So now you want to do that. You want to make that difference. Because you want to “get” in the process.

But you don’t know how. Besides, the last time that we talked, we talked about how you’re supposed to find out what your customers wanted if you have any hopes of sales success. And you simply cannot see how “giving to get” has any relevance to what is called a “marketing survey” or finding out what your clients want.

Well, it’s quite simple really.

To be able to give in such a way that it will be perceived as valuable and therefore will be bought, you have to find out what to give. And to be able to give the client what he wants, you first have to determine precisely how that “what” will look.

If the “what” is what the client wants, it will be perceived as valuable, he will then buy it and you will get.

So, giving is getting!

Ok, so if you want to get inside your customers’ heads, you obviously already know who they are. This presupposes an existing client base, or in the absence of an already existing one, a target market which you have identified on the basis of proper market segmentation. You have also determined this segment’s buying power and know there is money out there.

Of course, it could also be possible that your existing clients are buying quite well, but that you have since the start of your operation developed a new product / service you want to test drive and unsure about how customers will react.

Whatever the case, you need to know what’s going on in their heads. The niftiest tool for collecting that kind of data is the survey.  

This trusty steed usually takes different forms and delivers different kinds of results and successes. Each has its pros and cons and small business entrepreneurs are probably not going to make much use of methods that tend to be capital intensive like telephone and postal surveys.

•  Telephone surveys are used when the contact period is short, time is limited and funds limited. Pros are the fact that it is quick and any problems / questions can be discussed directly. Cons are that it is easy to lie over the phone and only folks with phones can be contacted.

• Postal surveys are sometimes better than telephonic ones in that most people don’t like giving their opinions directly and the geographical area might also be too big. The contact person also cannot influence the situation and the individual does not have to react immediately. But, they require clear instructions and their reaction rate is normally low and slow.

• Personal surveys involve a face – to – face situation. Pros are that more questions can be put and answered. Questions can also be customised for individuals. If the person okays it, tape recorders can be used. However, this method is time consuming and labour intensive.

• Observation can also be used as a data collection tool. Researchers can try and observe the behaviour of the consumer. Or mechanics / and or electronics like computer scanners at check out counters are used collect very specific and useful information. But a big con of this method is the fact that you can observe what people do, not why they do it.

• A favourite with researchers nowadays, is the focus group method. Typically the survey entails inviting about ten people to a specific venue where selected topics are discussed in depth. Some researchers will ask specific questions which the customers will answer. Other researchers will merely act as observers and make copious notes of the proceedings. Sometimes tape recorders are used to observe things like body language and tone of voice.

Okay, now you know what kinds of surveys are in the stable, so next up we need to lay out how you actually go about constructing one. You need to formulate a basic questionnaire that includes all four P’s of the marketing mix, namely questions about your product, its price, distribution and promotion.

Take for example a fast food business. You could ask the following:

Q1 (Product / service related question):  If a new fast food outlet opens in your area, which types of food(s) would you like to buy?

Q2 (distribution related question):  If we have a delivery service, will you make use of it at an additional cost?

Q3 (Price related question):  1.Are you prepared to pay $5 for a hamburger?

If the answer is no, then ask:

2. How much are you prepared then to pay for it?

Q4 (Promotion related question):  If you had to advertise a new fast food outlet, which media channel would you use?

And when developing a questionnaire, you must consider the following about the questions you’ll ask:  the type of question, question format, wording and sequence of the questions.

So, now that you that you have your questionnaire in hand (copied some x amount of times); do you go down to the mall and pester the daylight out of some poor unsuspecting souls traipsing through the shelves, trying their best to do grocery shopping?

Heck no.

Not without knowing exactly how big the representative sample size of your target market must be. Because then the data you collect will reflect an inaccurate picture of the market you wish to cater for and should you proceed with plans on the basis of that skewed picture, you’ll run the danger of wasting time, money and effort on air.  No, your sample size must represent the target population as accurately as possible.

And you won’t do any pestering either, because sensitivity to people’s needs and time constraints might have you initially only asking two marketing related questions, namely whether they will buy your product and what they will pay for it. You can always tackle the other questions later, thus preventing customer irritation by not holding up potentially harried and hustled types.

But here’s the big thing. The selection of your samples must be random.

But how do you do the random thing?

Okay, here’s the short version:

Draw 2 random samples of 15 people in each of your target markets (if there’s more than one obviously). For example, interview the first, fourth and eighth prospect according to the random number you draw from a random number table. (See fig 1 below)

Fig.1 Example of a random number table.

Summarise the results of each and compare stats. If the results have a less than 20% deviation and correspond in 80% of the answers given, you can assume your sample size is big enough.

If not, you have to double the number of correspondents by drawing 2 new samples of 30 respondents each and then compare results. As soon as there is an 80% match, you can stop.  So you keep doubling up until the 80% matching point.

Easy peasy.

Going down to the mall to do market research, is also just an example. You can be as creative as needs be with the methods you come up with to get the data you need.

Go to someone’s home. Or a football match. Whatever. You’re in charge and you get to say what you’re going to do to get what you need. Short of illegal of course.

Delivering what customers want is a win-win situation. They get what they want and so do you. Everybody gets to go home happy.

Till next time

Elmarie

Elmarie is a wordpreneur for the Entrepreneurial Business School (Pty) Ltd and a freelance creative writer, web writer and copywriter. Email her at ebouwer@ebschool.com

Resources:

1. Mauritz Bekker. Marketing management. EBS 2009.

You’ve been doing all the right things and have covered all the basics that are supposed to guarantee business success.  You made certain at the outset that all your important business ducks like market  research and a cash flow forecast are in a row and that your budget tows the line.

