Depth interviews are used to explore research topics in-depth. They involve one-on-one, open-ended interviews between an interviewer and respondent. The interviewer uses probing questions to elicit detailed information and responses from the respondent by turning their initial answers into follow up questions. This allows respondents to further explain their views in a natural discussion. The goal is for respondents to provide unstructured, qualitative data that provides insights rather than fitting into predetermined categories.
4. Evaluations
Graded Component Weight
Business Model Canvas Progress Presentations
3 total; in teams
20%
Exam
Covers all concepts in the course leading up to exam
30%
Written Market Study
Group project built throughout the session
50%
5. Course Objectives
Main Objective (LK27) : To carry out a market study
Secondary objectives :
• To understand how the business model canvas can be applied to international business
decisions including the execution of an international market study
• To grasp fundamental concepts related to market research, data analysis, value
propositions, market segmentation and competitor analysis in an international context
• To understand the importance of and how to collect primary data
• To understand the importance of and how to use secondary data
• To envision the impact of the results of a market study on defining the marketing
strategy
• To evaluate the feasibility of a business model in a foreign market
7. Course Materials
Market Research in Practice
Online textbook – reading guide on Moodle
PowerPoints
Available via Moodle
Business Model Canvas PowerPoints
Available in your team’s Microsoft Team private channel
9. What do you think is the purpose
of a market study?
10. Internationalization & Market Studies
• Companies are becoming more global
• Before developing a market entry strategy to a foreign market, companies
must ensure that they understand their foreign consumer and that their
company fits well with the chosen market
• Important do multicultural research
• Compare and contrast culture (language, etiquette, behaviors, values, etc.), political
landscape, geographical concerns, economic issues, and local consumer behaviour.
• Helps determine how much the marketing mix should be adapted
• May need to use different research methods in different cultures
11. Where are we in our international expansion?
Preliminary
Research
Looks at the
macroenvironment - is
the country conducive
to international business
and specifically an
international expansion
for our company?
• Political, economic, legal
environment
• Policies surrounding foreign
trade
• Examines culture, risk, and
many other aspects
Market
Study
Looks at the
microenvironment –
does this foreign market
fit with our company?
• Is our product desirable in
this market?
• Is it operationally feasible
for us to enter the market?
• Is it financially viable for us
to enter the market?
Marketing
plan
All about execution –
now that we know there
is a good fit between
our market and the
country, how do we
enter?
• Looks at product, price,
place, promotion
• Sets timelines,
implementation strategy,
budgets, sales projections
12. Why enter a
new market?
Ansoff’s Matrix shows growth
strategies a company
undertake to grow its
revenues and profits
13. Case Study – Forever 21
• Why Did Forever 21 File For Bankruptcy?
https://www.youtube.com/watch?v=DxlkvrbRvqI
• Discussion Questions
1. How did Forever 21’s lack of understanding of their foreign markets impact
its consumer and demand for its products?
2. How did this lack of understanding ultimately impact the operations of its
international ventures?
3. What could Forever 21 have done differently?
15. Marketing Research by Definition
• Systematic collection, analysis and interpretation of data
• Provides useful information for decision-making
• Helps to create and validate the marketing strategy
• Ensures that the company truly understands their foreign
consumer and foreign market
• Marketer must find most accurate and reliable data within
limits of time, cost, and technology
16. Why do we need it in general?
• Decisions need to be backed by robust data and evidence,
especially when the cost of failure is high
• Information from the market is used to reduce risk.
• Can be conducted as a one-off project (ad hoc research) or
as part of continuous and regular tracking
17. Why do we need it in international business?
1. To help decide whether we should enter a market or not
2. To determine how to enter the market
3. To determine what is realistic to achieve and set targets
accordingly
4. To form the basis of a business plan and the marketing mix
18. Information that can be obtained
Market Studies Marketing Plans
▪ Market size and structure
▪ Use of and attitude to products
▪ Segmentation
▪ Product tests/concepts
▪ Pricing Effectiveness
▪ Promotion Effectiveness
▪ Brand impact
▪ Customer satisfaction and loyalty
19. Typical Research Process
Brief: Background to
the problem or
opportunity, what
information is required
to make a decision.
Proposal: How these
objectives will be met
and how the
information will be
obtained. Considers
costs and timeline.
Commission: The
project is approved and
the needed resources
are provided.
Qualitative Research:
Looking for evidence,
facts, opinions, insights
Quantitative Research:
Looking at sample sizes,
aggregate data, trying
to generalize for a
population.
Analysis: Using
software and other
tools to track the
responses, finding
trends, interpreting the
data.
Reporting: Creating a
written report or
presentation to
showcase the findings,
solutions, and
recommendations.
20. Primary Data
• Primary Data
• Collected specifically for the project at hand
• Pursued if secondary data leaves unanswered questions
• Gathered by firm’s researcher
• Questions sales representatives, distributors, middlemen, and customers
for accurate market info
• Uses qualitative and quantitative methods
22. Secondary Data
• Data that has already been collected for some other purpose.
• Validating Secondary Data
1. Who collected the data? Would there be any reason for purposely
misrepresenting the facts?
2. For what purposes were the data collected?
3. How (by what methodology) were the data collected?
4. Are the data internally consistent and logical in light of known data sources
or market factors?
23. Consumer vs. B2B research
Consumer
Require rigorous sampling
Divided into FMCG markets (fast-moving
consumer goods) and other markets (like media,
travel, furniture)
Understanding the way the consumer thinks and
behaves at a deep psychological level is critical
B2B
Rely more on intuition and judgement
Sample sizes are smaller and may involve many
companies of different sizes from different
industries
Purchase decision-makers represent the
company’s interests, not only their own
28. Business Model
• Definition: A design for the successful operation of a
business, identifying revenue sources, customer base,
products, and details of financing.
• Stems partially from Peter Drucker: Assumptions about what
a company gets paid for
• Clay Christensen: Introducing a better business model into an
existing market is the definition of a disruptive innovation, as
written about by Clay Christensen.
29. Basic Business Model Example
Model Name Description Examples
Razor and
blades
Consumer purchases a low-margin item like a razor handle or
inkjet printer. Sale of necessary consumables such as
replacement blades or ink are sold at a very high markup.
Gillette, Hewlett-
Packard printers, Keurig
coffee makers
Subscription
model
One of the more popular models because of recurring
revenue. Typically involves creating a significant asset and
renting a piece of it.
Health clubs, gyms
Low-Cost
Leader
Selling the lowest prices possible by operating at lower costs Walmart, McDonalds
30. Do companies use different
business models in their foreign
markets compared to their
domestic market?
31. Basis of a Business Model
Business
Model
Desirability
Providing something
that your customer
values
Feasibility
Finding the way to
actually produce that
value
Viability
Determining how to
make money from
providing that value
32. What is value?
• Definition: Value in business markets is the worth in
monetary terms of the technical, economic, service, and
social benefits a customer receives in exchange for the price
it pays for a market offering.
• In simple terms…
𝑉𝑎𝑙𝑢𝑒 = 𝐵𝑒𝑛𝑒𝑓𝑖𝑡𝑠 − 𝑐𝑜𝑠𝑡𝑠
• Ask yourself: what problem am I solving for my customers?
https://hbr.org/1998/11/business-marketing-understand-what-customers-value
34. The Business Model Canvas (BMC)
• Definition: A business matrix and tool that is used by
entrepreneurs and organizations worldwide to map out
their businesses models and how all the components of
their business are inter-related. It consists of a set of
assumptions or hypotheses that must be validated against
the market and the company.
39. Example #1 – Let’s Build it Together
• Fast Fashion Stores
40. Example #2 – Let’s Build it Together
• Low-Cost Airlines
41. Why do we use the BMC?
• The BMC is a great way to ensure that you have considered
all elements of your international operation.
• It allows you create a business model from scratch that is
perfectly suited for the foreign market instead of tweaking
elements of your existing domestic business model.
• It provides a roadmap of what needs to be validated. This
helps you to know exactly what must be researched and
what questions need to be answered.
