Looking for Market Data

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Looking for Market Data

• Michael Enyart
• Business Library
• Menyart_at_library.wisc.edu
• 263-3902

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Agenda

• The ideas and efforts that go into entering this
  competition are really the life blood of our
  economic system. Inventions, new ideas, new
  products, and new methods is are the raw
  materials of our economic vitality.
• In many ways this competition is a microcosm of
  the Business world.

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What Do You Need to Know?

• The size and growth of the market
• The segments of the market
• Geographic
• Demographic
• Benefit-based
• Psychographic
• The target segment

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Where does you idea fit in the Business
Environment?

• This is one of the questions that needs to be
  answered in order for your to start your research
  on the potential market
• My new and improved formula for could be used for
  athletic drinks.
• Is your software going to be used by people who
  use the Windows operating system?
• Will your product be used by power generating
  plants in the U.S.?

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If you can identify the business you find the
Code

• Most of the data that is collected on businesses
  in the U.S. is done at the type level. That
  type is defined by the SIC code (1998 and prior
  years) or the NAICS code (1999 forward). If you
  are looking at census information or directories,
  knowing the code will be a great help.
• Athletic Drinks 312111
• Windows Software 511210
• Power Plant Machinery - 221112

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Most of the Data that you find will be based on
the NAICS/SIC

• Knowing the code of your business gives you
  access to data.
• Census data is arranged by NAIC code. You can
  find number of establishments, production value,
  number of employees in the code
• You can use company directories to determine the
  all of the competitors in the same industry.

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Good Starting Point

• Small Business Sourcebook is a very good place to
  start your research. This resource provides you
  with a great deal of information about a type of
  business. It provides such things as trade
  associations, trade journals, franchises, sources
  of supplies, start up information etc.
• It only covers 341 types of businesses.

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Benefit Based Knowing your customer

• For any business this is very important. In
  researching business ideas this is also very
  important. This can answer that question how
  many are you going to sell.
• If you are selling to the consumer, who is that
  consumer and how many are there in your business
  area?
• If you are selling to a business, who are those
  businesses and how many are there in your
  business area?

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Geographic Data

• Trying to find market data at a county or city
  level is very difficult and not always
  successful.
• You need to be prepared to use National data and
  massage it to work at the local level.
• The data that you might find could be dated and
  you will need to figure out someway to update it.
  

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Demographic Data

• Census of Population
• Zip Code Demographics

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Psychographic

• Lifestyle Market Analysis

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Consumer Data

• Consumer Panel Data
• Choices
• Market Research
• Mintel
• Market Research Monitor

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Sources Business-to-Business

• Trade Association Directories
• Associations Unlimited
• National Directories
• DB Million Dollar Directory
• State Industrial Service Directories
• Wisconsin Manufacturing Directory
• Telephone Books
• Reference USA Business
• Economic Census
• County Business Patterns

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Financial Data

• Balance Sheet Information is not very likely.
  The most you can consistently find are financial
  ratios by industry (code)
• RMA Annual Statement Studies This is the best
  source for ratios for small businesses since they
  offer a breakdown by asset size. Drawback, it
  does not cover all SIC codes
• DB Industry Norms and Key Business Ratios. This
  resource covers almost all industry codes but
  there is no breakdown by asset size.
• Fintel Industry Metrics. This resource provides
  financial metrics for over 2,500 individual
  industries.
• Pratts Stats This resource is based on business
  that have sold over the past few years. You can
  search by SIC code and Geography. Does not
  provide a full financial spreadsheet but does
  give some value measures.

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Other data that is hard to find

• Here are some examples of other data that is hard
  to find
• Cost of facilities
• Marketing and Advertising budget and/or costs.
• Cost of raw materials
• Talking with people in the same field may be your
  best source

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Your Librarian as a Source

• In the class setting it is difficult for me to
  address each of your business ideas. Some may
  have more information resources then others.
• Please feel free to call me and or email if you
  run into a problem. I cannot guarantee that I
  can answer every question, but I might be able to
  point you in the right direction.