Module 5 do your research

Entrepreneurial mind sets This programme has been funded with support from the

European Commission

Check it out… do your researchModule 5

Introduction to market research

You might convince yourself that your idea is the best thing since sliced bread… I wonder what ideas were compared to before sliced bread...any ideas?

Anyhow, unless you actually set about researching whether or not there would actually be a demand or even if there’s a need for your business, you may be wasting your time. And then once that’s been done and you discover that the world

actually wants you, the research goes on.

Introduction to market research

You’ve got to start researching things like: •where you’re going to set up•what are the costs to start up•where are you going to get the money you need•how and where can you promote this wonderful idea of yours

One thing to remember? Guesswork and assumptions don’t really work where research is concerned.

Benefits of market research

• Customers• Competitors• Market trends

• Secondary research• Primary research

Benefits of market research• Useful market information• Establishes level of demand• Helps tailor product/service• Helps make informed decisions• Uncovers potential problems• Reduces risk• Can identify opportunities

Know your audience - Researching customers Knowing who your potential customers are is critical. Before you can even contemplate starting a creative enterprise you will need to define who your target market is. Having a clearly identifiable potential customer base is essential for the development of your business idea. Keeping this target market in mind is key at all stages of a business journey and is especially so when you are just starting out. However, although businesses on other industries would first identify a market, then produce a product to meet an existing demand – a lot of artists create a work first, then try to cultivate an audience for it. To some extent, the music industry has been seen as an exception to this approach because the large

Market segmentationWhen identifying who your customers are in the marketplace, it is useful to divide the market into customer groups or segments. This is called market segmentation.

Segmenting a market will help tailor marketing activities and lead to a greater chance of success. It will also make it easier to meet customer needs or wants and provide a greater understanding of customers in the market place.

Consumer markets often segmented by Commercial markets often segmented by

• demographic factors such as: - Age & gender• social factors such as: - lifestyle

• business type

• industry sector

• number of employees

What information do you need to know?• Who are my customers?• Who are the customers - gender, age, location• Needs and wants• Online behaviour• Attitudes/lifestyles• Buying behaviour - how often, where, why

Researching competitors Amongst the key steps that you must take when starting a business, one of the most crucial, and yet so often overlooked, is researching your competitors. It is quite strange that entrepreneurs often neglect this activity, because not only does it have the potential to enlighten them and fill them with inspiration, but it can be darn right fun as well.

Researching competitors What to research

•Who•What they sell•Their marketing mix (i.e. special deals, promotions, where they advertise etc)•Strengths and weaknesses •Pricing structure •Spaces in which they operate i.e. physical store, website, e-store, social media etc

Researching trends in the market

Technology Piracy, e-commerce, innovation..........................................................................................................................................................................................................................................................................................................................................................................................................................

Industry Rapid changes in fashion/taste in music increased competition................................................................................................................................................................................................................................................................................................................................................................

Demand Increase, decline...................................................................................................................................................................................................................................................................................................................

Economic Economic down turn....................................................................................................................................................................................................................................................................................................................

Demographic Lower birth rate, less marriages....................................................................................................................................................................................................................................................................................................................

Seasonal Weather, Christmas, tourist season.....................................................................................................................................................................................................................................................................................................................

Buying patterns Online purchasing, spending less...................................................................................................................................................................................................................................................................................................................

Product life cycle Introduction, growth, maturity, decline...................................................................................................................................................................................................................................................................................................................

Attitudes Ethical purchasing, healthier living

Trend Type Example

How to carry out research

Primary research… Do it yourself SurveysOne to one meetingFocus groupInternet survey/e-mailAttending a trade show, exhibition or conferenceObservationMystery shoppingOwn experience/knowledge

Secondary research… Already exists •Market research reports•Census data i.e. www.nisra.gov.uk•Company directories•Competitors’ websites, brochures, reports etc•Magazines & Newspapers•Books and publications•Trade associations and bodies•Internet

www.yell.comwww.facebook.comwww.cso.iewww.keynote.co.ukwww.gov.uk


Begin with a Google searchYou will be quite amazed just how much information you can reveal

about your competitors with nothing more a well worded search query. For one, you will be quite easily able to ascertain the state of

their digital marketing, and identify the extent of their search engine optimisation. A little more digging will quickly reveal the extent of their online presence and help you to answer many of the above questions.


