Lesson 4.

2
Research the Market
Learning Objectives
4.2-1 Explain the role of market research.
4.2-2 Identify the six steps involved in market research.
4.2-3 Explain the role that technology plays in market
research.

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Role of Market Research

 Market research
 A system for collecting, recording, and analyzing information about
customers, competitors, products, and services. Spreadsheet and
databases are used for collecting and analyzing data.
 Primary data
 Information collected for the very first time to fit a specific
purpose

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Primary Data

 Survey
 A list of questions you ask your customers
to gather demographic and psychographic
information
 Observation
 Focus group
 An in-depth interview with a group of
target customers who provide valuable
feedback on products or services
Chapter 4 Entrepreneurship: Ideas in Action 6e
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 Secondary Data

 Secondary data: Data found in already-published

sources
 Publications issued by government and community
organizations, such as the U.S. Census Bureau, the Small
Business Administration, and your local chamber of
commerce
 Books about specific industries

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Secondary Data (continued)

 Secondary data
 Information on websites for government and businesses
 Books about other entrepreneurs who set up similar
businesses
 Trade magazines and journals
 Newspaper articles and statistics

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Six Steps of Market Research

1. Define the Question

2. Determine the Data Needed
3. Collect the Data
4. Analyze the Data
5. Act
6. Evaluate the Results

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 MARKET RESEARCH SURVEY

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 Technology-Driven Marketing

 Customer relationship management (CRM)

 A company’s efforts to understand customers as
individuals instead of as part of a group

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 Technology-Driven Marketing (continued)

 Interactions with customers

 Touch points (where the customer might have contact with the company include a
product or service registration, warrant car, etc.)
 Electronic data interchange (EDI) – computer retrievable information that customers complete
on the computer.
 Customer database
 Data warehouse – company has all the information provided by a customer (ex. IRS)
 Data mining – finds hidden patterns and relationships in the customer data stored in the
data warehouse.

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Social Media Marketing

 Social media marketing

 A form of Internet marketing that utilizes social networking sites as a
marketing tool
 Social media organization (SMO)
 The social media marketing conversation
 Acts as a word of mouth. Allow users to “retweet” or repost comments
made by others about a product service, brand, or company.
 Customers love to share their point of view about a product or service.

Chapter 4 Entrepreneurship: Ideas in Action 6e

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 Summary of Review Questions 4.2

1. Information collected for the very first time to fit a specific purpose is primary data. T/F
2. Surveys should be kept to a page in length when read over the phone or mailed to respondents. T/F
3. Focus groups are quick interviews with target customers. F/T
4. Collecting primary data can be expensive and time-consuming. T/F
5. The first step in conducting primary market research is to select a research method. F/T
6. Observation is the best research method if you want to find out people’s opinions. F/T
7. Economic trends and industry forecasts help determine the kind of primary data research to perform.
T/F
8. The movement of data between locations in a structured, computer-retrievable format is known as
electronic data mining. F/T
9. The goal of social media marketing is to product content that users will share with their social network
to help a company reach more customers. T/F
10. What is one of the things you missed while continuing your education with Distance Learning?

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