This paper examines the effect that the recession has had on the financial behaviour of small businesses and their optimism about the future. The main finding is that the age of the business and the change in its turnover over the preceding year are important determinants of behaviour and attitude. Hence, the conclusion is that these are essential components of any segmentation study, alongside the more commonly used size, sector and region variables. Furthermore, the author believes that the findings from the small business sector can be likened to the life stages used in consumer financial research, and draws a parallel between consumer disposable income and business turnover and profitability. There are similar parallels between new house-owners and new businesses.
This booklet is intended to give a brief outline of what market research is all about and what its principal methods and techniques are. It has been prepared by ESOMAR mainly to help potential users who would like to know more about this specialized and fascinating branch of marketing. Itis therefore likely to be of particular interest to those working in the fields of local government, small and medium-sized manufacturing companies, and service organisations ranging from the financial sector to the health sector, who are new to this subject and wish to be initiated. It is also invaluable to other non-specialists such as Marketing Managers, Sales Managers and Accountants, as well as to businessmen in the developing countries, and to students of business and marketing.
In this paper it is argued that the solution to the problem of how to conduct effective research for small businesses lies not just in improved techniques, but also in redefining the market researchers role. It is argued that market research should become a more integrated part of the business development process. In this way, it is argued that market research will be better placed to demonstrate to small business clients that effective market research requires a range of higher order investigative and analytical craft skills that are not generally recognised by the wider business community. It is argued that it is these craft skills that give market research its power. It is this craft dimension that distinguishes TRUE research from head counting and number crunching. To illustrate this point the paper draws on three quite varied examples of small business problems requiring research: a decision whether or not to open a book shop; the question of whether to invest in machinery to produce specialist ethnic cheese products for the UK market; and a decision on the marketing opportunities for a new portable toilet. In short, this papers message is that in order to unleash the potential of the market research craft, ways must be found of ensuring market researchers work in close proximity to small business clients. It is important for small businesses to obtain a feel for the workings - the subtleties of the market research craft - and not see market research as a black box technique that generates an answer.
Successful enterprises within the whole SME structure are characterized by their high rate of flexibility. This fact forms the strength of SME's with regard to big companies. Flexibility is shown at its utmost in the ability to react effectively on sometimes very specific and profitable share-markets. Changes in environment, which are influential for the profitability occur quite often. In strong enterprises these changes will be signalled quickly and they will equally fast lead to new methods and techniques and/or new products and services. Inventiveness, a strong motivation of the entrepreneur and his employees, combined with short communication lines (both internally and externally) are the keystones for success. It would be interesting to exchange views about inventiveness and motivation, however, this is not the subject of this exposition. We will talk about supply of information. The emphasis thereby will be focused on market-information. Not the benefit or the possibilities of new techniques and media will be dealt with in the first place. We will tell something about the handling of information as it happens in practice and the possible influence of new resources. In connection with this it shall be traced whether and in what way SME's are an interesting market for market researchers.
The paper explains, how periods of economic instability have led to new demands for market research data amongst the suppliers of financial services. During times of stagnating or even reduced market research budgets, the structural survey of the Establishments-FMDS has been positively judged and accepted by the leading banking and insurance companies. The success of the Establishments- FMDS lies mainly in the fact that it was developed in close cooperation between market researchers from Infra- test and the companies involved as well as banking and insurance experts. In addition it was conceived as a multi-client study and therefore does not overburden the budgets of the single companies.
The paper explains, how periods of economic instability have led to new demands for market research data amongst the suppliers of financial services. During times of stagnating or even reduced market research budgets, the structural survey of the Establishments-FMDS has been positively judged and accepted by the leading banking and insurance companies. The success of the Establishments- FMDS lies mainly in the fact that it was developed in close cooperation between market researchers from Infra- test and the companies involved as well as banking and insurance experts. In addition it was conceived as a multi-client study and therefore does not overburden the budgets of the single companies.
Two of the export organizations, each acting on its own responsibility, commissioned a wide scale survey in 1982. The purpose of this survey was to establish which bottlenecks are encounted by exporting small and medium-size companies in their export activities, as well as their contacts with export organizations, in order to find ways of contributing to solutions. The research scheme consisted of one survey among smaller exporting companies and another among export organizations. This paper shows that this type of research in which one is attempting to influence policy at Government level by confronting policymakers with research results, conclusions, and recommendations, is a correct and desirable intermediate phase in a research project.
This paper discusses a problem that is frequently encountered in consumer market research. It is the requirement to obtain 'usable' samples of small minority market sectors where cost and time constraints exist. The author has not found the answer to this problem and certainly does not claim that the approach he illustrates by way of a case history constitutes the answer.
This paper sets out to both examine some of the particular and peculiar needs of the small business sector as well as mapping a plea for changed attitudes among marketing (and other) educators.
The paper takes the view that increasing affluence in Europe will produce greater opportunities for developing export markets in consumer goods and that those will be attractive to smaller as well as large exporting organisations. It discusses some of the special problems of conducting export market research for smaller companies. It contains a critique of the traditional approach to appraising export markets and contends that this approach is orientated too heavily towards providing a broad general overview of a market and too little towards considering the practical needs of prospective exporters. It takes the view that export market research for smaller organisations must pay a great deal of attention to organisation for production and marketing, since it is these factors that bear heavily upon the feasibility of developing export markets.
The paper points out some reasons for the contrasts between agricultural and commercial market research. Because of the relatively small size of agricultural firms these are in general not in a position to carry out market research of their own. With few exceptions this is true also with respect to trading and processing firms in the agricultural sector. On the other hand there is a need for market research not only in the interest of producers but also for purposes of economic policy and consumer information. Agricultural market research, therefore, predominantly is financed by public expenditures. Given this situation agricultural market research shows some unique features with respect to research objectives and impact of research findings. It is recommended to distinguish direct and indirect effects of the research work.