Market Research Workbook
Objectives
This workbook is designed as a guide to finding the information/data
a firm needs in developing a marketing plan or program. This is not
a procedure for preparing a Marketing Plan.
The workbook is organized according to various types of information,
with a description of the importance of the information to the marketing
plan/program. Included is a series of statements or questions leading
one in developing information for their marketing plan and places to
look for the information. For example:
Competition
Number of firms in the industry or area?
Sources: The number of firms can be obtained from:
- Trade Associations (1)1
- Directory of Manufacturers (2)
Size of firms (various measures can be used, such as sales, capital
investment, number of employees).
Sources:
- Trade Associations (1)
- Directory of Manufacturers (2)
- Standard Directory of Advertisers
(3)
- U.S. Government Statistics (4)
Please note: Number in ( ) refers to the reference
number in Appendix A: Sources of Information
Scope
This workbook provides an outline of the areas of information needed
in preparing a marketing plan for new or current products and services,
as well as the various sources where this information can be obtained.
Focus
The procedure in this workbook is for determining the market potential
of new and existing products or services. It does not determine the
emphasis to be given to specific areas. For new products, promotion
and distribution may be critical. On the other hand, for an established
firm already marketing a product, changes that are taking place in competition
may be the key to a successful marketing strategy.
This workbook includes procedures for obtaining general information
for a wide variety of products but is not comprehensive for specific
analysis. It may be important to obtain other specific information in
developing a marketing plan. Management must determine when this additional
information is applicable.
Place in Marketing Plan
The orderly process of collecting information relative to the product
is the first step in developing a marketing plan; then, and only then,
can the firm's business plan be developed. The importance of this phase
cannot be over emphasized. During the developing of the marketing plan,
important decisions are made that affect the manufacturing, management,
and finances of the firm. With so much riding on this process, it is
essential that the best possible information be used. It follows, then,
that collecting information/data is one of the most important steps.
(See outline of a Marketing Plan in Appendix B.)
A vast amount of information is available from the sources listed in
this workbook. The cost in time or dollars of obtaining this information
is low compared to the cost of poor decisions that a company may have
to live with for some time. In some cases, decisions based on incomplete
or erroneous data may never be overcome.
Collecting information about products or services does not in any way
complete the market plan. This is only the first step but the most important
one. It is the step where adequate time must be devoted. This workbook
lists numerous sources of available information, but there are certainly
additional sources. The point is that it takes time and effort to obtain
good data. When management spends time preparing the firm's marketing
plan, it not only saves the firm many dollars but also gains greater
understanding of the marketing phase of the business. By contrast, when
a consulting firm is hire to prepare the marketing plan, management
participation is minimal and the full import of the information and
conclusions may not be understood.
Only through the direct involvement and active participation of management
will the marketing plan be a meaningful decision-making tool.
Rule: Time collecting good data is time well spent and
essential for good planning. |
Packaging and Marketing
Almost every product must be packaged in some fashion to move through
the distribution system to the customer. Therefore, considering how
the product will be packaged is an essential part of the marketing plan.
In many cases, the packaging is the most important part of the product.
The package should contain, protect, perform, and communicate throughout
the distribution system. Its primary function is to deliver the full
quality of the product to the point of use.
Rule: The package is a silent salesperson for the product.
|
Sources:
- Survey of competitor's product (8)
- Survey of similar products (8)
- Directory of Packaging Consultants
(5)
Presenting Marketing Data
It is important that information/data be presented in a manner that
the average individual with limited time can understand. Tables with
large volumes of data are almost impossible for the average reader to
use effectively, and thus, have limited usefulness.
Charts, graphs and percentages are better ways to present data. The
reader can view these to obtain the necessary information at a glance.
There are many excellent books on how to construct charts and graphs.
(6)
When developing tables, charts, or graphs, it is essential to include
a meaningful title, date, and source where the information was obtained.
Another important factor in preparing the information is to set forth
"assumptions." Some writers hide the underlying assumptions,
making it difficult for the reader to recognize them and interpret the
findings accordingly. It is best to list any assumptions in an open
and recognizable manner for the readers so that they can better understand
the study.
Rule: Present the data in a clear, concise and complete
manner. |
Defining the Product and Trade Area
Before collecting information or data about the market for a product
or service, the firm's product line and trade area must be defined.
This can be illustrated by stating that the firm is a manufacturer of
lumber products. This is a very broad product line which needs further
definition such as dimension, flooring, hardwood, kiln dried, logging,
plywood, poles and posts, rough, softwood, treated, veneer, blocking
and crating, to name a few. In which specific business is the firm operating?
Next, what is the trade area? In what local areas, states, regions,
or countries are the firm's customers located? The major source for
this information is the firm's own sales records and receipts. For a
new product, greater effort is required which would involve interviewing
manufacturing representatives, studying how similar products are sold,
and visiting firms and salespeople at trade shows where similar products
are displayed.
Rule: Define what is specifically being sold and where. |
Common Data for Marketing Analysis
Introduction
A brief introduction should give the reader the overall description
of the analysis, why the project is being undertaken, and what the objectives
are in collecting information/data.
Rule: The introduction is often the only part that is
read. |
The following topics should be included:
1. A description of the product or services.
2. What innovation does it bring to the market, such as:
- a new product design?
- a new manufacturing process?
- a new service?
3. How does management believe it will change the present market structure
(local, national, international)?
- complement?
- fill a void?
- be unique?
4. Social or economic trends that will affect the products or services.
Sources:
- libraries
- World Wide Web (7)
- interviews with management.
Competition
Most managers feel they know their competitors and believe they have
a superior product or service, when in fact, they do not know their
real competitors and generally lack information about them. Most managers
are surprised to discover the large number of competitors and the volume
of sales in the industry.
Many times management comes up with a new product or service that they
believe is unique, has no marketing competition and can be sold in unlimited
numbers. Remember that there is always some product or service that
is fulfilling this need today. At one time, the U.S. Postal Service
believed it had a monopoly on sending information and could continuously
increase price. That is no longer true. Competition has moved in. Very
few things come on the market that are truly new. There are always competitors!
