1. Ag & Resource Economics
Marketing Research
Written by
Annette Dunlap, MBA
Extension Associate
Ag & Resource Economics
NC State University

2. The Value-Added & Alternative Agriculture Start-up Toolkit
Program Outline
Determining research needs
Finding demographic data
Estimating growth potential
Using case studies and budgets
Evaluating competitive activity
Next steps resources
The Value-Added & Alternative Agriculture Start-up Toolkit

3. Determining Research Needs
Market research begins with a plan - “what do I need to decide?”
Typical outcomes of market research are decisions about:
go/no go regarding a venture
market expansion
product development (or expansion)
market location
The Value-Added & Alternative Agriculture Start-up Toolkit

4. Research Information Needs
Demographic information about the potential target market
Market analysis information about market growth potential
Case studies and budget data
Competitive activity data
The Value-Added & Alternative Agriculture Start-up Toolkit

5. Finding Demographic Data
Collect information regarding potential target markets
Identify relevant demographic characteristics (such as income level, family size, product preferences)
Determine size of potential market
The Value-Added & Alternative Agriculture Start-up Toolkit

6. Estimating Growth Potential
Intuitive method: “This looks good”
Drawback: Insufficient data to support decision
Subjective method: “Use a checklist”
Offers some method of evaluating potential
Objective method: “Run the numbers”
MP = n x q x p
MP = market potential; n = number of buyers in a market who would buy a product; q = quantity purchased by the average buyer; p = average price per unit
The Value-Added & Alternative Agriculture Start-up Toolkit

7. Case Studies and Enterprise Budgets
Offer insights into others’ experience
Provide a starting point for determining business profitability
The Value-Added & Alternative Agriculture Start-up Toolkit

8. Competitive Activity Identify direct and indirect competitors
Analyze competitor strengths and weaknesses
Remember to consider corporate competition
Identify the unmet need or want -
THIS IS YOUR POTENTIAL NICHE MARKET
The Value-Added & Alternative Agriculture Start-up Toolkit

9. The Value-Added & Alternative Agriculture Start-up Toolkit
Next Step Resources
NC demographic data is available at:
Case studies and budget data can be found at:
Market potential information:
htmpubs/HBBseries/3012.htm
NC Department of Agriculture on:
The Value-Added & Alternative Agriculture Start-up Toolkit