Market Research 2.0 

Tools and Techniques:

4 steps in total market forecast:

-  Define market 

-  Divide total market industry demand into its main components

-  Forecast the drivers of demand in each segment and project how they are likely to change

- Conduct sensitivity analysis to understand the most critical assumptions and to gauge risk to baseline forecast.

How to define market size:

-Use google ad-words { enter search for a particular keyword,it will tell you the number of people searched for that keyword.}

How to estimate market size: 

-Know the problem you are doing

-Define the target customers

                              -determine who your customer target is

                              - create a profile of your typical expected target customer.

-Estimate the number of target customers

-Determine your penetration size.

-Calculate the potential market size.(volume and value)

* Market volume=Number of targeted  customers x penetration rate.

* Market Value= market volume x Avg Value.

Method of inquiry :

-Formulate a problem.

-Develop hypothesis.

-Make predictions based on hypothesis.

-Devise a test of the hypothesis.

-Conduct the test.

-Analyze the result.

Market research report:

-Include all your information ,including accurate description of your research process

-Language that is easy to understand

-Technical report and summary.

-PPT , Graphs

Statistical tools:

1- Multiple regression : Estimating "best fitting" equation showing how value of dependent  variable varies with changing values in number on independent variables.

 

Example: Estimate how number unit sales are influenced by ad expenditures , prices and competitor moves.

2-Discriminant Analysis : Classifying persons into 2 or more categories.

Example: Renewal variables that discriminate between loyal and non-loyal customers.

3- Co joint  Analysis: Ranking of preferences for differences offers identity relative importance of attributes to customers .

Example :Identity most important attributes (Price,warranty,service) involved for end users of a laptop ,computer manufacturer.

Why we should perform Market research :

- To get customer insight.

-Product Testing.

-Customer Satisfaction.

-Pricing.

-Competitive Analysis.

SLEPT Analysis 

Investigation of social , Legal, Economic, Political and Technological influences on the business.

Example:Company review and overview.

Approach to Market research:

-Scanning international markets 

-Comparison of 5 potential markets.

-identification of best possible market 

-SLEPT analysis

-Types of market and nature of competitor.

-Risk Evaluation.

Factors Influencing international market:

-Cost

-Competition

-Product differentiation.

-Exchange rate.

-Economic condition of importing country.

-Government factors.