Also, since customers have only a limited number of dollars and some
products and services are essentials, one is in a sense competing against
everything else the customers are purchasing.
Rule: Every product or service has competitors. |
The following questions must be addressed.
1. What products/services (brands) will the firm's product compete
with in the market place?
Sources:
- Trade shows, from trade associations (1),
(25)
- Surveys of distributing system for competitive
product, e.g.,
discount chains supermarkets, parts stores
- Thomas Register (print or electronic)
(8)
- Trademarkscan (9)
- Brands & Their Companies (10)
2. What are the vital statistics of the major firms presently supplying
these products/services?
- size of firms in assets/sales
- sales area (local, national, international)
- length of time in business
- locations (main and others)
- financial condition (common ratios)
- investment in facilities
Sources:
- Standard & Poors (11)
- Thomas Register (8)
- Robert Morse Associates (12)
- Dun & Bradstreet Credit Analysis (13)
- Directory of Manufacturers (print or electronic)
(2)
- MarketPlace (CD-ROM) (14)
or Dun & Bradstreet,
Market Identifiers (online) (15)
- America Business Directory (16)
- Census data (17)
3. What other services or products do competitors offer (list)?
Sources:
- Standard & Poors (11)
- Thomas Register (8)
- Brands & Their Companies (10)
Pricing
Price is an important variable in the market place. Management tends
to believe that the competition sets the price and therefore the company
has little control over what it can charge. This is only partly true.
Often firms distinguish products by brand name, various services, credit,
and warranties, to name a few of the most common factors. Most firms
do not want to compete on price and try to avoid this form of competition.
Furthermore, in most cases management does not know the range of prices
in the market place, and believes prices are far more important to the
customer than is really the case. Customers react to prices only when
they make a purchase, but they never forget bad service or poor quality.
The price a firm should charge for a product or service is production
cost plus a fair profit. Price the products to make a fair profit. Otherwise,
the firm will fail.
Rule: Good service and high quality are more important
than price. |
1. Price - in which type of group is the product.
- low price, large volume
- high price, small volume
Sources:
- Surveys of distributors of similar types of products
- Market research reports (18)
- Survey of Current Business (19)
(see Bureau of Labor Statistics) (20)
2. Price trends or ranges over the past 5-10 years.
Sources:
- Trade associations (1)
- Market research reports (18)
- Survey of Current Business (19)
(see Bureau of Labor Statistics) (20)
3. Price sensitivity of the product.
- how do consumer purchases react to changes in
prices? How
do suppliers react to price changes
of their competitors?
Sources:
- Trade associations (1)
- Market research reports (18)
- Census Bureau (17)
- Sales and Marketing Management (21)
4. Ratio of direct cost of labor and materials to price. High labor
and material costs compared to price leave smaller margins for overhead
and promotional programs.
Sources:
- Dun & Bradstreet Financial Records Plus
(22)
- Annual reports of competitors
- Disclosures (23)
Promotion
Today there are many means of promoting a product/service to the consuming
public. This phase of marketing is becoming more complex because of
the many promotional means, and it is becoming more specialized in ways
to reach present and new customers. Almost all product areas have trade
publications and trade shows directed toward a very specialized group
of customers. Trade shows are an efficient means of reaching a large
number of potential customers. At trade shows, the product can be shown
and names of prospective customers can be gathered. By interviewing
visitors at the booth or having them complete a questionnaire, much
significant information can be obtained.
Rule: Promotion is not a one-time activity. |
Sources of information on means of promotion include the following:
1. Type(s) of promotions used by firms marketing the products/service.
Sources:
- Review of trade publications in the industry
(26), (27)
- Gale Group MARS (Gale Group Marketing &
Advertising
Reference Service) (24)
2. Major trade shows (time and location).
Sources:
- Trade associations (1)
- EventLine (25)
- Trade & Industry News (26)
3. Major trade publications for the SIC/product area (name and address).
Sources:
- Trade associations (1)
- Directories of periodicals (27)
- EventLine (25)
- Trade & Industry News (26)
4. Which trade associations are significant in this product line?
Sources:
- Encyclopedia of Associations (1)
- Telephone surveys of potential distributors for
this product/service.
Distribution
Traditional distribution systems used for various products/services
are changing very rapidly due to many factors. Some of these are:
- streamlined production - making short production runs economical,
- increased quality awareness,
- extensive communication network,
- customers demanding products only when needed (just-in-time or JIT
delivery) and
- little or no inventory being carried by customers.
These and other factors have changed the distribution systems and warehousing
requirements.
Systems that were effective only a few years ago may no longer be effective.
Firms must evaluate their distribution system on an ongoing basis. It
is a never-ending process, as some foreign competitors can now respond
to a customer almost as quickly as local firms.
Rule: The distribution system must be an important part
of marketing. |
Areas that need to be addressed are as follows:
- Types of distribution channels presently used (direct sales, wholesalers,
manufacturing representatives, dealers, etc.).
Sources:
- Trade associations (1)
- Tracking of similar products through distribution
channels
- How has the distribution system changed during past three years?
Sources:
- Tracking products through distribution
- Surveys of links in the distribution system
- Levels of inventories (trends).
Sources:
- Telephone surveys of potential customers to
determine trends
Sales Trends
Sales trends in both the firm and industry-wide for the product or
service are essential in preparing a marketing plan. As so often stated,
history repeats itself, but most people do not learn from history. It
seems we make the same mistakes again and again. Information about the
firm's sales and total sales volume for the industry can be used in
the following ways:
- forecasting future sales
- determining stage in the product's life cycle
- determining regions or states where sales are increasing or decreasing
- projecting seasonal variations
- consideration, along with other important factors, in analyzing
technology breakthroughs
- predicting market surges.