42. Linking the BMC to the Market Study
BMC
• Desirability
• Feasibility
• Viability
Market Study
• The Market
• Industry Description & Outlook
• Competitive Analysis
• Operational Feasibility
• Financial Viability
43. Linking the BMC to the Market Study
BMC
• Desirability
• Feasibility
• Viability
Market Study
• The Market
• Industry Description & Outlook
• Competitive Analysis
• Operational Feasibility
• Financial Viability
Require
some
secondary
research
44. Additional Readings
• Business Model Canvas: A Complete Guide
https://www.cleverism.com/business-model-canvas-
complete-guide/
49. What is value?
• Definition: Value in business markets is the worth in
monetary terms of the technical, economic, service, and
social benefits a customer receives in exchange for the price
it pays for a market offering.
• In simple terms…
𝑉𝑎𝑙𝑢𝑒 = 𝐵𝑒𝑛𝑒𝑓𝑖𝑡𝑠 − 𝑐𝑜𝑠𝑡𝑠
• Ask yourself: what problem am I solving for my customers?
https://hbr.org/1998/11/business-marketing-understand-what-customers-value
51. Principles of Value
1. Value changes from one country to the next
2. Each segment defines value differently
3. A single product can provide different value to different segments
4. Value is all about solving a problem, helping the customer accomplish something.
53. The Value Proposition Canvas
• The Value proposition canvas goes hand-in-hand with the
BMC. It allows you to focus solely on your value proposition
and how that connects to a need or problem that the
customer is trying to address.
• How it works:
https://www.youtube.com/watch?v=ReM1uqmVfP0
55. Value Proposition Canvas
100% from the customer’s
point-of-view. Forget about
your product. Forget about
your company. Put yourself
in the shoes of a customer
trying to solve some sort of
problem that your product
is supposed to address.
56. Customer Jobs to be Done
• The focus should not be on what products customers want,
ask them instead what jobs they’re trying to get done.
• Example: If Henry Ford had asked a customer what they wanted,
they probably would have said “a faster horse”.
• Customer jobs to be done last, products don’t.
• Example: Remember cassettes? Vinyl discs? These products have
mostly disappeared, the customer job to be done has not.
57. Customer Jobs to be Done
Functional
• Tasks the customer
is trying to get done
• Examples
• Sleep while
traveling
• Mowing the lawn
Social
• How customers
want to be
perceived by others
• Examples
• Staying at a nice
hotel to impress
clients
• Buying trendy
clothing
Emotional
• How the customer
wants to feel
• Examples
• Feeling save while
traveling
• Peace of mind
when investing in
stocks
58. Gains and Pains
• Gains: the benefits which the customer
expects and needs, what would delight
customers and the things which may
increase likelihood of adopting a value
proposition.
• Things that will make me HAPPY while
accomplishing the job
• Example: When trying to quench my thirst
(job), some gains might be that I want to
consume something that is healthy and
perhaps I want it to be portable
• Pains: the negative experiences,
emotions and risks that the
customer experiences in the
process of getting the job done.
• Things that will make me FEEL BAD
when accomplishing the job
• Example: When I’m trying to see a
doctor, some of the pains might be
having to travel to the doctor’s
office and the waiting time
61. Additional Readings
• Customer Gains
https://strategyzer.uservoice.com/knowledgebase/articles/119
4394-how-do-i-add-customer-gains-to-my-value-propositio
• Customer Pains
https://strategyzer.uservoice.com/knowledgebase/articles/119
4406-how-do-i-add-customer-pains-to-my-value-propositio
• The B2B Elements of Value
https://hbr.org/2018/03/the-b2b-elements-of-value
65. Qualitative vs. Quantitative Data
Qualitative Data Exploratory Research
Quality and variety of data
matter most
Quantitative Data
Descriptive & Causal
Research
Statistical significance and
reliability matter most
66.
67. Would you look for qualitative or
quantitative data?
1. You want to find out how your customer decides which product they
will choose in a store.
2. Sales have dropped significantly for your product recently; you are quite
certain that the reason is either due to the sales service, after-sales
customer service, the price, or maybe something else.
3. You want to find out what your customers think about your recent store
display during Christmas.
4. You want to find out parents’ preferences when they select a music
school for their children.
5. You want to find out if having a seniors discount will make elderly
consumers more likely to visit your store.
69. Qualitative Data Collection Methods
Depth Interviews
• One-on-one, open-
ended interviews to
explore a research
topic in-depth
• Biggest issues are time
and cost
Focus Groups
• A group of individuals
brought together to
discuss the research
topic
• Biggest issue is
groupthink
Ethnography
• A type of observation
where you watch
someone in their
natural environment
• Biggest issues are time
and privacy
• https://bit.ly/2Y2a9PA
70. Qualitative Data
• Consists of text, audio, image or video data.
• Used when you know very little about a topic, product, market, or to generate
new ideas, to understand behaviour, get into people’s heads
• Researchers seek to understand research participants rather than fit them into
predetermined categories with little room for qualifying or explaining their choices.
• The biggest challenge of qualitative data is analyzing it:
• The data gathered is unstructured
• The problem is unclear so we the research doesn’t always know what they’re looking for.
It thus may uncover unanticipated findings and reactions
• Data might be naturally occurring or collected from respondents answers to
open-ended questions from researchers.
73. Depth Interviews
• The typical setting for this type of interview is either the
respondent’s home or office, or some type of centralized
interviewing center convenient for the respondent.
• The interviewer uses probing questions to elicit more detailed
information on the topic. By turning the respondent’s initial
response into a question, the interviewer encourages the
respondent to further explain the first response, creating natural
opportunities for more detailed discussion of the topic.
• The general rule is that the more a subject talks about a topic, the
more likely he or she is to reveal underlying attitudes, motives,
emotions, and behaviors.
74. Depth interview advantages over focus groups
The major advantages of in-depth interviewing over focus groups
include:
Rich detail can be uncovered when focusing on one participant at a time
Lower likelihood of participants responding in a socially desirable manner because there are
no other participants to impress (groupthink)
Less cross talk that may inhibit some people from participating in a focus group
75. Depth Interviews – Common Uses
• Used when:
• the research issues are unknown (exploratory research)
• exploring a customer’s issues, attitudes, motivations
• a process needs to be described in detail (Example: Doing groceries)
• complex explanations are expected or deep understanding is required
76. Common situations where depth interviews
are used in Marketing Research
Customer Satisfaction
Surveys
Understanding a market
structure
Product Testing
Needs assessment and
identifying unmet needs
Advertising research
77. Principles of Depth Interviews
Around 10-30 are required to draw conclusions about a topic
Each interview usually lasts at least 20 minutes (up to 1 hour)
Face-to-face interviews are usually preferred due to non-verbal communication
Recording the interview is highly recommended (ask for permission)
Use mostly open-ended questions
79. Creating a Discussion Guide
1. Introduction (purpose, how the interview will work, how long,
consent, right to stop, permission for recording)
2. Warm-Up Questions
3. Main Body of the Interview
4. Thanks and Closing
• Be sure to leave yourself some flexibility and backup questions…
some people talk a lot while others are more reserved
80. Probes & Prompts
Probe Prompt
Something that encourages the
respondent to go deeper into their
thinking & explanation
A keyword to move the interviewee in a
specific direction
“And what do you think about that?” “What are your thoughts on XXXXXX?”
“Can you walk me through that experience?” “Can you tell me about XXXXX process?”
“What more can you tell me?” “What about XXXXX?”
“Why do you think that is?”
81. Example Mini Interview
Goal: Better understand the flight
booking process.
(what are some of the probes &
prompts that I used?)
83. Tips & Tricks
• Always listen, let the interviewee lead the conversation
• Have a clearly flowing Discussion Guide but be open
• Facilitate a permissive tone (mom approach)
• Demonstrate engagement with the respondent
85. What is a Focus Group?
https://www.youtube.com/watch?v=3TwgVQIZPsw
86. Focus Group
• Involves bringing a small group of people together for an interactive and
spontaneous discussion of a particular topic or concept.
• Typically consist of 5 to 10 participants who are guided by a professional
moderator through a semi-structured discussion that most often lasts
about two hours.
• By encouraging group members to talk with each other in detail about a
topic, the moderator draws out as many ideas, attitudes, and
experiences as possible about the specified issue.
• The fundamental idea behind the focus group approach is that one
person’s response will spark comments from other members, thus
creating synergy among participants.
