Market Research

MARKET RESEARCH
• - the process of gathering, analysing and interpreting information about a market,

about a product or service to be offered for sale in the market, and about the past,
present and potential customers for the product or service.
• - activities such as, information gathering and evaluation designed to link markets
to consumers.
• - an investigation into aspects of the markets, investigating into how to best reach
the customer.
• - involves the collection and analysing of data and the interpreting of information
about a particular market such as it needs, size, trends, demand potential and
competition.
PURPOSE OF MARKET RESEARCH
• Market research is important in assessing the feasibility of a
venture before extensive capital is invested into the start-up.
• It allows the marketer to discover the needs of the TARGET
MARKET and to understand just how to satisfy these needs
in the most effective manner.
BENEFITS OF CONDUCTING MARKET
RESEARCH
• There are several benefits that may be gained from a M.R. providing that it is done
adequately. They include:
• Allowing you to understand the nature and needs of existing customers so that
you can continually devise strategies that will be effective in maintaining
satisfaction.
• Assists the business in identifying and understanding potential customers
• Reveals the current position of the firm in the market place. This will enable it to
assess how much of its goals it has achieved and plan the WAY FORWARD from
that.
• Helps in the minimizing of business risks. It may open your eyes to sides of a
matter being investigated that you never knew, causing you to be in the position
to make a more informed decision.
BENEFITS OF CONDUCTING
MARKET RESEARCH con’t.
• Identifies market trends. It can provide you with a lot of data that will
enable you to do an analysis which will highlight trends that can be
used to predict future performance.
• Identifies new business opportunities. Talking to customers about
current product, may reveal another need you never knew existed.
• Allows the entrepreneur to investigate existing problems.
• Should ultimately lead to an increase in Sales and Profits
• Enables the business to set targets that a SMART (specific,
measurable, achievable, realistic and time-bound.
• Helps the business to gain and maintain a competitive edge.
Internal Assessment Activity
• Establish a Name for your business.

• Create a Slogan (words)
• Design a Logo (symbol/design)
• Design your Cover Page
KEY ELEMENTS OF MARKET RESEARCH
• 1. PRODUCT CHARACTERISTICS
• 2. DEFINITION OF MARKET
• 3. EXPECTED SALES TRENDS
• 4. CUSTOMER ANALYSIS
• 5. PROMOTIONAL STRATEGY
• 6. NATURE AND LEVEL OF COMPETITION
PRODUCT CHARACTERISTICS
• These are attributes or features that clearly describe the ability of the
product to satisfy the needs of consumers.
• The features should differentiate an enterprises product from other
products on the market.
• The benefits that the product may provide includes, functionality,
durability, quality, usability, maintainability and safety.
• The products characteristics should be set apart and above its
competitors.
. DEFINITION OF MARKET
• The number of potential buyers and total revenue that sales will
generate that is, the market size and share must be determined, and
the marketer must be aware of the opportunities for growth and
potential threats.
EXPECTED SALES TRENDS
• Sales patterns and trends must be analysed in order to make

predictions of how they may perform in the coming years.
• If there are short falls or problems that may arise then the company
can make plans to alleviate them by changing the production
schedule.
CUSTOMER ANALYSIS
• Market campaigns can be designed to suit the target market when

the entrepreneur obtains information from the research.
• New strategies can be evolved for ways to improve customer
satisfaction and reduce wastage of resources and maximize the
marketing plan.
• Customer Analysis will Identify the target market, look at the needs of
the customer and show how the customers’ needs are satisfied by the
products and services that the business is offering.
PROMOTIONAL STRATEGY
• The strategy is devised to make the customers and prospective customers

aware of the product and services and motivating them to buy.
• The market research will allow the entrepreneur to create a customer
profile and learn about what influences behaviour and spending power.
• Once the entrepreneur identifies the target market a promotional strategy
can be developed, to launch information, on the communications and
product information that will be used to create product awareness.
• Targeting teenagers would mean social media.
• Radio, television,
NATURE AND LEVEL OF
COMPETITION
• Competitors may already be present in the market.
• The entrepreneur should observe and become knowledgeable of
competitors.
• This will assist the organization in decision-making in developing
sustainable business strategies.
• A competitor analysis will provide information on the impact or
influence the competitor may have on the venture.
• Develop and incorporate proper strategic planning, to place your
business ahead of the competitor in the market.
SOURCES OF DATA IN MARKET RESEARCH
• There are two types of data that can be used in the research process. Based on the type of
information the entrepreneur may require, there is the option of using primary or secondary data.
Both can be used depending on the research objective. These are described as:
•
• Primary data – collection of new data for a specific purpose and target market. This information
can be sourced through interviews, focus groups, surveys and observation of potential or existing
customers. PRIMARY/FIELD
•
• Secondary data – this is where previously used data is gathered to be used in the current research.
Secondary data can be sourced from magazines, business reports, government offices, and journals.
SECONDARY/DESK
•
Market Research
• Market Research can help the entrepreneur to: 1. Identify problems 2.
Understand the changing market 3. Focus or develop strategies to keep
existing customers 4. Improve the quality of decision making
•
• Market research focuses on the business environment, potential
customers and competitors. It is crucial for the entrepreneur to be
attentive to these areas as it would help in measuring the market
demand for the product and enabling customer satisfaction.
•
Market Research
• Business Environment – the entrepreneur, should conduct a PESTLE analysis that would assess the impact of
the political, economic, social, technological, legal and environmental factors that could impact the business.
•
• Customers – it is important to evaluate the customers’ needs and ensure there is a demand for your product in
order to ensure the venture’s sustainability.
• Competitor – market research allows the entrepreneur identify competitors. Entrepreneurs/management are
able to make strategic plans that are viable and would contribute to increasing sales and market share.
•
• The market research process will guide you in deciding if the venture is feasible and shows profitability.
COST BENEFIT ANALYSIS APPROACH TO
MARKET RESEARCH
• A cost benefit analysis approach will show the

comparison of the value of the costs of the Market
Research with the value of the benefits that the MR
will provide.
• The benefits of undertaking any project must
outweigh its costs.
COST BENEFIT ANALYSIS APPROACH TO
MARKET RESEARCH cont.
• Costs associated with MR includes:
- Time spent by research staff
- Resources used in the process. Eg electricity
- Cost of each research location
- Cost per research participant
• After estimates on costs and benefits of MR are done, the venture
can calculate return on investment.
• ROI = financial value minus project cost divided by project cost
CLASS ACTIVITY
AN OUTLINE OF THE PROPOSAL
• WHAT IS THE BUSINES IDEA THAT YOU WILL BE DOING? (describe

your product)
• WHAT IS THE NAME OF YOUR BUSINESS?
• WHAT IS THE TYPE/FORM OF BUSINESS?
• WHERE WILL YOUR BUSINESS BE LOCATED?
• WHAT IS YOUR SLOGAN? (words)
• WHAT IS YOUR LOGO? (symbol/design)

Market Research

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MARKET RESEARCH

• - the process of gathering, analysing and interpreting information about a market,

• Establish a Name for your business.

• Sales patterns and trends must be analysed in order to make

• Market campaigns can be designed to suit the target market when

• The strategy is devised to make the customers and prospective customers

• A cost benefit analysis approach will show the

• WHAT IS THE BUSINES IDEA THAT YOU WILL BE DOING? (describe

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