Researching Your Market

The purpose of market research is to provide relevant data that will help solve marketing problems a business will encounter. This is absolutely necessary in the start-up phase. Conducting thorough market surveys is the foundation of any successful business. In fact, strategies such as market segmentation (identifying specific segments within a market) and product differentiation (creating an identity for your product or service that separates it from your competitors’) would be impossible to develop without market research.

Whether you’re conducting market research using the historical, experimental, observational or survey method, you’ll be gathering two types of data. The first will be “primary” information that you will compile yourself or hire someone to gather. Most information, however, will be “secondary,” or already compiled and organized for you. Reports and studies done by government agencies, trade associations, or other businesses within your industry are examples of the latter. Search for them, and take advantage of them.

Primary Research
When conducting primary research using your own resources, there are basically two types of information that can be gathered: exploratory and specific. Exploratory research is open-ended in nature; helps you define a specific problem; and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents. Specific research is broader in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is more expensive.

When conducting primary research using your own resources, you must first decide how you will question your target group of individuals. There are basically three avenues you can take: direct mail, telemarketing or personal interviews.

Direct Mail
If you choose a direct-mail questionnaire, be sure to do the following in order to increase your response rate:

• Make sure your questions are short and to the point.
• Make sure questionnaires are addressed to specific individuals and they’re of interest to the respondent.
• Limit the questionnaire’s length to two pages.
• Enclose a professionally prepared cover letter that adequately explains what you need.
• Send a reminder about two weeks after the initial mailing. Include a postage-paid self-addressed envelope.

Unfortunately, even if you employ the above tactics, response to direct mail is always low, and is sometimes less than five percent.

Phone Surveys
Phone surveys are generally the most cost-effective, considering overall response rates; they cost about one-third as much as personal interviews, which have, on average, a response rate which is only 10 percent. Following are some phone survey guidelines:

• At the beginning of the conversation, your interviewer should confirm the name of the respondent if calling a home, or give the appropriate name to the switchboard operator if calling a business.
• Pauses should be avoided, as respondent interest can quickly drop.
• Make sure that a follow-up call is possible if additional information is required.
• Make sure that interviewers don’t divulge details about the poll until the respondent is reached.

As mentioned phone interviews are cost-effective but speed is another big advantage. Some of the more experienced interviewers can get through up to 10 interviewers an hour (however, speed for speed’s sake is not the goal of any of these surveys), but five to six per hour is more typical. Phone interviews also allow you to cover a wide geographical range relatively inexpensively. Phone costs can be reduced by taking advantage of cheaper rates during certain hours.

Personal Interviews
There are two main types of personal interviews:

1. The group survey. Used mostly by big business, group interviews can be useful as brainstorming tools resulting in product modifications and new product ideas. They also give you insight into buying preferences and purchasing decisions among certain populations.
2. The depth interview. One-on-one interviews where the interviewer is guided by a small checklist and basic common sense. Depth interviews are either focused or non-directive. Non-directive interviews encourage respondents to address certain topics with minimal questioning. The respondent, in essence, leads the interview. The focused interview, on the other hand, is based on a pre-set checklist. The choice and timing of questions, however, is left to the interviewer, depending on how the interview goes.

When considering which type of survey to use, keep the following cost factors in mind:

• Mail. Most of the costs here concern the printing of questionnaires, envelopes, postage, the cover letter, time taken in the analysis and presentation, the cost of researcher time, and any incentives used.
• Telephone. The main costs here are the interviewer’s fee, phone charges, preparation of the questionnaire, cost of researcher time, and the analysis and presentation of the results of the questioning.
• Personal interviews. Costs include the printing of questionnaires and prompt cards if needed, the incentives used, the interviewer’s fee and expenses, cost of researcher time, and analysis and presentation.
• Group discussions. Your main costs here are the interviewer’s fees and expenses in recruiting and assembling the groups, renting the conference room or other facility, researcher time, any incentives used, analysis and presentation, and the cost of recording media such as tapes, if any are used.