87. Focus Group
• The participants should have some things in common (Example:
testing attitudes towards a website requires the participants to
have all visited the website)
• Discussion topics are carefully selected in advance
• Venues should be small, intimate, have technology to record audio
and/or video (always ask for permission), and be accessible to the
participants
• Companies will often conduct multiple focus groups to establish a
greater consensus
88.
89. Most Important Elements of a Focus Group
• Remember to invite more than you need (at least 2x) as not all invitees will attend
1. Recruiting the right participants
• Moderators can use many visual and auditory props during the focus group
including websites, products, videos, ads, etc.
• Should steer the discussion, provoke responses or ideas when discussion stalls,
and draw out responses from quieter participants
2. A skilled moderator
3. A well-designed discussion guide
91. Data and the BMC
Every element of the business model
needs to be supported with data! Start
thinking about how you can find data to
test every single item you place in each
and every single box of your
Business Model Canvas
Until you do… it’s just a hypothesis…
97. Consumer Behaviour
• Definition: A discipline dealing with how and why consumers
purchase (or don't purchase) products and services.
• Consumer behavior is the study of individuals and organizations and
how they select and use products and services. It is mainly concerned
with psychology, motivations, and behavior.
Sources: Quester et al., 2014 & https://www.brandwatch.com/blog/how-understand-influence-consumer-behavior/
101. Key
Takeaways
Problem Awareness
& Need Recognition
Information Search
Evaluation of
Alternatives
Purchase Decision
Post-Purchase
Behaviour
Needs: Felt deprivations
Stimulus can be external or internal
• Search can be internal AND external (Example: past
experiences vs. Google search online)
• External sources can be controlled by the company, or
uncontrolled (Example: online reviews)
Some products are acceptable, others we deem are not. Some
are overlooked in the process.
The purchase decision is only an intention (things can get in the
way even when you decide what to purchase)
The person making the purchase isn’t always the end user
Cognitive Dissonance: Feeling of regret associated with
purchases we make due to opportunity cost
102. Case Study – Home Depot in China
• Why Home Depot Failed In China
https://www.youtube.com/watch?v=d7QxeBwWXvY
• Discussion Questions
1. Which consumer influences played into Home Depot’s failure to appeal to
Chinese consumers?
2. Why do you think Home Depot opted to use the same marketing strategy in
China as they do in North America? What could they have done differently?
103. Impact of Culture of Consumer Behaviour
• Influences our preferences
• Acquired from our experiences and learning
• Supplies the boundaries for behaviour in modern societies
• Consumers are seldom aware of cultural influences.
When bringing a product to a foreign market, you must re-assess the needs,
behaviours, and decision-making process of your international customer.
105. Involvement and Consumer Buying Decisions
Consumers engage in two types of buying process/decisions depending
on their level of involvement:
1. extended problem solving for high-priced, risky, infrequent, or
highly expressive purchases
2. limited problem solving, which includes impulse buying and
habitual purchases/decision making.
108. Market Segmentation
• Definition: Market segmentation is the process of dividing a market
of potential customers into groups, or segments, based on different
characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share
traits such as similar interests, needs, or locations.
Source: https://trackmaven.com/marketing-dictionary/market-segmentation/
109. Why bother segmenting?
• Buyers tend to select products that are careful crafted to meet their
personal requirements
• Companies can cut through the clutter in the market with a specific,
targeted message through relevant channels
• Companies can choose segments that are most profitable to them
• Serving specific parts of the market can lead to a competitive
advantage when no other competitors are serving those customers
• Segmentation drives innovation as it forces companies to meet
requirements of subsets of the population.
110. Segmentation
in Practice
• Companies can
serve multiple
segments with
the same or
similar value
proposition.
• They don’t need
to serve all
segments
either!
111. Bases of Segmentation
Geographic Demographic
Psychographic Behavioural
Most companies use hybrid
segmenting which involves
combining several bases of
segmentation
112. Bases of Segmentation - Explained
Main Dimensions Variables Typical Breakdowns
Geographic segmentation
Region
City or census metropolitan
area (CMA) size
Density
Climate
Atlantic, Quebec, Ontario, Prairies, British Columbia
Under 5,000; 5,000–19,999; 20,000–49,999; 50,000–99,999; 100,000–249,999; 250,000–499,999; 500,000–999,999;
1,000,000–3,999,999; 4,000,000+
Urban; suburban; rural
East; West; Cold
Demographic segmentation
Age
Gender
Family size
Life stage
Birth era
Marital status
Income
Occupation
Education
Race
Home ownership
Infant; under 6; 6–11; 12–17; 18–24; 25–34; 35–49; 50–64; 65+
Male; female
1–2; 3–4; 5+
Infant; preschool; child; youth; collegiate; adult; senior
Baby Boomer (1946–1964); Generation X (1965–1976); Generation Y (1977–1999); Generation Z (2000+)
Never married; married; separated; divorced; widowed
Under $10,000; $10,000–$19,999; $20,000–$29,999; $30,000–$39,999; $40,000–$54,999; $55,000–$74,999; $75,000+
Professional; managerial; clerical; sales; labourers; students; retired; housewives; unemployed
Elementary school or less; some high school; high school graduate; some university; university graduate
White; Black; Asian; Native; other
Own home; rent home
Psychographic segmentation
Personality
Lifestyle
Social Class
Extroverted; introverted;
Grads & Pads; Fresh Air Families; Our Time
Lower-class; middle-class; upper-middle class; upper-class
Behavioural segmentation
Benefits sought
Usage rate
User status
Loyalty status
Quality; excellent service; low price; convenience
Light user; medium user; heavy user
Non-user; ex-user; prospect; first-time user; regular user
None; medium; strong
113. Evaluate the Following Segments
Mothers living in suburban
areas who enjoy shopping at
large malls on a weekly basis.
Young professionals aged 24-30
working in office jobs & who
are thinking about starting a
family within the next 3 years.
Fashionable, eco-conscious
individuals who live in colder
climates.
Students aged 18-25 working
part-time jobs who are
working out at least 5 days per
week.
115. Market Targeting
• We cannot serve all segments well
• Companies must pick the ones that they can serve best, that is, create
the most value for. This is called marketing targeting.
• Some companies choose to target many segments (mass marketing)
while others focus on fewer, specific segments (niche marketing).
116. Five Tenets of Successful Segmentation
Segment Distinctiveness
Segment Recognition
Segment Durability
Segment Size (not too small OR too big!)
Actionable Segments
117. Example: Nike Target Markets
• Young athletes: Kids who get frequent exercise and play
sports growing up are a huge, growing category for Nike.
Nike engages with this market through sports leagues and
associations and with endorsements from popular sports
stars like LeBron James.
• Runners: With a focus on new types of shoes, Nike shows
they target not just based on demographic information
(age, location, career) but also based on lifestyle. Nike
launches shoes and apparel designed to help the avid
runner stay on the road a bit longer.
118. Personas
• A biography of your
ideal customer
• Allow a company to get
a better picture of who
exactly their customer
is, what their pain
points are relative to
your company, and their
consumer behaviour
Source: https://www.highervisibility.com/blog/creating-buyer-personas/
122. Market Demand and Market Potential
• A product will appeal to many people, but not all will buy. Companies
must focus on the ones for whom they can create the most value.
• The total market demand for a product or service is the total volume
that would realistically be bought by:
• A defined consumer group
• In a defined geographic area
• In a defined time period
• In a defined marketing environment
• Under a defined level and mix of industry marketing effort.
• The upper limit of market demand is called market potential or total
available market (TAM).
123. How to calculate market potential and
estimate sales for your product?
• Assume that your product is Tennis racquets for children aged 7 -12.
• You sell one size of racquets for this age group.
• There are 50 tennis clubs in Montreal.
• There are 100 private schools that have a tennis club for this age group.
• Each tennis club or school has 10 children per team on average.
• There are 2 competitors in the market. They sell tennis racquets to these
clubs at high prices.
• What is the market potential?
• How many racquets do you expect to sell?
• When do you expect to make your sales?
Is there additional
information that you
need to consider??
124. Market size estimation
Total Available Market
(TAM)
Served Available Market
(SAM)
Target Market
• The total volume or value of a particular
offering sold in the market in a given year
at a given point in the supply chain.
