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Market Research for Small Business [email protected] 07790 716 719 Corporate Mentors Delivering Business Change CM Louise Hurdley: The Journey Corporate Mentors Delivering Business Change CM Corporate Mentors Our clients: Market Research for Small Business Aim: Help you develop the skills to understand more about your customers and where your business fits into the marketplace Workshop: • What is market research? • Why do I need to do it? • How do I carry out MR? • Closing Comments • Further resources Corporate Mentors Delivering Business Change CM What is Market Research? Definition: Allows businesses to: • The collection and analysis of information about consumers, competitors and the effectiveness of marketing programmes • Integral part of business plan • Ad hoc & ongoing • Make decisions that enable them to be more responsive to customers' needs (and increase profits) What market research have you carried out? Corporate Mentors Delivering Business Change CM Why do Market Research? Small business owners: Main areas: • Assess feasibility of a new business • Test interest in new products or services • Improve aspects of your business e.g. customer service • • • • • Customers Competitors Market forces Products/Services Suppliers or distribution channels • Develop competitive strategies Corporate Mentors Delivering Business Change CM Questions Market Research can Answer • • • • • • • Who are/will be my customers? Why do/will they buy from me? How much can I sell? What are my customers needs? Who are my rivals? How much can I charge? How should I market my business? Corporate Mentors Delivering Business Change CM Q: Who will be my customers? • Look for a niche in proposed market – reasonable price & margin (product differentiation) • Research the niche – find customers with similar characteristics & tastes (market segmentation) • Develop product/service and marketing strategy specifically for that segment What criteria could you use to group customers? Corporate Mentors Delivering Business Change CM Identifying Market Segments Consumer Market • • • • • • • • Industrial/Professional Market Family/personal • Type of industry Location • Size Socio-economic group • Delivery frequency Level of usage • Price Psychological/social • After-sales/maintenance Prestige Price Distribution What is your niche? What makes you stand out to this segment? Corporate Mentors Delivering Business Change CM Q: Why will they buy from me? • What features and benefits do your potential customers want? • Car analogy • Use framework of customer needs to tailor your product/service (unique feature): – Appearance – Delivery time – Maintenance – Quality Corporate Mentors Delivering Business Change CM How do I carry out Market Research with a Small Budget? • Observation: – Retail locations; competitor advertising; customer mix • Surveys: – Focus groups; interviews (phone/in-person/online) • Experiments: – Test trials; vary & monitor results eg adverts/promotions • Desk Research: – Internet (customer driven content); government info; directories; press; trade associations; own business; competitors Corporate Mentors Delivering Business Change CM Closing Comments • Be focussed – answer specific questions • Identify your target market with step-bystep analysis • Be systematic – get valid results • Be creative to overcome budget restrictions • Use your results to make informed decisions! Corporate Mentors Delivering Business Change CM Further Resources • Podcast – MR for start ups & growing businesses: http://www.smallbizpod.co.uk/2007/07/27/smallbizpod-52friday-27-july-2007/ • Market Segmentation (PDF CAMEO guide): http://www.cartogen.co.uk/customersegmentation.htm • AMA Complete Guide to Marketing Research for Small Business Holly Edmunds (1996) • Low-cost Marketing Research: A Guide for Small Businesses Keith Gorton and Isobel Doole (1989) • Marketing Works: Unlocking Big Company Strategies For Small Business Chris, H Lee and Daniele, Anthony Lima (2006) Corporate Mentors Delivering Business Change CM