Market Research for the Green Venture SBDC January

Market Research for the Green Venture SBDC January 18, 2011

What We’ll Cover ¢ Market Research Ø “Primary” Ø Ø vs “Secondary” Primary Research: Examples Secondary Market Research: Ø Strategies Ø Resources Ø Tips 2 Bancroft Information Services (c)

Market Research: What? Why? Gathering, recording & analyzing information about your business. Ø Aid decisions in: Strategic Planning Ø Customer Behavior, Preferences, Service Ø Product Development/feedback Ø Marketing & Sales Strategies Ø Competition Ø 3 Bancroft Information Services (c)

More reasons for Market Research Ø Ø Ø 4 Business Plans, Marketing Plans, Product Development, Looking for Funding, Commercialization plans Industry information: key players, segmentation, statistics, trends Competitors: services & products, sales methods, marketing, distribution Market potential: statistics, demographics Client/partner prospecting – lists of companies Executive/people search Bancroft Information Services (c)

Primary Research Ø Ø 5 Data collected from original source (e. g. customers) Collected for a specific purpose Quantitative (Surveys) Hard facts or opinions representative or larger group. Qualitative (Focus Groups, In Depth Interviews) Opinions not representative of a larger group. Bancroft Information Services (c)

Focus Groups Ø Ø Ø 6 Homogeneous group, spontaneous input, can be redirected, stimulate new ideas, need’s good moderator to stimulate interaction & pick up trends. Recruiting issues, small sample, cannot generalize to larger population, thus validity considerations. Example – Medical Device Prototype Bancroft Information Services (c)

Surveys ¢ ¢ ¢ 7 Mail Surveys (afford longer, complicated questions, show product… Phone Surveys (can control sample… Email Surveys (quick turnaround, less expensive… BUT…. ¢ Response rate can be low and slow ¢ ¢ Need good list, cannot show product Cannot control who responds Bancroft Information Services (c)

Secondary Research Accessing of information & data previously collected Ø Often for different purpose Ø Good precursor to Primary research (Articles, Studies, newspapers, company databases) Ø 8 Bancroft Information Services (c)

Subscription Information Sources Ø Ø Thousands of databases, information on companies, industries, demographics, national & international. ($$$$) Ø Ø Lexis Nexis: www. lexisnexis. com Factiva: www. factiva. com Dialog: www. dialog. com Hoovers: www. hoovers. com Additional Hybrid sources: Partly free, partly $. 9 Bancroft Information Services (c)

Factors Determining Cost Secondary Ø Ø Ø 10 Primary Mature industries = more information New & niche industries = not studied as much Less expensive than Primary Research BUT robust data in fee based information. Database costs Turnaround time Ø Ø Ø Focus groups: #, locations, facilities, moderators Interviews: # and location Surveys: # of questions & respondents Writing of questions? Type of analysis, tabulations & reporting needed? Bancroft Information Services (c)

Internet Research “Doing research on the Web is like using a library assembled piecemeal by pack rats and vandalized nightly. ” -----Roger Ebert 11 Bancroft Information Services (c)

Search Strategies for Secondary Research Assess potential availability of information Who else would have commissioned a study on what you want to know? Ø Who has money to pay for such studies? Ø Where would it have been published? Ø Who might be writing about the topic? Ø What conferences would focus on the topic? Think about your own industry & specific sources! Ø 12 Bancroft Information Services (c)

Internet Search Strategies Ø Ø Ø 13 Create source list Review key words and phrases Keep notes on sources & keywords used Talk to experts Know when to stop! Bancroft Information Services (c)

Search Strategies (cont. ) Ø Ø 14 Don’t just “Google it” Only 30% overlap between search engine results Pick 2 or 3 search engines & learn advanced search capabilities Use advanced search capabilities Bancroft Information Services (c)

Search Strategies (cont. ) TIP: Be specific and use Boolean logic Ø alternative energy = 51, 600, 000 Ø “alternative energy” = 9, 940, 000 Ø 15 E. g. “alternative energy” AND wind NOT solar = 639, 000 Bancroft Information Services (c)

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Alerts - Google Alerts Ø Ø 17 Find a successful Google Search Save as an “Alert” Will be “pushed” to your email when result appears in top 10 or 20 results. Set up Alerts for clients, competitors, your own company, your own name http: //www. google. com/alerts Bancroft Information Services (c)

Try These Phrases Market Share Market Trends Market Data Demographics Industry Profile Customer Demographics Best Practices Benchmarking 18 Bancroft Information Services (c)

Try These Phrases Consumer Preferences Competitive Landscape Growth Trends Studies, Surveys or Polls White Papers Statistics Lessons Learned Commercialization 19 Bancroft Information Services (c)