• The part of the market (TAM) that can be
served with the company’s existing sales
channels and capacity.
• The part of the SAM that the company
wants to serve and that would gain the
most value from the company’s offering.
125. Total Available Market (TAM)
• Your product will have 1 single TAM. This is the “perfect world” calculation – if
everyone in the market buys, how many units does my company stand to sell?
• Usually closely linked to the population of the area you are targeting.
• Example: A cell phone manufacturer’s TAM is the number of Canadians who
need to communicate with others at a distance
• Sources:
Industry and
government data
Online research
126. Served Available Market
• Ask yourself, how many people really need YOUR product in particular?
How many people would buy your specific product?
• Economics comes into play here – customers need to be able to afford
your product.
• Sources:
Talking to customers to know
who will benefit most and be
able to afford your product
Online research, forums, online
communities
127. Target Market
• From there, you may use several bases of segmentation to narrow
down your segments into a specific target market. These are the
people that the company will focus on for the first 1-3 years.
• Determines how much money you stand to make through your
expansion (multiply by the average selling price to determine sales
projections).
128. Steps to Market Size Estimation
1. Understand the problem you solve to customers and the potential value
your product generates for them
2. Create a profile of your expected target customer
3. Estimate the number of target customers that exist (Quantify your market)
4. Set your sales objectives taking into consideration:
• The frequency of purchase (per day, month, year)
• Your capacity to sell the product (distribution and logistics, promotion)
• How much time you need to convert marketing efforts into actual sales?
• Example: every 10 sales calls will lead to 2 purchases, therefore the conversion rate is 20%
129. Steps to Market Size Estimation
5. Determine your penetration rate of your category of product.
• The penetration rate is high if product is a basic necessity or mandated
through regulations (e.g. children’s car seats)
• The penetration rate is low if the product has a specialized purpose
6. Calculate your potential market size in volume and value
• Market volume = number of target customers x penetration rate
• Market value = market volume x average value (expected price)
• Think of best case and worst case scenario
130. New Products - Rate of Adoption
• Once you determine your target market, you must keep in mind that you will
not see 100% of those customers rushing to buy your product the minute
your enter the market on Day 1.
• Marketers have observed trends in the speed at which customers will accept
and choose to acquire new products. This is referred to as rate of adoption.
• Different products and industries have different rates of adoptions (may be
longer or shorter)
• Considering the rate of adoption allows for a more realistic spread and growth
of projected sales across the first few years of the international expansion.
131. New Products - Rate of Adoption
https://www.slideshare.net/jejeve/rate-of-adoption
133. The Gatekeeper
• Jenny wants some
cotton candy…
• Is she the consumer
that the cotton candy
stand should be
targeting?
134. Gatekeeper Marketing
• Gatekeepers are anybody who is the actual decision-maker, influencer, or
person who can block the purchase.
• In some situations, you can get around the gatekeeper altogether.
• Example: Providing students with a really flexible payment plan for a car so that they
don’t need to ask their parents for help
• In other situations, you will need to simultaneously market to the gatekeeper
and the end user of the product.
• Gatekeepers are most common in B2B sales.
137. B2B Segmentation Variables
• Unlike consumer markets, B2B buying situations see companies
represented by key account managers or buying centers.
• It’s important to separate the personal views of the individual buyer
from the views and attitudes of his/her company.
• Similar segmentation bases can be used:
• Demographics become firmographics
• Geographic variables remain the same
• Psychographic and behavioural variables are related to the company’s
objectives, policies, internal culture
140. Additional readings
• How to estimate market size
https://learn.marsdd.com/article/how-to-estimate-market-size-
business-and-marketing-planning-for-startups/
• 6 real-life target audience examples to help you define your own
(B2B and B2C)
https://www.brafton.com/blog/strategy/6-real-life-target-audience-
examples-to-help-you-define-your-own-b2b-and-b2c/
146. Channels in the BMC
• Definition: Channels describe how your company communicates with and
reaches your Customer Segments to deliver your Value Proposition. They
are the main ways that your customers interface with your company.
• Your channels can be direct or indirect
• Your channels can be physical or virtual
• Ask yourself: Where will the customer go when they want to buy my
product or interact with my company?
Sources: https://strategyzer.uservoice.com/knowledgebase/articles/1194376-how-do-i-use-the-channels-
building-block-of-the-bu
147. Channels in International Market Studies
• Customers in different markets go about acquiring products in
different ways. Preferences and habits often differ locally and may be
influenced by many factors such as culture, economics, geography,
and infrastructure.
• Understanding these buying habits particularly helps when
developing the Place and Promotion elements of a company’s
marketing mix.
148. Purpose of Channels
Raising awareness
among customers about
a company's products
and services
Helping customers
evaluate a company's
Value Proposition
Allowing customers to
purchase specific
products and services
Providing post-purchase
customer support
Sources: https://strategyzer.uservoice.com/knowledgebase/articles/1194376-how-do-i-use-the-channels-
building-block-of-the-bu
149. Direct vs. Indirect Channels – Cost Perspective
SP = $100
Discount
Profit
Sales, General &
Administrative Expenses
Cost of Goods
Sold (COGS)
DIRECT
SP = $100
Discount
Profit
Sales, General &
Administrative
Expenses
Cost of Goods
Sold (COGS)
INDIRECT
Retailer
Margin
154. Customer Relationships in the BMC
• Definition: How you are going to:
• GET (acquire new customers)
• KEEP (retain existing customers)
• GROW (increase sales to existing customers)
• Relationships are established through the previously defined channels – that is,
everything should be interconnected
• Example: If customers look for information about yoga mats online in your market, you may
consider building an online forum for yogis if your research shows that these customers are
looking for a sense of community.
• Relationships can range from personal to automated, from transactional to long-
term. The type of Customer Relationships you put in place deeply influence the
overall customer experience.
Sources: https://strategyzer.uservoice.com/knowledgebase/articles/1194373-how-do-i-use-the-customer-
relationships-building-b
155. • The total amount of money a customer is expected to spend in your
business, or on your products, during their lifetime as your customer.
Customer Lifetime Value
Sources: https://clevertap.com/blog/customer-lifetime-value/, https://www.shopify.ca/encyclopedia/customer-lifetime-value-clv
159. Case Study – Best Buy
• Why Best Buy Failed In The U.K.
https://www.youtube.com/watch?v=0RJL8APHgbk
• Discussion Questions
1. Even though Best Buy understood that high quality customer service would
help them to acquire more customers, why did their stores ultimately fail?
2. What could Best Buy have done had they better understood customer
channels in the UK for their product/value proposition?
164. Quantitative Data Collection Methods
Face-to-Face Interviews
• Traditional way of asking
people questions in public
• Very costly and time-
consuming to perform
Telephone Interviews
• Studies show that a phone
interview can yield the same
amount of data as face-to-
face in half the time.
• Still only represent about
10% of all interviews done
for market research.
Online Surveys
• Referred to as self-
completion surveys when
they are not monitored in
real-time
• Most common quantitative
data collection method
today
Unlike qualitative data collection, these methods usually involve at least 200 respondents,
though can easily be in the 1000s for B2C studies. B2B surveys may be fewer than 100.
165. Reasons for using Quantitative Data
To guide decisions about the 4 P’s (Example: how much are you willing
to pay, how often do you shop for a product online vs. in store)
To segment a market (break it down into smaller pieces) by asking
different groups if they would be willing to buy a product
To justify business models and strategies – the numbers don’t lie!
167. Surveys
• Surveys are structured sets of questions (questionnaires) that
are distributed to respondents to gain market insights.
• They help to:
1. Facilitate extraction of data from respondents in a structured way
2. Provide structure to the way data is collected
3. Facilitate data analysis
168. 3 Types of Questionnaires
Phone
Questionnaires
• Automated or human
Face-To-Face
Questionnaires
• An interview
Self-Completion
Questionnaires
• Physical or online
169. Open vs. Closed Ended Questions
Open-Ended Questions
• Harder to analyze the data
• Harder to answer for respondent
• Often results in low quality when
administered via survey
• Better for exploratory research
Closed-Ended Questions
• Must provide all possible options
• Easier to analyze the data
• Easier and faster for respondents
• Wording is critical
170. Types of Questions for Surveys
Behavioural
Questions
Attitudinal
Questions
Classification
Questions
171. 1. Behavioural Questions
DESCRIPTION
• Asks who, what, where, why, when, how much
• Based on past experiences, facts
USED FOR
• Defining the market & segments
• Awareness & usage of a product
Example:
What type of
questions might be
asked about a person’s
experience at the
movie theatre?
