Chapter NineChapter NineChapter NineChapter Nine

Competitive Advantage and Marketing Research

TOP 9 LIST FOR BUSINESS PLAN PROJECTSTOP 9 LIST FOR BUSINESS PLAN PROJECTSTOP 9 LIST FOR BUSINESS PLAN PROJECTSTOP 9 LIST FOR BUSINESS PLAN PROJECTS

1. Custom made corn heads, Rusty Olson2. Contract hunting lodge, Mike Johnson3. Pooling of ag inputs, Dana Morgan4. Hunting guide service, Brent Neighbor5. Crop injury specialists, Joshua Berg6. Precision planting, Thomas Book7. Springer, grain wagon latch, Stephanie Creese8. Adventure travel consulting, Francis Lorenz9. Machinery and grain storage, Patrick Newlon

GROUP 1GROUP 1ADVENTURE TRAVEL CONSULTINGADVENTURE TRAVEL CONSULTING

GROUP 1GROUP 1ADVENTURE TRAVEL CONSULTINGADVENTURE TRAVEL CONSULTING

• Francis Lorenz

• Eric Vangorp

• Aarron Osterhaus

• Tyson Kaldenberg

• Tyler Rees

GROUP 2GROUP 2Springer, Latch for Wagon ChuteSpringer, Latch for Wagon Chute

GROUP 2GROUP 2Springer, Latch for Wagon ChuteSpringer, Latch for Wagon Chute

• Stephanie Creese

• Brent Bonner

• Darrick Hall

• Laura Northway

• Marc Oostenink

Group 3Group 3Crop Injury SpecialistsCrop Injury Specialists

Group 3Group 3Crop Injury SpecialistsCrop Injury Specialists

• Joshua Berg

• Daniel Severs

• Ryan Jones

• Ramon Kuntz

• Trent Kuntz

Group 4Group 4Precision PlantingPrecision Planting

Group 4Group 4Precision PlantingPrecision Planting

• Thomas Book

• Benjamin Furman

• David Eisenman

• Ryan Sauer

• Sam Behrens

Group 5Group 5Contract Hunting LodgeContract Hunting Lodge

Group 5Group 5Contract Hunting LodgeContract Hunting Lodge

• Mike Johnson

• Adam Gittins

• Bryan Bradley

• Clinton Veren

• John Lyle

Group 6Group 6Machinery and Grain StorageMachinery and Grain Storage

Group 6Group 6Machinery and Grain StorageMachinery and Grain Storage

• Patrick Newlon

• Chris Steinkamp

• Matthew Willimack

• Patrick Kuehn

• Quinn Showalter

• Terrance Wood

Group 7Group 7Hunting Guide ServiceHunting Guide Service

Group 7Group 7Hunting Guide ServiceHunting Guide Service

• Brent Neighbor

• Brett Moffatt

• David Curren

• Holly Blackford

• Leslie Miller

Group 8Group 8Pooling of Ag. InputsPooling of Ag. Inputs

Group 8Group 8Pooling of Ag. InputsPooling of Ag. Inputs

• Dana Morgan

• Adam McKain

• Judd Gross

• Reid Weiland

• Tory Hetland

• Victor Dobroff

Group 9Group 9Custom Made Corn HeadsCustom Made Corn Heads

Group 9Group 9Custom Made Corn HeadsCustom Made Corn Heads

• Rusty Olson

• Amanda Taylor

• John Peterson

• Reid Swanson

• Steven King

Chapter FocusChapter FocusChapter FocusChapter Focus

• Define competitive advantage

• Demonstrate the importance and benefits of having a competitive advantage

• Describe three ways to create a competitive advantage for your business

• Explain the purpose of the marketing research process and steps involved in putting it into practice

• Illustrate what marketing research can do for your small business

The Five Forces for CompetitionThe Five Forces for CompetitionThe Five Forces for CompetitionThe Five Forces for Competition

Threat of NewEntrants

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitute

Products or Services

Rivalry AmongExisting

Competitors

Fig. 9-1

Competitive Advantage CycleCompetitive Advantage CycleCompetitive Advantage CycleCompetitive Advantage Cycle

Luck

Failure ofCompetitor

ExternalFactors

SuperiorSkills

SuperiorResources

InternalFactors

CompetitiveAdvantage

Superior ProfitPerformance

Fig. 9-2

Market Research Expenditures (1 of 2)Market Research Expenditures (1 of 2)Market Research Expenditures (1 of 2)Market Research Expenditures (1 of 2)

One month to 6 months

49%

Less than one month24%

Seven to 12 months

14%

More than one year13%

Time spent on market research beforelaunching most recent new product or service:

Fig. 9-3a

Market Research Expenditures (2 of 2)Market Research Expenditures (2 of 2)Market Research Expenditures (2 of 2)Market Research Expenditures (2 of 2)

$1,000 to $5,00032%

Less than $1,00036%

More than $25,000

10%

$11,000 to $25,000

5% $6,000 to $10,000

17%

Out-of-pocket money spenton the market research:

Fig. 9-3b

Market Research ProcessMarket Research ProcessMarket Research ProcessMarket Research Process

IdentifyProblem

Developa Plan

CollectData

AnalyzeData

Draw Con-

clusions

Fig. 9-4

Matrix of Customer Needs and Matrix of Customer Needs and TypesTypes

Matrix of Customer Needs and Matrix of Customer Needs and TypesTypes

Unspoken

Spoken

Served Unserved

Cu

sto

mer

Nee

ds

Markets

Existingproducts

orservices

New opportunitiesfor products/

services

Fig. 9-5

Marketing ResearchMarketing ResearchMarketing ResearchMarketing Research

• Determine potential customers

• Determine their demographics

• Determine their buying habits

• Determine if they will buy your products or services

• Determine the competition

• Determine your potential sales

Marketing ResearchMarketing ResearchMarketing ResearchMarketing Research

• Trends in the industry– Trade journals– Trade associations– Statistics

• Status of the competition– Market share– Financial situation– Vulnerabilities

Marketing Research MethodsMarketing Research MethodsMarketing Research MethodsMarketing Research Methods

• Secondary data– WWW– Government data– Commercial data

• Survey of Buying Power

• CACI

• Claritas

– Trade associations

Marketing Research MethodsMarketing Research MethodsMarketing Research MethodsMarketing Research Methods

• Primary data– Surveys

• Phone• Mail• In person

– Test marketing

– Focus groups

– Beta users

– Analogues

Marketing Research MethodsMarketing Research MethodsMarketing Research MethodsMarketing Research Methods

• Data sources– Census of Agriculture– Census of Retail Trade– State sales tax reports– Survey of Buying Power– SEC annual reports– Trade journals– Iowa Agricultural Statistics