Download Market Feasibility

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?
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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?
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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 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
There are 2 main types of market 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
FIELD RESEARCH
Involves the use of PRIMARY data which does not already exist and must be
collected from scratch. Methods include:
• Personal interview
• Telephone interview
• Postal surveys
• Purchase survey
• 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
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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:
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Who is to be surveyed. This will be the POPULATION that you
plan to target in your research.
How many people should be surveyed from the target
POPULATION?
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 SAMPLING
Random 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
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.
INTERNAL SOURCES
• sales figures
• stock figures
• accounting records
• customers’ comments and complaints
• sales representatives’ reports
• market research data gathered earlier
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
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Business Statistics
Annual Abstract of Statistics
Economist Intelligence Unit
Industrial Market Research Reports
Port data
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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