172. 2. Attitudinal Questions
DESCRIPTION
• Help to uncover opinions about a topic
• Asks respondent to share emotions, thoughts, logic
• Can sometimes involve showing them images or pictures
USED FOR
• Uncovering thoughts and opinions on a topic
• Determining their knowledge of a product (useful for promotions)
173. 2. Attitudinal Questions - Example
• Rank the following airlines in
order from most memorable logo
to least memorable logo
• What are some of the issues with
attitudinal questions?
174. 3. Classification Questions
DESCRIPTION
• Asks about age, gender, income, occupation,
marital status, and other demographic info
• Helps to group respondents together
USED FOR
• Building customer profiles
Example:
Which of the following
age groups do you
belong to?
175. Common Classification Questions
FOR B2C
• Marital Status (Single, Married,
Widowed, Divorced, Separated)
• Socio-Economic Grade or
Income Level
• Location
• Gender
• Age
FOR B2B
• Industry Verticals
• Number of Employees
177. 1. Numerical Scales
• Most common scales are 5 or 10
• 1 usually means low agreement, 10 is high agreement
178. 2. Likert Scales
• Uses words to categorize attitudes
• Most commonly provides 5 options
• Should be balanced on both sides
• Strongly Agree, Somewhat Agree, Neutral, Somewhat Disagree, Strongly Disagree
• Very Likely, Likely, Neutral, Unlikely, Very Unlikely
• Very Important, Important, Neutral, Low Importance, Not At All Important
179. 2. Likert Scales
• Can also be
clustered
together for
several
questions
180. 3. Osgood Scales
• Allows
respondent to
pick options
freely along a
spectrum
181. 4. Ranking
• Asks respondents to rank
their order of preference
or importance for a given
topic
183. Tips for Building Questions
Ensure that the
questions aren’t
biased
Ask 1 thing at a time
(simple)
Make questions
specific
Avoid jargon &
technical words
Frame questions
positively
Do not ask questions
outside the frame of
reference of the
respondent
Make sure response
bands are sequential
and don’t overlap
Include ALL possible
answers in scales!
184. What’s wrong with these questions?
• How short was Napoleon?
• Where do you enjoy drinking beer?
• Where do you like to party?
185. What’s wrong with these questions?
• How satisfied or dissatisfied are you with the pay and work benefits
of your current job?
• How much did you spend at your last movie outing to the cinema?
186. What’s wrong with these questions?
• Which age group do you belong to?
• 18-24
• 24-30
• 30-34
• 34-40
187. Poorly Worded Surveys is a Market Research Sin!
• https://twitter.com/badsurveyq?lang=en
189. Order & Flow of Questionnaire
Start with a Survey Introduction
Move on to 1-2 easy questions
Don’t cluster open-ended questions together
The order should glow logically from topic to topic
190. Survey Introduction
• Your introduction must state the following elements:
1. Purpose of the Survey and who commissioned it
2. Importance of the answers (critical to your success)
3. Time it takes to complete (and re-assure respondent that it will be easy)
4. Confidentiality and privacy of answers
5. Ability to stop at any time
6. Instructions, next steps, contact information, and thanks
191. Survey Introduction - Example
We're conducting research on customer attitudes and experiences at movie
theatres in Montreal. Your answers are critical in making your movie-going
experience all the more exciting. The survey should only take 5 minutes to
complete. Your responses are completely anonymous and the data will only
be reviewed by our team. You may feel free to stop responding to the survey
at any time at which point your answers will be discarded.
You can only take the survey once, but you can edit your responses until the
survey is closed on May 28, 2020. Questions marked with an asterisk (*) are
required. If you have any questions about the survey, please email us:
youremail@email.com. Thank you for your time!
192. Steps to Building a Questionnaire
1. Brainstorm and formulate the questions that need to
be answered
2. Arrange the questionnaire layout
3. Test the questionnaire to make sure it works in
terms of flow, logic, and sense
194. Online Surveys
• Know that there is inherent bias – you will only get people who are
tech-savvy and spend more time online
• People have short attention spans and will not complete long
questionnaires. Open-ended questions are notoriously hated and the
data gained is often short + not useful.
• May result in some fake data
• Specialized market research companies known as panel research exist
that can administer surveys for companies (at a fee)
• These companies have better access to respondents who may be incentivized
to answer or at least have agreed to participate in market research
195. Online
Surveys:
Pros &
Cons
Pros
• Relatively inexpensive,
even if outsourced to a
panel company
• Quick to carry out
• Do not require huge
resources
• Easy to conduct
international research
in foreign markets
• Especially high response
rates for staff and
customer surveys
Cons
• Perceived as spam
if the user has not
previous agreed to be
contacted (unsolicited),
especially if email list
was purchased from a
list broker
• Differing privacy laws in
different markets
• Need to translate to
different languages if
working internationally
196. Online Surveys
The Gold Standard for Surveying
• https://www.surveymonkey.com/
Cheap, DIY alternative
• https://docs.google.com/forms/
For the future, Google Surveys allows
you to collect data for a very small fee
(not recommended for your project)
• https://surveys.withgoogle.com/
197. CAUTION: Test your survey!
Once you’ve complete your survey, test it
out on someone once to see what type of
data you get! Also do it once yourself so
that you know exactly how long it takes to
complete it (for your survey introduction)
199. Sampling
• Remember, the goal is to establish statistical significance so that we
can rely on the data.
• Studies show that once 30 people have been asked an open-ended
question, all possible answers have been received
• When establishing a sample, we are looking to establish 95%
certainty, in other words, a 5% margin of error.
• Some sampling methods are random and others are more structured
to divide the sample into categories
200. Random Sampling
Pros
• Sampling error can be
calculated
• Said to be more
representative of the
population
Cons
• Costly and time-
consuming
• Non-response rates are
increasing
• Increasingly difficult to
find people due to do-
not-call lists, privacy laws
• Everyone in the
entire population
has an opportunity
to be chosen.
201. Quota Sampling
Pros
•Lower cost and easier to conduct
•Addresses most of the problems
with random samples being
increasingly unable to access the
respondents
Cons
•Potential for bias and less likely
to survey less accessible
individuals
•Sampling error cannot be
calculated
•The percentage of respondents
required for a subgroup may
meet the sample needs but be
too small to generalize about the
population
• A non-random method
where the population is
broken down into subsets
(such as income or
gender) and a
representative number of
respondents is found for
each one
• This method is more
common in market
research
202. Sample Size and Margin of Error
• It doesn’t matter what percentage of the population you sample,
what matters more is absolute size
• Example: Once 2,000 Americans are asked if they eat breakfast, the result will
be within 2.2% of what would have been discovered if the entire population
of 320 million was asked.
• In reality, market research rarely requires extremely high confidence
• Ultimately, the sample size depends on the purpose of the research
203. Sample Size and Margin of Error
• Based on statistical probability, a
pattern will start to emerge at 30
respondents.
• By 200 respondents, variability usually
fluctuates within 10%.
• By 2,000 respondents, the margin of
error is usually less than 5%.
• This means that there are diminishing
returns as the sample size increases
204. B2B Sampling
• There is no universal standard for
B2B sampling.
• It’s important to survey all of the top
companies since in most industry,
the top players usually make up at
least 80% of sales (known as the
Pareto Principle or the 80-20 rule)
• Major concern is the respondent
may not be the decision-maker in
the business – it’s easy to contact
the company, hard to find the
decision-making unit
205. Generalizability
• Generalizability: the degree to which the results
of a study can be applied to a larger population,
or the degree to which time- and place-specific
findings can be applied to an overall theory.
• A data set’s generalizability depends heavily on
study design and sampling methods.
• Another way to determine generalizability is if
the data can be replicated.
Source: https://www.iwh.on.ca/what-researchers-mean-by/generalizability
206. Representative
Samples
• To be able to rely on the data collected,
the people who were surveyed must
adequately represent the population
that you are trying to generalize for.
