Learn why market research is an important first step for your business.

1. Over Lunch:
The Importance of Market Research
March 8, 2016

2. Agenda
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I. Welcome!
II. Market Research………………………………15 min
III. Market Validation……………………………..12 min
IV.Competitive Analysis……………………… 8 min
V. Q&A……………………………………………………. 10 min

3. Market Research Definitions
• An organized effort to gather data and information on
customers, competitors, and general market trends;
• Gathering, analyzing and interpreting information about a
market, about a product or service, and about the
customers for that product or service;
• Research into the characteristics, spending habits, location
and needs of a business's target market, the industry as a
whole, and particular competitors.
Source: http://www.entrepreneur.com/encyclopedia/market-research
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4. Why Market Research?
 Reduces risk
 Thoroughly understand your customers and
stakeholders
 Fine-tune your value proposition
Avoid putting time, money and other resources into a
product or service that no one wants to buy
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5. Market Research: Areas of Focus
Market Validation:
Focusing on your specific offering and how it will fit into the market
Competitive Analysis:
Focusing on competitive offerings and competitor positioning
General Trends:
Focusing on the operating environment surrounding your business
General industry trends, economic trends, etc
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6. Classifying Research by Information Source
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Secondary Research
(generic)
Primary Research
(custom)
Involves searching for
existing data and information
that was originally compiled
by someone else
Involves collecting data and
information directly related to
your specific research needs

7. Classifying Research by Learning Outcome
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Quantitative Research
(data)
Qualitative Research
(insights)
A formal, structured process in
which numerical data are
gathered and manipulated to
obtain information
Exploratory research used to
gain an understanding of
underlying reasons, opinions,
and motivations

8. Market Research: Areas of Focus
Market Validation:
Focusing on your specific offering and how it will fit into the market
Custom insights (primary, qualitative)
Competitive Analysis:
Focusing on competitive offerings and competitor positioning
Generic & custom data and insights (secondary and primary)
Other Areas:
General industry trends, economic trends, etc
Generic data & insights (generally secondary, quantitative)
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9. 9
Market Validation

10. Market Validation
What is market validation?
An ongoing market research process that focuses on identifying the
target market for your product or service and determining how it will
fit into that space
How to validate?
Talking to potential customers and other stakeholders
Why validate?
Avoid devoting time, money or other resources to a product or
service no one wants to buy….put another way, how to make the
best use of your time!
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11. Market Validation: Steps
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1. Identify assumptions
2. Devise questions
3. Perform sense check
4. Profile participants
5. Determine how to reach participants
6. Define how to measure progress
7. Ask!
8. Analyze

12. Market Validation
Common Learning Goals:
What problems do potential customers recognize?
How are potential customers currently handling these problems?
How big is the problem?
What does the competition look like?
Why are competitors not solving the problem?
What sources do potential customers use to gather information?
How do potential customers make purchase decisions?
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13. Market Validation: Important to Remember
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 Not a sales conversation
 Friends and family will always give
positive feedback
 Strong opinions are one part of big
picture
 Emphasize current behavior
 “Wouldn’t it be great if…”
 Learning goals, questions and
assumptions will evolve as you go

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Competitive Analysis

15. Competitive Analysis
What is competitive analysis?
A detailed assessment of past, current and potential competitors
How to analyze the competition?
Conducting both secondary and primary research
Why analyze the competition?
Understanding the product/service offerings, strategies, strengths,
and weaknesses of competitors reduces risk by helping you
understand where your business fits into the big picture
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16. Competitive Analysis: Areas of Focus
Product/Service offering
Pricing
Sales Channels
Product: Distribution
Service: Customer Acquisition
Marketing Strategies
Brick-and-mortar
Online presence
SEO
Visualization helps!
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17. Competitive Analysis: Visualization Example
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18. Competitive Analysis: Secondary Research
Resources
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19. Key Takeaways
Why is market research important?
 Reduces risk
 Thoroughly understand your customers and stakeholders
 Fine-tune your value proposition
 Avoid putting time, money and other resources into a product or
service that no one wants to buy
Market Validation
 Testing your assumptions by talking to potential customers is an
important action you can take to reduce risk
Competitive Analysis
 A combination of secondary and primary research is the most
effective way to analyze your competition
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20. 20
Questions?

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Thank You!
Market Research Analyst
jaclyn.sommers@jumpstartinc.org
Jaclyn Sommers