Market Research

The market research has the purpose to check the feasibility and “worth” of your business idea. It will focus on the question whether your organisation will be able to survive (or generate profits) doing the planned activities. In sum, the analysis of your market research findings will help you refine, redefine and prioritise your business idea.

The foundation team will either carry out the research itself, ask the support team for help or if additional funds are available, contract a specialised market researcher.

Contracting an external person/company ensures objectivity and professionalism of the research. Specialised market research companies have the resources and know-how to undertake empirical surveys and statistical analysis of complex data.

Doing the research on your own will probably give you a deeper insight into the future market of the institution and maybe helps you identifying good alternative business ideas. The decision on outsourcing this important task will thus depend on the availability of market information and the institution’s financial, time and people resources.

The market researchers will need to get information about the (future) institution's key influencing factors, i.e., the market, already existing activities in the field (competition), the characteristics and size of the target market and group, any sources of income and expenses.

The market researchers will use different information resources – many of them are for free - in order to find relevant, objective and timely facts about the influencing factors. The information will be stored and analysed as a preparation for creating the business plan.

The findings of the market research will be used to screen out activities that contribute least to the institution’s sustainability. Activities that are considered revenue generating and feasible will be nearer defined and prioritised.

What do you need to find out

In order to check whether your idea will allow you to operate a sustainable or profitable support institution you will have to collect and analyse relevant, timely and objective information.

Note 3 Market research areas of interest

Market Research Checklist of Questions for Supply Chain Management Institutions for Purchasing & Supply Chain Support Institutions

Please see attached a market survey project defined for a newly created professional support institution. It includes

Project document

Project budget

Project action plan (work plan)

Where can you find information for your market research

Field research / new information:

·    Surveys & Interviews (personal interviews; mail, phone, fax surveys): Surveys comprise the development, testing and use of questionnaires with a sample of the potential clients and/or experts in order to identify needs or further characterise target markets. This kind of research is often handed over to specialised market research firms who have the methodological know-how and the organisational capabilities, e.g. call centres, mailing administration teams, team of students doing personal interviews, etc. Market surveys will deliver precise and relevant information regarding the need and market for your business idea, but of course they also involve cost and time.

Desk research: researching and analysing available information:

·    Institutions/Experts: chambers, sector or business associations, statistical offices (national, federal, community), public registers, universities, research centres, international organisations, etc.

·    Personal & professional contacts: former colleagues, professional contacts, family, friends, leisure time club members or sport fellows, etc.

·    Internet: especially Web sites of the above institutions and/or big companies, survey reports and newspaper articles, donors and funding organisations, online job markets, online markets for equipment & facilities, etc.

·    Existing professional support institutions: experience reports and tips, find contact addresses: World Directory of Purchasing and Supply Chain Associations