in pairs, discuss your experiences of winning your first order for your business and identify what you did and the challenges you faced. Activity Researching the market Establishing a presence Selling Processing the order Delivery Learning Planning Product development/modification Financing the transaction What you did? What challenges did you face?

SMART Plan Specifically what do you do? Measurable How do you know if you are being successful? Achievable Do you think it is possible to Do you think it is probable? Specific Realistic How realistic is this? Time bound What is the time scale?

The Tools – The Ansoff Matrix Products Existing Markets Existing New v This framework is useful in considering the uncertainty and ambiguity, and hence risk, associated with different strategies for developing a business. v For example, there is more risk associated with selling a new product into a new market than selling an existing product into a new market.

Push and Pull Factors v What do you think are the principal push and pull factors in the creative and cultural sector to the development of new markets? How do these factors apply to your business? Examples of push factors Examples of pull factors How do these apply to your business?

The New Market Development Process

There is No One Way of Developing New Markets The way in which your business approaches developing new markets will be influenced by: v v v Your experience or knowledge of: the new market, the new customer, the process of developing new markets The extent or degree of existing market presence The type of market in terms of: levels of competition, extent and pace of change; customer behaviours; level and nature of regulation Your attitudes and perceptions and others in the business (e. g. ‘learning as you go’ The culture of the creative and cultural industries Look back at your SMART Plan

The Denning Wheel Plan Act Do Check

Porter’s Five Forces Source: https: //www. mindtools. com/pages/article/new. TMC_08. htm

Competitor Analysis Comparison Product/ Service Quality Service Fidelity My Business: Competitor 1: Competitor 2: Competitor 3: Competitor 4: Competitor 5: Totals: After Sales Service Customer Service Production Speed

Focus Groups & Questionnaires When writing a questionnaire v Make sure you are clear v Don't use jargon v Ask direct questions v Use multiple choice with 'other‘ v Offer 'Anything else' v Who would you like to speak to? v What do you really want to know?

Focus Groups & Questionnaires Group Exercise v Design a 4 questionnaire v Deliver it to the focus group v Lead a 2 minute discussion

The SMART Plan Completed Your Presentation SMART Plan v v v Specific – target a specific area for improvement. Measurable – quantify or at least suggest an indicator of progress. Achievable – specify who will do it. Realistic – state what results can realistically be achieved, given available resources. Time-related – specify when the result(s) can be achieved

Support for Developing New Markets These are some sources of business advice and support: v Online information portals v Web-based forums and networking groups v Small business membership organisations v Accountancy practices v Business consultancies v Local enterprise partnerships v Local authorities v Trade associations v Professional institutes v Mentoring organisations.

What Happens Next? Sources of information when planning to develop new markets in the Creative and Cultural Sector: v Nesta: www. nesta. org. uk/areas-work/creative-economy-arts-andculture v The Funding Circle: www. fundingcircle. com v Arts Council: http: //www. artscouncil. org. uk v The Crafts Council: http: //www. craftscouncil. org. uk/ v UK Trade and Investment: www. gov. uk/government/organisations/uk-trade-investment v Export Britain: www. exportbritain. org. uk v Open to Export: www. opentoexport. com

What Happens Next? v Self-directed Learning and accessing tools through the SHADOWS e-learning portal v Accessing help from the SHADOWS e-learning portal v The Business Immersion Programme