MARKET FEASIBILITY Assess Product acceptance by the market

WHY THIS RESEARCH?

Any business or organization developing a new product or service should consider conducting

market feasibility, needs assessment

competitive intelligence marketing research

to greatly improve their chances of succeeding with their product or service.

MARKET ANALYSIS

OBJECTIVES

• To understand markets• To introduce market research• To think from a customer's perspective

INTRODUCTION

• What is the market for your product or service?

• What sorts of people will buy it?

• How do you know that people need it?

• You need market research

A Computing Scenario

• Imagine you have developed a computer game.

• There is more work to be done

• Could you actually sell it?

• You need to identify the market

MARKETING QUESTIONS

1. What is the market?2. Who are the competitors?3. Who is the target audience?4. What do customers want?5. What do competitors offer?6. What is your USP?7. What do customers think you offer them?

WHAT IS THE MARKET?

• What market is your business idea in?• Even for a unique product there is always a market• How is market growing?• How is it segmented?

WHO ARE THE COMPETITORS?

• There are always competitors• Avoid large direct competitors• List competitors• Find out about their products• Find out about their sales

WHO IS THE TARGET AUDIENCE?

• Who do you want to buy your product?• What sorts of people are they?• Can you identify them?• How can you reach them?• Is there more than one kind of audience?

WHAT DO CUSTOMERS WANT?

• You have to meet a genuine NEED• How do you know what customers want? Read magazines Read reviews Be aware of research

WHAT DO CUSTOMERS WANT?

Needs assessments involve studying a geographic region or client population to see if there are unmet needs or barriers to access that could be addressed by changing or expanding existing services or by developing new services. Environmental scans are expanded needs assessments that include a broad survey of community characteristics and needs.

WHAT DO COMPETITORS OFFER?

• Study the products in detail• Features• Strengths

WHAT IS YOUR USP?

UNIQUE SELLING PROPOSITION• What is special about your product?• How do you distinguish your product from others?• How do you communicate your USP to customers?

CUSTOMER PERCEPTION

• How will your product be viewed by customers?• What messages do you need to convey to different market

sectors?• How do you really know what they think?

Market Research

WHAT IS MARKET WHAT IS MARKET RESEARCH?RESEARCH?

“Market research is the systematic gathering, recording and analysing of data about problems relating to the marketing of

goods and services.”

“Market research is the means by which those who provide goods and services keep

themselves in touch with the needs and wants of those who buy these goods and

services.”

METHODS OF RESEARCH

There are 2 main sources of information which organisations make use of:

• Primary• Secondary

METHODS OF RESEARCH

• FIELD RESEARCH• this is information collected by the organisation itself or by a paid market

research agency• DESK RESEARCH• this is information already collected for another purpose, e.g. government

statistics

There are 2 main types of market research:

FIELD RESEARCH

• Personal interview• Telephone interview• Postal surveys• Purchase survey

Involves the use of PRIMARY data which does not already exist and must be collected from scratch. Methods include:

• Observation• Use of technology (EPOS & Loyalty Cards)• Consumer panels• Test marketing

COSTS & BENEFITS OF FIELD• up-to-date• collected for exact purpose required by the organisation • not easily available to competitors therefore can be used to

gain marketing advantages over rivals• time consuming• expensive• requires specialist researchers

QUALITATIVE RESEARCH

• Small groups• Focus Groups• One to one interviews• Directed interviews• Identify market need• What does person want• What other products do they use?• How do they view your product• Is it useful to them?

QUANTITATIVE RESEARCH

• Needs large numbers usually to be statistically significant• Sample needs to be unbiased• Needs simple questions so analysis is easy• Much scope for web based questionnaires• Subjects may need an incentive• Do proper statistics on data

QUESTIONNAIRES

• Design of questionnaires is a skill• Do a trial first with low numbers• Ensure questionnaire can be analysed• Avoid too many open-ended questions• Needs to be quick to complete• Use 5 point Lickert scales• Use precise questions• Avoid floor & ceiling effects

SAMPLING

Three decisions to be taken:

1. Who is to be surveyed. This will be the POPULATION that you plan to target in your research.

2. How many people should be surveyed from the target POPULATION?

3. How do we choose those to be included in the survey?

HOW DO YOU SELECT AN UNBIASED SAMPLE?• Personal Interviews Expensive Small numbers Can be in depth

• Telephone Reasonable response rate Need short clear questions • Postal Low response rate More time to reply • Email Very low response rate Avoid spamming & unwanted email

METHODS OF SAMPLINGRandom Sampling• the sample is selected at random• main advantage is that no bias is involved in selection• main disadvantage is that it may not focus on any particular market segment

Stratified Random Sampling• the sample is divided into segments based on previous knowledge

e.g. the researcher knows that 10% of the population are in socio- economic group AB, 50% in C and 40% in DE.

• Main advantage is that this method makes the sample more representative of the population

Quota Sampling• This involved the population being segmented into groups which share specific

characteristics (gender, age, income, marital status etc) • It is the job of the researcher to find and interview the people who fit th

categories required.• Main advantages are that this method provides a more targeted method of

sampling and it is cheaper than random sampling

DESK RESEARCH

INTERNAL SOURCES• sales figures• stock figures• accounting records• customers’ comments and complaints• sales representatives’ reports• market research data gathered earlier

Involves the use of SECONDARY data which already exists in some form having been collected for another purpose. This information may be internal or external.

ON LINE RESEARCH

• Search Engines

• Newspapers

• Government

• Market Research Companies

• University has many useful databases online.

PRINTED RESEARCH

• Business Directories• Companies House

• The Retail Directory

• Business Statistics• Annual Abstract of Statistics• Economist Intelligence Unit• Industrial Market Research Reports• Port data

• Newspapers & Magazines• Financial Times• Computing• Computer Weekly

COMPETITIVE INTELLIGENCE ANALYSIS

Competitive intelligence analysis is the process by which an organization or company assesses the evolution of its industry and the capabilities and behavior of its current and potential

competitors to assist in maintaining or developing a competitive advantage. One ensures that the organization has accurate, current information about its competitors and a plan

for using that information to its advantage.

COMPETITOR RESEARCH

• Look at the web site• Study the products• Identify weaknesses• Find their sales data

OUTCOMES OF RESEARCH 1

• The market your business is situated in

• The size of the market

• The growth of the market

• The main competitors

• Competitors' market share

OUTCOMES OF RESEARCH 2

• The need for your product/service

• The perceived value by potential customer

• The key features of your product/service for each market segment

• The key messages to each market segment

• Estimated share of market• Estimated sales figures

WHAT DID YOU FIND OUT?

• Unmet needs that could be addressed by a new product or service

• Overall demand for new products, services, or ideas • Characteristics of likely customers (such as demographics and

buying behavior) • Characteristics of likely competitors • How competitors are likely to react when your product or

service is introduced • How your new product or service should be designed to best

meet customers' needs • How best to market, advertise, and communicate about your

product or service • Likely barriers to successful introduction of your product or

service

DID YOU FIND?

• How much of a demand is there for the product or service you are

considering? • What are your potential customers' needs and price expectations? • Who are your competitors? • What are the strengths and weaknesses of your competitors from

your potential customers' perspective? • How can you design your product or service most effectively, given

the needs of your target market and the competitive environment?

THANK YOU