• If not true, the data cannot be
generalizable!
207. State Your Sampling Strategy!!
You MUST be clear about your sample
size and method in your market study.
Remember, we can only rely on data if
it is representative and well collected.
213. Information Available
• The macroenvironment (legal, political, culture, demographics, etc.)
• Market structure and size (used to determine your target market)
• Suppliers and brands
• Distribution and retailing
• Product information
• Trends in the market
• Size of the industry (in dollars / sales) and forecasts
215. Case Study – Plant-Based Milk
• How Plant-Based Milk Flooded The Market
https://www.youtube.com/watch?v=ZWZunDfbPk8
• Discussion Questions
1. Which trends have contributed to the decline of milk sales in the US?
2. Could these trends impact seemingly unrelated products, like cookies or
salad dressings?
3. How should a foreign dairy product company looking to potentially enter
the US market interpret these trends?
217. 5 Forces Analysis
Competitive
rivalry
Threat of
new entry
Buyer
Power
Threat of
Substitution
Supplier
Power
Purpose of this analysis
is to determine if the
industry is attractive and
profitable.
218. 5 Forces Analysis
Threat of New
Entry
How easy is it for new companies to enter the market?
HIGH – Easy to set up shop
LOW – Laws, setup costs are high, few new competitors
Buyer Power Can the customers put pressure on the firms?
HIGH – Lots of choice, very sensitive to price
LOW – Something they need, no choice but to buy from you
Threat of
Substitution
Are there other products that can be bought instead of the ones in your industry?
HIGH – Your product is one of many alternatives
LOW – Your product is unique and irreplaceable
Supplier Power Can your suppliers control prices and put pressure on your ability to produce?
HIGH – You need to buy from them
LOW – You can switch suppliers easily
Competitive
Rivalry
HIGH – Lot of innovation, advertising, price wars
LOW – Few competitors, little advertising
220. Where to begin
• Make a research plan. The most ineffective way of collecting secondary
data is to begin searching without a strategy. Break up the topics and
divide the work.
• Establish your NAICS code (if doing business in North America) -
https://www.naics.com/search/
• NAICS codes were originally developed for statistical analysis, however,
various government agencies, trade associations, and regulatory boards
have adapted the NAICS classification system for their internal needs.
221. Sources of Secondary Data
Internet
Search
Trade
Associations
Government
Data
Market
Research
Reports
Industry
Experts
The Press Company Data
LinkedIn and
Directories
Social Media
1 2 3 4 5
6 7 8 9
222. Internet Search – Advanced Tips
If you are having trouble finding what you’re looking for
• Try synonyms of a word
• Consider different ways of spelling the same word
• Take a step back – you may need to find aggregate
data and process it yourself
• Use quotation marks to narrow your search
• Use advanced search for specific government sites,
regions, and file formats
1
223. Internet Search – Advanced Tips
• https://www.google.ca/advanced_search
224. Government URLs and Domains
Government Domain
Municipal montreal.ca | toronto.ca | vancouver.ca
Provincial .gouv.qc.ca | .gov.on.ca
Federal .gc.ca (Canada) | gov (USA)
International .un.org | wto.org
225. Trade Associations
Definition: Organization whose members are involved in a
particular business or trade, such as retail and wholesale,
fabrics, food stuff, transportation.
Other terms may include council and committee
2
Source: http://www.businessdictionary.com/definition/trade-association.html
226. Trade Associations - Tips
1. Start with the About Us page to really understand what and
who they represent
2. Check their news and articles if available (you can use Google
advanced domain search if they don’t have a search bar)
3. See if they have any upcoming events → this gives you
competitors, trends, industry priorities
227. Trade Associations – Evaluating Info
Is there any bias in the
information provided by
trade associations?
228. Government Data
• Most governments provide publically available census and
industry data via their websites or a separate agency dedicated
to statistics & record-keeping.
https://www.statcan.gc.ca/eng/
• Census: an official count or survey of a population, typically
recording various details of individuals.
3
229. Government Data - Uses
• Government data is great for defining your market size
(size of your segments)
• Industry data can be used to determine if an industry is
growing or declining
• Government data tends to be less biased than company
and trade association data (depending on the country)
230. Market Research Reports
• Market research firms publish industry reports and articles
• Often require subscriptions or payment to access the full
reports (several hundred dollars)
• You can sometimes find some basic data for free
4
https://www.ibisworld.ca/ https://www.euromonitor.com/
231. Industry Experts
• Secondary Data Collection isn’t limited to online research…
sometimes you just need to ask an expert!
• Be sure to transcribe the notes from your chat
• You should always cite experts in written reports – they are a
source just like anything else you find online.
5
232. The Press
• News outlets can be used to get both local insights and
international updates
• Sometimes there are limits (go incognito)
6
https://www.ft.com/ https://www.forbes.com/
https://www.economist.com/
https://qz.com/
https://www.bloomberg.com/businessweek
233. The Press - Canada
https://business.financialpost.com/
https://www.theglobeandmail.com/
https://www.ctvnews.ca/
https://www.cbc.ca/news
234. Company Data
• Company and competitors websites often have news articles
and reports available
• Public companies must file their financial statements – this is
a good source of information and comparable data
• Edgar database: www.sec.gov
7
235. LinkedIn and Directories
• LinkedIn is a great way to find experts or determine the
organizational structure of a company
https://www.linkedin.com/
8
236. Social Media
• Use social media to gather consumer insights and feedback
about hot topics, competing products, and general opinions
• Reddit is a great source for opinions
https://www.reddit.com/
• Facebook groups are a great way to find specific niche data
9
238. Unpredictability
• There is no certainty that the information available through
secondary sources will answer the research questions
• Some information is not commonly available – attitudinal data
such as opinions on services, products, and customer views are
often harder to find.
• Secondary data is not always free
239. Confirmation Bias
• Definition: the tendency to process information by
looking for, or interpreting, information that is consistent
with one’s existing beliefs
• A better strategy is try to prove yourself wrong!
• Ensure that your search terms are not leading
• Example: Searching “Coffee industry sales in Canada” vs.
“Coffee industry growing in Canada”
240. Establishing Credibility
• Many sources online are not sufficiently referenced
• If an article or website is stating facts:
• Look for references in the footnotes, trace back to the original article
• If there are no references, ask yourself… could this website or author
have come up with this data on their own?
• Example: Is this credible?
https://articles.mercola.com/sites/articles/archive/2016/01/21/b
enefits-essential-oils.aspx
246. Competition
• Definition: A company in the same industry or a similar industry
which offers similar value, products or services.
• Example: Who are McDonald’s competitors?
http://www.businessdictionary.com/definition/competitor.html
Direct Competitor
• Company that is offering the same
product or service with the same or a
similar value proposition
Indirect Competitor
• Company offering a different product or
service with a similar value proposition
(meets the same need)
247. Ask Yourself
• Who are our competitors?
• How are they solving the customer’s problems?
• What form should our product take to be different?
• How can we differentiate our offering and positioning?
• What type of revenues are being generated by competitors?
248. Competitor Analysis – Step-by-Step
1. Make a list of competitors
2. Categorize them as Direct or Indirect
3. Analyze each one in detail
4. Determine how you stand out against each of them
249. Tools to Analyze Each Competitor
SWOT
Analysis
4P’s
Analysis
Mission
Analysis
Financial
Analysis
250. Online Analysis Tools
Assessing Competitor Online Promotions
https://www.facebook.com/ads/library/
Learn about your competitors’ website
https://www.similarweb.com/
Trend Analysis
https://trends.google.com/trends/
253. Positioning
• Definition: The space a product occupies in a customer’s mind
• Your marketing strategy, including the 4Ps (product, price,
place, promotion), must reinforce the adopted positioning.
• Understand positioning involves not only the customer. Consider the
views of employees, shareholders, and other publics.
• In addition to using secondary data, primary and quantitative data
collection methods can be used to assess the strength of your
company’s brand and that or your competitors.
254. Using Positioning
Maps to See How
You Stand Out
1. Select two variables upon which to
evaluate the brands. These may include
price, product benefits or customer
perceptions.
2. Evaluate all competitors based on the
two chosen attributes.
