Archive for category Business marketing research
Vending Machine Business Market Research Ideas
Posted by admin in Business marketing research on January 7, 2012
Market research is all about getting a better understanding of the market that you are planning on entering. A market is made up of both customers as well as operators. You need to understand the current state of affairs in order to allow yourself to position your new vending business for success.
Your market research will help you to identify some of the risks and opportunities in the market. It will help you to identify good locations and the kind of machines and products that would do well in them.
Hiring a market research company to put together a report on the local vending industry would be great. This option is cost prohibitive though so it is more likely that you will end up doing your own investigations.
When it comes to starting a vending machine business, market research should be the first thing that you do. Here are some ideas on the kind of information that you should collect and how to go about it.
Demographics
Before you attempt to vend products to people in the area that you are targeting you have to understand as much as you can about them. This will help you to know where to place your machines and what products to offer.
If, for example you are in a fairly young area with lots families then you might look at a product line that targets children. If the population is older then it might be worth trying to place machines within retirement communities.
Surveys
If you are trying out a new vending machine niche it will be important to gather some data from prospective customers. This will help you to confirm whether or not your business ideas are viable and if there is enough demand.
Put together a brief questionnaire and ask people within your target area what they think. Would they be prepared to buy the products that you intend to sell via vending machines? How much would they reasonably expect to pay for such items?
You should get the best response from your surveys if you do them in person but you could also look at purchasing a database and doing them by phone or mail. To get a better response you could offer respondents some kind of free gift such as a voucher for a free coffee at a local cafe. This may end up costing you but the information that you end up obtaining from local prospects could be of considerable value to you.
Try to talk to some business owners about whether they think your product line would sell on their premises. If you get a positive response from them then you can contact them again at a later date once you have started your vending business and have machines ready to place.
Scouting the Area
Once you have decided on the area that you want to target and have marked out your territory on a map go out for a few drives and explore. Visit some of the places where you would expect to find vending machines. Take note of the range of machines that are in place, if they are being used, what products are being vended and how well maintained they are.
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Types of Market Research
Posted by admin in Business marketing research on October 7, 2011
Market research is a process of the systematic collection of data, about a particular target market, competitors, customers, market trends, etc. The aim of market research is to obtain an in-depth understanding of the particular subject. Rising competition has compelled many organizations to conduct market research. Organizations may conduct market research themselves, by appointing a market research team to work on the same. Or else, they may get it done via a market research consultancy or an agency. Market research is vital for business organizations looking out for opportunities to tap the market, for firms which have come up with an improvised product and want to evaluate its demand and for companies planning to introduce their products into the market. However, before conducting market research, it’s vital to have the research objectives defined. Once the objectives have been outlined, market research can be carried out in different ways.
Types of Market Research
There are two methods of conducting market research: primary research and secondary research. The choice of the method depends on the research objectives.
Primary Research
In primary research, data is collected directly from the source. For example, if the objective of the research is to understand the demand of a particular product, then collecting feedback directly from the customer by talking to them, is called primary research. Primary research involves the collection of crucial data via interviews, surveys or focus group sessions. It’s time-consuming and expensive. However, it is suited for gathering specific data. Primary research can be further categorized into the qualitative and the quantitative type.
Quantitative Primary Research: This type of primary research involves the collection of numerical data via surveys. The most frequently used quantitative technique is the ‘market research survey’. The numerical or quantitative information obtained is then statistically analyzed. Such surveys comprise questionnaires with closed ended questions. In a close ended question, a respondent is needed to answer by ticking one of the options given. People generally agree to cooperate, when surveys are less time-consuming. For example, a bank may generate a questionnaire, wherein its aim is to find out what people think of their services. Numerous questions may be asked in the questionnaire and the answer options are excellent, good, poor or very poor. This data obtained is analyzed statistically and a conclusion is ascertained. The main rule followed, while conducting quantitative research is that all the respondents should be given the same questionnaire with the same set of questions. These quantitative surveys can be carried out, either face to face (asking people on the street to fill them), email, telephone or by post (self completion and posting it back).
Qualitative Primary Research: This type of research involves gathering data via interviews or focus group sessions. In this type, open ended questions are included. This means the questions cannot be answered with a yes or a no. They include in-depth interviews, wherein a trained executive interviews one or more respondents. The interviewer may carry out the interview on a one to one basis, with two, triad or even 4-5 respondents. Such open ended interviews enable the researcher to receive data about the likes-dislikes, requirements, positive-negative feedback, trends and emotional motivators of the primary market. Unlike the quantitative type, this type does not comprise a fixed set of questions. The interviewer may have a basic framework of questions ready, however, the flow of the interview is impromptu. The respondent has the freedom to express himself. This helps the interviewer understand the situation better. Focus groups are another method of carrying out qualitative research. These groups generally comprise 6-8 respondents, led by experienced professionals (research moderators). The role of the professional is to ask general, as well as specific questions, to the group of respondents. By encouraging a discussion, they are to draw out the required information. However, since focus groups require experienced professionals, it’s an expensive technique.
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