Secondary Research

 

 

Secondary data is outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, etc., and found in the form of pamphlets, newsletters, trade and other magazines, newspapers, and so on. It’s termed secondary data because the information has been gathered by another, or secondary, source. The benefits of this are obvious–time and money are saved because you don’t have to develop survey methods or do the interviewing.

Secondary sources are divided into three main categories:

1. Public. Public sources are the most economical, as they’re usually free, and can offer a lot of good information. These sources are most typically governmental departments, business departments of public libraries, etc.
2. Commercial. Commercial sources are equally valuable, but usually involve costs such as subscription and association fees. However, you spend far less than you would if you hired a research team to collect the data firsthand. Commercial sources typically consist of research and trade assocations, organizations like SCORE (Society Corps of Retired Executives) and Dun & Bradstreet, banks and other financial institutions, publicly traded corporations, etc.
3. Educational. Educational institutions are frequently overlooked as viable information sources, yet there is more research conducted in colleges, universities, and polytechnic institutes than virtually any sector of the business community.

Government statistics are among the most plentiful and wide-ranging public sources of information. Start with the Census Bureau’s helpful Hidden Treasures–Census Bureau Data and Where to Find It! In seconds, you’ll find out where to find federal and state information. Other government publications that are helpful include:

• Statistical and Metropolitan Area Data Book. Offers statistics for metropolitan areas, central cities and counties.
• Statistical Abstract of the United States. Data books with statistics from numerous sources, government to private.
• U.S. Global Outlook. Traces the growth of 200 industries and gives five-year forecasts for each.

Don’t neglect to contact specific government agencies such as the Small Business Administration (SBA). They sponsor several helpful programs such as SCORE and Small Business Development Centers (SBDCs) which can provide you with free counseling and a wealth of business information. The Department of Commerce not only publishes helpful books like the U.S. Global Outlook, it also produces an array of products with information regarding both domestic industries and foreign markets through its International Trade Administration (ITA) branch. The above items are available from the U.S. Government Printing Office.

One of the best public sources is the business section of public libraries. The services provided vary from city to city, but usually include a wide range of government and market statistics, a large collection of directories including information on domestic and foreign businesses, as well as a wide selection of magazines, newspapers and newsletters.

Almost every county government publishes population density and distribution figures in accessible census tracts. These tracts will show you the number of people living in specific areas, such as precincts, water districts or even 10-block neighborhoods. Other public sources include city chambers of commerce or business development departments, which encourage new businesses in their communities. They will supply you (usually for free) with information on population trends, community income characteristics, payrolls, industrial development, and so on.

Among the best commercial sources of information are research and trade associations. Information gathered by trade associations is usually confined to a certain industry and available only to association members, with a membership fee frequently required. However, the research gathered by the larger associations is usually thorough, accurate and worth the cost of membership. Two excellent resources to help you locate a trade association that reports on the business you’re researching are Encyclopedia of Associations (Gale Research) and Business Information Sources (University of California Press) and can usually be found at your local library.

Research associations are often independent but are sometimes affiliated with trade associations. They often limit their activities to conducting and applying research in industrial development, but some have become full-service information sources with a wide range of supplementary publications such as directories.

Educational institutions are very good sources of research. Research there ranges from faculty-based projects often published under professors’ bylines to student projects, theses and assignments. Copies of student research projects may be available for free with faculty permission. Consulting services are available either for free or at a cost negotiated with the appropriate faculty members. This can be an excellent way to generate research at little or no cost, using students who welcome the professional experience either as interns or for special credit. Contact the university administration departments and marketing/management studies departments for further information. University libraries are additional sources of research.

Source:The Small Business Encyclopedia and Knock-Out Marketing.

Creating a Great Business Card

 

A business card is an integral part of any good marketing plan. For its size and cost, it’s probably the most powerful part. Of course, you can’t expect your business card to tell the whole story about your company. What you should expect it to do is present a professional image people will remember. A business card can make or break a client’s first impression of your company. In fact, this little card makes as much of an impression as your personal appearance-the suit you wear or the briefcase you carry.

