12/7/2015
MarketResearch
Shannon Dill
Extension Educator
University of Maryland – Talbot County
410‐822‐1244
sdill@umd.edu
Objectives
• Basics of Marketing Research
• Identifying Your Customer
• Marketing Research Tools
1
12/7/2015
BuildaBetterMouseTrap????
• Too many choices in the marketplace
• “Great product” alone does not work
• Market‐driven strategy needed:
• Identify target group
• Learn about them
• Build new products for this group
NicheMarket
• Smaller segment of a larger customer base
• Differentiates the product and targets the customer
• Niche market can
• Create a cost effective way to find potential customers
• Enable you to spend more time on relationships
• Capitalize on opportunities to create new niche markets
2
12/7/2015
Whydomarketresearch?
• People will not buy products or services they do not want. Don’t fool yourself
• Learning what customers want and how to present it drives the need for marketing research. • Small business has an edge over larger businesses in this regard. • Small business owners have a sense of their customers' needs from years of experience, but this informal information may not be timely or relevant to the current market.
So,whatisMarketingResearch?
• Answers the
• Who
• What • When
• Where
• Why
• How ……….of your operations, offering(s), &/or business
• Provides objective information for building your marketing plan
3
12/7/2015
GoodMarketingRequires
• Marketing is more than knowing how to dispose of ag commodities. • A marketer must have an understanding of ever changing consumer wants and needs.
MarketingResearch
• Marketing research is the systematic gathering, recording and analyzing of data about problems relating to the marketing of goods and services.
• Market research will give you the data you need to identify and reach your target market at a price customers are willing to pay.
4
12/7/2015
MarketingResearch
• Marketing research is not a perfect science. It deals with people and their constantly changing feelings and behaviors, which are influenced by countless subjective factors. • To conduct marketing research, you must gather facts and opinions in an orderly, objective way to find out what people want to buy, not just what you want to sell them. MarketResearch
• Market research will identify trends that affect sales and profitability.
• Population shifts
• Legal developments
• The local economic situation should be monitored to quickly identify problems and opportunities
• Keeping up with competitors' market strategies also is important.
5
12/7/2015
FirstStep– definingthetarget
Your “first and best customer”
• Needs and wants related to food
• Convenience
• Unique flavors
• Understanding of seasonality
• Packaging/quantity desired
• Product mix – variety or collaboration
CharacteristicsofCustomers
Demographic
– Age
– Sex
– Education
—Race
—Religion
Closely linked with:
• Geographic
– Regions
– Counties
– Zip Codes
—States
— Countries
6
12/7/2015
ValuesofCustomers
Psychographic
–Lifestyle
–Behavior patterns
–Beliefs and values
–Attitudes
Values‐basedMarketing
•
•
Consumers buy when a company/product visually links with resonating causes
External or internal?
• External cause
• Stonyfield Yogurt & Breast Cancer
• Internal cause
• Eden Foods’ EdenSoy Product
7
12/7/2015
PotentFoodAttributes
• Locally/family farm produced
―Buy Fresh/Buy Local
―Maryland’s Best/localharvest.org
• Manufactured by a business employing sound environmental practices
• Supporting sustainable communities:
• Maintaining the local economy
• Offering training for/owned by resource‐
stressed individuals
MarketResearch
Primary
• Primary market research is tailored to a company’s particular needs and is conducted either by you or by a company that you pay to conduct the research for you. • Primary market research lets you investigate an issue of specific interest to your business
• Primary research delivers more specific results than secondary research
• The downside of professionally conducted primary market research is that it can be expensive Secondary
• Secondary research is based on information from studies previously • Secondary market research is easy to find, and much of it is free or low‐cost. • The downside of secondary market research is that it is not customized to your needs, so it may not be as useful as primary market research. Secondary research lays the groundwork, while primary research fills in the gaps. By using both types of market research, small business owners get a well‐rounded view of their markets. 8
12/7/2015
PrimaryResearch
• Primary research can be as simple as asking customers or suppliers how they feel about a product, or as complex as surveys conducted by professional marketing research firms. • Examples of primary research are:
• Interviews
• Observations
• Direct‐mail questionnaires
• On‐line or telephone surveys
• Experiments
• Panel studies
• Test marketing
• Behavior observation
SecondaryResearch
• Secondary research is faster and less expensive than primary research. • Gathering secondary research may be as simple as making a trip to your local library or business information center or browsing the Internet.
• It utilizes information already published.
• Surveys, books, magazines, etc. 9
12/7/2015
FoodTrends
• Grazing golden agers
• Online grocery – fresh foods
• Everything smoked
• Fermented foods
• Gen Z: Chefs everyday
• Craft Foods
• Nutrition labels everywhere
• Supermarkets convert to social spaces
Source: ConAgra Foods Inc.; November 2014
SecondaryResearchCont.
• Localized figures provide better information as local conditions might buck national trends. • Newspapers and other local media are helpful.
• Many sources of secondary research material are available. It can be found in:
• Census and Consumption Data
• Colleges
• Trade and general business publications and newspapers
• Trade associations and government agencies are rich sources of information.
10
12/7/2015
Ifyoudon'tknowyour customer,
thenyoudon'tknowyourbusiness.
• Determine your target market. A target market is the group or groups of people you will be promoting, advertising, and ultimately selling your product to. To find your market, you should begin by answering some simple questions:
• What are the demographics of the area you are competing in?
• Who will buy your products based on price?
• What is the age range?
• Males or females (or both)?
• Are they single or married? Do they have kids?
• What kind of lifestyle does your product relate to? Is it everyday use, specific to times of the year or to specific activities?
FIRST AND BEST CUSTOMER
FadsvsTrends
• Fads are something people talk about.
• Trends are something people do.
• Analyzing trends helps identify niche markets for profitability.
• The ideal niche market must be large enough to be profitable but small enough not to attract larger competitors.
11
12/7/2015
FourPartsofthePlan
• Know Your Customer
• First and best
• Analyze Your Competition (worksheet)
• Who are they, how are they selling
• Maximize your unique selling position
• What sets you apart
• Marketing Budget and Implementation Plan (worksheet)
• Successful marketing
Resources
• Agricultural Marketing Resource Center
• http://www.allbusiness.com/the‐difference‐between‐
secondary‐and‐primary‐market‐research‐1310‐1.html
• Food for Profit – Penn State University
• US Small Business Administration
12
12/7/2015
Thankyou–
Questions?
13