Researching Class Researching Society & Culture Week 7 Dr Alice Mah.
Researching Your Markets - So You Want to Farm in Maine · Researching Your Markets James C....
Transcript of Researching Your Markets - So You Want to Farm in Maine · Researching Your Markets James C....
Researching Your MarketsResearching Your Markets
James C. McConnon, Jr.James C. McConnon, Jr.Extension Business and Economics Specialist Extension Business and Economics Specialist and Professor of Economicsand Professor of EconomicsUniversity of MaineUniversity of Maine
OverviewOverviewBasic Marketing ConceptsBasic Marketing Concepts
Researching Your MarketResearching Your Market
Types of Market ResearchTypes of Market Research
Surveying Your CustomersSurveying Your Customers
Identifying Your Target MarketIdentifying Your Target Market
Digital ResourcesDigital Resources
Basic Marketing ConceptsBasic Marketing Concepts
What is marketing?What is marketing?
““Everything you do to promote your business fromEverything you do to promote your business fromthe moment you think of the product idea until the moment you think of the product idea until customers buy your products on a regular basis.customers buy your products on a regular basis.””
-- Jay Levinson, author of Guerrilla MarketingJay Levinson, author of Guerrilla Marketing
What is Marketing?What is Marketing?
The process of finding out what customers want and The process of finding out what customers want and need and satisfying those needs in a profitable way.need and satisfying those needs in a profitable way.
Consumption orientationConsumption orientationProduce what you can sellProduce what you can sellFocus on new opportunitiesFocus on new opportunitiesCustomer determines productionCustomer determines productionTarget marketing techniquesTarget marketing techniques
Marketing StrategyMarketing Strategy
A plan of action developed by the business to identify and meet A plan of action developed by the business to identify and meet the wantsthe wantsand needs of their customers.and needs of their customers.
Target marketTarget market
DemographicsDemographicsLifestyle PatternsLifestyle PatternsCustomer ExpectationsCustomer Expectations
Marketing mixMarketing mix
ProductProductPlacePlacePromotionPromotionPricePricePositionPosition
What is Market Research?What is Market Research?Market research is the systematic gathering and analyzing of infMarket research is the systematic gathering and analyzing of informationormationrelated to the marketing of your farm productsrelated to the marketing of your farm products
What are the longWhat are the long--term trends that will affect my business?term trends that will affect my business?
Who are my customers?Who are my customers?
Where can they be reached?Where can they be reached?
What do they want to buy?What do they want to buy?
What influences what they buy?What influences what they buy?
How much money can I expect to make?How much money can I expect to make?
How do I compare to my competitors?How do I compare to my competitors?
Source: Maine Department of Labor
Maine’s Population is Growing Older
Demographic Trends
The Demographics of Social Media Users – 2012
Pew Internet and American Life Project
http://pewinternet.org/Reports/2013/Social-media-users.aspx
Growing Interest in Local Foods
Why Conduct Market Research?Why Conduct Market Research?
Market research focuses and organizes marketingMarket research focuses and organizes marketinginformationinformation
Keep abreast of changing market conditionsKeep abreast of changing market conditions
Reduce business risksReduce business risks
Spot problems in your current marketSpot problems in your current market
Identify and profit from sales opportunitiesIdentify and profit from sales opportunities
Assist in developing a successful marketing strategyAssist in developing a successful marketing strategy
Types of Market ResearchTypes of Market Research
You probably will need to use both secondary and primary researcYou probably will need to use both secondary and primary research to h to understand your marketunderstand your market
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Secondary Market Research = Use Existing DataSecondary Market Research = Use Existing Data
Studying information that has already been collectedStudying information that has already been collectedand may be internal or external to your business.and may be internal or external to your business.
►► Primary Market Research = Do It YourselfPrimary Market Research = Do It Yourself
Gathering information by observing people, conducting Gathering information by observing people, conducting surveys, interviewing, or other direct action.surveys, interviewing, or other direct action.