Choose a card style that’s appropriate for your business, industry and personal style. If you’re a funeral director, for example, you don’t want to be caught handing out day-glow cards with cartoon figures on them. If you’re a mechanic whose specialty is converting old Beetles into dune buggies, a formal, black-on-white engraved card will probably be dropped into the nearest circular file. When crafting a design, start with the style that best supports the business image you wish to project. To help you get started, here are five different card styles for you to consider:

• Basic cards. A basic card is usually printed in black ink on plain white or cream stock. This is a good style to choose when utility is all you need. It’s a no-nonsense approach that can appeal to clients and prospects who would not be impressed by fancy design features-the people who want “just the facts, ma’am.” The design is simple, and the information is clear and concise.

• Picture cards. Having your face on your card-whether it’s a photograph, a drawing or a caricature-helps a contact remember you the next time he or she sees you. Images representing a product or service, or a benefit your business provides, can help you communicate your business better than dozens of words. A splash of color (rather than just black and white) is often helpful on a picture card, too.

• Tactile cards. Some cards are distinguished not so much by how they look as by how they feel. They may use nonstandard materials, such as metal or wood, or have unusual shapes, edges, folds or embossing. Tactile cards tend to be considerably more expensive than regular cards because they use nonstandard production processes such as die cuts. But for some businesses, this more unusual card may be worth the price.

• Multipurpose cards. A card can do more than promote your name and business-it can also serve as a discount coupon, an appointment reminder or some other function. It may also provide valuable information that the average person may need. For example, a hotel may include a map on the back of its card for any guests who are walking around the local area. A card of any type can be made multipurpose by adding any of these types of features.

• Outside-the-box cards. A wildly original, fanciful or extravagant presentation can draw extra attention. Creativity knows no bounds-except the amount of money you wish to spend. Some examples are cards made of chocolate or that folded out into a miniature box to keep small items in.

Now It’s Time to Order

Once you’ve settled on a basic idea for your business card, it’s time to head to the printer. There are four primary considerations when ordering business cards:

• Weight. Most business cards are printed on 80-pound cover stock.

• Finish. Of the three available-smooth, linen and laid-the smooth finish is the most popular.

• Color. Right now, two-color cards predominate. If you’re selecting from a catalog, there are between five and 15 standard colors to choose from. If you have another ink color in mind, your printer can show you a Pantone Matching System book, which includes every shade under the sun.

• Quantity. It generally pays to print more cards rather than fewer, because the printer’s cost is primarily in the setup.

Design Resource

For more detailed descriptions of the different types of business cards, take a look at It’s in the Cards. In it, Ivan Misner, Candace Bailly and Dan Georgevich review more than 2,000 business cards from 10 countries and select more than 200 examples of some of the best, which are shown throughout the book in full-color.

One Final Tip

Though this may sound like obvious advice, it might cost you another trip to the printer if you don’t heed it: Include the essentials. This means your name, title, company name, address, phone number (or numbers, if you want to include your cell), e-mail and Web site. If someone wants to contact you after receiving your card, you sure as heck want them to be able to.

Making a Knock-Out Trade Show Display

Your trade show exhibit serves as a direct, powerful reflection of the quality, image and service your company and its products offer. To be effective, the visual impact of your display must make a strong first impression and communicate your message in a matter of seconds to attract prospects to stop at your booth and learn more about your business.

Getting Started
As you begin considering the type, size, design and configuration of your trade show exhibit display, answer these questions:

1. What do you want to accomplish through trade show participation?
2. How do you plan to use your exhibit to meet your objectives?
3. How large are the events in which you plan to participate? Do they attract local, regional or national audiences?
4. What location type (in-line, corner, end, island) and size of display space will you reserve?
5. How many events will you participate in annually?
6. How will you transport your display to each show?
7. How much money are you willing to invest in your exhibit? The cost of your booth, lighting and accessories can range from under $1,000 to more than $20,000 for a top-end customized display.

Types of Trade Show Exhibit Displays
Whether you decide to produce a custom display or adapt a used or rental unit, the type of booth you need will be based on the kind of shows you attend and what you want to accomplish at each one. Here are some standard types of displays:

• Pop-up displays consist of lightweight folding frames covered with magnetic-backed fabric, vinyl or plastic panels that create curved or angled walls.
• Panel displays are a flexible option that consists of fabric-covered rectangular sections that are connected to make a wall. They can be readily adapted to different booth sizes and configurations.
• Tabletop displays are inexpensive, lightweight displays that sit on the top of a table and are typically used for smaller events. These displays usually have three panels with Velcro-attached graphics and headlines that can be easily changed and updated.
• Pull-up displays are a lightweight, easy method to accent your booth. These function like a window shade in reverse and can be placed together or in different booth locations based on your design needs.

