Hi everybody and welcome to the continuing business information series from the Parrish library. Today we’re going to be looking at and exploring market research so this seeking market research information presentation will focus on some key components market research is a core process within business information literacy and. Competitive intelligence and the components that we’re going to really focus on today our market size market segmentation and market share there are two types of market research.
Primary market research and secondary market research the process that these two go to through are. A little bit different and their purpose is also a little bit handle a little bit differently so primary market research is original research that someone has gone. Out and collected and gathered this could be someone sending out surveys to customers in their homes it could be. Someone standing in a mall or in the Union with a clipboard and.
A bunch of survey questions trying to ask and get some clarification about consumer preferences and consumer buying habits primary research is notoriously very targeted because someone is. Usually either set up that questionnaire or contracted a company to find out some specific answers to some specific questions that they have to help roll. Out a new product open up a new establishment and you store in your restaurant something like that this is.
Often a much more complicated process because of the need to create that survey and the need to actually gather. The data run the analysis this can be expensive and there are lots of companies that do this for you you can contract that. Out and there’s more to read on this Prezi that is linked elsewhere secondary market. Research is published research so there are these come that are constantly gathering information for their market reports sometimes they’ll do primary research sometimes they’ll explore. Companies and other articles and reports that are out there and compile it all together these reports provide some very specific insight they can be very focused. On a niche market on a specific issue within an industry or a market but.
They can also be very general you know hotels in the UK obtaining a published report is generally easier you don’t. Have to create your own questionnaire you don’t have to contract out to.
Another company to have them do any work you just have to find that published report and then purchase it and that’s. The trick is that market research reports secondary market research reports are never cheap they’re very expensive because of all the time and effort that’s gone into them and there’s some more. To read as well on this separately linked Prezi so there are three key topics within market research now we’re gonna look. At for the next couple of minutes market size market segmentation and then market share and. Each of these components deals with a specific facet of the market you’re looking at market size is the measurement of the total volume of a given market so what you’re looking. At is how big is this world that you’re trying to get involved with how big is this world that.
The customers are kind of moving around in spending their money so what we’ll take a look at here are a couple of quick examples so this example here is looking at the. Bioinformatics market by region so we’re looking at the US and Canada total dollars in millions over several years and then projecting out into the future again key component of market research. Reports is that they will try and predict what’s going. To happen and that’s why they’re often so expensive another example here are the total sales and forecasting of the breakfast cereal market so showing you how.
Big this market is and if you were a company trying to start a new breakfast cereal product this is what you would look at to try and determine. At least at a major macro level how much of this market you might try and capture and we’ll get into some other facets of this in just a minute now market segmentation. Is the division of a market in two different homogeneous groups of customers or products that customers would potentially buy so within this there are these five key points a market segment is. Measurable so you can actually look at and acquire some data to identify that yes this is a segment of the market it is accessible by communication and distribution brand by. Distribution channels and what that means is is it’s not babies are. Not really a market segment parents who have babies is a market segment because you can reach them with advertising marketing tactics a market segment will have.
A different response to a marketing mix you would try and sell a car to an 18 to 24 year old very. Differently than you would try to sell a car to a 35 to 42 year old with teenage kids each of those markets is in a position that would respond differently to how you’re trying. To reach out to them the market segment is durable it means it it lasts it recurs over and. Over there is substance there that you can continue to try and sell a product or service to. This segment or that it’s something that will continue to grow as people try and buy this it’s substantial enough to be profitable it’s not so small so narrow that you’re going. To create a market segment that makes no money there’s no purpose there again the the size of it is important so that.
You can target your product your service target a specific type of customer that will buy your product or service. And potentially make a profit so the examples here that we look at here is an industry level market segment we’re looking at household. Service cleaners and then the actual subcategories within this all-purpose cleaners toilet and tub specialized cleaners etc what you’re seeing here are the the little niche segments that people would. Be spending their money in and how you would market these products to different types of consumers is why you look at them as as segments here we’ve jumped back to back and.
Looked at the bioinformatics market by category so you’ve got this big multi-billion. Dollar bioinformatics market but it actually has three components tools and databases data analysis and then hardware and infrastructure again you. Would target these segments very differently depending on the type of customer that you’re trying. To get finally we’re looking at a consumer level market segment so here are the different types of travelers.
That spend their money at hotels in the US personal business conference vacation these market segments are. At that consumer level the different types of customers and then you would determine the different and varied needs that they. Have to try and draw them to your hotel as we move along to market share so now market share is talking about the individual players within. A market or an industry so whereas market size looked at the entire market market segmentation looked at either the product or service variations or the different types of customers market share. Looks at the players in that industry so now you’re looking at directly the competition so there’s a formula market share is a firm sales divided by. The total market sales this gives you then a percent of how much of the market did they control so as we.
Zoom in and then zoom in even a little bit closer we can. Look at sales of breakfast cereals now before we were looking at the the segments different types of breakfast. Cereals now we’re looking at the players the companies Kellogg General Mills Post and then how much of the market they actually control. With Kellogg and General Mills clearly dominating this market pepsi posts and the rest are much smaller moving on and looking at. This here’s the estimated synthetic gene company market share and we’ll.
Zoom in and take a look at both revenue and the percent of the market here you’ve got one company dominating this market with Life Technologies at thirty six percent of the. Market that’s how much they control the other’s DNA or a gene much smaller percentages this is then where you as a potential competitor would start to try and identify and.
Propose to potential investors to your employees to your managing directors how much of the market you would be able to capture. If you moved into the synthetic gene market so this has been a quick summary of seeking market research information and looking at the three key components market size market. Segmentation and market share as always if you’ve got any questions contact us. At the Parrish library and otherwise we’ll see you next time thanks bye.