Secondary ResearchSecondary Research……Internal SourcesInternal Sources
The following sources can show you where your customers live or The following sources can show you where your customers live or workworkand how and what they buy.and how and what they buy.
Sales recordsSales records
EE--mails and social media postingsmails and social media postings
Customer data baseCustomer data base
Customer feedback recordsCustomer feedback records
EmployeesEmployees
Secondary ResearchSecondary Research……External SourcesExternal SourcesThe following The following ““outsideoutside”” sources can provide you with valuable market informationsources can provide you with valuable market information
LibrariesLibraries
College or UniversityCollege or University
Chambers of commerceChambers of commerce
Wholesalers and suppliersWholesalers and suppliers
Federal and state agenciesFederal and state agencies
Trade associationsTrade associations
Business publicationsBusiness publications
Media representativesMedia representatives
CompetitorsCompetitors
The InternetThe Internet
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Aver
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mile
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Farm Stand Pick-Your-Own Tailgate Farmer's Market GroceryMarket type
Average Distance Traveled
Rural
Urban
Source: Why Consumers Buy-and Don’t Buy-Your Farm Direct Products, University of Maine Cooperative Extension, Bulletin #1160
Primary Market ResearchPrimary Market Research
Especially important when considering a new market or a market Especially important when considering a new market or a market with little or no available datawith little or no available data
Reactive: gather information by asking questionsReactive: gather information by asking questions
NonNon--reactive: gather information through observationreactive: gather information through observation
Primary Research...NonPrimary Research...Non--Reactive MethodsReactive Methods
Method of gathering information by observing behavior in a Method of gathering information by observing behavior in a real real ““market market situationsituation””
People watchingPeople watching
Traffic countsTraffic counts
License plate watchingLicense plate watching
Coded coupon redemptionCoded coupon redemption
Primary ResearchPrimary Research……Reactive MethodsReactive Methods
Gathering information about buying patterns and customer needs tGathering information about buying patterns and customer needs through surveyshrough surveys
Personal InterviewPersonal Interview
Most popular techniqueMost popular techniqueDeal with people oneDeal with people one--onon--oneoneMost costly and timeMost costly and time--consumingconsuming90% response rate90% response rate
Telephone InterviewTelephone Interview
Easy to conduct Easy to conduct -- from your homefrom your homeDeal with people oneDeal with people one--onon--oneoneDifficult to choose subject groupDifficult to choose subject groupPeople may become impatientPeople may become impatient60% response rate60% response rate
Primary ResearchPrimary Research……Reactive MethodsReactive Methods
Mail (eMail (e--mail) Survey Interviewmail) Survey Interview
Requires a lot of organizationRequires a lot of organizationIdeal for reaching hard to reach peopleIdeal for reaching hard to reach peopleMust get mailing list and select sampleMust get mailing list and select sampleResponse rate can be lowResponse rate can be low
Focus Group InterviewFocus Group Interview
Variation of the personal interviewVariation of the personal interviewDeal with several people at one timeDeal with several people at one timeOften used when developing new productsOften used when developing new productsNeed to select representative groupNeed to select representative groupUsually 100% response rateUsually 100% response rate
Why Survey Your Customers?Why Survey Your Customers?
Learn about their expectationsLearn about their expectations
Determine their level of satisfactionDetermine their level of satisfaction
Identify strategies for improving salesIdentify strategies for improving sales
Develop a solid customer profileDevelop a solid customer profile
Identify areas for improvementIdentify areas for improvement
What You Can Learn From Your Customers
Demographic Information (e.g. age, income, household size, occupation, address, etc.)