Choosing a Trade Show Exhibit Display Company
Search the internet for trade show exhibit display companies, and it’ll be readily apparent that there are many suppliers from which to choose. Let me warn you: It may be daunting to figure out which company has the expertise you want, can effectively communicate and service your needs, will deliver your booth on time, meet your budget requirements and guarantee the work.

Therefore, the best place to start sourcing a supplier is to visit a trade show and talk with exhibitors in noncompeting fields who have the type of booth you like. Or you may want to get referrals from professional organizations, your chamber of commerce or colleagues. Once you have a list of possible suppliers, check references, meet with them and understand how they work, and check how long they’ve been in business.

Graphics and Signage
You want your trade show graphics and signage to grab people’s attention and draw them into your booth. Most suppliers provide graphic services either in-house or on a contracted basis. Check out the work they’ve done for others. If you don’t like what you see, hire your own graphic designer to help produce artwork for your booth.

Be sure signage with your company or product name is highly visible, well-lit and features large easy-to-read type. You may want to have multiple signs in different areas of your booth. Keep your message succinct and direct. After all, you only have about three seconds to make an impression and turn a prospect into a viable lead.

Jules Sowder is an executive marketing advisor with 20 years of experience developing strategic marketing and sales solutions for businesses. For more information, visit her resource website www.Trade-Show-Advisor.com.

By Jules Sowder

3 Word-of-Mouth Marketing Tactics

Most everyone agrees: There’s no better advertising than word-of-mouth. After all, a customer who calls you following a personal recommendation from a friend or colleague is more likely to buy. And that makes the pursuit of positive word-of-mouth every entrepreneur’s holy grail.

Today, marketers have created a science out of winning word-of-mouth, or WOM. There’s even a Word of Mouth Marketing Association  for marketing professionals charged with building word-of-mouth for their companies. The truth is, the right kind of talk doesn’t always come cheap, and you have to actively pursue WOM. For maximum results, build a formalized WOM program using at least one of the following three major tactics.

1. Marketing to influencers: Every community has them. Whether they’re into electronics or fashion, “influencers” are at the head of every trend. Not only do they know which restaurant has the “in” chef or where to shop for the perfect athletic shoe, they’re also happy to tell all their friends and associates about them.

How can you find influencers and get them talking about you? Open up dialogue by listening to customers and welcoming their comments–both positive and negative–through your website. Then identify the most active participants and invite them to become part of an influential group that’s first to gain information on or access to new products and services. Another option is to pinpoint organizations or groups whose members will be receptive to your message, and seek out the influencers within them. For example, the manufacturer of a new flavored water enhancer focused its message on how its product helped people drink the recommended amount of water for good health without extra sugar or artificial ingredients, and it sent samples to dietitians and nutritionists across the country to distribute to their patients.

2. Winning PR coverage: Information found in editorial coverage is generally considered more credible than the messages consumers receive in advertising. And PR placements can play an invaluable role in a WOM campaign. There are dedicated publications as well as thousands of websites run by aficionados covering every imaginable subject, so it’s simply a matter of identifying the top editors or journalists who write about what you market. Tailor your message or stories specifically to them, then send your press releases or pitch letters. Follow up by phone or e-mail where appropriate.

Editorial reviews are particularly critical to fueling new product buzz. But just about any kind of favorable product or service mention in the right media can get people talking–particularly influencers who may avidly read everything from blogs to magazines looking for the latest news to spread. Best of all, media coverage is often self-perpetuating. An interesting item covered in a popular blog, for instance, may be picked up by many others.

