SBDC Counselor Training Manual

Module 7 – Marketing Plans and Market Research

Table of Contents
1. Performance Objectives

2. Why Marketing Plans and Market Research?

3. The Marketing Plan

4. Marketing Research and the WMRC

5. Database Resources Available to the WMRC

6. Online Resources

7. Additional Sources of Information

8. WMRC Partners

9. Sample Electronic Files

a. BizMiner Reports

b. Demographic Reports

c. Dun & Bradstreet Examples

d. GIS Mapping Examples

e. Market Research Sample Reports

f. Psychographic Reports

g. Research Request Information

h. Sample Marketing Plans

i. Web Optimization

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Marketing Plans and Market Research
Performance Objectives:

Training participants will:

• Be able to determine marketing needs of clients by asking appropriate

questions.
• Be able to assist client in setting and reaching market research and
planning goals.
• Be able to assist client in developing a reasonable and actionable
Marketing Plan.
• Be familiar with market research resources available and the services
of the Wyoming Market Research Center (WMRC).
• Be able to develop a request for information through the WMRC.

Evaluation:

Proficiency in market research and planning will be evaluated as follows:

• Demonstrate how to take a client through a well considered marketing

plan.
• During the mentoring session, correctly answer case study questions
concerning market research and planning.
• Be able to explain the services and resources of the WMRC.
• Be able to develop a proper request for information through the WMRC.

Required:

Requirements for completion:

• Attend SBDC counselor training session on marketing.

• Read Module 7 thoroughly becoming familiar with services and
resources available.
• Take part in client counseling with mentor.
• Analyze marketing sections of the Business Plan and review with
clients.

Introduction
Why Marketing Plans and Market Research?
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"Nothing happens until the product is sold" is an old adage that is still very
true. Employees will be idle, records blank, and inventory will sit on the
shelves.

The purpose of this module is to provide a basic blueprint from which to

guide your client, not to teach marketing to you. If you find you aren't
familiar with the concepts in this module, you must make a concerted effort
to gain this knowledge before counseling a marketing client. This can be
accomplished by taking marketing courses offered by your university, co-
counseling with your center's marketing expert, participating in the other
activities required in this module, logging into and taking courses on
SmallBizU or other on-line courses, and attending SBDC marketing
workshops.

Marketing may well be the most demanded area of assistance. Clients may
either be ready to rush out and spend thousands of dollars on advertising or
they may be afraid to spend a dime. In either case, chances are they have
no idea of what their typical customer profile may be, if they should
advertise in the newspaper, or hire a salesperson. Your job will probably be to
slow the client down to first do some planning, and then budgeting.

When you start working with a marketing client, you may find you can best
learn and understand their marketing efforts by developing a rough
marketing plan. This will give you the blueprint from which you can then
begin guiding the client to improvements. You may first need to assist the
client to research their market or industry.

A sample marketing plan outline and a discussion of the resources available

through the Wyoming Market Research Center and other sources are
included in this module.

So you have a product (or service) and it isn’t selling…

Just because an innovator develops a new mousetrap that is unlike any other
mousetrap that has ever been built, he/she should not assume that there will
be no competition. Competitors can take on several faces. They can be
anybody that can potentially have a share of your market. Market research
can reveal these hidden competitors.

Additionally, businesses always need to know about current trends in their

industry. Trends can include a general overview of the market, major players,
global influences and market size. Is their product in the early stages of the
product life cycle or is it in a mature stage? Are there similar product lines?
This becomes important when you determine who your competitors are.

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What are current trends in packaging and distribution channels for your
product? Having industry information will have significant impact as you
develop your marketing plan.

Demographic and psychographic information will uncover potential

consumer groups so that marketing strategies can be focused. Perhaps an
entrepreneur has an idea for a new kind of organic food product, but they
aren’t real sure about who would buy that product. New customer markets,
besides the most obvious ones, can be sought out through market research.
Psychographic information (lifestyle behaviors) drills down into specific
target markets even further.

Solutions…solutions…solutions…

The key to any business is connecting with customers. The challenge is to

know what people are thinking and how they will react to products and
services so this connection can be made.

Determine customer needs before trying to connect to them through

marketing strategies. Once this information is uncovered, the business
owner should focus on differentiating his/her product from similar products.
Products and services must be able to give customers an obvious benefit…in
other words, “what’s in it for me?”

Businesses should appeal to customers. A business should be unique, not

only in the products and services provided, but also in the way the marketing
strategy is approached. This may require changing the way the owner thinks
about the business. Ask this question. “How can products be made so unique
people will come in to enjoy the experience of shopping in a store”? The
answer will come through market research and planning.

Seventy-five percent of a business plan has to do with

marketing…

Business plans, while well intentioned, may be missing critical pieces of

information which tip the scale toward receiving needed financing. Bankers
want to know thorough research has been completed before agreeing to
capital funding. Market research is the work of answering business plan
questions.