3. Some positioning maps plot competitors
using circles that roughly represent the
market share of each competitor
255. Exercise – Positioning Map
• Create a positioning map for chocolate milk. Use the following variables:
• Perception of the product being a adult vs. childish drink
• High vs. low nutritional value
256. Differentiation
• Goal: To gain a competitive advantage
Product Differentiation
• The product is distinctly
different from its
competition
Service Differentiation
• The service offered is
unique, faster, more
convenient
Channel Differentiation
• The way the product is
bought by and delivered
to the customer is distinct
People Differentiation
• The staff is hired and
trained better than other
competitors
Image Differentiation
• The brand is more unique
and memorable than
competitors
257. Case Study – Toyota Land Cruiser
• Why The Toyota Land Cruiser Is Disappearing From America
https://www.youtube.com/watch?v=e8RUG1N32MA
• Discussion Questions
1. What is the value proposition of the Land Cruiser?
2. Why did Toyota Position the Land Cruiser, an off-road vehicle, as
an SUV? How did this impact its sales?
3. What impact did positioning the Land Cruiser as a higher-end
vehicle have on its sales?
258. Additional Readings
• What's a Competitive Analysis & How Do You Conduct One?
https://blog.hubspot.com/marketing/competitive-analysis-kit
• Mapping Your Competitive Position
https://hbr.org/2007/11/mapping-your-competitive-position
• How to Make a Perceptual Map using Excel
http://www.perceptualmaps.com/make-a-perceptual-map/how-to-make-
a-perceptual-map-using-excel/
• More Perceptual Map Examples
https://www.perceptualmaps.com/example-maps/
263. Analyzing Closed-Ended Questions
• Data tables should be presented
as percentages, but must always
include a base number
• This helps the reader to establish
statistical significance, accuracy,
and robustness of the survey
• Consider whether or not the
entire sample should be
presented.
264. Analyzing Closed-Ended Questions
• Different groups of people or
clusters can also be analyzed –
this is referred to as cross-
analysis
• Classification questions are the
basis for these groupings
265. Analyzing Closed-Ended Questions
• A typical way of presenting data
from scalar questions (e.g.
Likert, Osgood Scales) is using
mean scores
• Mean: Average of a distribution
• Standard Deviation: Amount of
dispersion around the average
• Standard Error: Smaller standard
error means the sample is more
representative of the overall
population.
266. Analyzing Closed-Ended Questions
• Weighting factors are
sometimes required if the
clustering of the sample is
not representative of the
population breakdown
• In this example, 50% of
respondents were tenants and
50% owner-occupiers, but in
reality the population is only
25% tenants and 75% owner-
occupiers!
267. Analyzing Open-Ended
Questions
• Answers should be grouped together
based on common responses.
• The groups and subsequent
categorization of responses must be
done by the researcher as only they
understand the full scope of the
problem and research objectives.
• The biggest challenge with open-
ended questions is misinterpretation
which lead to wrong conclusions
• An “other” category shouldn’t account
for more than 10% of responses
268. Analyzing Closed-Ended Questions
• Weighting factors are
sometimes required if the
clustering of the sample is
not representative of the
population breakdown
• In this example, 50% of
respondents were tenants and
50% owner-occupiers, but in
reality the population is only
25% tenants and 75% owner-
occupiers!
269. Data Validation Concerns
Using the wrong base size
• Example: Which category does
someone who rents 1 car but has a
2nd one that they bought fall into?
Response codes get flipped
• Example: scales of 1-10 or 10-1 lead
to opposite interpretations)
Mean score is affected by
outliers
• This is why a median is sometimes
required
Flatlining
• Respondents try to get through the
survey or interview quickly leading
to incorrect data
270. Additional types of analysis
• Multivariate analysis: Cross-analysis between two variables
• Example: Likelihood of purchasing a new car based on two variables –
whether they rent or bought the car and miles driven
• Can become the basis of hybrid segmentation
• Qualitative Data Analysis: Much more difficult due to variety of data
collected. There are very few software packages that can help with
this type of analysis.
• Semiotics: Use of signs, codes, and clues obtained in qualitative
research to obtain greater insights.
• https://www.youtube.com/watch?v=R7VA95JdbMQ
272. Rules for Written Reports
• Who will be reading the report?
• What knowledge do they have and what questions will they have?
Meet the Needs
of the Audience
• Introduction should start by painting a story – what is the opportunity?
Purpose? Methodology used?
• Body provides the facts, findings – sell it to me
• Conclusion clearly states the next steps – is it feasible to enter the market?
Get the Structure
Right
• Typos and poor grammar reduce credibility; be concise
• Hard to read reports discourage your audience
Writing, Checking,
and Editing
• Use headings and page numbers
• When in doubt, leave it out.
Make it Look
Good
273. Using Data Appropriately
•EVERY statement that you make in a market study
must be backed by sufficient data (whether
quantitative or qualitative, primary or secondary, or
some mix of these types of data).
•Any statement not backed by data is reason to doubt
the feasibility and validity of your market study
274. Structuring Paragraphs
•A standard paragraph in North American business
writing has 5-8 sentences at most.
•Descriptive Headings should be used whenever possible
to make the report easier to read
• Example: “Industry Trends: Growth expected over next 5
years” rather than simply writing “Industry Outlook”
•The more headings the better
275. Appendices
• Oftentimes, the appendices of a market study are longer
than the study itself
• Include all of your primary data collection including the
survey itself (not a link), the survey results, interview
transcripts or summaries, business model canvas
• Include any graphics or tables that don’t fit in the body of
the report; make sure they are properly referenced in the
body of the report.
• Every appendix must be referenced in the body of your
report… otherwise, why is it there?
276. Reporting Qualitative Data
Use quotes and
citations to spice
things up (especially
from primary sources)
Organize data into
charts and graphics
whenever possible
Avoid giant blocks of
text
277. Reporting Quantitative Data
Pie Charts
Horizontal Bar
Charts
Vertical Bar
Charts
Line Graphs Flow charts Tables
** Be sure that all charts and graphics are titled and
that all axes are labelled!! **
278. 3 Major Tips for Business Writing
Conciseness
• Being direct, to the
point, making the most
impact with as few
words as possible, short
sentences
Clarity
• Use simple words, avoid
jargon, stop trying to
find synonyms for
everything – there is no
need to make things
complex
Readability
• Leave wide, open spaces
in your text, use
headings, same font and
spacing throughout, and
use bullet points
wherever possible
279. Make these sentences more concise, clear
è Basically, there are different agencies that audit and support
the production and importation of agricultural products at the
same time these agricultural agencies are responsible for
conducting legal tests on seeds and crops and they are using
biotechnological test kits such as molecular purification,
extraction and diagnostic products in their test processes so
this is an opportunity for our company because the company
has already an expertise in this specific area.
280. Make these sentences more concise, clear
è However in India the unemployment rate according to Economic
Times is only 6 to 7% but the compensation offered to the youth is
not high and high-income jobs in Canada attracts them and
becomes a reason of them coming to Canada for the higher studies.
è When we start to check the possible competitors we realize that
the market in Canada is growing in this field, there are many
companies that cover fields close to the product, however there are
no structured companies with great capacity for logistics and large-
scale volume distribution.
281. Citing Secondary Research
• Any text, thought, or even an idea that came from another
source must be cited in your report
• Plagiarism is grounds for failing (and leads to serious
personal & legal consequences in the workplace)
• Main citation styles used in North America:
MLA APA Chicago
282. Chicago Style
Uses footnotes instead
of in-text citations
Has a Bibliography
section instead of
“references” or “works
cited” at the end of the
report
Makes business reports
easier to read without
in-text citations getting
in the way
287. Importance of Operational Feasibility
• Prior to an international expansion, companies must look at their
current operations and ensure that they have the capacity to take on
the massive increase in demand that comes with expanding abroad
• Even with the perfect product-market fit, a company can fail in a foreign
market if it cannot deliver the promised value proposition:
• To the targeted customer segment
• Using the specified channels
• While building customer relationships in a way that is meaningful to the segment
• In the quantity demanded by the customer
288. Failure to Deliver
• If a company fails to deliver on its promise to the foreign market, they
will likely suffer from a combination of the following:
Lost sales
Damage to brand
perception and
reputation
Disputes with
suppliers, partners,
local labour force
Inability to cover
costs
Operational impacts
domestically or in
other foreign
markets
289. Assessing Operational Feasibility
Steps to
assess
1. Analyze current domestic (or nearby) operations to determine
any excess capacity
2. List all of the key activities and resources required for the foreign
market expansion
3. Conduct a gap analysis – determine if/to what extent additions
need to be made to current operations (e.g. purchases, acquiring
assets, hiring, new procedures, new partnerships, etc.) to meet the
maximum demand of the selected target market
292. Key Resources vs. Key Activities
Key Resources
• All the assets that your
company must own in
order to make your
business model work
Key Activities
• The most important things
a company must do in the
daily operations to make
its business model work
293. Key Activities - Examples
• If you are a manufacturing firm, a key activity may involve a unique production
process
• If you are mostly selling existing goods, like a retailer, your key activities may
include sales & marketing, store operations, and/or e-commerce platform
management.