Wikipedia? Ø Ø Ø 20 Community based, anyone can edit. Be cautious! Use only as primer & starting point Review resources/citations Corroborate w/other sources Would NOT cite as source www. wikipedia. org Bancroft Information Services (c)

Sources: Newspapers Look for local stories on competitors, potential vendors, potential clients Ø Ø 21 “big fish in a little pond” vs “little fish in a big pond. Portland Business Journal versus New York Times National & international newspapers Make note of writers/experts Bancroft Information Services (c)

Sources: Listservs ©, Groups Ø Ø Ø 22 Sign up for Listservs, Discussion Groups on topics related to industry Take note of discussions on trends & issues Locate titles & experts from signatures (for competitors, industry, partners) Bancroft Information Services (c)

Sources: Blogs & Social Media Ø Ø 23 Search for information on Blogs. Caution on who is posting & why. Bias? “ 52% of unhappy buyers will post a product review on a blog vs only 4% who will provide feedback on a survey. ” …Quirks Market Research A wealth of solid customer feedback to be found in social media Bancroft Information Services (c)

Examples ¢ ¢ Meetup Groups http: //alternativeenergy. meetup. com/ EBSCO Sustainability Blog http: //ebscosustainability. com/ Biofuels Listserv www. biofuels. coop/cleantech/listserve. html Linked. In Groups: www. linkedin. com Search for “Clean Technology” under Groups 24 Bancroft Information Services (c)

Sources: Industry/Trade Associations Ø Ø Ø 25 Membership of professionals in a field Often commission studies of interest to members Specific member benefits may include access to member lists, data on members Do they have a Trade Journal? Do your target markets belong to associations? Bancroft Information Services (c)

Examples Clean Technologies & Sustainable Industries Organization http: //www. ct-si. org/ ¢ Clean Energy States Alliance http: //www. cleanenergystates. org/ ¢ 26 Bancroft Information Services (c)

Sources: Trade Shows & Professional Conferences Ø Ø 27 Look at online program Who is speaking – experts? Look at Tracks & Topics. Can you discern hot trends or issues of importance? Review Exhibitor & Sponsor lists Bancroft Information Services (c)

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Examples Speakers: John Picard - leading thinker & builder of sustainable societies Topics: Beyond the Meter: Utilities Attempt to Engage the Customer & Roll Out Energy Efficiency Sponsors: 29 Bancroft Information Services (c)

Sources: Government Resources Ø Ø Ø Authoritative Timely Examples Ø Ø 30 Labor statistics Economic Census International Trade Demographics Bancroft Information Services (c)

Company Information Ø Ø Competitor? Partners? Clients? Public (easier to find information) Ø Ø Ø Private (harder to find information) Ø 31 Full disclosure SEC filings Annual reports Agreements Not forced to disclose anything Bancroft Information Services (c)

Company Websites Search for PPT (Power. Point presentations) Ø Press Releases Ø Annual Reports Ø Biographical Info on executives Ø History of Company Ø Product Development Ø Branding/Differentiation Ø Look at employment opportunities – shows plans Caution – tell you what they want you to 32 know! Ø Bancroft Information Services (c)

Sources: Market Research Reports Ø Ø Ø 33 Fee based – sometimes expensive Some are general, some focus on an industry Occasionally provide free samples or abstracts Variations in data based on differences in methodology Some companies sell “by the slice” Bancroft Information Services (c)

Example The Future of Clean Technology Markets to 2020 -Market Forecasts, Deal Analysis & Investment Opportunities ¢ GBI Research ¢ March 30, 2010 ¢ 141 Pages ¢ $ 3, 500 34 Bancroft Information Services (c)

Competitors? Partners? Clients? TIP: “reverse link look up” Find out who is linking to a website. Useful for: identifying partnerships, memberships, buyers’ guides, etc. ) e. g. link: http: //cleantech. com/ 35 Bancroft Information Services (c)

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Website Archive TIP: “Way Back Machine” www. archive. org Provides archives of websites Useful for: product line growth, executive changes, changes in marketing strategy, corporate branding 37 Bancroft Information Services (c)

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Summary ¢ ¢ ¢ ¢ 42 Plan your strategy Pick good search tools/directories NOT just engines Use “Advanced” searches Keywords: Be creative & keep track Consider the source Research = “competitive edge” & “informed decisions” & “increased ROI” Consult professionals when you need help Bancroft Information Services (c)

Good Luck! Jan Knight (520) 731 -9300 jan@bancroftinfo. com www. bancroftinfo. com 43 Bancroft Information Services (c)