New Food and Farming Ventures - Resource Manual September 2003
Chapter 3 · Marketing
Market Research Narrative and Guidelines for Facilitators
Market research is used to collect information needed to develop products, target customers, and successfully market the products to these customers. Purposes for conducting market research include:
q Learning about trends to help identify opportunities
q Identifying potential markets (individuals or organizations)
q Understanding the needs and wants of these markets
q Determining if a product can adequately satisfy customer needs and wants
q Selecting prices that can be charged
q Identifying trade area boundaries (i.e. the boundaries around your target markets)
q Estimating the size of the market (i.e. sales potential, which is crucial to calculating profits)
q Determining how to promote products effectively
q Examining the competition - what products they offer, what prices they charge, etc.
Market research is of two main types.
Primary research is when a company or individual collects their own data. Common primary research methods include surveys and personal interviews.
Secondary market research involves examining information gathered by others. This type of research is less expensive and includes information such as per capita consumption data, articles on consumer trends, or market research reports produced by others.
A key point to remember is that market research does not have to be complex. It can be as simple as asking people at work or in social settings what they think about a product idea. It could also involve visiting grocery stores to determine what products they carry, what the labels and advertising say about these products, and what prices are being charged.
The materials in this section of the manual are in order:
1. key market research questions for clients (# 2 in the Table of Contents)
2. a set of worksheets for clients to complete (# 3 - # 10 in the Table of Contents)
3. a single publication on doing your own market research (# 11 in the Table of Contents)
4. a set of three publications on food trends
Please note: a useful food trends report from the Institute of Food Technologists entitled "What, When, and Where Americans Eat: 2003" can be downloaded from http://www.ift.org/publications/docshop/ft_shop/08-03/08_03_pdfs/08-03-sloan.pdf.
5. two short summaries of data from recent market research reports (# 12.1 & # 12.2 in the Table of Contents)
Please note: in addition to these manual materials, the CD includes eight market research reports that can be very valuable to people depending on their business concepts, plus three example market research surveys. See the Table of Contents for descriptions of these items.