Tag Archives: Data Driven

Market Research Plan Consultant

Market Research Plan Consultant

From an ad for Ground Floor Partners (https://groundfloorpartners.com/market-research/ )

Accurate market research is the foundation for every business or marketing plan (https://groundfloorpartners.com/marketing-plans/) Ground Floor Partners can help you gain a much deeper understanding of:

• market opportunities

• existing customers

• prospects

• competitors

• employees

• industry trends

• environmental or regulatory risks

We Help You Focus

Large market research firms research specific industries and generate standardized industry reports. The problem for most small businesses is that very few of them fit neatly into these industry categories. That’s where we come in. Instead of generating canned industry reports, everything we do is customized for each client.

• Effective marketing is all about targeting and focus. Better targeting means less waste, lower expenses, and higher profits. Some more examples of the kinds of market research we do for our clients:

• Conduct a comprehensive market opportunity assessment – Assess your markets and current market positions (market size and share of market, channels, growth trends, threats, and opportunities)

• Identify customer needs and determine which market segments hold the most, and least, attractive profit potential.

• Find out what customers and prospects think about your new customer service procedures, your sign-up process, your newest product, your new tag-line, your invoicing process, etc.

• Identify regulatory, political, and demographic trends that could create problems – and opportunities – for your business.

• Develop a thorough understanding of competitors – Who leads and who follows in this space? How much market share does each player have? What are their strengths and weaknesses? How do they differentiate themselves? How does their pricing strategy compare with yours? How do they market their products and services? How does their brand equity compare to yours?

• Identify opportunities to use your strengths and exploit competitor weaknesses.

Competitive Edge

In his book, The Road Ahead, Bill Gates of Microsoft writes of “friction-free capitalism” made possible by developments in communications, chief among them the Internet and its World Wide Web. In this context, “friction” is everything that keeps markets from functioning as the “perfect competition” of economics textbooks. This friction can be a function of distance between buyer and seller, costs of overcoming this distance, and incomplete or incorrect information.

Friction manifests itself by causing barriers to entry for new competitors, limiting the number of outlets from which the consumer has to choose. Large companies, with multiple sales outlets, and economies of scale, have greater power to direct the marketplace.

The degree of friction in the developed world has been decreasing for some years now. Affordable air travel, overnight delivery, improved telephone and fax communications have shortened distances. Credit cards and toll-free numbers have spawned at-home shopping from sources across the country.

The Web has taken the friction in our economy down another notch. In principle, we can sell products and services to a worldwide audience as easily and effectively as our largest multi-national competitor. In principle, we can sell products and services to a worldwide audience as easily and effectively as our largest multi-national competitor. In the friction-less economy, the challenge of differentiating ourselves from the competition becomes even greater.

In the friction-less economy, the challenge of differentiating ourselves from the competition becomes even greater. Successful small businesses tend to be those who can find some competitive edge, even when their product or service is similar to those around them.

Marketing professionals often call a business’ competitive edge their “unique selling proposition”, or USP. Pinpointing and refining one’s USP, however, is not a simple matter. An approach is unique only in the context of our competitors’ marketing messages.

Some marketing messages go beyond product and service characteristics. For example, Charles Revson, founder of Revlon, insisted that he sold hope, not makeup. Similarly, United Airlines sells “friendly skies”, and Wal-Mart sells “always” the low price. Do these slogans convey how each company views their customers? Does their selling proposition appeal to your preferences?

Sharpen your USP:

  • Put yourself in your customer’s shoes; satisfy their needs, not yours.
  • Know what motivates behavior and buying decisions.
  • Find the real reasons people would buy your product instead of a competitor’s. Ask them!
  • “Shop” the competition, be open-minded about your product, and never stop looking for ways to make your product stand out.
  • Try now to recast your business idea in terms of its competitive advantage. Prepare an industry analysis (size, customers, trends, and competitiveness). Identify what you see as your specific market, and estimate the share you think you can capture.

    The Web can be a powerful research assistant. Virtually every major business puts product and service information on the Web, including business directory services and magazines.

    Search engines can help in improving your understanding of your industry, and the key success factors. Test the resources available on the Web. Visit sites of major companies in the industry, where appropriate. Search the archives of business magazines for articles that give background and statistics.

    John B. Vinturella, Ph.D. has over 40 years’ experience as a management and strategic consultant, entrepreneur, and college professor. He is a principal in the business opportunity site www.jbv.com and its associated blog. John recently released his latest book, “8 Steps to Starting a Business,” available on Amazon.

    Mining Market Data

    With a heightened awareness of opportunity, ideas can often be generated by market research. The National Women’s Business Center (NWBC) defines market research as “a systematic, objective collection and analysis of data about your target market, competition, and/or environment with the goal being increased understanding. Through the market research process, you can take data–a variety of related or non-related facts–and create useful information to guide your business decisions.

    For example, in recent years data has indicated the shift of the U.S. to a service economy and away from manufacturing. Service industry growth is good news for prospective entrepreneurs. Service businesses are relatively easy to start, and economies of scale are not generally sufficient to give larger companies a significant competitive edge.

    For an indication of the products and services that people will need in the near future, we can look at projections of those industries which are expected to produce the most new jobs in upcoming years. The U.S. Department of Labor projects that eating and drinking places will create the most new jobs in the early 21st century, followed by health care, construction, and personnel and supply services.

    More specific ideas are often suggested in the business and entrepreneurship literature. Food and recreation opportunities could include family entertainment centers, tea salons, and brewpubs. Services you might offer could include children’s learning centers, unique travel experiences and specialized staffing agencies.

    Other useful sources of ideas include the business section of the local newspaper and the local business weekly. Broad trends can be tracked merely by being a reasonably well-informed observer of the popular culture.

    Are opportunity listings useful? Some believe that it is already too late to enter a business by the time it is publicly acknowledged to be an opportunity. Many suggest that it is better to wait for the “first movers” to clarify exactly what services consumers want, and then to enter with a more focused product.

    We also have the choice of moving into “hot” new businesses, or developing better approaches to well-established industries. While leading edge ventures are generally more exciting, more fortunes have probably been made with well run versions of fairly common businesses.

    Scan the current literature for opportunities that fit your strengths and interests. Describe a specific business that would take advantage of one of these opportunities. Identify how your strengths and expertise would contribute to the success of such a business. Visualize yourself as the owner/manager, and project how you would get the venture off the ground.

    For example, a coffee shop fits within the fastest growing industry, eating and drinking places, though in competition with national franchises. Is it in competition only with other coffeehouses, or with other casual dining or snack-food places?

    Many services are highly localized. Is national data useful to consideration of a neighborhood coffee shop? Can we acquire meaningful data on just our market area, the northeast corner of a metropolitan area, serving 18% of its population? This would almost certainly require gathering primary data, that is data that we gather or commission specifically for this purpose, rather than secondary or published data.

    The NWBC stresses that information gained through marketing research isn’t just “nice to know.” It is solid information that can guide your most important strategic business decisions.