Module 5 discusses the concept of research and its importance. it looks at in detail the the benefits of conducting market research, researching customers, market segmentation , researching competitors and how to carry out research.

1. Entrepreneurial mind sets
This programme has been funded with support from the
European Commission
Check it out… do your research
Module 5

2. Introduction to market research
You might convince yourself that your idea is the
best thing since sliced bread… I wonder what ideas
were compared to before sliced bread...any ideas?
Anyhow, unless you actually set about researching whether
or not there would actually be a demand or even if there’s a
need for your business, you may be wasting your time. And
then once that’s been done and you discover that the world
actually wants you, the research goes on.

3. Introduction to market research
You’ve got to start researching things like:
•where you’re going to set up
•what are the costs to start up
•where are you going to get the money you need
•how and where can you promote this wonderful
idea of yours
One thing to remember?
Guesswork and assumptions don’t really
work where research is concerned.

4. Benefits of market research
• Customers
• Competitors
• Market trends
• Secondary research
• Primary research

5. Benefits of market research
• Useful market information
• Establishes level of demand
• Helps tailor product/service
• Helps make informed decisions
• Uncovers potential problems
• Reduces risk
• Can identify opportunities

6. Know your audience - Researching customers
Knowing who your potential customers are is critical.
Before you can even contemplate starting a creative
enterprise you will need to define who your target
market is. Having a clearly identifiable potential
customer base is essential for the development of
your business idea. Keeping this target market in mind
is key at all stages of a business journey and is
especially so when you are just starting out.
However, although businesses on other industries
would first identify a market, then produce a product
to meet an existing demand – a lot of artists create a
work first, then try to cultivate an audience for it. To
some extent, the music industry has been seen as an
exception to this approach because the large

7. Market segmentation
When identifying who your customers are in the
marketplace, it is useful to divide the market into
customer groups or segments. This is called market
segmentation.
Segmenting a market will help tailor marketing
activities and lead to a greater chance of success. It
will also make it easier to meet customer needs or
wants and provide a greater understanding of
customers in the market place.
Consumer markets often segmented by Commercial markets often segmented by
• demographic factors such as:
- Age & gender
• social factors such as:
- lifestyle
• business type
• industry sector
• number of employees

8. What information do you need to know?
• Who are my customers?
• Who are the customers - gender, age, location
• Needs and wants
• Online behaviour
• Attitudes/lifestyles
• Buying behaviour - how often, where, why

9. Researching competitors
Amongst the key steps that you must take when
starting a business, one of the most crucial, and
yet so often overlooked, is researching your
competitors.
It is quite strange that entrepreneurs often neglect
this activity, because not only does it have the
potential to enlighten them and fill them with
inspiration, but it can be darn right fun as well.

10. Researching competitors
What to research
•Who
•What they sell
•Their marketing mix (i.e. special deals,
promotions, where they advertise etc)
•Strengths and weaknesses
•Pricing structure
•Spaces in which they operate i.e. physical store,
website, e-store, social media etc

11. Researching trends in the market
Technology Piracy, e-commerce, innovation
..........................................................................................................................................................................................................................................................................................................................................................................................................................
Industry Rapid changes in fashion/taste in music increased competition
................................................................................................................................................................................................................................................................................................................................................................ Demand
Increase, decline
................................................................................................................................................................................................................................................................................................................... Economic
Economic down turn
.................................................................................................................................................................................................................................................................................................................... Demographic
Lower birth rate, less marriages
.................................................................................................................................................................................................................................................................................................................... Seasonal
Weather, Christmas, tourist season
.....................................................................................................................................................................................................................................................................................................................
Buying patterns Online purchasing, spending less
...................................................................................................................................................................................................................................................................................................................
Product life cycle Introduction, growth, maturity, decline
................................................................................................................................................................................................................................................................................................................... Attitudes
Ethical purchasing, healthier living
Trend Type Example

12. How to carry out research
Primary research
… Do it yourself
•Surveys
•One to one meeting
•Focus group
•Internet survey/e-mail
•Attending a trade show, exhibition or
conference
•Observation
•Mystery shopping
•Own experience/knowledge
Secondary research
… Already exists
•Market research reports
•Census data i.e. www.nisra.gov.uk
•Company directories
•Competitors’ websites, brochures, reports
etc
•Magazines & Newspapers
•Books and publications
•Trade associations and bodies
•Internet
www.yell.com
www.facebook.com
www.cso.ie
www.keynote.co.uk
www.gov.uk

13. How to carry out research
Begin with a Google search
You will be quite amazed just how much information you can reveal
about your competitors with nothing more a well worded search query.
For one, you will be quite easily able to ascertain the state of
their digital marketing, and identify the extent of their search engine
optimisation. A little more digging will quickly reveal the extent of their
online presence and help you to answer many of the above questions.