How often they buy
What they buy
How they learned about you
Where else they shop
Reasons for buying from you
What they want to buy from you in the future
How they rate your products and services
What they like and dislike about your business
Important First StepsImportant First Steps
Determine a realistic budget for the survey projectDetermine a realistic budget for the survey project
Determine who you plan to surveyDetermine who you plan to survey
Obtain contact information for those you plan to surveyObtain contact information for those you plan to survey
Determine how you plan to administer your surveyDetermine how you plan to administer your survey
Pretest your survey instrumentPretest your survey instrument
Develop a method for analyzing the resultsDevelop a method for analyzing the results
Factors to Consider When Designing A Survey
Keep the questions brief and clear
Ask questions that can be easily answered
Follow “yes” and “no” questions with a “why” question
Make sure your questions are not offensive
Be honest with the intent of the survey
Don’t answer questions for them
Provide an incentive for completing survey
Who Do You Survey?
If your customer base is less than 1,000 customers, then surveying everyone may be your best option:
30% response rate (RR) is excellent for business decision-making15% RR is good for planning purposes10% RR will have limited usefulness
If your customer base is greater than 1,000 customers, then selecting a “representative sample” may be your best option
In general, the sample size increases as the customer base increases in size and diversity.
Sample Customer Survey - Garden CenterDate: ___________________________
(Please circle day) Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Please help us learn more about your wants and needs by taking a
few moments to complete this questionnaire. Allindividual responses are confidential. Place completed forms in the collection box and ask for your 10 percent discount coupon.
CUSTOMER INFORMATION (Circle all that apply.)
1. You are: Male Female Single Married
2. Age: under 24 25-35 36-50 51-65 over 65
3. What town do you live in? ____________________ Zip code: _____________
4. Family income: less than $50,000 $50,000-$100,000 more than $100,000
5. What form of advertising influenced you to shop at Sunny Hill Gardens?
Newspaper ad Direct mail flyer/coupon Radio Television Word of mouth
Newsletter Roadside sign Other (please specify) _______________________
6. What newspapers do you read? _________________________________________
Source: The Garden Center Critique and Merchandising Guide, The University of New Hampshire Cooperative Extension..
Sample Customer Survey - Garden Center
7. What radio stations do you listen to? _________________________________
8. How many times do you shop at Sunny Hill during the _____ spring?
_____ summer? _____ fall? _____ winter?
9. Do you shop at other garden centers? Which ones? _____________________
_________________________ Why? _______________________________
10. Circle the most important reasons you shop at Sunny Hill:
Convenience
New and unusual products
Customer service
Product quality
Open year-round
Knowledgeable staff
Price
Like to support family business
Wide variety of products
Special promotions, events
Country atmosphere
Other (please specify) ___________________________________________
Source: The Garden Center Critique and Merchandising Guide, The University of New Hampshire Cooperative Extension..
Sample Customer Survey - Garden CenterCUSTOMER SERVICE
11. Please rate our services and facilities. We want to improve to better meet your needs.
Service/Facility Excellent Good Fair Comments
Easy to locate products
______ _____ _____ _____________ Parking
______ _____ _____ _____________Courteous, knowledgeable sales staff ______ _____ _____ _____________Hours of operation
______ _____ _____ _____________Speedy, efficient checkout
______ _____ _____ _____________Educational materials ______ _____ _____ _____________Informational signs
______ _____ _____ _____________Shopping carts
______ _____ _____ _____________Rest areas
______ _____ _____ _____________Bathrooms
______ _____ _____ _____________
12. Circle services you would like to see offered:
Water garden installation Floral design
Resource library Landscape design plans
Small engine repair Children’s play area
Other (please specify) _________________________________________________________
13.
What seminars/workshops/demonstrations would you attend? __________________________
Source: The Garden Center Critique and Merchandising Guide, The University of New Hampshire Cooperative Extension..
Sample Customer Survey - Garden Center
PRODUCT INFORMATION
14. Circle products you would like to see offered:
Foliage plants
Small fruits
Aquatic plants
Handcrafts
Water garden supplies
Herbs
Lawn Furniture
Potting Shed
Other (please specify) ________________________________________
15.
