ENTREP MARKET RESEARCH
MARKET RESEARCH
● the process of gathering, analyzing and interpreting the information about the products
or services to be offered for sale to the potential consumers in the market.
● .Through market research we can identify the who, what , and how ‘s of our potential
market.
The who:
Who will use the product/service?
The what:
What are the current products/ services they purchase?
● This helps in knowing who are the competitors in the market.
The how’s:
1.)How much can they afford?
2.)How are they buying the product/ service?
● This helps in knowing the (1) price, and (2) preferences in terms of packaging/delivery
and variants.
DATA COLLECTION
The most valuable tool in any type of research study. Inaccuracy of this process may cause
mistakes and ultimately invalid results (Edralin, 2016, p.80).
TIPS in COLLECTING DATA:
1.) Organize collected data as soon as it is available.
2.) Know what message you want to get across and
then collect data that is relevant to the message.
3.) Collect more data.
4.) Create more data.
5.) Take note of significant data.
DATA COLLECTION TECHNIQUES
SURVEYS: The most common way to gather primary research with the use of questionnaires or
interview schedule. This can be done via direct mail, over the phone, internet or email (google
forms), face-to-face or online (Zoom, Gmeet, etc.)
● Keep it as simple as possible
● Make sure it is clearly appealing and easy to read
● Cluster or block related questions
● Move from complex questions to more specific questions
● Make sure questions are concise and easily understood
● Avoid questions that are difficult to answer
● Make sure response scales are consistent with categories that are mutually exclusive.
Results will provide the following data:
1.) Demographic profile of the potential market.
2.) Benchmark for Pricing.
3.) Total Demand (Forecast).
Demographic profile of the potential market. - Which age group are willing to purchase your
product? From this information, you will know whom you will prioritize and exert effort in
promotional/marketing activities.
2.)Benchmark for Pricing. The amount your potential market is willing to spend for your product.
Question(s) used: How much are you willing to spend?
3.) Total Demand (Forecast). The tool used to predict total customer demand will be
for a product or service, with varying levels of specificity.
Sample questions:
a. How often will you buy the product?
b. How many/much will you buy?
INTERVIEWS: The most reliable and credible ways of getting relevant information from target
customers. Survey Questionnaires can be used as a guide in conducting interviews.
It is typically done in person between the researcher/ entrepreneur and a respondent where the
researcher asks pertinent questions that will give significant information about the problem that
he/she will solve. The interview is also helpful even when the business has already started
because the customers' feedback provides the entrepreneur a glimpse of what customers think
about the business.
Interviews may last from 15-40 minutes, but can last longer depending on the participants’
interest in the topic.
Two Interview Methods:
Personal interview
Telephone Interviews
FOCUS GROUP DISCUSSIONS: An excellent method for generating and screening ideas
and concepts, using either or both of the following activities:
a. Moderated group Interviews
b. Brainstorming session
CONSIDERATIONS in the use of FGD in market research:
1.) The length of the session is between 90-120 minutes.
2.) Conduct focus groups discussions with 8-10 participants per group.
3.) Assign an expert moderator/facilitator who can manage group dynamics.
4.) Use a semi-structured or open-format discussion.
5.) Strive for consistency in the group’s composition.
MARKET RESEARCH AND THE BUSINESS PLAN: The process of gathering, analyzing
and interpreting the information about the products or services to be offered for sale the
potential consumers in the market.
These data or information are reflected in the marketing plan of the Business Plan.
SECTIONS OF MARKETING PLAN:
1.) Description of the Product
2.) Comparison of the product
3.) Location
4.) Market Area
5.)Main Customers
6.) Total Demand
7.) Market Share
8.) Selling Price
9.) Sales Forecast
10.) Promotional Measures
11.) Marketing Budget
We will use the SLOVIN’s FORMULA in DETERMINING the SAMPLE SIZE
Population (N) consists of members of a group that a researcher is interested in studying the
members of a group that usually have common or similar characteristics.
Margin of Error is the allowable error margin in research. A confidence Interval of 95% gives a
margin of error of 5%; a 98% gives a margin of error of 2%; a 99% confidence interval gives a
1% margin of error.
SLOVIN’s FORMULA
n=N
1 + Ne2
Where,
n= sample size
N= total population
e= margin of error
Use the results to complete your Marketing Plan.
The 7 P’s of Marketing Mix
There are several important frameworks which you can utilize for the purpose of marketing
your product and services. The framework of “7 P’s of Marketing” includes product, place, price,
promotion, people, packaging and positioning. Realizing these P’s in the most ideal manner can
turn out to be very profitable, however, you should totally see each description of the 7 P’s first.
PRODUCT
It refers to any goods or services that is produced to meet the consumers’ wants, tastes and
preferences. Marketers can’t plan a distribution system or set a price if they don’t know exactly
what the product will be offered to the market.