For some firms, next year's sales forecast of each item in the product
line is based only on approximate increase/decrease compared with the
past years' sales and expected business and economic conditions. Long-term
predictions are much more complex but are important. Total industry
sales will help identify the share of the present market, and the potential
for each region, a guide in establishing territorial objectives, and
the comparisons of actual sales with goals.
Management can gain useful information by collecting and analyzing
sales trends in their industry.
Rule: Sales and economic trends are an important part
of forecasts. |
Areas that need to be addressed are as follows:
1. Total industry sales for the product/service for 5-10 years or
longer. (A long-life product requires longer sales trends than a product
that will have a short life span.)
Sources:
- Trade associations (1)
- Sales and Marketing Management magazine
(21)
- Census Data (17)
- "Survey of Buying Power" (21)
2. Total sales by areas, regions, state, etc.
Sources:
- Trade associations (1)
- Census Data (17)
3. State of the product in its life cycleearly state, mature,
decline.
Sources:
- Analysis of total sales versus time from Item
1
4. Seasonal variations of sales and cycles.
Sources:
- Trade associations (1)
- Customer questionnaire
- International Trade Administration (28)
- Census data (17)
- Market research reports (18)
5. Technology innovations or model changes during past and their effect
on sales volume, price, etc. How often do they occur?
Sources:
- Trade associations (1)
- Selected customer questionnaire
6. Factors that effect sales volume, i.e.,
- income levels
- general economy
Sources:
- U.S. government sources (4)
- Market research reports (18)
- Census Bureau (17)
Customers
No firm has enough good customers or information about their customers.
All companies believe that they are very close to their customers, but
in fact, they frequently know very little about them. Yet, this is the
most important group of people to their firm. Unfortunately, customer
turnover is frequently very high, but management generally does not
analyze this turnover. Rather than find out why customers cease to buy
their product/services most firms increase promotion to find new customers.
Usually, this is very costly.
The most important factor for the success of a business is customers.
Without them a business cannot exist. To capture customers, a firm must
find out what customers want and will buy. Expectations and demands
are influenced by non-economic as well as economic factors, such as
attitudes, desires, and expectations arising from cultural patterns
in the social environment. Also, people want as much as possible for
their money.
There is ample evidence that staying close to customers can pay off.
A sale never ends, but continues to make customers come back. Customer
satisfaction must be systematically and continuously monitored, not
just during the preparation of the marketing plan. This is an area where
management has complete control and can be a major differentiating factor
as customers are more demanding now than in the past.
Rule: You can never have enough good customers. (Customer
turnover can be very high.) |
The following information/data about customers is necessary:
- Satisfaction/dissatisfaction with present products/services
- Features they need/like/dislike
- Need - is the product considered an essential or a luxury
- Quantity will be increasing/decreasing
- Price range for a new product/service or if present product/service
attitude toward price
Sources:
- Customer surveys. It is suggested that the
services of a
professional interviewing firm be obtained which
can assist
in developing the survey form for making interviews
in person
or by telephone. In most cases, a professional
interviewing
firm can do a survey more effectively and economically
than
the firm's employees can. Also, the data will
be unbiased and
consistent.
- Internal sources of information about present
customers:
personal checks and sales receipts provide mailing lists
urban vs. rural (lifestyle), products/services purchased, trade
area.
- Credit applications and records
give an indication of the ability
to purchase certain products.
- Complaint records point out problems, quality,
and gaps in
inventories/services, employee performance.
(Unfortunately,
most customers do not make complaints because
they feel it
will not do any good and it is easier to go
to another firm. Therefore,
complaints should be encouraged. A formal system
should be
established so even oral complaints are recorded
by employees.)
- Conversations between employees and customers
also provide
information about customers' levels of satisfaction.
(Employees
must be encouraged to record these and have assurances
that
they will not be used against them in performance
evaluations.)
- Visiting with customers provides an opportunity
for:
obtaining suggestions
determining their likes/dislikes
creating goodwill. (It should be a matter of policy for management
to visit with customers on a regular basis.)
- Observing customers provides an opportunity
for determining:
age of customers
customer buying habits
time of day customers visit firm
if customers bring along spouse and/or children. (Random
observation of customers by management should be a
common practice.)
- Customers' questions provide:
information about products/services
what products/services firm should be carrying or offering
to problem areas. (These should be recorded.)
- Customers' suggestions point out:
what firms should be doing and what customers like. (Customers
should be encouraged to make suggestions and a convenient
means of doing so must be provided.)
Demand
Every marketing person has heard and talked about "demand"
however, few really understand it, even, after taking a basic course
in economics. Knowing the basis of demand is very important in developing
a marketing plan for the firm's products or services. The definition
of demand is the amount of goods/services purchased at a "given
time;" therefore, the next day the demand will be different.
We all know that as price increases, less will be consumed or, conversely,
the lower the price, the greater will be the demand.
These relationships can be illustrated using demand curves. The most
common are elastic demand, where a greater quantity is consumed
as the price is decreased (Fig. l(a)), and inelastic demand
where a large change in price will only slightly change quantity consumed
(Fig. l(b)). Actual prices and quantities are generally not charted
but the concepts are very important.
|
Figure 1(a): Elastic demand
|
Figure 1(b): Inelastic demand
|
Just by their nature, some products, such as food, are essential.
These products have an inelastic demand curve. For example, the volume
of food consumed may not increase, but the quality of food consumed
can increase. Other products have an elastic demand curve. These products
are generally nonessential. For instance, services have a highly elastic
demand curve, with a small change in price having a greater effect
on quantity consumed. Some food-producing firms know people cannot
consume greater volumes but will purchase convenience and service;
therefore, they promote convenience and service such as prepared foods.
These firms are really emphasizing and selling services, which consumers
can purchase and use in greater quantities. Generally, one advertises
elastic products, not inelastic products.
