Market Research 17.1 © 2004 Ewing Marion Kauffman Foundation

Feasibility Plan Business Plan • Cover page • Table of contents • Executive summary • Product/service • The market • Price and profitability • Plan for further action • Appendix • Cover page • Table of contents • Executive summary • Management and organiz. plan • Product/service plan • Marketing plan • Financial plan Operating and control plan Growth plan Appendix 8.1 © 2004 Ewing Marion Kauffman Foundation

Feasibility Plan Market analysis • Competition profile • Customer profile • Customer benefits • Target markets • Market penetration 18.7 © 2004 Ewing Marion Kauffman Foundation

The market (summary) Current industry size at the national, regional, state, and local levels? Growth potential: What is the growth potential of the industry for the product/service? Industry trends: What industry trends do you predict will affect the product/service? Competition profile: Describe the competitive advantage for your product/service?(*) Customer profile: Who is the intended customer for your product/service? Customer benefits: What problems are you solving for your customers? Target markets: What target markets exist for your product/service?

The market (size and competition) 1. Local sources 2. Trade associations and journals 3. Government reports 4. Demographic information 5. Computer searches 6. Competitive analysis

Secondary Sources • Local sources: Libraries, Colleges and universities, Chambers of commerce, Government agencies • Trade associations and journals: Market statistics and industry trends, Trade magazine editors, National conventions, Financial information • Demographic information: U.S. Census population data, State and county business patterns, American Demographics magazine, “Annual Survey of Buying Power” (Sales and Marketing Management magazine) • Computer searches: Web sites such as www.entreworld.org; Databases: lexis nexis, business premier, mergent; Online searches: google, ask jeeves, dogpile 17.3 © 2004 Ewing Marion Kauffman Foundation

The market (size and competition) Current industry size at the national, regional, state, and local levels? Suggestions: Define your industry or your industries? NAICS, SIC. (see Mergent) Identify large companies on which you can find written information. Look for the following types of info to answer this question: Sales volume, number of competitors?

The market (size and competition) Growth potential and industry trends (suggestions): How young or old is this industry? So will you be working with a growing “pie” (pie = market size) or trying to steal business from others. Are there new developments that can make (or will make) the “pie” grow?

The market (size and competition) Competition profile Additional Sources of information you should consider: Yellow Pages, local radio and press, observation (walking around the neighborhood). Think on preparing a table similar to the one next page (also check out table on textbook p. 287).

The market (size and competition) Competitors Target market Marketing strategy (e.g. price, quality, location) Advantages Disadvantages Direct Indirect Future