Social media So many businesses use social media as a major tool for marketing and

engaging with customers that you can quite often learn a great deal about the culture of your competitors though a little snooping on their social media accounts. Be sure to check as many platforms as you can,

not just the most obvious ones. Facebook, Twitter, Instagram, and Pinterest are a good place to start.


Online shops and portfolio portals - Etsy, Axis, Bouf, Not on The High Street, etc are where you’ll find

artists, makers and designers either selling products directly or showcasing work to attract commissions. These are vital to explore as part of your market research to get an idea of pricing and what your

competitors are offering


Trade fairs and markets Attendance at trade fairs and markets is a crucial part of your market research – this will help you get an idea of what people are interested

in, what they are buying and their spending habits.


Mystery shoppingOne of the best ways to get a feel for a competitor is to play a little

game called ‘The Covert Customer’... told you this would be fun! As you have probably guessed this involves masquerading as a perfectly

regular, everyday customer, and using this covert position to ascertain as much information about the business as possible


Just Ask! Sometimes the simplest solutions are the best and this certainly falls into that category. Most people don't overlook the value of simply asking for other people's opinion on a business, and thanks to the

internet, achieving this has never been more likely. Ask potential customers, friends, family and suppliers.

Be open to feedback and fresh perspectives, as people can come up with suggestions you haven’t considered.


Join professional organisations, networking and reading e-newsletters

are vital sources of information.

Gain some work experience in arts or design organisations or businesses

This can help you understand how a social enterprise or commercial business is run. Active involvement in a workplace

environment that is embedded in wider artistic networks, which provide opportunities to develop contacts etc will provide a

great opportunity for research. This combination will also give prospective entrepreneurs opportunities to learn by doing and to reflect on doing it, within the context of a business.



Often you would be expected to work for free, but some offer expenses; organisations such as local council-run youth clubs

offer a standard amount per evening to volunteers, and galleries generally provide lunch and travel costs.

Occasionally, this kind of work can lead to paid employment. However, it is arguable that there is a 'volunteer culture' within

the visual arts. Be wise... find a balance of absorbing valuable experience without being taken advantage of.

Online listening toolsWhat are people saying about you and your competitors online? Below are a few examples of tools you can use to monitor your business and your competitors online. These tools will let you know whether people are talking about your business, or you, on the internet. They also allow you to keep up with the social activities and mentions of your competitors.

Google Alerts Another free and simple but useful tool, Google Alerts will email you online mentions of keywords—for example, your business name or even yourself. You can also use it to monitor your competitors by setting up alerts for their name & related keywords. Set as many alerts as you want to clue you in to mentions on blogs, websites, other people or business’ Facebook pages or Twitter accounts, or in the media. Visit www.google.co.uk/alerts


Google Analytics

If you set up a website for your new enterprise use Google Analytics. It tracks and reports your website traffic and is free to use. Though Google Analytics was designed to track traffic and referral data, it can also help you better understand your blog’s audience, and monitor traffic to your website from all your social media channels.

What posts interest readers enough to click through? Visit www.google.co.uk/analytics


Google TrendsSee the latest trends, data and visualisations from Google. Find out what's trending near you, across various regions of the world, and in various languages. This is a free to use. Visit www.google.co.uk/trends


Facebook InsightsOn a Facebook business page (a ‘Like’ page, not a ‘Friend’ page) you will be able to access Facebook Insights which provides information about your Page's performance.

This is available after at least 30 people like your Page. Find demographic data about your audience, and see how people are discovering and responding to your posts. Visit www.facebook.com


Congratulations you have completed Module 5

Small Business & Entrepreneurship

Module 5 do your research