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Entrepreneur and Venture Capital Club Workshop
Prof. Fred Feinberg
UMBS
Basic Marketing Research
For Entrepreneurs
Assume you will NOT be performing lots of
PRIMARY Research:
Time-consuming (surveys: making it up, pre-testing,
analyzing, etc.)
Costly (performed by third party)
Good Place to Start: Secondary and External Data
But first… a few things from primary data
Things you’d want to know about your customers:
Demographic (Personal circumstances): age, gender,
income, ethnicity, religion, etc.
Psychographic (Lifestyle): social class, personality
Geographic (Location): where, climate
Behavioristic: Product / Shopping behaviors
Attitudes / Opinions about or towards a product
Awareness / Knowledge: about a product, features,
availability, price, manufacturer, possible uses,
competitive products
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Things you’d want to know about your customers:
Purchase Intention – very difficult
People are ‘optimistic’ and don’t consider situational factors
Purchase / Usage Behavior:
Who in the household is using it / purchasing it?
How / Where / When / In what situation are they using it?
How often / How much do they use it?
What other complimentary / substitute products do they use?
ALL come from ‘primary’ data… usually
Types of Secondary Data
Internal (already collected):
Sales Invoice / Register Receipt: customer name, location,
product or service sold, volume and dollar amount of
transaction, customer’s industry or distribution channel
Salesperson’s call reports
Individual Customer Records: historical (“longitudinal”)
Financial records
Warranty Cards / Consumer Complaints
Advantages: Cheap, reliable, already collected
Disadvantage: Too company-specific
Types of Secondary Data
External / Published: [Check at Kresge!]
Directories: Guide to Industrial Statistics, ...
Periodicals and Newsletters: Ad Week, Marketing News, ...
On-Line Databases: ABI/INFORM, Adtrack, Choices3
Statistical Sources: Stat. Abstract of the United States, ...
Indexes: Business Periodicals Index, JMR Lit. Review, ...
Financial Records: financial statements, quarterly reports ...
Advantages: widely available, inexpensive, complete / accurate
Disadvantages: overwhelming
not always applicable to specific situation / time
wrong “level of aggregation”
External / Commercial:
Geodemographic Data
Based on Census (www.census.gov): City Block, Block groups,
Census tracts, Metropolitan Statistical Area (MSA)
Consumer typologies, consumption by area
Diary Panel Data: household level; longitudinal; self-recorded
Store Audit Data: store level, records consumer sales, retailer
purchase and inventory, prices, dealer promotional support
Scanner Data: records all marketing mix variables at purchase
can be keyed into consumer characteristics and media exposure
Low-Cost Web-based Resources
www.quirks.com
Monthly print magazine
Provides vast marketing research resources
Article Archive: 1,000 case history and technique articles
Interactive researcher forum
HUGE directory of custom research providers
cyberatlas.internet.com
Internet Trends & Statistics
www.marketingpower.com
American Marketing Association
www.mindbranch.com
Provides industry and investment research
350 independent research firms
www.knowthis.com
MarketingVirtualLibrary – Huge Archive of Marketing Data
Market Research:
Basics of Marketing Research: General Info, Research Design
Company, Industry & Competitive Info:
Annual Reports, Competitive Intelligence, Corporate History, Company Rankings, Lists
Finding Companies & Information: Business Directories, Help Finding Information
US Government & Social Science Data: Gov't Reports, Demographic Data, Population Stats
Expert Sources: Find Experts, Ask Experts, Event Speakers
Internet Marketing Research: Domain Name Search/Info, Reports & Summaries,
Web Metrics & Stats, Other Reports & Stats
Market Research Firms: Find MR Firms, Leading MR Firm Sites
Market Research Reports: Sources for Research Reports
Online Searching: Databases, Search Help, Top Search Tools
Nielsen
(commercial)
www.nielsenmedia.com
National People Meter Service: audience estimates for
 ALL national program sources

Broadcast networks

Cable networks

Spanish language networks

National syndicators
Local ratings estimates: 210 television markets
 Television stations

Regional cable networks
IRI: Information Resources, Inc. (commercial)
www.infores.com
Consumer packaged goods (CPG)
“Consumer Insight” and “Market Intelligence”
Robust data analytic techniques
Web delivery technology
Majority of CPG Fortune 500
InfoScan store tracking: Industry standard scanner data usage
Marketing support / Mix
Sales / Share / Distribution / Pricing / Promotion
Hundreds of product categories
55,000 household consumer panel
Government Sources
Absolute Best: U. S. Census
www.census.gov
Summary Files for ALL States and by County
People: 2002 Data Profiles
e.g.: Income, Housing, Demographics
Business Economic Census: Survey of Business Owners
Statistical Abstract
Federal Statistics
Government Sources
Statistical:
Bureau of the Census (www.census.gov)
Bureau of Justice Statistics (www.ojp.usdoj.govbjs)
Bureau of Labor Statistics (www.bls.gov)
Bureau of Transportation Statistics (www.bts.gov)
National Agricultural Statistics Service (www.usda.govnass)
National Center for Education Statistics (NCES) (nces.ed.gov)
National Center for Health Statistics (www.cdc.govnchs)
Government Sources
Industrial:
Bureau of Industry and Security: www.bxa.doc.gov
Manufacturing Technology Division: www.onr.navy.mil/sci_tech/industrial/manu.htm
Product Innovation Division: www.onr.navy.mil/sci_tech/industrial/innov.htm
Small Business Innovation Research (SBIR)/Small Business Technology
Transfer (STTR) Division: www.onr.navy.mil/sci_tech/industrial/sbir.htm
U.S. Commercial Service: www.export.govcomm_svc
Assistance with exporting goods and services to worldwide markets
Listing of global trade events
International market research
WHY are we doing this? What do we use it for?
What will you be wanting to predict?
Market Size (not so hard)
Market Share (very hard)
Sales Forecasts / Demand (short- and long-term)
Consumer Segments, Possible Niches (primary research)
Main Competitors (fairly easy)
Cost Structures (internal accounting)
Distribution Possibilities (fairly easy, though detailed)
Supportable Price Levels (some primary research)