1. 5 Star
Market Research

2. 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

3. 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.

4. 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.

5. 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.

6. 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

7. 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.

8. 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.

9. 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.

10. 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’?

11. 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?

12. Video
Embed/show video

13. 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.