NVTC Entrepreneur Center

Market Research in a Data Rich World

Emily Summers

Tuesday, September 25, 2012

Goals from the Kauffman Center

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September 25, 2012

Today’s Agenda

• The World of Research

• Market Research Today

• Defining and Analyzing Your Target Market

– Looking at Your Competitors

– Analyzing the Market

– Confirming Your Market

• Research Organizational Models

• Leveraging Research for Positioning

• Product Versus Technology

• Investor Perspectives

• Investment Requirements

• Wrap-up

September 25, 2012

The World of Research

September 25, 2012

Competition

Market Needs/Gaps

Market Perceptions

Qualifications

Talent

Product/ Service Position

External

Factors

Internal

Factors

Research has a world of applications. Today’s focus is on market research

but all of these are valuable to your business growth.

Projected Image

To help refine these

(can control these)

Measure these

(can’t control them)

Market Research Today

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If you’re smart about it, it doesn’t have to cost you an arm and a leg,

but doing it WILL help you understand how to ensure your

products and services are relevant.

September 25, 2012

Defining and Analyzing

Your Target Market

1. Look at Your Competitors – know who’s doing what.

2. Analyze Your Market – know the market size.

3. Confirm you market – validate people will pay.

For entrepreneurs…time is money. Here are three simple steps.

September 25, 2012

Defining and Analyzing Your Target Market

Looking At Your Competitors

1. Look at your competitors

– Who offers similar services? How do yours differ?

– Where are your competitors weak?

– Where is there a little white space?

If you are on a team, this exercise is a great one to do with them. Each of

you review your top 3-5 competitors. Which are the same ones listed over

and over? This will help you focus your efforts on analyzing the top ones.

September 25, 2012

Defining and Analyzing Your Target Market

Analyze Your Market

• Determine the market size. Learn as much as you can

through publicly available sources. For example, if you’re

launching an app targeting entrepreneurs, know how many

entrepreneurs there are nationally, internationally, etc.

• Segment the markets. Segment the groups into different

segments and compare the market sizes.

• Define who you want to target. Prioritize the market

based on strengths and capabilities. For example, you

launch the entrepreneur app in English and have a sales

force you can readily deploy in the U.S., so you focus on

that market first.

September 25, 2012

Defining and Analyzing Your Target Market (continued)

Analyze Your Market―Resources

• Edgar - http://www.sec.gov/edgar.shtml

• U.S. Census Bureau - http://factfinder2.census.gov/faces/nav/jsf/pages/index.xhtml

http://www.census.gov/econ/ (look under businesses/industry)

• Local libraries (Fairfax County/Arlington County) - log in with your library card –

look for business databases – this varies county to county so ask the reference

librarian what you are seeking.

• B2C & demographic information (zip code lookup) -

http://www.claritas.com/MyBestSegments/Default.jsp

• Government contractors – GSA Schedules & procurement forecasts

http://www.gsaelibrary.gsa.gov/ElibMain/home.do

• Counties and states – many economic development authorities have information

that you can look at (example: http://www.fairfaxcountyeda.org/demographics) ; also

http://quickfacts.census.gov/qfd/states/00000.html

• Google and LinkedIn – mining through data

• Trade associations/research houses like Gartner – looking at research reports; a

lot has already been conducted

September 25, 2012

Defining and Analyzing Your Target Market (continued)

Confirm Your Market―Overview

September 25, 2012

3. Conducting primary market research

– Nothing in your secondary research will tell you how

customers and prospects will actually RESPOND to

your products/services.

– Test your idea with primary research:

• Traditional market research (focus groups, IDIs, surveys)

• New technologies and methodologies (1-2 questions on

websites, meetup groups, community forums, Facebook

pages, LinkedIN questions, etc.)

• Friends and personal contacts

Defining and Analyzing Your Target Market (continued)

Confirm Your Market―Core Methods

Core primary research methodologies:

• Surveys – good for analyzing info from large numbers

• Focus groups – good for in-depth discussions, rich info.

