Market Research for business plan
We have to learn as much as possible regarding the market that the business in supplying
its goods/ services to.
Consider the following aspects of good market research:
Most failed projects occur through ignorance.
Most successful people credit knowledge of the market as a key element in improved performance
Most failures occur directly as a result because management are too impatient to gather necessary information
Major mistakes or bad guesses regularly ruin firms
As a general statistic management is right only 50% of the time
Four out of five new ventures fail.
Many managers guess at facts to prove their superiority (Management ego)
Market facts protect investments and jobs
Knowledge is power
The cost of getting information is much less than the cost of business failure
Your best sources are either in your company or very close at hand. Outside sources frequently cost very little.
Your marketing, sales, advertising, market research or public relations people. They should be able to fill in at least half of the information required.
Other inside people include supervisors, colleagues and other employees.
Outside sources include:
Trade associations and journals (they prepare market and industry surveys and data, often in great detail, free for the asking).
The SBA, which has three major groups, each with large amounts of information. First, SCORE or the Service Corps Of Retired Executives. Second, SBI or the Small Business Institute: graduate students who do research for $6,000 – this is free to you. The SBDC or Small Business Development Centers, located at all major American universities. SBDC use professors, graduate students and advance electronic equipment to provide information at low cost or no cost to you.
The local library that usually has considerable published information on various industry.
The U.S. Department of Commerce
Local management consultants
Outside research organizations.
Market Research Form
|Who are our present customers:|
|Who are our potential customers:|
|Who are our best prospects:|
|Likes and preferences:|
|Gripes and dislikes:|
|Who are our competitors:|
|Who’s the competitor to beat:|
|How good are they:|
|Their physical distribution:|
|Their personal selling:|
|Their PR and advertising:|
|What are we selling:|
|What are our superiorities:|
|What do are competitors teach us:|
|What customer wants do we produce:|
|What customer benefits do we provide:|
|What can we do to improve:|
|What do prospects say about us:|
|What is the total $ market:|
|What trends – What’s our potential|
|What are good market segment opportunities:|
|What causes industry growth:|
|What share do we have: – Our sales trend:|
|What is needed to build share:|
|What are the keys to success:|
|When do customers buy:|
|When plan client programs:|
|When produce product timeline:|
|What are the best places to sell:|
|What is the best geographic area:|
|Why do customers buy:|
Our 8 Ps (Market related facts)
|Our physical distribution:|
|Our personal selling:|
|Our PR and advertising|
– See more at: http://freebizplan.org/business-plan-market-research.htm#sthash.8Pg74Lwn.dpuf