The questions below should be answered in a business plan and all can be
answered through market research and analysis:
• Who are your client’s customers?
• Who are their competitors?
• Where should the business locate?
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• What is new in the industry and who are the major players?
• What is the size of the current market?
• Is the plan to profit as a low cost leader or through product
differentiation?
• Has the stage of product life cycle been considered?
• What are barriers to entry?
• What are strengths of the product?
• What are weaknesses of the product?
• What are current opportunities in the industry?
• What are current threats in the industry?

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The Marketing Plan
What is marketing?

One of the most common misconceptions about marketing is believing it is

the same thing as advertising. If you ask a business owner what he or she is
going to do for a marketing plan, often the response will be: “I’ll run ads on
the radio" or "I'm planning to make up flyers and mail them out”.
Unfortunately, this misconception leads to many wasted dollars and many
disappointed entrepreneurs. Spending money on advertising without doing
your marketing homework to discover your target market and how best to
reach it, is like shooting at a target blindfolded. You know there is a bull's-eye
out there somewhere, but you cannot aim at it, so your shots are in vain.

Business owners need to do marketing research and compile it into a

marketing plan. A marketing plan should consist of two parts: an industry
study to identify the company's target customer and a promotional plan
detailing how the company will reach their market and effectively tell about
the product or service.

The marketing plan should be the result of careful market research. All of
the items below should be considered as the plan is developed. This is
generally a stand-alone portion of the business plan and addresses how the
business is going to find, and sell, to customers.

Sample Outline

I. Industry Description
a. Historical Analysis of the Industry
b. Current and Future Trends
c. Global Impact
II. Market Analysis
a. Total market size
b. Product Trends
c. Market Share Goals
d. Sales Volume Potential (Current and Growth)
III. Customer Analysis
a. Demographics
i. Population/households
ii. Income
iii. Age
b. Psychographics
i. Lifestyle traits/behaviors
ii. Education level
iii. Employment level
iv. Occupation
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 c. Competitive Landscape
i. Identical products
ii. Similar products
iii. Trend in products
IV. The Product/Service Plan
a. Product/Service Description
b. Features/Benefits
c. Life Cycles/Seasonality
d. Trade Area Description
V. Marketing Strategies
a. Location/Distribution
b. Price/Quality Relationship
i. Promotional Strategies
ii. Packaging
iii. Pricing
iv. Promotion
v. Distribution System
vi. Public Relations/Networking
vii. Advertising
viii. Customer Service
ix. Human Resources
VI. Action Plan
a. Calendar or schedule of objectives and goals

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Marketing Research and the WMRC:
The Wyoming Market Research Center (WMRC) is a part of the
WyomingEntrepreneur.biz network. It was created out of a need to stimulate
economic development In Wyoming. Existing businesses in this sparsely
populated state struggle with competing markets in the broader region,
nationally and globally. Competitive intelligence and industry information
was needed in order to grow businesses and encourage entrepreneurial
pursuits. The Wyoming Business Council and the State of Wyoming saw this
need and the WMRC was formed. Generally, WMRC services are provided at
no charge to clients. The overall mission of the WMRC is to create jobs in
Wyoming.

The WMRC provides the following services:

• Competitive intelligence
• Competitive product profiles
• Customer markets
• Construction Project Reports
• Industry development and trends
• Industry financial data
• Website optimization
• E-business opportunity analysis
• Local, state and national demographic trends
• Psychographic information
• Focus panels
• Survey development
• Federal and State Regulations
• Mailing Lists/Labels

Geographic Information Systems (GIS)

• Competitor Mapping
• Customer Prospecting
• Site Selection
• Customer Drive-Time Analysis
• Market Penetration
• Store Market Analysis

• See GIS folder for examples of maps

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Marketing Material Analysis

• Website evaluation
• Brochures and logos
• Direct mail pieces

WMRC Specialty Services

Web Optimization

The key to business success is being able to connect with customers. In this
rural State of Wyoming one of the most effective ways to reach regional,
national and global customers is through the Internet. Website effectiveness
continues to be one of the biggest problems confronted by businesses in
Wyoming. For the WMRC, the number of requests for website analysis
continues to rise. In response to this demand, web optimization services are
now offered to clients. Web optimization includes analysis of the following:
• Keywords
• Description
• Titles
• Linking
• Images
• Loading speed
• Usability
• Navigation

• See the Web Optimization folder for Web Optimization Template

and Guide to Finding a Web Developer.

Dodge Construction Reports

Dodge construction reports are a McGraw-Hill product generated through a

database of commercial/industrial and government construction projects. Bid
project information is gathered through local, state and federal permit
systems in WY, UT, MT, SD, NE, and CO. This database is continually updated
and gives weekly notice to contractors, material suppliers and vendors about
upcoming bid projects. The database search criterion includes region,
material type, government agency, project type and cost. Bid reports are
sent via email. The WMRC cannot provide bid information to those companies
with more than $5 million in annual sales.

• See the Dodge Construction Report folder for instructions on how to

request reports.

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Database Resources Available to the WMRC:
1. Business Analyst by ESRI: GIS Program for mapping includes
demographic information by state, county, zip code, census tract and
census block group; allows limited data on businesses (by SIC code)
and access to limited household information (but not addresses).

2. Claritas: This provides geographically customizable demographic and

psychographic information, including the PrismNE psychographic
profiles of US households.