Another demand type applies to products/services in which there are
few firms in the same type of business or industry. These firms, as
a group, have a kindred demand curve as illustrated in Fig. 2.
|
Fig. 2. Kindred demand. (a) Individual firm (b) Total industry
|
It is very important that management understands this type of demand
curve. This is really two demand curves together: (a) the individual
firm and (b) the total for all firms. If the individual firm looks
for only its own demand curve, it appears a lower price would increase
demand (sales) considerably, this assumes that other firms keep their
prices the same, but the other firms will also follow by lowering
prices. As a result, total sales will only increase slightly, but
will be at a lower price. This can be illustrated by gasoline price
wars.
Management must thoroughly understand these basic demands and have
these concepts applied to their products/services. These must be considered
in developing the marketing plan.
Rule: Price competition is used when management does
not understand the demand curve for their products. |
The following information concerning the products should be determined:
1. Type of products/services.
- essential products/services will have inelastic
demand
- services generally have an elastic demand
- commodity type products (all the same) have
a highly
elastic demand as one firm cannot sell enough
to cause prices
to decrease.
2. Number of firms (competitors) in the business or industry
- if few in number will have a kindred demand.
This will affect the firm's pricing policy.
3. Promotion would not include the products with a highly inelastic
demand, but would involve products/services that are highly elastic.
Sources:
- Basic economic books (29)
The above analysis should indicate to management why firms should
be concerned about (promotion) services and quality rather than the
price of their product. Prices are used in promotion when firms really
do not understand demand.
Quality Requirements
Firms have rediscovered the importance of quality, which they now
see as a competitive factor in markets that demand quality products.
Today, quality improvement is not a fad, but a long-term, continuous
effort. While everyone in an organization must be committed to quality,
success in quality improvement requires the cooperation and coordination
of all departments, including marketing. One of the major sources
of ideas and suggestions for quality improvements is the firm's customers.
These can then be included in the firm's quality control, product
design, engineering, manufacturing, testing, marketing, and packaging.
The firm's quality program can be an important part of the marketing
plans and programs. Quality becomes a competitive part of the firm's
strategy. With the present emphasis on quality throughout the world,
and with this type of competitive situation, the firm's marketing
plan must include a strong quality emphasis. This relatively new marketing
segment must continuously monitor, through ongoing systematic procedures,
the firm's own products/services, and competitors' products/services.
Rule: Quality of service and products can always be
improved. |
Information to continuously improve quality:
1. What is the firm's approach to quality (long-term)?
Sources:
- Firm's quality control manual
2. Who are the key people and departments involved in quality improvement
and control?
Sources:
- Interviews with all levels of management
3. Where have suggestions for quality improvement come from? How
many have there been during the past year?
Sources:
- Quality control personnel
4. Where are quality inspections performed?
Sources:
- Interviews with quality control personnel and
supervisors
5. How does the firm's quality program compare to the firm's competitors?
Sources:
- Competitors' internal measures, if available,
or use manuals from
firms in different industries as a guide.
- Customer questionnaires.
Environment
In today's environmentally conscience society, this issue must be
an important consideration, because the firm's environmental practices
can directly affect sales, sometimes drastically. Numerous cases can
be cited in which even legal environmental products and practices,
past or present, have resulted in financial disasters for the firm.
All eventually come as marketing responsibilities; however, safe environmental
practices can be presented as a favorable image to society and can
enhance the firm's marketing effort.
Especially for new products or services, the environmental factors
that may affect future sales must be carefully reviewed. For example,
is the product a natural product, does it encourage recycling, and/or
is it user friendly?
Rule: Positive environmental practices can be valuable
marketing factors as a major part of the firm's marketing plan. |
Information needs to be obtained regarding the following items:
1. Raw materials that contain hazardous elements.
Sources:
- Incoming raw materials specifications sheets
2. What wastes are created during manufacturing?
Sources:
- Manufacturing process
3. Products content - hazardous elements.
Sources:
- Product labels
4. Products create disposal problems.
Sources:
- Analysis of present disposal method of customers
5. Recycling of products and packaging, buy-back policy, design of
products and packaging for recycling, use materials that can be recycled.
Sources:
- Company policies, engineering design
6. Social and political considerations that affect firms' products.
Sources:
- Customers' comments
- Articles from computer literature searches,
local library
- EPA Web site (30)
- Federal Register (31)
- State labor agencies (32)
- State and local departments of health (33)
Safety
Consumer safety has become an important issue that must be a concern
to all parts of the firm. This involves owner's manuals, warranties,
and promotional materials, to name a few. Consumer safety has become
a big issue because of costly product liability lawsuitseven
over a hot cup of coffee! This indicates that almost anything the
firm does is open to some type of legal problem.
Rule: Safety is everyone's concern. |
The following items of information are important to the firm's marketing
plan:
1. What state, local and federal safety laws, regulations and court
decisions affect the firm's products/services?
Sources:
- Firm's attorneys or legal counselor
- Trade association (1)
- OSHA Web site (34)
2. What are the product's safety features? What warnings are or should
be provided?
Sources:
- Firm's engineering staff
- Technical staff of trade associations (1)
Summary
The information and data can be summarized, with highlights. These
highlights might include the following:
- To be competitive in the marketplace, what is required of the
firm?
- price
- quality
- services
- promotion
- Will products/services complement present offerings, fill a void,
substitute or compete with present lines?
- Forecast sales during the next 3-5 years considering:
- sales trends
- economy
- political environment
- present competition
- Anticipated (forecast) sales for the next 3-5 years.
- Marketing practices required to achieve these anticipated sales
in:
- sales organization
- promotion required
- distribution
- prices, discounts, credit
- services
- quality
- Describe market niche (customers) firm will focus on:
- age
- income level
- location
- Investment required to be a strong competitor:
- manufacturing
- distribution system
- R&D
- promotion
- sales organization
- Company's strengths and weaknesses (how we cope with these weaknesses).
- Management requirements to achieve anticipated sales:
- new positions
- changes in duties and responsibilities
- if new venture, what must the management consist of and how will
they be involved?
