Start business unit 2
- 1. Information – Fire & Safety procedures – Toilets – Refreshments – Mobile Phones – WAG supported 1
- 2. Aims of Module 2 • Provides an introduction to the marketing process. • Outlines the key information you need to know about your customers. • Describes how to determine market size, and identify trends in the market place. • Identifies external influences in the market place and how they can affect a business. • Outlines the key information you need to know about your competitors. • Describes how to research your market using primary and secondary research methods. 2
- 3. Introductions • Who am I? • Who are you? • What is the name of your business? • How long have you been trading? – If not trading yet, proposed start date? • What do want to learn from today, what is your objective for this session? 3
- 4. 2.1 The Marketing Process 4
- 5. 2.2 What You Need To Research Market Marketing Research Strategy 5
- 7. 2.4 Contents of a Marketing Plan The Market Research Marketing Strategy • Market Size & Trends • Marketing Objectives • Market Environment – Product • Customers – Price • Competitors – Place • SWOT – Promotion Marketing Mix • Sales Forecast 7
- 8. 2.5 Market Size & Trends Expressed in terms of – Total amount spent annually – Size of target markets – Units sold in market place – Market Gap 8
- 9. Exercise 2.6 The Market What is the size of your market? Refer to Page 8 9
- 10. 2.7 Market Size & Trends Examples – Seasonal – Fashion – Increase/decrease in demand – Change in attitudes – Environmental concerns 10
- 11. Exercise 2.8 The Market What are your market trends? Refer to Page 9 11
- 12. 2.9 Market Environment SWOT Analysis •Strengths •Weaknesses Internal •Opportunities •Threats External 12
- 13. 2.9 PEST Analysis •Political/ Government •Economic •Social •Technological •Legal •Environmental 13
- 14. 2.10 Market Environment Identify which PEST factors will affect your business Refer to Page 11 14
- 15. 2.11 Know Your Customers 1: Identify target market or customer groupings 2: Developing a customer profile by target market/customer group 15
- 16. 2.11 Or in other words 1: Who are they? 2: What are they? 16
- 17. 2.12 Market Segmentation Market Research Marketing Strategy Customers Market Segmentation Target Market Customer Groupings 17
- 18. 2.12 Market Segmentation • Market as a whole Divide the total market into distinctive groups with common characteristics or • Market subdivided similar needs and wants 18
- 19. 2.12 How to segment a market Consumer Market Commercial Market •Age/ Gender •Business type •Location •Industry sector •Occupations •Location •Income •Number of employees •Lifestyle •Company turnover •Product use 19
- 20. 2.12 What are they… Factors •Demographics •Geographical •Behavioural •Psychological 20
- 21. 2.13 Consumer (People) Market Profile Demographics Behavioural Geographic Psychological •Age •When and how •20 mile radius •Social class •Gender often do they •District council •Lifestyle •Occupation buy? •Wales/ UK •Attitudes •Income levels •How much do Ireland •Interests they spend? •Europe/ •Needs/ Wants •Buying motives Worldwide 21
- 22. 2.14 Commercial Market Profile Demographics Behavioural Geographic Psychological •No. of ‘ees •When and how •Wales •Innovative •Turnover often do they •UK •Socially •Services/ buy? •Europe responsible product offered •How much do •Worldwide •Financially •Sector they spend prudent •Buying motives •Expect credit •Needs/ Wants 22
- 23. 2.15 Customer Buying Motives •Quality •Speed of service •Guarantee •24 hour service •Price •Choice 23
- 24. Exercise 2.16 Your customer profile What is your customer profile? Refer to Page 17 24
- 25. 2.17 Competitors – What you need to know • Who? COMPETITORS • How many? • Where? • Products offered? • Strengths? • Weaknesses? 25
- 26. Exercise 2.18 Competitor’s Information Who are your competitors and what do you know about them? Refer to Page19 26
- 27. 2.19 What You Need To Research Market Marketing Research Strategy 27
- 28. 2.20 Types of Market Research What and How? Market Size & Trends Primary Market Research Environment Customers Secondary Research Competitors 28
- 29. 2.20 Before You Start… • What information is required • Identify search methods • Set a timeframe for the research • Establish the research budget 29
- 30. 2.21 Primary Research (Examples) Research Advantages Disadvantages Technique Personal •Greater flexibility •Time consuming Survey •Can observe body •Expensive language •Respondents •High response rate have little time to think Internet •Total flexibility in •Must have PC questions asked •Must be PC •Good response literate •Cheap/ free •No interaction •Select (loss of personal respondents rapport) 30
- 31. 2.21 Primary Research (Examples) Research Advantages Disadvantages Technique Telephone •Flexible •Loss of personal •Research those who wouldn’t rapport give personal interviews •May give rise to inappropriate response Postal •Cheap •Low response •Respondents have more time •Limited to think information obtained •Cannot clarify answers Observation •Real picture •Time consuming •Sit and watch •Own observation not others
- 32. 2.22 Questionnaires (Do’s and Don’ts) Do Do Not •Select respondents •Use jargon carefully •Ask double- barrelled •Be precise questions •Keep questions in a •Ask too many logical order questions •Put easy and •Ask leading, biased or interesting questions emotive questions at the beginning •Ask questions beyond •Test the the respondent questionnaire memory span 32
- 33. 2.23 Secondary Research (Examples) Consumer Market Commercial Market •Census •Yellow pages- www.yell.com •Mintel reports •Kompass & Kelly’s •Key Note reports directories •Socio- economic •Databases audits •Trade Associations •Household expenditure survey •Companies House- Limited Companies •Internet •Dunn & Bradstreet •ONS 33
- 34. 2.24 Planning the research • Ask yourself • What info do you require? • What methods are you going to use? • Timeframe? • Budget? • How will you analyse the results? • How will you use the results? 34
- 35. 2.25 Market Information Sources • Company and trade • Statistics • BOP • Trade magazines • Newspapers • Government Publications 35
- 36. 2.26 Research Planner Exercise Page 27 Information Research Method/ When Cost Required Source Market Size/ Trends Market Environment Customer Information Competition Other 36
- 37. Any Questions? 37