Your business description is an explanation of what your company does, the industry your business is operating in, and what differentiates your business from others. It should also contain a more detailed information about your company profile. You should talk about the widespread markets operating in your industry, and how some diverse products or services can benefit or affect your business.
But the perception of value is a subjective one, and what customers value this year may be quite different from what they value next year. As such, the attributes that create value cannot simply be deduced from common knowledge.
Rather, data must be collected and analyzed. The goal of marketing research is to provide the facts and direction that managers need to make their more important marketing decisions.
To maximize the benefit of marketing research, those who use it need to understand the research process and its limitations. Market Research These terms often are used interchangeably, but technically there is a difference.
Marketing research covers a wider range of activities. While it may involve market research, marketing research is a more general systematic process that can be applied to a variety of marketing problems. The Value of Information Information can be useful, but what determines its real value to the organization?
In general, the value of information is determined by: The ability and willingness to act on the information. The accuracy of the information.
The level of indecisiveness that would exist without the information. The amount of variation in the possible results. The level of risk aversion. The reaction of competitors to any decision improved by the information.
The cost of the information in terms of time and money.
The Marketing Research Process Once the need for marketing research has been established, most marketing research projects involve these steps: Define the problem Identify data types and sources Design data collection forms and questionnaires Determine sample plan and size Collect the data Analyze and interpret the data Prepare the research report Problem Definition The decision problem faced by management must be translated into a market research problem in the form of questions that define the information that is required to make the decision and how this information can be obtained.
Thus, the decision problem is translated into a research problem. For example, a decision problem may be whether to launch a new product. The corresponding research problem might be to assess whether the market would accept the new product.
The objective of the research should be defined clearly. To ensure that the true decision problem is addressed, it is useful for the researcher to outline possible scenarios of the research results and then for the decision maker to formulate plans of action under each scenario.
The use of such scenarios can ensure that the purpose of the research is agreed upon before it commences. Research Design Marketing research can classified in one of three categories: Exploratory research Descriptive research Causal research These classifications are made according to the objective of the research.
In some cases the research will fall into one of these categories, but in other cases different phases of the same research project will fall into different categories. Exploratory research has the goal of formulating problems more precisely, clarifying concepts, gathering explanations, gaining insight, eliminating impractical ideas, and forming hypotheses.
Exploratory research can be performed using a literature search, surveying certain people about their experiences, focus groups, and case studies. When surveying people, exploratory research studies would not try to acquire a representative sample, but rather, seek to interview those who are knowledgeable and who might be able to provide insight concerning the relationship among variables.
Case studies can include contrasting situations or benchmarking against an organization known for its excellence. Exploratory research may develop hypotheses, but it does not seek to test them.
Exploratory research is characterized by its flexibility. Descriptive research is more rigid than exploratory research and seeks to describe users of a product, determine the proportion of the population that uses a product, or predict future demand for a product.
As opposed to exploratory research, descriptive research should define questions, people surveyed, and the method of analysis prior to beginning data collection. In other words, the who, what, where, when, why, and how aspects of the research should be defined. Such preparation allows one the opportunity to make any required changes before the costly process of data collection has begun.
There are two basic types of descriptive research: Longitudinal studies are time series analyses that make repeated measurements of the same individuals, thus allowing one to monitor behavior such as brand-switching.
However, longitudinal studies are not necessarily representative since many people may refuse to participate because of the commitment required.The Market Research Grid shows the two types of data sources and the three areas of research that are important to any business.
You need to gather information from and about your customers to focus your marketing efforts, maintain and improve your customer service, and to guide your efforts in developing new products and/or services. How to Do Market Research for a Business Plan by Matthew Schieltz - Updated September 26, Starting a new business or developing an invention requires drawing up detailed business plans in order to predict your success or to show venture capitalists, investors and banks for start-up capital and loans.
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View our collections of research around key subject areas: CLOUD > COLLABORATION >. 5 Template courtesy of tranceformingnlp.com The Crucial Areas of the Business Model [Your business model is the core concept upon which you build your business model tranceformingnlp.com business model should be a significant portion of your business model plan.