Market Research: Part 2. Methodology

To carry out a market study, a mix is made among the following three tools:

1. Documentary search through sources and channels of information: direct contact, newspapers and magazines, websites.
2. Qualitative study aiming at obtaining quality information on a sector of activity: semi-direct interviews, focus group.
3. Quantitative studies to better target the preferences of a market player, in particular the customers: questionnaire survey, tasting test, control market ...


Main sources of information

1. Regional Investment Centers (RICs)
2. Federations of trades and orders
3. Banks (especially those with libraries open to the public)
4. Economic Observatories (HCP, CMC ..)
5. The Chambers of Commerce (CCIS)
6. Trade fairs and exhibitions
7. The economic press

  Business creation associations:
  The Banque Populaire Foundation
  Network Morocco Entreprendre

  Youth Leadership Center

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Market research: Part 1. Analysis and Question to ask

• Market research is a process of collecting and analyzing information with the aim of identifying the characteristics of a market. (Environment, supply, demand, ...)

Its main objective is to enable the project proponent to evaluate the potential of the market in order to validate the viability of its project and then to adopt a competitive positioning. This is likely to reduce the risk of failure by allowing the entrepreneur to take appropriate measures to integrate permanently into his market and, in the longer term, to better identify the forces involved. However, before the creation, market research has other equally important objectives, such as:

• Check the business opportunity to get started,

• Evaluate its estimated turnover,

• Make the right choices to bring the project to fruition,

• Credibility with partners.

The 7 questions to ask

• What? What will I sell? And why? What does my offer meet?

• Who? To whom shall I sell it? Is my market local, regional or international?

• Or? Where will I set up my business?

• When? Is it the right time?

• How? How will I sell this product or service?

• How many? How much will I sell my product?

• Why? What are my direct and indirect competitors?

Analysis of demand

• Do you have any indication of the general volume (in CA or number of products) of your market (the one you are targeting precisely).

• What has been the evolution in recent years of the volume of this market?

• What is the foreseeable evolution?

• Is this a declining, stagnating, growing market?

• What is the annual growth rate in%?

• What is the rate of equipment of customers in my products?

• What is the customer base of this market: individual consumers, communities, wholesalers,retailers, manufacturers, administrations, etc.

• Specify what each type of customer represents in the market in% of sales and, if possible, in number of customers.

• Will you have in the customer target many or few customers, big or small?

Analysis of supply and competition

• Who are your competitors? What are they doing ?

What are their strengths and weaknesses?

• Their seniority in the activity;

• Their size expressed in turnover, number of employees ....

• Their geographical location;

• Their geographical coverage;

• Their work schedules;

• the range of products they offer;

• Sales prices;

• Their market share

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Market research, Science discussion

You have verified the consistency of your project in relation to your own personal strengths and limitations? 

You must now ensure its commercial feasibility by carrying out a market study.

  Better understand the market trends and its actors and verify the opportunity to launch
It would be unwise to embark on a project without having answered the following questions: What are the market trends?These first to clearly identify your market - business market, individual, recreation, consumer goods? - market development, stagnation, decline - as he represents in sales volume and turnover, Business?

What are their needs? 
How do they buy? 
Where do they live? 
How do they behave?
How are they? 
Where are they? 
What do they offer? 
At what price?
This is the identification of: 
- the processes of innovation and technological developments of your market, 
- the regulatory and legislative framework (required authorizations to possess diploma, ...) 
,. - its social, economic, political and ecological What are the constraints of my contract and the keys to success?

What does it take control, hold, acquire to be successful in your market?
Does your project-it has its place in the market? 
Does Will bring a "plus" compared to the competition? 
Go -t it meet a need not yet covered by the competition?
  Set sales assumptions
This amount will allow you to power your financial forecast to determine if your project is financially viable. Attention this is where assumptions ... There is not one but several methods of calculation to achieve a projected turnover: - one of them is to study similar projects in your area or other geographical areas, - another to assess, as part of a field survey, buying intentions of potential customers. - Another test your project life-size Ideal is to use several methods to bring out a low hypothesis and a high hypothesis.
This is opt for the best angle of attack, taking into account competitors, customers and project. 
By setting your strategy, keep in mind the way that you will achieve your goals by inserting permanently on your market, taking into account the specifics of your business!
  Get the most coherent marketing mix can




  Bring concrete elements used to establish the provisional budget




  How to make your market research?

This fundamental step is a must for any future entrepreneur, since it allows you to:  better understand the major trends and players in your market, and check whether you start,  gather enough information that will allow you to set revenue assumptions  to make the best business choices to achieve your goals,  to determine, in the most coherent manner possible, your "product" policy, "Price", "distribution "and" communication "(marketing mix),  to bring concrete elements that will serve you establish a budget.

However, the market study is overlooked by many designers who are not aware of its usefulness. If it is not an absolute guarantee success, its vocation is to minimize risk by allowing you to better understand the business environment of your future, and so take adequate and appropriate decisions: "I know my market, I am therefore able to decide. "

The term "market research" can intimidate those who, not feeling competent enough, prefer to avoid or ignore this step. But market research is above all a matter of method and common sense! 

 Who are the buyers and consumers?

 Who are the competitors?

 What is my market environment?

What opportunities and possible threats? 

 Are there has or not, an opportunity for my project succeed?

After analyzing the market methodically, you must be able to assess a projected revenue. 

  Make the best choices to achieve its objectives

Given the understanding of your market, you have to determine ways to reach your customers. We talk to determine the strategy. To learn more about the usefulness and purpose of the strategy.

The strategy is actually the thread that will enable your company to achieve the turnover that you set beforehand. 

Called marketing mix of all marketing decisions taken by the company, at one time, or on a product throughout its range, to influence and satisfy its customers. These decisions relate to: the product: what (s) product (s) or service (s) will you offer your future clients? The price: at what price are you (s) to sell? The distribution: how will you (s) to sell? What will be your distribution networks (live, with intermediaries, via internet)? And communication: how do you communicate? Example of inconsistency: would you buy bread 30% more expensive than Moreover, while it would not be better than other bakeries?

After defining the elements of the marketing mix, you are able to quantify the cost of the actions you plan to implement to get started. What is the cost of manufacture or production of the product for example? What costs will marketing? Or, what is the cost of promotion or communication?

All these elements will be encrypted subsequently reinstated in the financing plan of your business.

Firstly by acquiring a minimum knowledge on the concept of "market" and the action means to act on a market. Then following an orderly and structured approach: finding information, conducting surveys , synthesis and analysis of information collected, report writing, provisional estimate of CA ... PACE offers a basic working method allowing an untrained project manager to address its market survey, only or with external assistance.

Source : APCE

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