3. Seeding viral marketing: Have you identified a single, clear idea you want to communicate through WOM? Viral marketing succeeds when you have a topic that motivates customers to talk and you give them the means to share that conversation. Provide an infrastructure, such as an interactive website dedicated to creating a strong online community, and facilitate connections by using a company blog, message board or forums. Or give customers something interesting they can pass along. When you put a special offer in an e-mail, for example, it becomes an easy-to-forward means of building buzz.

In addition to e-mails, blogs and message boards, some companies are creating special websites with everything from online movies to downloadable games that draw customers by the thousands. Try adding an element of fun, mystery or excitement–with a built-in product or brand message–and WOM will surely follow.

Contact marketing expert Kim T. Gordon, author ofMaximum Marketing, Minimum Dollars: The Top 50 Ways to Grow Your Small Business atwww.smallbusinessnow.com. Her new e-book, Big Marketing Ideas for Small Budgets, is available exclusively from Entrepreneur atwww.smallbizbooks.com.

By Kim T. Gordon

Online Marketing 101

 

Q:I know it’s important for me to market my business online. How do I get started?

A: Getting your website in front of customers is important for every business. One way to market yourself is to consider having a blog or even a podcast, which is basically a video or audio blog. You can set these up for free at websites like Blogspot.com and MSN Spaces. Many web-building sites will also help you set up your own blog.

If you’re not the only one updating the blog–your employees may help, too–that will invariably make it more manageable and fun to read. If you can attract some diligent, devoted consumers who read it frequently, you will probably have those customers for life, but even people who read it just once will be able to get a sense of what your company is about. A blog also helps your venture feel like a live, vibrant place of business rather than a static, never-changing company, which sometimes can be the feel of a website.

And then, of course, there’s pay-per-click advertising. The three leaders in this field are Google AdWords, Yahoo! Sponsored Search and MSN Keywords. Advertising on all three is a cost-effective way to drive shoppers to your website.

How to Create a Marketing Plan

What is a marketing plan and why is it so essential to the success of your business? Find out here, in the first section of our comprehensive guide to creating a marketing plan.

 

Firms that are successful in marketing invariably start with a marketing plan. Large companies have plans with hundreds of pages; small companies can get by with a half-dozen sheets. Put your marketing plan in a three-ring binder. Refer to it at least quarterly, but better yet monthly. Leave a tab for putting in monthly reports on sales/manufacturing; this will allow you to track performance as you follow the plan.

The plan should cover one year. For small companies, this is often the best way to think about marketing. Things change, people leave, markets evolve, customers come and go. Later on we suggest creating a section of your plan that addresses the medium-term future–two to four years down the road. But the bulk of your plan should focus on the coming year.

You should allow yourself a couple of months to write the plan, even if it’s only a few pages long. Developing the plan is the “heavy lifting” of marketing. While executing the plan has its challenges, deciding what to do and how to do it is marketing’s greatest challenge. Most marketing plans kick off with the first of the year or with the opening of your fiscal year if it’s different.

Who should see your plan? All the players in the company. Firms typically keep their marketing plans very, very private for one of two very different reasons: Either they’re too skimpy and management would be embarrassed to have them see the light of day, or they’re solid and packed with information . . . which would make them extremely valuable to the competition.

You can’t do a marketing plan without getting many people involved. No matter what your size, get feedback from all parts of your company: finance, manufacturing, personnel, supply and so on–in addition to marketing itself. This is especially important because it will take all aspects of your company to make your marketing plan work. Your key people can provide realistic input on what’s achievable and how your goals can be reached, and they can share any insights they have on any potential, as-yet-unrealized marketing opportunities, adding another dimension to your plan. If you’re essentially a one-person management operation, you’ll have to wear all your hats at one time–but at least the meetings will be short!

What’s the relationship between your marketing plan and your business plan or vision statement? Your business plan spells out what your business is about–what you do and don’t do, and what your ultimate goals are. It encompasses more than marketing; it can include discussions of locations, staffing, financing, strategic alliances and so on. It includes “the vision thing,” the resounding words that spell out the glorious purpose of your company in stirring language. Your business plan is the U.S. Constitution of your business: If you want to do something that’s outside the business plan, you need to either change your mind or change the plan. Your company’s business plan provides the environment in which your marketing plan must flourish. The two documents must be consistent.