Sources of Assistance
Assistance in obtaining data for your marketing plan can be obtained
from the following:
- local, college, or university libraries
- local University Extension Centers (35)
- state agencies, including Department of Economic Development
(36)
- technology transfer centers (37)
- Internet
Books and Articles
The following are books and articles for preparing a marketing plan:
- Roman G. Hiebing, Jr. and Scott W. Cooper, How
to Write a Successful Marketing Plan. Lincolnwood, IL: NTC
Business Books, 1990.
- Richard Graves and Allan Campbell, Creating Customers.
West Publishing, 1966.
- Thomas E. Mosley, Jr., Marketing
Your Invention. Dover, NH: Upstart Publishing, 1992.
- Linda Pinson, Target
Marketing for the Small Business. Dover, NH: Upstart Publishing,
1993.
- Paula Wardell, Successful
Retailing: Your Step-by-Step Guide to Avoiding Pitfalls and Finding
Profit as an Independent Retailer. Omaha, NE: Nebraska Business
Development Center. (Price: $24.95, from Nebraska Business Development
Center, College of Business Administration, Room 407, University
of Nebraska at Omaha, Omaha, NE 68181-0248,404/ 554-2521.)
Appendix A - Sources of Information
Following are descriptions of common sources of data and information,
what they contain, and where to locate them. Many of the sources are
electronic databases accessible through services such as Knight-Ridder's
DIALOG. DIALOG provides access and uniform, powerful search software
for more than 300 databases that focus primarily on business and science/technology
news and informationboth national and international. The databases
differ in size, scope, and cost, but can be searched simultaneously
and therefore economically, by experienced DIALOG searchers. Libraries,
technology transfer centers, and other data centers may be helpful
in this regard.
Hints and Definitions for Making the Best Use of References
Database - electronic information sources available through
online connection to such services as DIALOG (library.dialog.com/bluesheets/html/bl0114.html).
DIALOG - A commercial online information service that brings
together hundreds of business, science/technology, and news databases
with powerful search software. Although the databases combine to offer
the most comprehensive and timely information, using DIALOG can be
complicated and costly (see, for example, search instructions contained
in the "Bluesheets" for any of the databases at the DIALOG
Web site at http://library.dialog.com/.
Access is often through university libraries or INFORMATION BROKERS.
Directory - Any sources listed described, as a directory will
contain name, address, and telephone number. Any additional information
contained in the directory will be specified.
Information broker - a private sector consultant who, for
a fee can find the information you need for you. To locate the information
broker nearest you, Contact the Association of Independent Information
Professional at (609) 730-8759. Some public sector agencies also act
as information brokers.
Internet - also known as the "information superhighway"
is a worldwide network of "server" computers linked by telecommunications
wires, satellites, and software. Servers may be mail serverscapable
of handling only electronic mail or e-mail (one-way communication
of text from one computer to another), gopher serverssupporting
interactive connection for text only exchanges, or Web serverssupporting
the hypertext, graphics, sound, and video available through the World
Wide Web. To access the Internet, a person needs a computer with a
modem and "access." Access may be provided by telephone
companies, cable companies, or community networks. Ask a nearby computer
dealer.
Libraries - Libraries come in all shapes and sizes, and not
all of them have business-related reference works. The most efficient
way to use a library is to speak first with a Reference Librarian
who will know what the library has and where to find it.
SIC code, or Standard Industrial Classification code - a
number used to group businesses with similar products or services
together. A SIC code may consist of only two digits (for major sectors
like agriculture or manufacturing) or as many as eight digits. Four-digit
SIC codes are the most common, as they are supported by national and
international agencies. Six and eight-digit codes are devised by private
companies and are therefore less consistent, though much more specific.
For example, an eight digit SIC code from Dun & Bradstreet breaks
down like this:
08 Forestry
0831 Forestry Products
0831-02 Gum and rosin extraction and distillation
0831-0204 Turpentine and rosin distillation
References
-
Encyclopedia of Associations gives contact
information, description, and functions of national and international
associations of every sort. Published by Gale Research, Tel. 800/877-GALE.
Available at most libraries, also online via DIALOG (http://library.dialog.com/bluesheets/html/bl0114.html).
- Directory of Manufacturers, published
for each state by Harris Publishing and sometimes referred to as
the Harris Directory, gives name, address, executives, employees,
sales, and SIC code or product description for manufacturing companies.
Published by Harris Information Source, 2057 Aurora Rd., Twinsburg,
OH 44087-1999, Tel.: 800/888-5900, Fax: 800/ 643-5997. Available
at most libraries in print or on CD-ROM, also through many UNIVERSITY
COUNTY EXTENSION CENTERS or SMALL BUSINESS DEVELOPMENT CENTERS (see
ref. 35).
-
Standard Directory of Advertisers includes
number of employees, SIC codes, and subsidiaries and divisions,
for more than 24,500 companies that spend over $200,000 annually
to advertise their products and services. Lists more than 116,000
persons, from senior executives to marketing managers and ad directors.
Find out who buys advertising, how much they spend, and where
they spend it, by media. Includes Brand Name Index to 58,000 products.
Published by National Register Publishing, 121 Chanlon Rd., New
Providence, NJ 07974. Tel.: 800/ 521-8110. $999.95. Available
at some university libraries and major public libraries.
-
U.S. government sources of data include
many divisions of the Department of Commerce, especially the Bureau
of the Census. Such publications as County Business Patterns and
the Census of Manufactures give data on the number, size, and
location of business establishments by industry group; capital
investments, value of shipments. Available in print at many university
libraries and major public libraries (especially government depository
libraries). Some data are also available on the World Wide Web
through FedWorld (www.fedworld.gov).
See also Census Data (ref. 17), Bureau of Labor
Statistics (ref. 20), International Trade Administration
(ref. 28), Environmental Protection Agency (ref.
30), and the Occupational Safety And Health
Administration (ref. 34).
