Continuing changes in the dynamics of downtown Northbrook have resulted in a large growth within recent years in the number of people of all ages who enjoy shopping here. Primarily though, there is a high percentage of young people who come to Northbrook that like to purchase music, movies, clothes, coffee, antiques, and gifts. There is currently no store in Northbrook that adequately caters to this group's needs for a record store with a fairly priced, wide selection of imported and independent music.
Marketing research requires data, and secondary data is often the most convenient and cost-effective option. In this lesson, you'll learn about. Also, the business plan software programs have detailed research included and online research available. Utilize this functionality if you're using such software, and add additional data you find. Secondary research is a type of research that has already been compiled, gathered, organized and published by others. It includes reports and studies by government agencies, trade associations or other businesses in your industry.
Features are fairly straightforward, either a product has a feature or it doesn't. Benefits, on the other hand, are not as simple and should only be recorded based on customer feedback. For example, company B may claim in their company literature that their copier is fast, but a user may feel otherwise.
Or, company B may indeed have a copier that by industry standards is fast, but you may have a copier that's even faster. Now, evaluate your competition's product or service.
How does your product compare to your closest competitor's product? What features and benefits are unique to your product? The more unique features and benefits your product has, the stronger your market position will be.
For example, if you produce and market an office copying machine that staples collated copies together and your closest competitor doesn't have this feature, you have an advantage.
You can then sell the same market segment the benefit of added convenience and time saved. Evaluate your competitor's price. Just because you have the same products as other businesses, doesn't mean everyone has the same price.
Your own production costs greatly impact your pricing. If your price for a similar product is higher than your competitor's, then your market position is weaker; and if it's lower, then your competitive position is better.
A temporary price decrease by a competitor might indicate nothing more serious than a transient need to move excess inventory.
However, a trend of lowered prices may indicate that your competition is doing it to gain market share and improve production costs. It could also mean your rival is in financial trouble and has been forced to lower prices. It's in this type of situation that rumors and gossip become helpful.
If there are rumors that a company is in financial trouble and you discover price fluctuations, it's more likely that there are problems. Customer preference of products is only part of the analysis. There are internal operational factors which can provide a competitive edge as well.
Your competitors' products may not have the high quality of yours, but they might offer free delivery; or their employees might be extremely motivated and committed to gaining market share. You need to learn how they are doing on the inside. Some factors to consider: Financial resources — Are they able to withstand financial setbacks?
How are they funding new product development and improvement? Operational efficiencies — Are they able to save time and cost with clever production and delivery techniques?
Product line breadth — How easily can they increase revenues by selling related products? Strategic partnerships — What kinds of relationships do they have with other companies in terms of product development, promotion or add-on sales?
Market Share The most widely used measure of sales performance is market share. A competitor may not provide the best product or service; however, if they generate a significant amount of sales to the market, they may: Define the standards for a particular product or service.
Influence the popular perception of the product or service. Devote resources to maintaining their market share. To determine your company's market share on a percentage basis, the following formula should be used: It will give you a clear idea of how your sales volume compares to your competition's.Secondary research uses outside information assembled by government agencies, industry and trade associations, labor unions, media .
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. Advertisements.
This article is part of both our Business Startup Guide and our Business Planning Guide —curated lists of our articles that will get you up and running in no time!.
If you’ve reviewed what a business plan is, and why you need one to start and grow your business, then it’s time to dig into the process of actually writing a business plan..
In this step-by-step guide, I’ll take you. Contrary to popular belief, mathematics is an everyday human endeavor by which ordinary people construct concepts, discover relationships, invent algorithms and models, organize and communicate their thoughts in the language of mathematics, execute .
Research can be defined as scientifically and methodically delving into the unknown in order to provide information for solving problems. The heart of this definition is the concept of problem solving. Both applied and pure (also known as basic) research attempt to solve problems.
In applied. There are two main market research methods: primary research and secondary research. The type of research you choose may depend on .