Market Research
IDEA Lab
January 13, 2015
Facilitator
Rachel Lundbohm
Marketing Instructor
Director, Center for Rural Entrepreneurial Studies
University of Minnesota Crookston
What are we going to cover?
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Types of Market Research
Industry Research
Target Market
Competition
Sustainable Competitive Advantage
Positioning
Types of Market Research
• Secondary
– Information that has already been collected
• i.e. industry reports, census data, data in trade
publications, etc….
• Primary
– New data collection for the purpose of answering
a specific question
• I.e. surveys, focus groups, internal company data,
Analytics, etc…
Industry
• What industry does your product fit into?
– NAICS
• What is happening in that industry?
• Where do I find this information?
– Industry Reports
– Industry/Trade Publications
– Online databases through your library
• Regional Libraries
– Bemidji
– Northwest Regional Library
» Roseau, TRF, Hallock, Karlstad, Greenbush, Warren, Grygla, and Warroad
– Lake Agassiz Regional Library
» Ada, Bagley, Barnesville, Breckenridge, Climax, Crookston, Detroit Lakes,
Fertile, Fosston, Hawley, Mahnomen, McIntosh, Moorhead
– Baudette Public Library
– East Grand Forks Public Library
Example: Selecting a target market for your Wendy’s fast-food restaurant
next to an urban university (target market is shaded)
Source: Keran, Hartley and Rudelius (2009).
Marketing: The Core (3rd Ed). McGraw Hill.
Who is your Target Market?
Activity:
1. Brainstorm all of the potential consumers
that would possibly buy your product.
2. Group your consumers: put “similar”
consumers into groups
3. Identify which group(s) are most likely to buy
your product.
 This is your target market/segments!!!!
Describe Your Target Market
• Ok, you have identified your target market(s)
– Now we need to know more about them
• Demographics
– Census Data
– Data that you or your company have collected
– Industry data/websites
» Ex. Tourism Industry Reports
» Ex. Information from trade groups – both formal and informal (i.e. HWY 2 West
Manufacturers Association.)
– This information can also be obtained through focus groups, surveys, etc…
• Psychographics (lifestyles)
– PRIZM Data
– Industry data/websites
• Buying Behavior
– How does your customer go through the buying process?
– Where do they buy products similar to yours?
» You may want to discuss this with your current sales force (if you have one)
» Can also obtain this information through focus groups, surveys, etc…
» May also be available in industry reports
Who is the competition and
what are they up to?
• Direct Competitors
• Indirect Competitors
• Substitute Products
• Example: Applebee’s Restaurant
– Direct competitors: Olive Garden, Ground Round, Red
Lobster….
– Indirect Competitors: McDonalds, Subway, Burger
King….
– Substitute Products: Eating at home, grocery stores
Competition
Activity: Who is your competition?
- Direct
- Indirect
- Substitute
Competition
• Where can I find information about my
competitors:
– Industry Reports
• You can access these through library databases
– Annual Reports
– Trade Groups/Publications
– Observation
Positioning
• What sets you apart from your competitors?
• What does your product have that the
competition does not?
• This is your product’s………
SUSTAINABLE COMPETITIVE ADVANTAGE!!!!
Positioning
• Where will you
position your
product in the
minds of
consumers versus
how your
competitors are
positioned?
Questions/Assistance
• Market Research, marketing, and business
plan assistance available from the Center for
Rural Entrepreneurial Studies (CRES) at UMC
• Contact:
Rachel Lundbohm
(218)281-8190
rlundboh@umn.edu
www.umccres.org