• Online panels – similar to focus groups but virtual

• In-Depth Interviews – good for hard to get to people

• Social media – good for general listening

September 25, 2012

Defining and Analyzing Your Target Market (continued)

Confirm Your Market―Interviews

Tips for conducting your own interviews:

• Do your homework. Learn as much about the market in

advance as it can. Research the company for 20-30

minutes before your meeting so that you can easily

establish rapport.

• Be very familiar with your questions. Inevitably the

conversation will take on a life of its own. The better you

know your questions the easier it will be to weave them in.

• Wrap up the conversation. Ask if you can follow up with

them after you have gathered all of the information. This

may help you connect with mentors/advisors later.

September 25, 2012

Defining and Analyzing Your Target Market (continued)

Confirm Your Market―Online Tools

• Launchrock – collect user interest, monitor insights

• Centercode – beta user testing

• KISSinsights – post 1-2 questions on your website

• GoogleAlerts – trends, keyword searches

• Survey Monkey – online surveys, white label, logic, etc.

• GetSatisfied – community forum

• Google Analytics – look at interests, etc.

September 25, 2012

Defining and Analyzing Your Target Market (continued)

Confirm Your Market―

Social Media Tools

• Facebook – monitor people’s interests in your offerings

and/or for you to see comments; pages similar to yours that

have higher saturation may provide a lot of insight

• LinkedIn – let’s you post questions to your site; allows for

great secondary research into competitors and their people

• Twitter – let’s you “listen” and monitor competitors, industry

trends, etc.

September 25, 2012

Research Organizational Models

September 25, 2012

Cost Pros Cons Resources Required

In-House/Self $ Can be quick, inexpensive hard costs

Best results if you understand how to

leverage market research

Self, survey tool(s), plan/outlet for

recruiting participants

Student/Intern $ Inexpensive; digital natives are quick with

survey and other technologies

May require a lot of hand holding; check quality stringently

Student/intern; in-house person to direct

and manage effort closely

Consultant $$ Know the right questions, how to structure a study;

including timing and recruiting, objective

Slightly more expensive than

students – require an investment of generally $5k+

Consultant, in-house leadership

Specialized Research Firm/Marketing Firm

$$$$ Highly seasoned professionals run

studies; very thorough; large

bandwidth to get things done quickly

Requires a large investment. May have

other offerings they want to push

In-house leadership

Leveraging Research for Positioning

September 25, 2012

Competition

Market

Needs/Gaps

Market

Perceptions

Qualifications

Talent

Product/

Service

Position

External

Factors

Internal

Factors

Gathering external market research helps you optimize your

product’s position and services and refine your product offerings

Projected

Image

To help refine these

(can control these)

Measure these

(can’t control them)

Product Versus Technology

September 25, 2012

Use research to help you inform your product/service offerings

features and to help articulate their real benefits.

Product Features/

Attributes Benefits

Tell what the features are.

Research benefits:

Users tell you what they

should be/what they would

like them to be.

How do the features help customers.

Research benefits:

Users tell you how your

product/service is actually benefitting

them – these may be things you never

would have thought of yourself.

Investor Perspectives

September 25, 2012

The core issue is always how big really is the market for a particular product, and how

expensive will it be to reach that market. Big markets are better than small ones, but they

come with other issues. The key is to get the cost of reaching the market in proportion to how

expensive it will be to reach it. I always like to know the pain that the product is addressing

as well.

—April Young, Managing Director, Hercules Technology Growth Capital

Market size is the most important. In addition, I look for:

1. A good understanding of the competition

2. Differentiation from the competition

3. Is the industry mature or growing

4. Is the industry receptive to change

—Kathleen Crow, Managing Director, The McLean Group

Investment Requirements

• In-house = time + money

• Independent consultant = 5-10k

• Mid-size company = 20 - 20k

• Established, large research house = 20k+

September 25, 2012

Wrap-Up

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September 25, 2012

Questions?

September 25, 2012

Thank you

Emily Summers

Market Torque

esummers@markettorque.com

(703) 869-2538

www.Facebook.com/markettorque

September 25, 2012