5 Star Market Research

Learning Objectives Propose alternatives and improved ways of conducting a business based on research into other businesses. Analyse the role of market research and business planning in running a successful enterprise

Why Do We Need Market Research? The backbone of marketing and management decision- making is information Good business decisions require good, accurate data that reflects your customer base. Parallels the recognition of a complex business environment Entrepreneurs and managers need understanding of new and existing markets Helps us weigh the risks associated with different options Good decisions require good data because these help us to weigh up the pros and cons of various alternatives, or to evaluate the risks associated with different options. It’s particularly important in complex, dynamic marketing environments where numerous variables may need to be taken into consideration or where the competitive context means differentiation is often based on very fine criteria. It’s also important when entering new markets, whether through brand extension, product development, repositioning or moving into another country.

Steps To Take In Research Define the problem Decide which research design to utilize Choose a data collection method Collect the data Collect and interpret the data Repeat the last two steps if necessary Prepare the research into a format that is usable to solve your problem. The research process is not unlike the consumer decision making process. Thus a problem or issue needs to be identified. The range of the inquiry decided. A suitable method for collecting the data chosen and the source material or subjects agreed upon. The data is then collected, analysed and reported.

Designing The Research: Developing research objectives Choose your question/hypothesis: an informed guess or assumption about a certain problem or set of circumstances. Types of Research Exploratory Descriptive Causal/ Explanatory Research Approaches Secondary Primary There are three types of research, exploratory, descriptive and causal, sometimes called explanatory. Exploratory is where you are looking at a situation to see if there are any problems. Descriptive is a way of identifying the various factors that may be influencing an action (such as the make up of your customers) and causal is an attempt to identify the reasons for a specific action.

Primary vs. Secondary Research Primary Research Internal Sources External Sources Exploratory Research Descriptive Research Casual Research Company reports Previous company research Salesperson feedback Customer Feedback Published research Trade organizations Syndicate research Government sources Customer interviews Focus groups Projective techniques Case studies Ethnographies Cross-sectional Longitudinal Laboratory research Field studies

Using Market Research To Look At The Competition Describe target competitor segment Define research objectives Utilize secondary sources to gather all existing knowledge and data (to avoid ‘reinventing the wheel’ and wasting resources) Analyze existing knowledge to identify what ‘new’ information is required by your market research Decide which data collection methods to use Collect and analyze data Review your existing strategy based on the data and analysis Describe target competitor segment You need to start by describing who you are looking at and why. This will avoid gathering data that does not answer your question/fill your need. Define research objectives- Now what do you want to get our of this segment. As you do this part, you may find yourself going back to the first step and reevaluating the segment if it does not seem ot fit your needs.

Discussion Questions Think about market research that examines the competition: What might your market research look at in the enterprise startup stage? What kind of secondary data could be collected without needing many resources? What are some cost-effective ways to gather primary data? How would you use this market research when designing a startup? How would market research of this type aid a new enterprise after its initial startup? What kind of secondary data could be collected without needing many resources? Look at websites, request quotes, read online reviews, look at annual reports, look at a map of their offices/locations/branches. If it’s a brick and mortar, drive by the location and see how they present themselves, look at hours of operation. Look at their advertising. Look at market forecasts for the raw materials as well as the finished product. Use your existing networks to get information from people who may have knowledge. Look at trade journals (this is specifically in the video, so don’t offer it up unless a student brings it up). What are some cost-effective ways to gather primary data? Online surveys, telephone surveys, in-person surveys. This depends on what resources you have and what connections you have to data. Ask people who have connections to the industry to let you speak with someone on the ‘inside’ for interviews. Observation: Go into the shop/store/location and browse. Observer how many staff members are working at different times of the day, observe who goes to the store and when (demographics). Go to a trade show and see who they are appealing to and how they go about it. How would you use this market research when designing a startup? It could help w’ a business plan, add ‘meat’ to the plan and help w’ finance when pitching to investors or to a bank. It helps you not waste time filling a market niche that another business is already filling. It can help you estimate your initial staffing needs and location. How would market research of this type aid a new enterprise after its initial startup? Here the difference could be argued to be that now it’s possible to start to understand how the competition sees YOU and how it has changed in response to that.

Case Study: 5 Star Windows & Conservatories Sales and installation of windows, conservatories, skylights and other home additons. Main market is homeowners Does business in the West Midlands, Birmingham and Worcestershire Offers in-person quotes, financing, and runs specials to bring in business.

Case Study: 5 Star Windows & Conservatories In their own words (from their website): At 5 Star Windows & Conservatories, we design our products to make the most of your property. Our thoughtful options, numerous features and superior Customer service provide a level of comfort and pleasure that will transcend into all aspects of your life. It is our passionate pursuit of perfection that makes our Customers amongst the most satisfied in the UK today 99.3% of our customers would recommend us Notice anything? How about that they capitalize the word ‘customer’?

Case Study: 5 Star Windows & Conservatories Pre-video discussion: How would you predict that 5 Star uses market research? What sources should 5 Star utilize to do that research?

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Case Study Discussion Questions Discuss the role that market research plays for 5 Star Windows & Conservatories How does 5 Star Windows & Conservatories collect its data? How does this compare with your pre-video predictions? What surprises you about the role of market research? If 5 Star Windows & Conservatories hired you as market research a consultant, what would you recommend for other areas of market research, and other data sources? How do you feel that market research could play a role when developing your own enterprise. Discuss with your team/group.