14. How to carry out research
Social media
So many businesses use social media as a major tool for marketing and
engaging with customers that you can quite often learn a great deal
about the culture of your competitors though a little snooping on their
social media accounts. Be sure to check as many platforms as you can,
not just the most obvious ones. Facebook, Twitter, Instagram, and
Pinterest are a good place to start.

15. How to carry out research
Online shops and portfolio portals
- Etsy, Axis, Bouf, Not on The High Street, etc are where you’ll find
artists, makers and designers either selling products directly or
showcasing work to attract commissions. These are vital to explore as
part of your market research to get an idea of pricing and what your
competitors are offering

16. How to carry out research
Trade fairs and markets
Attendance at trade fairs and markets is a crucial part of your market
research – this will help you get an idea of what people are interested
in, what they are buying and their spending habits.

17. How to carry out research
Mystery shopping
One of the best ways to get a feel for a competitor is to play a little
game called ‘The Covert Customer’... told you this would be fun! As you
have probably guessed this involves masquerading as a perfectly
regular, everyday customer, and using this covert position to ascertain
as much information about the business as possible

18. How to carry out research
Just Ask!
Sometimes the simplest solutions are the best and this certainly falls
into that category. Most people don't overlook the value of simply
asking for other people's opinion on a business, and thanks to the
internet, achieving this has never been more likely.
Ask potential customers, friends, family and suppliers.
Be open to feedback and fresh perspectives, as people can come up with
suggestions you haven’t considered.

19. How to carry out research
Join professional organisations,
networking and reading e-newsletters
are vital sources of information.

20. Gain some work experience in arts or
design organisations or businesses
This can help you understand how a social enterprise or
commercial business is run. Active involvement in a workplace
environment that is embedded in wider artistic networks,
which provide opportunities to develop contacts etc will provide a
great opportunity for research. This combination will also give
prospective entrepreneurs opportunities to learn by doing
and to reflect on doing it, within the context of a business.
How to carry out research

21. How to carry out research
Often you would be expected to work for free, but some offer
expenses; organisations such as local council-run youth clubs
offer a standard amount per evening to volunteers, and galleries
generally provide lunch and travel costs.
Occasionally, this kind of work can lead to paid employment.
However, it is arguable that there is a 'volunteer culture' within
the visual arts. Be wise... find a balance of absorbing valuable
experience without being taken advantage of.

22. Online listening tools
What are people saying about you and your
competitors online?
Below are a few examples of tools you can use to
monitor your business and your competitors online.
These tools will let you know whether people are
talking about your business, or you, on the internet.
They also allow you to keep up with the social
activities and mentions of your competitors.

23. Google Alerts
Another free and simple but useful
tool, Google Alerts will email you
online mentions of keywords—for
example, your business name or even
yourself. You can also use it to
monitor your competitors by setting
up alerts for their name & related
keywords. Set as many alerts as you
want to clue you in to mentions on
blogs, websites, other people or
business’ Facebook pages or Twitter
accounts, or in the media. Visit
www.google.co.uk/alerts
How to carry out research

24. Google Analytics
If you set up a website for your new
enterprise use Google Analytics. It
tracks and reports your website traffic
and is free to use. Though Google
Analytics was designed to track traffic
and referral data, it can also help you
better understand your blog’s
audience, and monitor traffic to your
website from all your social media
channels.
What posts interest readers
enough to click through?
Visit www.google.co.uk/analytics
How to carry out research

25. Google Trends
See the latest trends, data and
visualisations from Google. Find out
what's trending near you, across various
regions of the world, and in various
languages. This is a free to use.
Visit www.google.co.uk/trends
How to carry out research

26. Facebook Insights
On a Facebook business page (a
‘Like’ page, not a ‘Friend’ page) you
will be able to access Facebook
Insights which provides information
about your Page's performance.
This is available after at least 30
people like your Page.
Find demographic data about your
audience, and see how people are
discovering and responding to your
posts. Visit www.facebook.com
How to carry out research

27. Congratulations
you have completed Module 5