Market Research Plan Project The essence of this project is to develop a market research plan for small to medium-size organization. The goal of the plan is to uncover unmet market needs. You will develop a plan considering the following items: – Identify an organization. This organization might be an actual firm that you are already familiar with or hypothetical – Determine an unmet market need. This can be in the form of a reaction to an external environmental force, a potential new product line extension, or overall growth strategy. – A detailed market research action plan Your action plan should be very specific you regarding the determination of the market need and what tools you will use to collect and analyze the data. Identifying your target market is crucial to the success of your plan. Understanding whom your customers are, where they live, how they behave, what motivates them to buy or not buy, is going to directly affect your bottom line. Research Objectives The first place to start with your market research plan is to define your research objectives. It is important that you are clear about the answers you are looking for from the research results. Your research objectives must include and focus on at least three of the following categories: – Identify potential target market segments – Establish a buyer profile and demographics for products or services – Test the feasibility of entering a new market – Determine market influences on timing, pricing, service, etc. – Gauge consumer sentiment towards state of the economy and buyer confidence – Your use of primary and secondary research – Study usage and attitude of competing product/services (perceptual mapping) – Identify and examine perceptions towards brands, companies, images, packaging – Capture key concerns and expectations from consumers or users – Measure customer satisfaction or to benchmark satisfaction against competitors You will design and develop a full-blown market research plan. It is critical that you heavily emphasize the timing of your action plan. In fact, that is the essence of the project. Sample Of course, all elements of your market research plan are important to success. However, of all elements, your sample is perhaps the most vital to accuracy. In case you do not know, a sample is Post University Market Research Plan Project simply the people you select to study. You cannot practically study the whole population or the entire market, so you need an adequate percentage and cross-section of your target consumer. Let’s say there are 100,000 target consumers for your product. You could sample 1% for example, which is 1000. Your sample could be bigger or smaller, but it is important that your sample is large enough to be more accurate. If your sample is too small, you may find that results are either too similar or too varied. You might be fine sampling 30 or 100 people – but be prepared to sample more if necessary. Also, make sure your sample reflects the demographics of your target market. Therefore, if your target market consists of people of various income levels, ethnicities, age groups, homeowners or renters, and gender, your sample should be a cross-section of these. Research Methods There are several research methods available, but your market research plan needs to be focused on one or two methods that will yield the results you are seeking. By far the most common method to capture market intelligence is by conducting surveys. You can conduct surveys in groups or individually. You can conduct surveys in person, over the telephone, or even online. In some cases, surveys are better conducted as interviews, while in others, it is best to let the respondent complete the survey on its own. Keep in mind that most people are unlikely to agree to spend a lot of time on a survey. In addition, the average person has a brief attention span. So keeping the survey down to 20 minutes or less is imperative. It is best to limit the survey to 15 minutes maximum. There are two ways to collect data for market research: quantitative and qualitative. Quantitative data collection is statistical, and uses mathematical analysis to measure the research findings. It can inform of significant differences in comparative data, as well as provide more simple analyses such as averages, and satisfaction scores. Therefore, quantitative data collection requires an adequate sample. Qualitative data collection, on the other hand, is used to identify key issues that a business may want to explore in-depth. Although qualitative methods such as focus group discussions do not actually measure the findings statistically, but can be used to uncover issues which can be quantified and then measured through quantitative analysis. Therefore, qualitative data collection is often used as a basis to design quantitative research. Here is a list of primary research methods you can use to research your market, along with a brief description: – Surveys – completing questionnaires face-to-face, via telephone or online – Interviews – asking and probing respondents to gain detailed responses. Good for open questions. – Focus Groups – moderating a discussion with users. Useful for capturing key concerns and messages Post University Market Research Plan Project – Ethnography – observing customers using products in their natural environments (e.g. at home) – Product clinics and tests – having users try products and give feedback (e.g., taste tests) It is common for businesses to hire research agencies to conduct primary research because of the effort and resources involved. Particularly small businesses can benefit from doing their own research, since they do not need extensive data and can work with smaller samples. Outsourced research management can be an expensive investment for small business owners. You should also consider secondary research for your market research plan. Secondary research simply means the research has already been conducted by someone else, or the data is made available. Below are some examples: – Government statistics – this is great place to start your research if you’re a small business – Public libraries – another good places to find statistical data and information – Chambers of commerce, trade boards, city hall and local government offices – Phone directories and yellow pages – Online and offline market research sources Especially for small businesses, secondary research is a good option for their market research plan. For example, the cost of obtaining and purchasing research may be far cheaper than conducting research yourself. There are some good online sources for compiled market research where you can purchase relevant data for your market research plan. Timeframe If you are conducting your own research, limit it to a timeframe. After a period of time, many factors can affect the results of research. Events such as elections, long holidays and seasons can affect the motions of your respondents.
