Introduction To The Market Analysis Process

Introduction to the Market Analysis ProcessWebinar Session #1, September 18, 2012 (1:00 PM - CT)Ryan Pesch (Minnesota-Extension),Bill Ryan (Wisconsin-Extension);and Bruce Schwartau (Minnesota-Extension);Working with local and regional Extension educators inIllinois, Minnesota and WisconsinFunding - North Central Regional Center for Rural Development (NCRCRD) Seed Grant

Purpose of a Market Analysis1. To support business developmentwith reliable data that accuratelydescribes the market.2. To research issues specific to yourparticular community.3. To provide a foundation fordeveloping economic developmentstrategies for a business district.

http://fyi.uwex.edu/downtown-market-analysis/

I. Understanding the MarketTrade Area AnalysisA trade area is the geographic area from which a communitygenerates the majority of its customers. A community mayhave both a convenience and a destination trade area.Factors to Consider:Tools to Use: Population Focus groups Proximity of competing Mapping using geographiccenters Local mix of businesses Local destination attractions Traffic patternsfeatures (distances,highways, drive-times, etc.) Mapping using customeraddresses and zip codes

Establishing Trade Area(s) Using GIS

I. Understanding the MarketDemographic & Lifestyle AnalysisDemographic and Lifestyle data can provide insight into localconsumer buying behaviors and preferences. Comparison aremade to state and national averages.Demographic Data:Lifestyle Data: Population and households Households in a trade area Housing ownership and valueare segmented into uniqueclusters that describe theirlifestyle, characteristics Examine spending propensityfor a variety of goods andservices Income Age, gender and ethnicity Educational attainment Employment

Analysis of Trade Area(s) Using Tables and Maps

I. Understanding the MarketBusiness Owners SurveyA business owner survey invites business owners to share theirperspectives regarding the current and future economic healthof the business district.Purpose of Questions:Possible Methods to Use: provides information on Written Surveybusiness needs to supportretention and expansionefforts. Allows business communityto share ideas for neweconomic activity in thecommunity. Telephone Survey Web-Based Survey Business Visitations Focus Groups

I. Understanding the MarketConsumer SurveyA survey can help you understand the attitudes and shoppingbehaviors and preferences of current and potential consumersspecific to your trade area.Provides Information on:Possible Methods to Use: Who they are and how to Written Surveyreach them. Where, when and why theyshop for various goods andservices How downtown can beimproved in terms of retail aswell as other uses. Telephone Survey Web-Based Survey Social Media Intercept Surveys Focus Groups

Surveys – Download Examples and TemplatesToolbox includes: Question-bank to help youdetermine what questions aremost relevant to your analysis Downloadable survey templatesthat can be customized for yourcommunity. Examples of surveys that havebeen customized andimplemented in various cites.

I. Understanding the MarketFocus GroupsA carefully planned discussion to collect qualitative data aboutfeelings and perceptions regarding the downtown area.Structure of Sessions: 7-10 people with common characteristics (perhaps same market segment)Minimum of three groupsConducted by a trained facilitatorNon-threatening environmentUsed to understand human behaviorNot used to collect facts

II. Analysis of Opportunities by SectorExamining Retail OpportunitiesIncludes tools for estimating demand and supply for selectedbusiness categories. Business opportunities are examined interms of quantitative and qualitative OpportunitiesReasonablenessCheck

II. Analysis of Opportunities by SectorAnalysis of Other Property UsesIncludes techniques for estimating demand and supply forvarious downtown uses. To the extent possible, opportunitiesare examined in terms of quantitative and qualitative factors Restaurants Arts and Entertainment Housing Office Space Lodging Light Industrial

III. Putting Your Research to workUsing Your Market AnalysisMarket analysis findings can provide a solid and objectivefoundation for launching economic development strategies foryour district. Niche Development Space Usage Image, Branding, Marketing Business Retention/Expansion Business Recruitment Entrepreneurship Benchmarking

I. Understanding the Market. Demographic & Lifestyle Analysis . Demographic Data: Population and households Housing ownership and value Income Age, gender and ethnicity Educational attainment Employment . Lifestyle Data: Households in a trade area are segmented into unique cl