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Over Lunch: The Importance of Market Research
March 8, 2016
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AgendaI. Welcome! II. Market Research………………………………15 minIII.Market Validation……………………………..12 minIV. Competitive Analysis……………………… 8 minV. Q&A……………………………………………………. 10
min
3Market Research Definitions
• An organized effort to gather data and information on customers, competitors, and general market trends;
• Gathering, analyzing and interpreting information about a market, about a product or service, and about the customers for that product or service;
• Research into the characteristics, spending habits, location and needs of a business's target market, the industry as a whole, and particular competitors.
Source: http://www.entrepreneur.com/encyclopedia/market-research
4Why Market Research? Reduces risk Thoroughly understand your customers and stakeholders Fine-tune your value propositionAvoid putting time, money and other resources into a product or service that no one wants to buy
5Market Research: Areas of Focus
Market Validation:Focusing on your specific offering and how it will fit into the market
Competitive Analysis:Focusing on competitive offerings and competitor positioning
General Trends:Focusing on the operating environment surrounding your business
General industry trends, economic trends, etc
6Classifying Research by Information Source
Secondary Research(generic)
Primary Research(custom)
Involves searching for existing data and
information that was originally compiled by
someone else
Involves collecting data and information directly related to your specific
research needs
7Classifying Research by Learning Outcome
Quantitative Research
(data)
Qualitative Research(insights)
A formal, structured process in which numerical data are gathered and manipulated
to obtain information
Exploratory research used to gain an understanding of
underlying reasons, opinions, and motivations
8Market Research: Areas of Focus
Market Validation:Focusing on your specific offering and how it will fit into the marketCustom insights (primary, qualitative)
Competitive Analysis:Focusing on competitive offerings and competitor positioningGeneric & custom data and insights (secondary and primary)
Other Areas:General industry trends, economic trends, etcGeneric data & insights (generally secondary, quantitative)
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Market Validation
10Market Validation
What is market validation?An ongoing market research process that focuses on identifying the target market for your product or service and determining how it will fit into that space
How to validate?Talking to potential customers and other stakeholders
Why validate?Avoid devoting time, money or other resources to a product or service no one wants to buy….put another way, how to make the best use of your time!
11Market Validation: Steps
1. Identify assumptions2. Devise questions3. Perform sense check4. Profile participants5. Determine how to reach participants6. Define how to measure progress7. Ask!8. Analyze
12Market Validation
Common Learning Goals: What problems do potential customers recognize?How are potential customers currently handling these
problems?How big is the problem?What does the competition look like?Why are competitors not solving the problem?What sources do potential customers use to gather
information?How do potential customers make purchase decisions?
13Market Validation: Important to Remember
Not a sales conversation Friends and family will always give
positive feedback Strong opinions are one part of
big picture Emphasize current behavior “Wouldn’t it be great if…” Learning goals, questions and
assumptions will evolve as you go
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Competitive Analysis
15Competitive Analysis
What is competitive analysis?A detailed assessment of past, current and potential competitors
How to analyze the competition?Conducting both secondary and primary research
Why analyze the competition?Understanding the product/service offerings, strategies, strengths, and weaknesses of competitors reduces risk by helping you understand where your business fits into the big picture
16Competitive Analysis: Areas of Focus
Product/Service offeringPricingSales Channels
Product: DistributionService: Customer Acquisition
Marketing StrategiesBrick-and-mortarOnline presenceSEO
Visualization helps!
17Competitive Analysis: Visualization Example
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Competitive Analysis: Secondary Research Resources
19Key Takeaways
Why is market research important? Reduces risk Thoroughly understand your customers and
stakeholders Fine-tune your value proposition Avoid putting time, money and other resources into a
product or service that no one wants to buyMarket Validation
Testing your assumptions by talking to potential customers is an important action you can take to reduce risk
Competitive Analysis A combination of secondary and primary research is the
most effective way to analyze your competition
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Questions?