• If you are a consulting company, hospital, or service provider, a key activity may
be problem-solving.
What must you get REALLY good at in order to deliver the promised
value proposition to the chosen segment?
295. Physical Resources
1. Where will your company facilities be located?
2. Where will your products and services be coming from?
3. How will your products and services be supplied to customers?
296. Financial Resources
•Does the company have enough financing to support
the international business model as imagined?
•Will any additional investment be required to execute
this international expansion?
•Are there any government grants or subsidies that you
can take advantage of?
298. Intellectual Property
Trademarks
• Brands, marks, logos,
slogans
Copyright
• Creative work such as
software, films,
websites
Trade Secret
• Secrets of value,
private technology,
contacts, formulae
Contract
• With key suppliers,
partners
Patents
• For inventions and
new technology
299. Strategic Key Resources
• Your resources don’t always need to be located in the
foreign market
• Consider reusing resources that exist in your domestic
market before investing abroad.
• All of the resources and activities should be linked directly
to delivering the value proposition and all other elements
promised on the right-side of the business model canvas
302. Key Partners
• Individuals who will give you key resources or help you perform key
activities in your business model
• Key partners require extensive negotiation and win-win agreements to
establish long-term working relationships based on trust
• Consider: What are they getting out of working with you?
Shared
Economics
Mutual
Success/Failure
Co-
Development /
Co-Invention
Common
Customers
303. Potential Outcomes of Key Partners
• Faster time to market
• Broader product offering
• More efficient use of capital
• Unique customer knowledge or expertise
• Access to new markets (channel partners)
• Optimization and economy of scale
• Reduction of risk and uncertainty
305. Strategic Alliances
• An arrangement between two companies to undertake a
mutually beneficial project while each retains its
independence. An alliance results in clear responsibilities of
each party to help bring the product to market.
• Example: Starbucks Frappuccino and Pepsi
• Could also help to complement your core product with
auxiliary products or services
• Example: home delivery, training
• https://techcrunch.com/2019/08/15/walmart-canada-
rolls-out-nationwide-grocery-delivery-through-instacart/
306. Joint Ventures
• A joint venture (JV) is a business arrangement in which two or
more parties agree to pool their resources for the purpose of
accomplishing a specific task.
• Examples: Starbucks and Tata Global Beverages, Sony Ericsson
Source: https://www.investopedia.com/terms/j/jointventure.asp
307. Coopetition
• General collaboration between business competitors, in the hope of
mutually beneficial results.
• Examples: Tradeshows and industry associations
308. Key Suppliers
• Organizations or individuals who provide the materials and/or
resources required to offer a product or service. Can include:
• Direct suppliers (components, raw materials)
• Outsourcing partners (back office, supply chain, manufacturing)
• Examples: Apple and Foxconn, customs brokers
• https://reut.rs/2rZ7tDQ
309. Virtual Channels
• Long-term agreements with online companies that help the
company to gain customers, sales, or general awareness
• Examples: Bloggers, vloggers, referrals, email lists
• https://bit.ly/2xCIPvJ
310. Partnership Risks
• The biggest concern with partnerships is that it creates an
interdependence between two or more organizations.
• The success of the international expansion may rely heavily on
entities and factors outside the organization’s control.
• Clear definition of responsibilities, contingency plans, and service-
level agreements are needed when forging such partnerships.
• https://www.youtube.com/watch?v=XfMYuPiZ-AY
311. Case Study – Target in Canada
• Why Target Failed In Canada
https://www.youtube.com/watch?v=k4hDGJ2FwDI
https://uk.news.yahoo.com/video/target-pulling-canada-
155725318.html
• Discussion Questions
1. How did the speed of Target’s expansion to Canada impact its ability to
successfully operate stores nationwide?
2. What impact did their operational issues have on consumer perceptions?
Would they have been able to recover?
3. What can other U.S. retailers learn from Target’s experiences in Canada?
312. Additional Readings
• Gap Analysis: A Template for Connecting Potential with
Performance
https://www.shopify.com/enterprise/gap-analysis
• The Last Days of Target
https://www.canadianbusiness.com/the-last-days-of-
target-canada/
316. Importance of Financial Viability
• Even with a great idea and sufficient operational capacity, a business
model can still fail if it does not stand to generate a profit in an
acceptable amount of time.
• Foreign market expansions may lose money in the short-term due to:
• Low customer awareness and sales
• High upfront investment costs
• The financial viability section of the BMC encourages businesses to map
out all of their sources of revenue and estimate costs / budget lines that
will be incurred
317. Assessing Financial Viability
• Some market studies may require an extensive budget to determine
return on investment (ROI). At the minimum, a good market study
should list the revenue streams and a researched range for each
major cost associated with executing the business model.
STEP 1: Based on the customer channels, establish all sources of revenue. Consider
secondary sources are revenues that may come from other parts of the BMC.
STEP 2: List the major costs associated with delivering each part of the BMC.
STEP 3: Research the average cost for each budget line using primary or secondary
data and provide an estimated range.
320. Questions to ask
• For what value are our customers really willing to pay?
• Example: You may believe part of your value proposition is providing a
customized service… even if the customer needs this, they may not be willing
or expecting to pay for it.
• How would they prefer to pay?
• How much does each Revenue Stream contribute to overall revenues
in terms of percentages of the total?
• Example: 60% of sales from retail stores, 20% from distributors, 20% online
321. Examples of Revenue Streams
Selling
Physical
Products
Usage or
Service Fees
Subscription /
Membership
Lending /
Renting or
Leasing
Licensing
Brokerage
Fees
Advertising
322. Pricing
Mechanisms
• It’s also important to
consider HOW the
customer would want to
pay in the foreign market
• What are they
accustomed to?
Fixed List Prices
Bargaining
Auctioning
Market-Dependent Pricing
Volume-Dependent Pricing
Yield Management
325. Typical Cost Structure Considerations
• Transportation logistics and customs clearance
• Marketing and selling fees
• Product development and adaptation fees
• Costs of offering service
• Business development, partnerships
327. Case Study – Tesla in China
• Why Tesla and Elon Musk Face Challenges in China
https://www.youtube.com/watch?v=3EQcGVJAFx0
• Discussion Questions
1. What impact does indigenous competition have on Tesla’s revenue
streams in the Chinese market?
2. How has Tesla’s cost structure likely changed for their upcoming Chinese
operations compared to other foreign markets in which they operate?
328. How to prove financial viability in your market study
Revenues
• Determine your target market
(including penetration rate) and
multiply that by the average price of
your product. This will give you a
ballpark revenue figure.
• Example: 5,000 PersonaA’s in
Canada x $65 per product
Costs
• Research the average cost for each
budget line using primary or
secondary data and provide an
estimated range.
• Example:
• Transportation: $3,000 (average
• Marketing: $5,000 (average)
• Staff: $6,000 (average)
TOTAL REVENUE – TOTAL COSTS = Profit (or loss)
Are you making any money? If yes, you are financially viable! If not, explain why the numbers are so high
and suggest where you could potential cut costs (or how you could make more revenue)
329. Additional Readings
• Revenue Streams
https://corporatefinanceinstitute.com/resources/knowledg
e/accounting/revenue-streams/
• Cost Structure Block in Business Model Canvas
https://www.cleverism.com/cost-structure-block-in-
business-model-canvas/