After a while though, you constantly phone your partner in a sweaty panic and suffer from seemingly stress related illnesses…still too few sales. Sometimes, no sales at all! You quickly realise … long enough no sales…no business.

You whittle your nails to the bone and the zoo at home thinks you’ve turned into a monster from Mars. Finally you groan in desperation “Now what? How do I fix this?”

The question has barely left your lips before the cold fact hits you… you have nothing unique to offer your customers!  You’ve given the guys & gals with the wallets  little or no reason to come to you rather than go to the competitor next-door who, by the way, is in the same business and is diverting most, if not all, the paying traffic to him with his unique offerings!

So you go back to the drawing board and consult the gurus. They tell you in umpteen ways what you’ve just realised anyway. That you need a product or service that will set you apart from the competition. An offering so irresistible that it will make paying customers only too happy to surrender their hard-earned cash to you in return for it. A competitive edge or unique selling point (USP) the gurus call it.

You toss… you turn… you sweat – but try as you might, that pioneering idea keeps eluding you. That one breath-taking thought that will catapult you ahead of the competition in your niche…

Exhausted, you realise that you are not going anywhere without that USP. And what’s more, to come up with that much desired edge, strategic thinking is required. That in turn calls for creativity. Dumbstruck, you sit down as understanding dawns…

…creativity underlies all successful business actions and you realise that all truly cutting edge products & services only surface where the twin horses of imagination and creativity run wild. Creative thinking is the basis. From there, winning products & services strategy naturally flow.

 ~ ~ ~ ~ ~ ~ ~ ~

Look out for our series of articles on the creative process, starting with a hard look at just what creativity really is, who fits the term “creative” and going on to some exercises that’s been designed to kick the creative apparatus into motion and finally ending with how to keep the muse going. See you there!

© Elmarie Bouwer

As you all know by now, a viable business opportunity is simply an economic solution to a problem, which customers are willing to buy and with which you can make a profit!

You also know that in order to find business opportunities, you’ll need to talk to people and listen to their problems.  Problems are like diamonds and economic solutions are similar to the process of mining the diamonds – cut and polish them in order to sell them.  You should therefore always look for problems to be solved in your domain of interest/talents/abilities (passion).

There is however a critical step needed in the process before you could turn problems into viable economic solutions. I am sure you have guessed right….. We have to do market research in order to find out (1) if your customers will be willing to buy the solution you are offering and (2) what they are willing to pay for a specific solution.

The first step in our market research process is always the construction of a research questionnaire.  The questions to ask as a starting point will be centered around (1) the solution (product/service), (2) the price the potential customers are willing to pay.  Therefore, you need to start your questionnaire by asking the potential customers (prospects) if he/she will be willing to buy the new economic solution (product/service).  Be very specific and try to explain what this product/service can do for the prospect.  In other words, how it will solve the problem(s) they have.

The second important question to ask is regarding the price the prospect is willing to pay for this specific economic solution (product/service).  In starting to find the “market price” (right price) always begin with a high price.  If they are willing to pay this price, you’ll be able to make a killing.  If they are not willing to pay your “high” price, but are interested in buying the solution, you can now ask them what they are willing to pay.  These answers will give you a very good idea of what the market price should be.  In other words, the “price” questions should be in two phases.  The 1^st question will therefore be as follows:

Question:  Are you willing to pay R x (Test your potential customer’s willingness to buy with the highest probable price) for the specific product/service (provide a clear description) you plan to sell.

If the answer to this question is no, the follow-up question should read as follow:

Question: How much are you willing to pay for this specific product/service? (The answers to this question will provide you with the real market value for your solution.)

The other important critical factor for reliable market research findings, is to make sure that your sample represents the real market out there.  In order to make sure about this, you’ll have to make sure you are not bias in selecting the sample members, and also make sure that the sample size is big enough.

(If you are an EBS student and you are confident with the sampling process re-visit the section “How to determine that your sample represents the market segment “, in Module 3 of your study manual).

The ability to present reliable market research findings, to a possible investor, is often the only concrete evidence an entrepreneurs, without sufficient security  can provide.  If you can prove that a product/service will sell, you will make it much easier for an investor to give you a loan!!

You ability to think strategically is of utmost importance in order to grow your business from small to big. The ability to think strategically is not rocket science; it is simply something you have to do, if you know how to do it.

Strategic thinking is, simply, the process of looking at the bigger picture surrounding your business. You must make a habit of scanning the various “external environments” (economic, political, social, legal and technological) by looking for opportunities, as well as for threats. You will be amazed how many new opportunities you’ll see when you start focusing on the various external environments. In this exercise you must get rid of old and vested paradigms. You should therefore always challenge your assumptions, as they present your current belief system (Paradigm). You will, as a matter of fact, also become aware of possible threats, which will enable you to make plans to counter them before it is too late. In countering threats, it could be necessary to change direction and/or diversify by adding new related products/services.

If you have to change direction and/or diversify, always remember to do it within your domain of passion and interest. You will also see when you start focusing that there is never a shortage of new opportunities.

You must also remember that business opportunities are viable solutions to problems, and as you know, problems are everywhere, begging to be solved.

The second part of strategic thinking will be driven by a focus on your business and business processes, as well as on your competitors. In this focus, you’ll be looking at strengths and weaknesses. Always search for possible ways of building on your strengths and eliminating your weaknesses in relation to your competitors. You must also never forget to do the same exercise with your customers in mind. Always strive to eliminate the weaknesses of your products/services and to build on their strengths. You’ll have to do this on a continuous basis in order to provide a better solution for your customers.

If you wish to learn more about the exciting world of the successful entrepreneur go to courses.