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MARKET RESEARCH • Market: The present or potential demand for your product: people who want (or will want) to buy your product and who have the means to pay. • Marketing Concept: Emphasizes the importance of the consumer and that businesses must deliver what consumers want in order to create customer satisfaction and lasting customer relations. • Marketing Research: The process through which a firm engages its resources or hires another firm to collect and analyze information about the firm’s customers, competitors and other factors which might impact on its ability to satisfy customers.
PURPOSE OF MARKET RESEARCH • It is the means through which an entrepreneur can gain insight into the nature of demand for their product and the challenges that might be faced in achieving the levels of sales which are desired. Effective market research would allow the entrepreneur to develop strategies for creating and controlling demand for the product.
PURPOSE OF MARKET RESEARCH CONT’D • Information on Level of Demand • Characteristics of Prospective Buyers • Information on Competitors • Market Share • Strengths and Weaknesses • Help in Projecting Sales and Distribution
BENEFITS OF MARKET RESEARCH • Decision making effective and efficient based on objective information. • Increases likelihood of success in marketing the product. • Assists in developing business plans. • Assists in obtaining financing • Assists in more valid and reliable forecasting
STEPS IN CONDUCTING MARKET RESEARCH 1. Define the Research Question (Examine all the symptoms in detail, find the cause) 2. Develop an Appropriate Research Plan (establish objectives, establish sources of data, methods of obtaining data, design the instrument and determine sample size) 3. Implement the Research Plan 4. Analyze and Interpret Data
KEY ELEMEMENTS OF MARKET RESEARCH • Product Characteristics • Market Analysis • Sales Analysis • Customer Analysis • Promotional Strategy • Pricing Strategy • Nature and Level of Competition