Amazing Young Business BuildersAmazing Young Business Builders

The Market Research

THE MARKET RESEARCHTHE MARKET RESEARCHMarket research is a very important component of

business strategybusiness strategy.

We need to study the market market to see if there is room for our idea, to improve it and to create the

best business planbusiness plan.

To do so, we need to get organized to gather information about competitorscompetitors and possible consumersconsumers. A locationlocation study is also very

important.

Is there a market for my idea?Is there a market for my idea?Try to answer the following questions:

1. Does it satisfy or create a market need?

2. Can you identify potential customers?

3. Is our product/service unique, distinct or superior to those offered by competitors?

4. What competition will it face?

5. Is the product safe for public use and does it comply with relevant regulations and legislation?

The market?The market?

A market is any one of a variety of different systems, institutions, procedures, social

relations and infrastructures whereby persons trade, and goods and services are exchanged,

forming part of the economy.

It is an arrangement that allows buyers and sellers to exchange things.

The market?The market?

Markets vary in size, range, geographic scale, location, types and variety of human

communities, as well as the types of goods and services traded.

The market shareThe market share

The market share is the percentage or proportion of the total available market or market segment

that is being serviced by a company.

It indicates how well a firm is doing in the marketplace compared to its competitors.

The market shareThe market share

Competitors analysisCompetitors analysis

Competitor analysis is an assessment of the strengthsstrengths and weaknessesweaknesses of current and

potential competitors.

This analysis allows the entrepreneur to identify opportunitiesopportunities and threatsthreats in the market.

Competitors analysisCompetitors analysis

To study your competitors you must look at:

LocationProducts and services

PricesImage and Communication strategies

Weak pointsStrong points

Customers and consumersCustomers and consumers

customercustomer  /ˈkʌstəmər/ a person who purchases goods or services from

another.

consumerconsumer  /kənˈsumər/ a person or organization that uses a good,

commodity or service.

Customer studyCustomer studyA customer study should gather information

about:

Target Customer ProfileConsumer NeedsCustomer Attitude

Consumer DesirabilityCustomer willingness to payCustomer Spending Power

Use a survey survey to get such data

Consumer profileConsumer profile

First, define your target consumer profile:

AgeSex

InterestsNeeds

Spending powerWillingness to pay

etc.

The surveyThe survey

A customer study can be made with the help of a surveysurvey.

A survey is a structured interview and is managed by an administrator. When the questions are

administered by the respondent, the survey is referred to as a questionnairequestionnaire or a self-

administered survey.

The surveyThe survey

These questions should help you study your possible customers:

1. What needs do you have related to “our idea”?2. what woul you like us to offer you?3. What do you think about our idea?4. Do you usually spend money on this kind of

products/sevices?5. How much would you pay for this

product/service?

Location studyLocation studyIs the place you've chosen the best location for

your business?

Consider:

Your business needsLocal Population featuresVisibilitySecurityTrafficSignage optionsetc.

Market research resultsMarket research resultsOportunitiesOportunities/'ɑ:pər'tu:nəti/

possibilities due to a favorable combination of circumstances

ThreatsThreats/θret/

declaration of an intention or a determination to inflict harm on another

ConclusionsConclusions /kən'klu:ʒən/

the act of making up your mind about something

Now, it's your turn!Now, it's your turn!

ExerciseExercise:Make a market research:

Study the marketStudy your competitors

Study your potential consumers and customersStudy the location

Find out about your threats and oportunitiesGet your own conclusions