-
Directory of Packaging Consultants, ,
indexes nearly 100 packaging experts by geographic location and
area of expertise. Available from the Institute of Packaging Professionals
(www.iopp.org)
1601 North Bond Street, Suite 101, Naperville, Illinois 60563;
telephone: (630) 544-5050; fax: (630) 544-5055; e-mail: info@iopp.org
Price: $35.00.
-
Any good book on constructing charts and graphs.
For example, G. E. Shilov, How to Construct Graphs. Boston,
MA: Heath, 1963. Robert Lefferts, Elements
of Graphics: How to Prepare Charts and Graphs for Effective Reports.
New York: Harper & Row, 1981. A. J. MacGregor, Graphics
Simplified: How to Plan and Prepare Effective Charts, Graphs,
Illustrations, and Other Visual Aids. Toronto, ON, Canada:
University of Toronto Press, 1979.
-
World Wide Web, or the Web, is
the source of much useful information. "Search engines" allow
searching by subject or keyword. NOTE: 1. The Web is always changing:
what was there last week might be gone next week, and what wasn't
there last week might be now. 2. Not all information on the Web
is valid. Check the sourcewhoever has put the information
on the Web (this can usually be found at the end of a Web document).
If the information is from a government, university, trade association
or some other recognizable source, it is probably reliable. If
the information is from an individual with no affiliation given,
it may not be reliable.
-
Thomas Register is a multi-volume directory
of manufactures nationwide, arranged by product. Essential for
locating suppliers. Published by Thomas Publishing Company, 5
Penn Plaza, New York, NY 10001, 800/ 699-9822 ext. 444, Fax: 212/
290-7365. Available at most libraries or on the Web at www.thomasregister.com.
-
Trademarkscan refers to a family of databases
available through DIALOG giving ownership and legal status on
trademarks at the state, national, or international level. Available
through some university libraries or information brokers.
-
Brands and Their Companies, published
by Gale Research, is a directory of national and international
manufacturers listed by the brand names of their products. Published
by Gale Research (see ref. 1). Available at many
libraries (in print) or online via DIALOG..
-
Standard & Poors Register gives brief
information on the management personnel of public and private
companies having more than $1 million annual sales. Published
by Standard & Poors, a Division of The McGraw-Hill Companies,
Manager, Electronic Services, 25 Broadway, New York, NY 10004.
Tel.: 212/ 208-8622. Available at many libraries (in print) or
online via DIALOG.
-
Robert Morse Associates publish financial
ratios for all types of business. Used to determine the financial
health of companies, often by bank loan officers or business counselors.
Robert Morris Associates, One Liberty Place, Philadelphia, PA
19103, 215/ 851-0585. Available through banks, University County
Extension Centers and Small Business Development Centers (ref.
35).
-
Credit analysis gives an overview
of the creditworthiness of a company. The three major national
credit bureaus are: Equifax, P.O. Box 740241, Atlanta, GA 30374-0241;
(800) 685-1111; Experian (formerly TRW), PO Box 949, Allen, TX
75013; (888) 397-3742; and Trans Union, PO Box 1000, Chester,
PA 19022; (800) 916-8800. Information is also available through
banks or information brokers.
-
Marketplace is the name of a business
directory product in CD-ROM format from the Dun & Bradstreet
company, Includes executive names, site type (headquarters or
branch, for example), annual sales, number of employees, 8-digit
SIC codes. Useful in analyzing markets and generating mailing
or telemarketing lists. Published by Market Place information
Corp. 460 Totten Pond Rd., Waltham, MA 02154-1906, Tel.: 800/532-3775
Available through some economic development agencies (ref. 36)
and Small Business Development Centers (ref. 35).
-
Market Identifiers, a business
directory database from Dun & Bradstreet and accessible through
DIALOG. Gives companies' sales for three years, executive names
and titles, site size and type, number of employees, 4-, 6-, and
8-digit SIC codes, sales territory, accounting firm, and bank.
Available through university libraries and some public libraries.
-
American Business Directory
- a DIALOG database including employment data, key contact and
title, 6-digit SIC code, yellow pages and brand/trademark information,
actual and estimated financial data, and corporate linkages. Compiled
by American Business Information, Inc., 5711 So. 86th Circle,
PO Box 27347, Omaha, NE 68127, Tel.: 402/ 593-4510 Available through
information brokers.
-
Census data - The U.S. Census
Bureau (www.census.gov)
gathers data on the population and projects changes in the age,
income, ethnicity, etc. These projections can be useful in planning
and growing a business. The Census Bureau also gathers data on
business and industry. Available at government depository libraries,
census data centers like the Office of Social and Economic Data
Analysis (www.oseda.missouri.edu)
located on the University of Missouri-Columbia campus (Tel: 573/
882-7396), or from DIALOG through an information broker.
-
Market research reports are in-depth
studies conducted and published by major firms like Frost &
Sullivan (Frost & Sullivan Research Services, 2525 Charleston
Rd., Mountain View, CA 94043, Tel.: 415/961-1000); Datamonitor
(106 Baker St., London, WIM 1LA, U.K., +44 71625 8548); Fredonia
(The Fredonia Group, Inc., 3570 Warrensville Center Rd., Ste.
201, Cleveland, OH 44122-5226, Tel.: 216/ 921-6800); and others.
The full report deals with industries and/or products, often including
specific long-range projections of demand for certain products
and services. The reports sell for thousands of dollars. However,
they can be searched and individual pertinent chapters can be
obtained via DIALOG for a fraction of that cost. Available through
information brokers.
-
Survey of Current Business, a monthly
journal written by the Bureau of Economic Analysis (www.bea.gov)
of the U.S. Department of Commerce. Contains analysis of U.S.
economic activity, including earnings by industry and region.
Available online or at many university and public libraries.
-
Bureau of Labor Statistics (www.bls.gov)
is the principal fact-finding agency for the federal government
in the broad field of labor economics and statistics. It has a
dual role as the statistical arm of the Department of Labor and
as an independent national statistical agency that collects, processes,
analyzes, and disseminates sensitive economic and statistical
data. Much BLS data is available online.
