Market Research and Business Planning: A Comprehensive Guide

Posted on Sep 10, 2024 in Economy

ITEM 8: Market Research

Systematic and Objective Process

Market research is a systematic, objective process that follows a scientific method and planned methodology. It involves collecting and analyzing market information to support business decisions, set targets, and design action policies. The process is neutral, avoiding biases and personal opinions.

Sources of Information

Primary Sources

Information gathered directly by the company through methods like surveys, interviews, or focus groups with potential consumers or experts.

Secondary Sources

Information already collected in other studies and investigations by external entities. These can be useful for understanding the market for existing goods or services.

Types of Research

Quantitative Research

Gathers objective and measurable data, allowing for statistical analysis. It typically involves selecting a representative sample group from the population. Surveys are a common tool for quantitative research.

Qualitative Research

Focuses on observation and analysis of people’s motivations and desires. It allows for open-ended responses and in-depth exploration of perspectives. While results are subjective and not easily generalizable, methods like pseudocompra (simulated purchase) provide valuable insights.

Product Launch Feasibility

Market research for product launches depends on whether a similar product already exists:

  • Existing Product: Study the current consumer, their characteristics, and consumption patterns.
  • New Product: Determine the potential acceptance of the product in the market.

Feasibility Analysis for a New Business

This study assesses the viability of implementing a business and ensuring its long-term sustainability.

Business Plan Utilities

  • Internal: Assists team members in project planning, identifying strengths and weaknesses, and analyzing feasibility.
  • External: Serves as an introductory document for potential partners and stakeholders.

Dynamic Document

A business plan is a dynamic document, meaning it can be modified and adapted as needed.

Technical Feasibility and Material Resources

This analysis determines if it’s technically possible to efficiently develop and deliver products or services.

For Service-Based Companies:

  • Analyze raw material sourcing.
  • Identify required technology, tools, and machinery.
  • Outline the production process and its location.
  • Determine storage and transportation methods for the finished product.
  • Highlight any innovative elements used.

Key Utilities:

  • Analyze market needs and identify a niche market.
  • Detail the service and its implementation process.
  • List necessary materials, technology, tools, and machinery.
  • Describe how the service will reach the customer.
  • Specify any innovative elements.

Phases of a Business Plan

  1. Setting goals
  2. Planning
  3. Implementation
  4. Evaluation
  5. Control

Market Segmentation

Dividing potential customers into homogeneous subgroups based on their characteristics and needs.

ITEM 9: Marketing Plan

Definition and Purpose

A marketing plan outlines the strategies and actions a company will use to raise awareness, attract potential customers, and achieve its objectives. It explains how the company will reach its target market segments and outlines expected sales evolution. The plan is based on market research findings.

Objectives

Marketing objectives should be clear, concrete, and measurable. They can focus on various aspects, such as competitive advantage, innovation, and sales targets.

Marketing Mix (The 4 Ps)

The marketing mix comprises four interconnected tools used to achieve marketing objectives:

  1. Product: Goods or services offered to the market.
  2. Price: The amount customers pay for the product.
  3. Place (Distribution): How the product reaches the customer.
  4. Promotion (Communication): Activities that create awareness and encourage purchase.

Product Life Cycle

  1. Introduction: Product launch stage with low sales volume and slow growth.
  2. Growth: Increasing consumer acceptance and rapid sales growth.
  3. Maturity: Sales and profits stabilize.
  4. Decline: Sales and profits decline due to market saturation or new substitutes.

Brand Importance

A brand, including its name and logo, is crucial for differentiating a product from competitors and building brand recognition.

Pricing Strategies

Pricing is influenced by:

  • Costs: The selling price must cover production costs.
  • Competition and External Factors: Consumer preferences, economic conditions, and competitor pricing all play a role.
  • Demand: The quantity consumers are willing to buy at a given price.

Franchising

A collaborative system where a franchisor grants a franchisee the right to operate a business using its established brand and model.

Distribution Channels

Intermediaries involved in getting the product from the producer to the consumer:

  • Wholesalers: Buy in bulk from manufacturers and sell to retailers.
  • Retailers: Sell directly to end consumers.

Merchandising: Techniques used at the point of sale to highlight product benefits and encourage purchase.

Communication

Essential for raising product awareness and conveying its value to the target market.

ITEM 10: Human Resources Analysis

Key Questions

  • Number and types of jobs required.
  • Functions, tasks, and responsibilities of each role.
  • Required training and experience.
  • Availability of qualified personnel within the company.
  • Training needs and methods.

Organizational Functions

  • Management: Sets objectives and defines strategies.
  • Production: Transforms raw materials into finished products.
  • Marketing: Conducts market research, identifies customer needs, and promotes products.
  • Procurement: Acquires materials and services.
  • Human Resources: Manages personnel and organizational structure.
  • Finance: Secures funding and manages financial resources.

Organizational Charts

Visual representations of the company’s structure, often organized by processes, products, customers, or geography.

Corporate Culture

The shared values, beliefs, and practices that shape the company’s work environment and influence employee behavior.

Collective Bargaining Agreements

Agreements negotiated between employee representatives and employers to establish working conditions for a specific industry or sector.

Employment Contracts

Indefinite Contracts

Long-term employment agreements, typically until retirement age. Incentives may be available for hiring:

  • Individuals aged 16-30 or over 45.
  • Women in professions with low female representation or victims of gender violence.
  • Long-term unemployed individuals.
  • People with disabilities.

Temporary Contracts

Time-limited contracts for specific purposes, such as:

  • Training Contracts: Provide on-the-job training.
  • Specific Projects or Services: Cover temporary work or seasonal demands.