business planning & market research on the internet

Business Planning & Market Research on the Internet

On Business Plans• Strategic planning is the most important

task for a manager!

• Plan need not be written

• May be required by lenders or other funding agencies

• The process can benefit from internet use!

The Planning ProcessThink About Taking a Journey

1. Why are you going? – Mission

2. Where do you start? – Situation Analysis

3. Where are you going? – Objectives & Goals

4. How will you get there? - Strategies

The Planning ProcessDefining Your Mission

• Think about why you are in business

• This reflects your values

• Reflected in a mission statement

• Use the internet to find example mission statements

The Planning ProcessSituation Analysis

Includes systematic analyses of:1. Industry2. Competition3. Target markets4. Economy5. “SWOT”

The Planning ProcessSituation Analysis

SWOT Analysis:1. Strengths2. Weaknesses3. Opportunities4. Threats

Internal Factors

External Factors

The Planning ProcessObjectives & Goals

Goals – general statements about long-term targets

Objectives – specific statements about short-term targets with timeframe

The Planning ProcessObjectives & Goals

Example Goal – To increase profits

Supporting Objectives1. To sell 20% more in 2007 versus 20062. To cut cost of production by 15% by

December 313. To develop website by April 30

The Planning ProcessStrategies

• Strategies indicate how to achieve the goals and objectives

• As shown earlier, the internet presents one of many strategies to reach goals

• Monitor strategies along the way using milestones

The Planning ProcessStrategies

Possible milestones for internet strategies:

1. Hits2. Contacts generated3. New clients generated4. Sales generated (Encourage people to

tell you they found you on the web)

Market ResearchIndustry Analysis

Need to know:1. Industry size2. How it has changed3. How it may change4. The primary suppliers and buyers5. Its future viability

Market ResearchIndustry Analysis

Before searching:– Assess what you already know– Assess what you need to know– Think about where to find information

Market ResearchIndustry Analysis

Possible Internet Sources:– Professional associations’ websites– Government websites– University websites– Agricultural Marketing Resource

Center (www.agmrc.org)– Others

Market ResearchMarket Analysis

Need to know:– Who and where customers are– What products customers want– What they value– Customers’ purchasing behavior– How customers receive marketing

messages

Market ResearchMarket Analysis

What to do with this information:– Develop market segments– Develop strategies to reach segments

• Website information• On-line catalog• On-line shopping cart• Email notes & newsletter

Market ResearchCompetitive Analysis

Need to know:– Who competitors are– How big they are– How they have grown– What resources they have– What segments they target

Market ResearchCompetitive Analysis

• May be able to find information on competitors online

• May want to buy from them online or in person

Market ResearchEconomic Environment Analysis

Need to know general economic conditions:

– Inflation– Unemployment– Growth of economy

Local newspapers and websites provide this

Market ResearchSWOT Analysis

Complete this based upon what you now know about your company (strengths and weaknesses) and the outside environment (opportunities and threats).

Market ResearchSWOT Analysis

• Build on your strengths

• Address your weaknesses

• Pursue opportunities

• Avoid threats

Section Wrap-Up• Business planning is most important

function of management• The internet can help to assess the

situation – industry, competition, economic environment

• This is where your internet research skills can come in handy

• Some research is possible by talking to people