GOODS:
● Consumer Goods are bought for personal use, not for producing other goods.
● Capital Goods are bought for producing other goods.
Services:
A. Consumer Services
•Lawn Care
•Hair Styling
B. Professional Services
•Engineering
•Accounting
•Consultancy
PLACE
Place is the second P in the Marketing Mix. Place represents the location where the buyer and
seller exchange goods and services. It is also called as the distribution channel. It can include
any physical store as well as virtual store.
Place matters for a business of any size. It is a crucial part of the marketing mix. The main
function of a distribution channel is to provide a link between production and consumption.
STAGES OF DISTRIBUTION CHANNEL
● Producer Wholesaler Retailer Consumer
● Producer Retailer Consumer
● Producer Consumer
PRICE
The third P in the Marketing Mix is price. The price is a serious component of the marketing mix.
PRICING STRATEGY:
Penetration Pricing
The price charge for products and services is set artificially low in order to gain market share.
Once this is achieved, the price is increase
EXAMPLE: Jewelry
Skimming Pricing
A company charges a higher price then slowly lowers the price to make the product available to
a wider market because it has a considerable competitive advantage. However; the advantage
tends not to be sustainable. The high price attracts new competitors into the market, and the
price inevitably falls due to increased supply.
EXAMPLE: Iphone
Competition Pricing
A pricing method in which a seller uses prices of competing products as a benchmark instead of
considering own costs or the customer demand. In reality a firm has three options and these are
to
✔ Price lower
✔ Price the same
✔ Price higher than competitors
EXAMPLE: Mcdo price, Jolibee prrice,
Bundle Pricing
The act of placing several products or services together in a single package and selling for a
lower price than would be charged if the items were sold separately
EXAMPLE: Burger Bundle
Product Line Pricing
The practice of reviewing and setting prices for multiple products that a company offers in
coordination with one another. Rather than looking at each product separately and setting its
price, product-line pricing strategies aim to maximize the sales of different products by creating
more complementary, rather than competitive, products. If you offer more than one product or
service, consider the impact that one product’s or service’s price will have on the others.
EXAMPLE: Bahog sa Baboy
Value Based Pricing
A price-setting strategy where prices are set primarily on consumers’ perceives value of the
product or service.
Premium Pricing
Setting the price of a product higher than a similar products. The goal is to create the perception
that the products must have a higher value than competing products because the price are
higher.
Psychological Pricing
Psychological pricing is the practice of setting prices slightly lower than rounded numbers, in the
belief that customers do not round up these prices, and so will treat them as lower prices than
they really are. This practice is based on the belief that customers tend to process a price from
the left-most digit to the right, and so will tend to ignore the last few digits of a price.
Optional Pricing
The company earns more through cross selling products along with a basic core product. The
main product does not have many features (and price is low) which can be enhanced through
optional or accessory products which are sold at premium by the same company.
Cost Plus Pricing
Cost plus pricing involves adding a mark-up to the cost of goods and services to arrive at the
selling price. Under this approach, you add together the direct material cost, direct labor cost
and overhead costs for a product, and add to it a markup percentage in order to derive the price
of the product
Cost Based Pricing
A pricing method in which a fixed sum or a percentage of the total cost is added (as income or
profit) to the cost of the product to arrive at it selling price.
PROMOTION
-It is the fourth P in marketing Mix.
-Promotion refers to the complete set of activities, which communicate the product, brand or
service to the user.
-The idea is to create an awareness, attract and induce the consumer to buy the product, in
preference over others.
-The following are the most common medium in promoting a product and this is called
promotional mix
PROMOTIONAL MIX
1. Advertising
• Radio – Advertising by means of radio gives the advantage of selecting the territory
and audience to which the message is to be directed. It is also cheaper than TV advertising.
• Television – it is more effective as compared to radio as it has the advantages of sound and
sight. On account of pictorial presentation, it is more effective and impressive and leaves a
lasting impression on the mind of the viewer.
Print – the print media carry their messages entirely through the visual mode. These media
consist of newspapers, magazine and direct mail
• Electronic – you can also advertise electronically through your company website and provide
important and pertinent information to clients and customers. You can protect some parts of
your website through passwords and give access to member customers. You can also send
advertisements via direct e-mail as part of your promotional strategy
Word of Mouth – each happy customer can steer dozens of new ones your way. And its one of
the most credible forms of advertising because a person puts their reputation on the line every
time they make a recommendation and that person has nothing to gain but the
appreciation of those who are listening.
