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Module 5 do your research

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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.

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Module 5 do your research

  1. 1. Entrepreneurial mind sets This programme has been funded with support from the European Commission Check it out… do your research Module 5
  2. 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. 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. 4. Benefits of market research • Customers • Competitors • Market trends • Secondary research • Primary research
  5. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 19. How to carry out research Join professional organisations, networking and reading e-newsletters are vital sources of information.
  20. 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. 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. 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. 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. 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. 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. 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. 27. Congratulations you have completed Module 5

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