-
Sales and Marketing Management
is a monthly publication dealing with sales and marketing issues
and includes periodic surveys. Of particular interest is the annual
"Survey of Buying Power," which contains a wide range
of data designed for marketing analysis. Data include Metro Market
Rankings; Metro, County, and City Data by State; median age of
population, percent of population by age groups and household
income, retail sales by store groups, and more. Main offices are
at 355 Park Ave. South, New York, NY 10010-1789. Available at
many libraries, some bookstores, or by subscription. For subscription
information, call 800/821-6897. The magazine's web site is www.salesandmarketing.com.
-
D&B Financial Records Plus (library.dialog.com/bluesheets/html/bl0519.html)
database provides up to three years of comprehensive financial
statements for more than 700,000 private and public companies,
includes balance sheet, income statement, 14 of the most widely
used business ratios for measuring solvency, efficiency, and profitability,
and history and operation background of a firm. A company's financial
position may be compared to others in the same industry as determined
by industry norm percentages. Useful for evaluating potential
partners or suppliers. Published by Dun & Bradstreet Information
Services, 3 Sylvan Way, Parsippany, NJ 07054, Tel.: 800/223-1026.
Available through information brokers.
-
Disclosure database provides detailed
financial and textual information on approximately 11,000 public
companies, derived from reports filed with the U.S. Securities
and Exchange Commission (www.sec.gov).
Information includes annual and quarterly balance sheets and income
statements, annual financial ratios, cash flow statement, and
weekly price earnings information. Textual information includes
the full text of the management discussion; president's letter
to shareholders; footnotes to the financials; officers, directors,
and subsidiaries; and citations to other corporate events and
exhibits. Like D&B Financial Records Plus (ref. 23),
this database is useful for investigating potential partners.
Compiled by Disclosure, 5161 River Rd., Bethesda, MD 208 16, Tel.:
800/843-7747. Available through information brokers.
-
Gale Group MARS, or Gale Group Marketing
& Advertising Reference Service, (library.dialog.com/bluesheets/htmlaa/bl0570.html#AB)
is a multi-industry database covering a wide variety of consumer
products and services. MARS is used to locate market size and
market share information, monitor new product or service introductions,
evaluate markets for existing products or services, and research
the marketing and advertising strategies of competitors. It is
also used to research and develop new client proposals; target
markets; locate information on products and services. Compiled
by The Gale Group, Search Assistance & Content Support, 362
Lakeside Dr., Foster City, CA 94404, Tel.: 800/877-4253. Available
through information brokers.
-
EventLine® is a directory covering
past, current, and future conferences, exhibitions, trade fairs,
and symposia worldwide. The focus of EventLine is in the domain
of medicine, biotechnology, chemistry, and technology. The events
are classified into more than 700 subject areas. EventLine is
part of the Reed Elsevier Publishing Group and is compiled by
Excerpta Medica Medical Communications B.V., Rooseveltweg 15,
PO Box 3008, NL 1314 SJ Almere Stad; Phone: (+31 36) 5385 600,
Fax: (+31 36) 5385 650; or e-mail: eventline@excerptamedica.com.
It is accessible through DIALOG, information brokers, and major
libraries. Several sites on the web also track trade shows. For
example, Trade Show Central at www.tscentral.com.
-
IAC Trade & Industry News is one
of several DIALOG databases covering international company, industry,
product, and market information, with strong coverage of such
areas as management techniques, financial earnings, economic climate,
product evaluations, and executive changes. Similar databases
include ABI Inform from UMI, 620 S. Third St., Louisville, KY
40202-2475, Tel.: 800/ 626-2823) and IAC PROMT (www.hrzone.co.uk/databases/db_pt91_sample.html).
Available through major libraries and information brokers.
-
Standard Periodicals Directory
is an annual reference work used to find specialized trade journals
as possible sources of business information or advertising. Published
by Oxbridge Communications, 150 5th Ave., New York, NY 100 11,
Tel.: 212/ 741-0231. Available at most libraries. A similar directory,
Ulrich's, is also available at most libraries or, as a DIALOG
database, or through an information broker.
-
International Trade Administration,
part of the U.S. Department of Commerce helps U.S. firms compete
in the global market. The ITA tracks emerging markets, provides
industry and country analyses, and supports U.S. Export Assistance
Centers, among other things. Accessible through the web at www.ita.doc.gov;
main office is at 14th Street and Connecticut Ave., N. W., Washington,
DC 20230, Tel.: 202/ 482-3808. Department of Commerce district
office is in Room 635, 601 East 12th Street, Kansas City, MO 64106,
Tel.: 816/ 426-3141.
-
Any basic economics books, for example: Joseph
E. Stiglitz, Economics.
New York: W. W. Norton & Company (500 Fifth Avenue, New York,
NY 10110, Tel.: 212/ 359-5500), 1993.
-
Environmental Protection Agency Agency
regulates hazardous waste, air and water pollution, and other
issues of interest to business and industry, Information on EPA
policies is available at their web site (www.epa.gov)
or at regional office at 726 Minnesota Ave., Kansas City, KS 66101,
Tel.: 913/ 551-7003. More detailed information on environmental
issues can also be located through information brokers with DIALOG
access.
-
Federal Register, the official newspaper
of the U.S. Government, is the vehicle through which federal agencies
publish their regulations and legal notices. DIALOG databases
of both the Federal Register and Federal Register Abstracts are
available through major libraries and information brokers; or
through the Government Printing Office, PO Box 371954, Pittsburgh,
PA 15250, Tel.: 202/ 512-1800.
-
State labor agencies usually track statistics
and legal issues pertaining to employment in the state. In Missouri,
the Department of Labor and Industrial Relations can be reached
at (573) 751-4091 or via their web site (www.dolir.mo.gov).
-
State and local departments of health license
and regulate many kinds of businesses. Find the Missouri Department
of Health and Senior Services at this web site (www.dhss.mo.gov)
or your local health department at this web site (www.dhss.mo.gov/LPHAWebIndex.htm)
or through the telephone Yellow Pages.
