Overview of
Market Research
Market Research Module
Schedule of Activities
Time
Activity
Day 1:
9:00 - 10:00
-
Overview of Market Research
10:00 – 11:00
-
Determining the Size of Microfinance Market
and Risks
11:00 – 12:00
-
Data Gathering and Area Mapping
12:00 - 1:00
-
Break
1:00 - 2:30
-
Market Survey
2:30 - 3:30
-
Data Processing and Analysis
3:30 - 4:30
-
Focus Group Discussion
4:30 - 5:00
-
Briefing for Field Practicum
Market Research
2
Day 2:
8:00 - 5:00
-
Field Practicum
9:00 - 12:00
-
Data Analysis and Report Writing
12:00 - 1:00
-
Break
1:00 - 3:00
-
Report Presentation
3:00 - 3:30
-
Discussion of Market Research Issues
3:30 - 4:00
-
Action Planning
Day 3
Market Research
3
What is Market Research?
“It is the systematic design, collection, analysis
and reporting of data and findings relevant to a
specific marketing situation facing the company.”
-Philip Kotler
Market Research
4
What is Market Research?
Steps Involved
• Define the objectives
• Design – determine how you will go about the
market research, and what tools to use.
• Collect and process
• Analyze
• Report
INPUTS TO
PRODUCT DESIGNING
Market Research
5
Why do Market Research?
• So that the bank can design and offer
products and services that the market
needs and wants.
• This is called “market-driven” approach
versus the one known as “product-driven”.
Market Research
6
Why do Market Research?
Product vs. Market-Driven Approaches
• PRODUCT-DRIVEN – produce something and try to
sell it without much regard to market demand.
• MARKET-DRIVEN –identify and meet clients’ needs
on a profitable basis.
Market Research
7
Objectives of Market Research
in Microfinance
• Understand the environment in which the bank
and its microfinance unit operates
- Market opportunities and risks
- Competition and products they offer
• Understand the microenterprise sector
- Identify the financial services needed by
microfinance clients
• Develop products that respond to the needs of
and opportunities in the market
Market Research
8
Market Research Tools
Product
Test
Product Development
Secondary
data
FGD Area Survey
mapping
Market Research
Product Review
and Modification
Satisfaction Exit
FGDs
survey
9
Market Research for Product Development:
Determining Market Size and Risks
Market Size and Risks
Research Question: Is there sufficient market in the bank’s target area(s)? What are the risks?
Market Risks
Secondary
Gathering
Data
Market Size
Size of “Unserved”
MarketMarket
Assessment
Competitor
Decision Point:
Go/No Go
Size
of Market Served
by Competitors
If GO, proceed to Market Survey
If NO GO, look for other sites
and repeat the same process
Market Research
10
Market Research for Product Development
Product Development and Business Planning
Research Questions:: What product (s) would be suitable?
What is the potential market share of the bank?
OUTPUTS
“What do clients
Focus
Group
want?”
Discussions (FGD)
Market Survey
Assessment of Supply
& Demand Characteristics
Product Concept Design
Area Mapping
Estimation of Bank’s
Target Market Share
Secondary Data
Financial Projections
Market Research
11