1. Market and industry analysis
Market analysis
• Competition profile
• Customer profile
• Customer benefits
• Target markets
• Market penetration
18.7
© 2004 Ewing Marion Kauffman Foundation

2. Market Research Sources
Collect market information
Develop concept
1. Local sources
2. Trade associations and journals
3. Government reports
4. Demographic information
5. Computer searches
6. Competitive analysis
7. Customer surveys and informal focus groups
Secondary
Secondary
Primary
Primary
Begin market research
17.2
© 2004 Ewing Marion Kauffman Foundation

3. Local Sources • Libraries • Colleges and universities
• Chambers of commerce
• Government agencies
• Business incubators
17.3
© 2004 Ewing Marion Kauffman Foundation

4. 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

5. 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

6. 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

7. Computer Searches
• Web sites: (screened content for entrepreneurs)
• Databases: Lexis nexis – Business Source Premier - Mergent
• Online searches: google, dogpile, yahoo, ask jeeves
17.7
© 2004 Ewing Marion Kauffman Foundation

8. Research the Competition
• Yellow Pages
• “Competition at a distance”
• Competitor’s customers
• Suppliers
• Infrastructure
17.9
© 2004 Ewing Marion Kauffman Foundation

9. Research the Competition
Who are they?
• Direct
• Indirect
• Future
Learning from competition
• Customers
• Target markets
• Market penetration methods
• Pricing policies
17.10
© 2004 Ewing Marion Kauffman Foundation

10. Research customers (primary)
• Customer profile
• Buying behavior
• Target marketing
18.1
© 2004 Ewing Marion Kauffman Foundation

11. Know your 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

12. Know their 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

13. Identify target Market
• Customer lists
• 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

14. Methods of primary research
• Short questionnaires (in person, telephone, mail, internet)
• Observation, networking
• Focus groups
• Experimentation
17.11
© 2004 Ewing Marion Kauffman Foundation