-
The Occupational Safety and Health Administration
(OSHA), a division of the U.S. Department of Labor establishes
standards to protect people from injury in the workplace enforces
those standards, and educates employers and employees about workplace
safety issues through technical assistance and consultation programs.
Information about OSHA policies and resources is available at
the OSHA Web site (www.osha.gov)
or the main office at 200 Connecticut Ave., NW, Washington, DC
20210, Tel.: 202/219-8148.
-
University Extension Centers operate
in many states, offering assistance of various types. The University
of Missouri Extension has a strong Business Development Program;
to find the nearest County Extension Center in Missouri, call
573/882-4321 or visit their web site (www.missouribusiness.net).
Another important resource is the Small Business Development Centers
(SBDC) Network, which operates in all 50 states. In Missouri,
to find the nearest SBDC, call the state office at 573/884-1555
or visit their web site: www.mo-sbdc.org.
-
State departments of economic development
can be valuable sources of information and assistance. The Missouri
Department of Economic Development can be reached at (573) 751-4962;
via e-mail at ecodev@mail.mo.gov; or visit their web site
at (www.ded.mo.gov).
-
Technology Transfer Centers exist throughout
the country to help businesses benefit from work done at university
and federal laboratories rather than developing new technologies
and processes themselves .For the technology transfer center nearest
you, contact the National Technology Transfer Center, Wheeling
Jesuit University, 3 16 Washington Avenue, Wheeling, WV 26003,
Tel.: 800/ 678-6882, web site: www.nttc.edu.
-
Sorkins Directories of Business & Government
for St. Louis Kansas City, and Chicago are multi-volume sets of
reference books where users can find profiles of companies by
company name or by individual executive name. Profiles include
sales and employee figures; encyclopedic company descriptions;
names and titles of chief executives, partners, vice presidents,
department managers, and board members; addresses, (telephone
and fax number(s), year, founded company's bank, law firm, accounting
firm, and more. Sorkins Electronic Book is a Sorkins directory
on CD-ROM. You get all of the full profiles with search, sort,
and count functions. Published by Sorkins, PO Box 411067, Creve
Coeur, MO 63141, Tel.: 800/ 758-3228, Fax: 800/721-5478, e-mail:
psjsorkins@sorkins.com. Available at many libraries.
-
ZIP Code and County Demographics CD-ROM
contains U.S. demographic information at both the ZIP Code and
county levels. Designed to run on Windows, disk contains more
than 50 demographic variables for 29,523 residential zip codes
and 3,141 counties for profiling potential markets. Includes purchase
potential information for 20 product categories ranging from financial
services to furniture, from pet ownership to home improvement.
Software includes search, sort, rank, and export functions. Published
by CACI Marketing systems, 2361 Jefferson Davis Hwy., Arlington,
VA 22202, Tel.: 713/415-4800.
-
The U.S. Global Trade Outlook, 1995-2000:
Toward the 21st Century is a one-volume publication of the
U.S. Department of Commerce's International Trade Administration
(Ref. 28) providing business forecasts for 350 industries. This
publication succeeded the U.S. Industrial Outlook, which
the Commerce Department had published for many years. Ordering
information is found at this web site (www.ita.doc.gov/td/industry/otea/usio/usio95.html).
-
County Business Patterns, published
at one-or two-year intervals by the U.S. Census Bureau (www.census.gov/epcd/cbp/view/cbpview.html),
contains statistical tables, by county and industry. Includes
statistics on the total number of establishments, employment and
payroll for the nation, each state and each ZIP Code.
-
Criss cross directories, published by
various companies and sometimes known as city directors, provide
telephone directory type information by address, and sometimes
by phone numbers, rather than by name. Contact your local library
for further information.
Appendix B - Outline of a Marketing Plan2
- Mission statement -
What do you want your business, main markets, and products or services
to be?
- Marketing objectives for next year and for the next three years
-
These are the broad marketing objectives.
- Sales and profit goals for next year and the next three years.
- Products/services -
Give a brief description by product/service lines, including proposed
changes and any recent changes that would affect marketing goals.
- Target markets -
List and briefly describe.
- Market potential -
What size and potential sales, profit, or other advantages do the
target markets have?
- How will you achieve your goals?
A. Overall strategy
B. Competitive strategies
C. Promotion strategies
D. Pricing, location, and sales practices (a brief statement of pricing
strategy, plus brief statements about location, hours, and selling
practices)
E. Marketing and advertising budgets
- Potential problems -
Give a brief description, plus proposed solutions.
- Implementation and measurement of timetables and benchmarks.
- Review and evaluation schedule -
This is a short schedule of important review dates.
Appendix -
This may include supporting documents such as letters of intent, purchase
agreements, and so forth if you think documentation is needed.
2Used with permission:
The Marketing Planning Guide, 4th Edition, by David Bangs, Jr.
© 1995 by Dearborn Financial publishing, Inc. Published by Upstart
Publishing Company, a division of Dearborn Publishing Group, Inc., Chicago.
Acknowledgments: The authors of this workbook
received suggestions, comments and input from many individuals who
made this workbook possible. While it would be impossible to name
them all, we would like to give special thanks to Rick Sparks, Tim
Wathen, other Business and Industry Extension Specialists, and Lorraine
Swinfard, who typed the manuscript.
Revisions, updates and edits have been made by Program Specialists
Alan Hauff and Chris Bouchard.
Note: Revisions to this workbook were posted by the Business Research
and Information Development Group (BRIDG), which is supported by the
University of Missouri Extension Outreach Development Fund. Revised:
3/27/07
Authored by: John M. Amos, Ellen Pearce, Henry H.
Sineath. University of Missouri Center for Technology Transfer (UMR
Extension). May 2002. This workbook was funded by a grant from the Outreach
Development Fund, University of Missouri and updated under an award
from the U.S. Department of Commerce, Economic Development Administration.
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