Please rate our products and displays:
Product/display Excellent Good Fair Comments
Plant quality _______ _____ _____ ___________________Plant selection _______ _____ _____ ___________________Selection of hard goods _______ _____ _____ ___________________Prices compared with other _______ _____ _____ ___________________garden centers _______ _____ _____ ___________________Product labeling _______ _____ _____ ___________________Attractive displays _______ _____ _____ ___________________
Source: The Garden Center Critique and Merchandising Guide, The University of New Hampshire Cooperative Extension.
Identifying Your Target MarketIdentifying Your Target Market
Your target market includes the people that you are trying to atYour target market includes the people that you are trying to attracttract
Suggestions for targeting your market:Suggestions for targeting your market:
Focus on a particular geographic areaFocus on a particular geographic areaFocus on your best selling productFocus on your best selling productFocus on those most likely to patronize your businessFocus on those most likely to patronize your business
Consider the 80/20 rule:Consider the 80/20 rule:
80% of your profits come from 20% of your customers80% of your profits come from 20% of your customers80% of your sales come from 20% of your normal product line80% of your sales come from 20% of your normal product line
Developing a Customer ProfileDeveloping a Customer ProfileDescribe the characteristics of your target audienceDescribe the characteristics of your target audience……
DemographicsDemographics
Typical ageTypical ageIncome levelIncome levelLocation of home or workLocation of home or workEducational levelEducational level
Lifestyle PatternsLifestyle Patterns
Common interestsCommon interestsBeliefsBeliefsValuesValuesBehavior PatternsBehavior Patterns
ExpectationsExpectations
QualityQualityServiceServiceProduct mixProduct mixPricePrice
Customer Profile ExampleCustomer Profile ExampleDemographicsDemographics
45% of nursery plant purchases are made by women shopping alone.45% of nursery plant purchases are made by women shopping alone.19% are made by men shopping alone.19% are made by men shopping alone.27% are made by couples who shop together.27% are made by couples who shop together.Affluent people spend most money but least time landscaping.Affluent people spend most money but least time landscaping.MiddleMiddle--income spend least money but most time landscaping.income spend least money but most time landscaping.
Lifestyle PatternsLifestyle Patterns
High involvement in yard care:High involvement in yard care:Purchase at nursery and garden centers onlyPurchase at nursery and garden centers only
Medium involvement in yard care:Medium involvement in yard care:Purchase at nursery, supermarkets, and roadside standsPurchase at nursery, supermarkets, and roadside stands
Low involvement in yard care:Low involvement in yard care:Purchase in garden centers, variety stores, supermarkets and roaPurchase in garden centers, variety stores, supermarkets and roadside standsdside stands
Source: Horticulture Research Institute, Inc., 1987.Source: Horticulture Research Institute, Inc., 1987.
Digital Resources
Agricultural Marketing Resource Center: www.agmrc.org
Agricultural Marketing Service (USDA): www.ams.usda.gov
Bureau of Labor Statistics (U.S. DOL): www.stats.bls.gov
Economic Research Service (USDA): http://www.ers.usda.gov/
Entrepreneur Magazine: http://www.entrepreneur.com
Mainebusinessworks: www.mainebusinessworks.org
Maine Dept of Agriculture: www.maine.gov/agriculture/index.shtml
Maine DOT: http://www.maine.gov/mdot/traffic/tc.htm
Maine Organic Farmers and Gardeners Association: http://www.mofga.org/
Digital Resources
Maine State Government: www.maine.gov/spo/economics/index.php
National Sustainable Ag Information Service: www.attra.org
Survey Monkey: www.surveymonkey.com
Supermarket Facts: http://www.fmi.org/research-resources/supermarket-facts
UMaine Extension Business Library: http://umaine.edu/ext-business/
University of Maine: www.umaine.edu
U.S. Census Bureau: www.census.gov
U.S. Census of Agriculture: www.agcensus.usda.gov