3. Business Analyst On-Line: Customizable reports on demographics,

markets and spending.

4. DialogPro – Competitive Intelligence: Databases include ABI

Inform, Advertising News, Brand News, D&B global information, Dialog
Newsroom, Market Research from EIU, Frost & Sullivan and others,
Public Opinion Online, Red Books Advertisers and Agencies,
Trademarks and demographic information.

5. Dunn & Bradstreet Million Dollar Total Database: Leading

provider of business information in the US. Competitor and customer
lists can be developed using SIC/NAICS codes, keywords, annual sales,
number of employees, city, county, state and various other criteria.

6. HillSearch: This is a service of the James J. Hill Reference Library.

7. EuroMonitor: Global database includes company profiles, country

profiles, global reports, economic indicators, industry growth/market
size and trends.

8. MarketResearch.com: An aggregator of commercial market research

reports including service industries, consumer goods, food and
beverage, heavy industry, life science, public sector and technology &
media.

9. Dodge Construction Reports: A McGraw-Hill database of

commercial/industrial and government construction projects. Bid
project information is based on local, state and federal permit systems
in WY, UT, MT, SD, NE and CO. This database is continually updated
and can give notice to contractors, material suppliers and vendors
about upcoming projects. Weekly reports are sent via email. The
database search criterion includes region, material type, project type
and cost.

10.High Beam: A business search engine often returning more focused

results than engines which are more general.
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11.Associations Unlimited: Accessed through the Coe Library, this is a
database of all associations, trade organizations, etc. around the world.
These groups are often excellent sources for information on an industry
or type of business.

12.RMA Annual Statement Studies: The WMRC has the electronic

version of the RMA, which give balance and income statement
averages for a wide variety of industries classed by NAICS codes.

13.Bizminer: This source provides marketing and financial benchmarks

and data for a wide variety of businesses, classed by SIC code. Data
includes balance sheets, profit and loss, volume, sales, trends, market
share, and failure rates.

14.World Trade Atlas: This resource offers a database of export trade

sorted by harmonized trade schedule. Search criteria include
commodity type, state, country and shipping method (air or vessel).

15.Trade Show Network: An on-line database of over 15,000 global

events. Useful for finding trade shows of interest to businesses.

16.Festival Network: A database of arts and craft shows, and art

festivals, etc.

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On-Line Resources:

Wyoming
• 100% Wyoming: http://allwyoming.uwyo.edu/
Wyoming business directory compiled and maintained by
Manufacturing-Works.
• Wyoming Economic Analysis Division: http://eadiv.state.wy.us/

Wyoming statistics and demographics.

• Wyoming Labor Market Information: http://doe.state.wy.us/lmi/

Resources on Wyoming labor and employment.

National
• SBDC Net: http://sbdcnet.utsa.edu/
ASBDC’s national clearinghouse, includes business plans, company
info, demographics, e-commerce, finance, franchise, home business,
HR, industry research, international trade, invention, marketing,
procurement, small business trends, taxes and accounting, veterans,
women and minorities.
• US Census: www.census.gov
A variety of tools including American Fact Finder, Economic Census,
Censtats, Quick Facts, Mapping Tools, DataFerrett.
• US Department of Labor: http://www.bls.gov
Data on inflation, consumer spending, wages, earnings, employment,
occupational outlooks, etc.
• Small Business Administration:
http://www.sba.gov/advo/research/data.html#st
Small business data and research.
• GeoData.gov: http://gos2.geodata.gov/wps/portal/gos
Locate government maps, some customization for GIS mapping.
• Export.gov: http://www.export.gov/tradedata/index.asp
US Government trade data and analysis.
• Small Business Advancement National Center:
http://www.sbaer.uca.edu/research
Links to a variety of small business resources.
• Wyoming Geographic Information Advisory Council (WCIAC):
http://wgiac2.state.wy.us/html/www.asp
Lists GIS resources on the web.
• Wyoming Labor Force Trends:
http://doe.state.wy.us/lmi/0103/toc.htm
On-line version of the Trends newsletter, with special reports on
Wyoming labor markets.
• Center for Rural Entrepreneurship: http://www.ruraleship.org
Case studies, on-line library, rural resources.
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• The Milken Institute: http://www.milkeninstitute.org
Research and informational articles on business and economics.

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Additional Sources for Market Research Information:
• Local Chamber of Commerce
• Local Economic Development Corporations
• Government publications
• Trade associations
• Business publications
• Competitors

WMRC Partners:
• Wyoming Business Council: http://www.wyomingbusiness.org
• University of Wyoming: http://www.uwyo.edu
• WSBDC: http://www.wyomingentrepreneur.biz
• GRO-Biz: http://www.gro-biz.com
• Manufacturing-Works: http://www.manufacturing-works.com
• Wyoming Technology Business Center: http://www.uwyo.edu/WTBC
• Small Business Innovation Research (SBIR):
http://uwadmnweb.uwyo.edu/sbir
• Research Products Center (RPC): http://uwadmnweb.uwyo.edu/rpc
• Wyoming Women’s Business Center: http://www.wyomingwomen.org

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