•Generic – the promotion of a particular commodity is without reference to a specific
producer, brand name or manufacturer. Producers join together to expand total demand for the
community, thereby helping their own sales. These activities are often selffunded through
assessments on marketing called check-off programs
2. Public Relations or PR
PR involves sharing information with the public using platforms that do not require a payment,
such as social media or through press release shared with magazines and newspapers. The
goal of public relations is to shape public perception of a business, presenting a positive image
through various strategies to its various constituents.
3. Personal Selling
Personal selling occurs when an individual salesperson sells a product, service or solution to a
client. Personal selling involves a selling process that is summarized in the following
Five Stages Personal Selling Process.
▪ Prospecting
▪Making First Contact
▪The sales call
▪Objection Handling
▪Closing the Sale
4. Sales Promotion
Sales promotion is any initiative undertaken by an organization to promote an increase in sales,
usage or trial of a product or service. Sales Promotion Technique:
{Free Gifts
{Customer Contests
{Free Sample {Special Pricing
{Free Trial
5. Direct Marketing
Direct marketing is a promotional method that involves presenting information about your
company, product, or service to your target customer without the use of an advertising
middleman.
Forms of Direct Marketing:
{Brochure
{Email
{Newsletters
{Coupons
{Fliers
{Text Messages
{Catalogs
{Phone Calls
{Post Cards
PEOPLE
- This consist of each person who is involved in the product or service whether directly or
indirectly.
- People are the ultimate marketing strategy.
- The marketing efforts of people are to create customer awareness, to arouse customer
interest, to educate customers, to close the sale and to deliver the product.
- Therefore, the right people are essential in marketing mix in the current marketing scenario.
PACKAGING
- Packaging refers to the outside appearance of a product and how it is presented to the
customers.
- The best packaging should be attractive enough and cost efficient for the customers.
- Packaging is highly functional. It is protection, containment, information,
utility use and promotion.
Five Basic Functions of Packaging:
1. Protection – one of the major functions of packaging is to provide for the effects of time and
environment for the natural and manufactured products. The protection function can be divided
into some classes.
A. Natural deterioration
C. Safety
B. Physical protection
D. Waste Reduction
2. Containment – this involves merging of unit loads for shipping. It starts with spots of
adhesives on the individual shippers that stick them together, straps of steel and plastic, entire
covering of shrinkable or stretchable plastic films and paper or corrugated wraps that surround
an entire pallet.
3. Information – The packaging conveys necessary information to the customers. The
common information that packaging provides include general features of the product,
ingredients, net weight of the contents, name and address of the manufacturers, maximum retail
price (MRP)
4. Utility Use – The convenience packaging has been devised for foods, households chemicals,
drugs, adhesives, paints, cosmetics, paper goods and a host of other products.
5. Promotion – Companies use attractive colors, logos, symbols and captions to promote the
product that can influence customer purchase decision.
POSTIONING
Positioning refers to a process used by marketers to create an image in the minds of a target
market.
There are 3 basic concepts for positioning:
1. Functional Positions – deal with solving a problem, providing benefits and getting a favorable
perception from investors stockholders and consumers
2. Symbolic Positions – deal with self-image enhancement, ego identification, belongingness,
social meaningfulness and affective fulfilment
3. Experiential Positions – deal with providing sensory or cognitive stimulation.
Steps of the Positioning Process
● Confirm your understanding of market dynamics
● Identify your competitive advantages
● Choose competitive advantages that define your market “niche”
● Define your positioning strategy
● Communicate and deliver on the positioning strategy
Developing a Brand Name
Brand Name is a name, symbol, or other feature that distinguishes a seller’s goods or servicesin
the market place.
Brand Strategy is a long-term design for the development of a popular brand in order to achieve
the goals and objectives
Branding is a powerful and sustainable high-level marketing strategy used to create or influence
a brand.
Your Brand is one of your greatest assets because your brand is your customers’ over-all
experience of your business
COMMONLY USED BARNDING STRATEGIES
1. Purpose
“Every brand makes a promise. But in a market in which customer confidence is a little and
budgetary observance is great, it’s not a just making a promise that separates one brand from
another, but having a significant purpose,” (Allen Adamson) How can you define your business
purpose? According to Business Strategy Insider , purpose can be viewed in two ways:
a. Functional - this way focuses on the assessments of success in terms of fast and profitable
reasons. For example, the purpose of the business is to make money.
b. Intentional -this way focuses on fulfilment as it relates to the capability to generate money and
do well in the world.
2. Consistency
The significance of consistency is to avoid things that don’t relate to improve your brand.
Consistency aids to brand recognition, which fuels customer loyalty.
3. Emotion
There should be an emotional voice, whispering “Buy Me”. This means you allow customers to
have the chance to feel that they are part of your brand. You should find ways to connect more
deeply and emotionally with your customers. Make them feel part of the family and use emotion
to build relationships and promote brand loyalty.
