©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Art of Market Research 17.1 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Market Research Sources Local sources 2. Trade associations and journals 3. Government reports 4. Demographic information 5. Computer searches 6. Competitive analysis 7. Customer surveys and focus groups Collect market informationDevelop concept Begin market research © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Local Sources Libraries Colleges and universities Chambers of commerce Government agencies Business incubators 17.3 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Trade Associations and Journals Market statistics and industry trends Customer demographic information Trade magazine editors National conventions Financial information 17.4 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Governmental Sources Small Business Administration (SBA) Small Business Development Centers (SBDC) Service Core of Retired Executives (SCORE) U.S. Department of Commerce 17.5 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ 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) 17.6 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Computer Searches Web sites Databases Online searches 17.7 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Screened content representing best-of-the-web information for entrepreneurs National calendar of events: seminars, conferences, courses, etc. of interest to entrepreneurs Various channels for information on starting and running a business © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Research the Competition Yellow Pages “Competition at a distance” Competitor’s customers Suppliers Infrastructure 17.9 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Research the Competition Who are they? Direct Indirect Future Learning from competition Customers Target markets Market penetration methods Pricing policies © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Analyzing The Market Customer profile Buying behavior Target marketing 18.1 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Customer Profile Identify 1. Buyer 2. User 3. Influencer 4. Decision maker Demographics Psychographics 1. Lifestyles 2. Habits 3. Motivation 18.2 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Customers and Customer Surveys Short questionnaires Postcards Telephone surveys Mail surveys Customer visits Customer lists © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Focus Groups Use current or potential customers Invite 6 to 10 customers Use outside facilitators Prepare list of questions Record responses Provide gift or money for participation Summarize results Design marketing strategy © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Customer Profile Sources Short questionnaires Postcards Surveys (telephone and mail) Customer visits Focus groups Customer lists 18.3 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Buying Behavior Where do they buy? When do they buy? What do they buy? How do they buy? Why do they buy? 18.4 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Target Marketing Identify potential target markets List characteristics of target markets Prioritize target markets Select best target markets Use market segmentation strategies 18.5 © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Strategy Traps Everybody will buy one The one percent of the market trap Unrealistic expectations There is no competition 18.6 Think like a customer. © 2004 Ewing Marion Kauffman Foundation

©2001 Kauffman Center for Entrepreneurial LeadershipPLANNING AND GROWING A BUSINESS VENTURE™ ™ Feasibility Plan Market analysis Competition profile Customer profile Customer benefits Target markets Market penetration 18.7 © 2004 Ewing Marion Kauffman Foundation