10 Tips for Market Research in Your Pitch Deck: What to Include, What to Avoid, and Where to Find Data
When you're creating a pitch deck, it's important to include market research to show that there is a demand for your product or service. But what should you include in your market research? What should you avoid? And where can you find data to support your claims? In this blog post, we'll give you 10 tips for market research in your pitch deck.
Some things to include in your market research are:
The size of the market
There are a few ways to estimate the size of a market. One way is to look at government statistics. Another way is to look at industry reports. You can also look at company websites or online surveys.
The growth of the market
One way to measure the potential for growth in a market is by looking at the industry's total addressable market (TAM). This figure represents the total revenue opportunity for a company in a particular industry. To calculate TAM, you multiply the number of potential customers in an industry by the average revenue per customer.
For example, let's say you're considering starting a telemedicine company. The total addressable market for telemedicine was estimated to be $36 billion in 2020. This means that, if you could capture just 0.01% of the market, you would generate $36 million in revenue.
The trends in the market
There are a few key ways to identify market trends in your industry:
- Look at trade associations and reports from analysts who cover your industry - they will usually have data on market trends
- Use Google Trends to see how interest in certain keywords related to your industry has changed over time
- Attend industry conferences and events - you can often get a sense of what's trending by listening to conversations and seeing which topics are being discussed the most.
If you're unsure where to start, try searching on Google for "industry + market research" or "industry + market trends." This should give you a good starting point for finding the information you need.
Once you've identified some market trends, you can start thinking about how to use them in your pitch deck. For example, suppose you're noticing that telemedicine is becoming more popular. In that case, you could highlight this trend in your pitch deck and discuss how your company is positioned to take advantage of it.
The segmentation of the market
Market segmentation divides a market into distinct groups of consumers with similar needs or desires. Entrepreneurs use market segmentation to target a specific group of consumers when marketing their product or service. There are four main ways to segment a market:
- Demographic segmentation: This type of segmentation divides the market based on demographic characteristics such as age, gender, income, education level, etc.
- Psychographic segmentation: This type of segmentation divides the market based on psychological characteristics such as personality, lifestyle, values, etc.
- Behavioral segmentation: This type of segmentation divides the market based on consumer behavior such as purchase history, brand loyalty, etc.
- Geographic segmentation: This type of segmentation divides the market based on geographic factors such as region, country, city, etc.
Once you've decided which type of segmentation is most appropriate for your business, you can begin to gather data on your target market. There are several ways to collect market research data, including online surveys, focus groups, customer interviews, and secondary research.
When it comes to market research, more is not always better. Including too much data in your pitch deck can be detrimental, so selecting only the most relevant information is essential.
The competition in the market
When you're crafting your pitch deck, it's important to do your homework on the competitive landscape. This means understanding not only who your direct competitors are, but also who else is offering similar products or services. This information will help you better position your own company in the market and make a more compelling case to investors.
There are a few different ways to go about conducting competitive research. One is to simply Google your industry or product category and see who comes up. Another is to use a site like Crunchbase, which provides information on startup companies. If you're looking for more detailed information, you can also purchase market research reports from companies like Forrester or Gartner.
The customer needs and wants in the market
This is probably the most important question you can ask when starting a business. The answer will determine whether your product or service is successful.
The best way to understand customers' needs is to talk to them directly. This can be done through surveys, interviews, or focus groups.
Another way to gather customer insights is to look at data from your competitors. This can be done through market research reports or by using a tool like Google AdWords.
Some things to avoid in your market research are:
Making assumptions about the market
If you're pitching your business to investors, it's important to have a solid understanding of the market. Making assumptions about the market can be a costly mistake.
Overgeneralizing the market
Overgeneralizing a market means making sweeping statements about a group of people without considering the individual differences within that group. When market sizing, it's essential to be as specific as possible. That way, you can really hone in on your target customer. Unfortunately, overgeneralizing your market makes it difficult to understand who your target customer is and what they need.
For example, let's say you're pitching a new telemedicine app. It's important to know how many people in the US use telemedicine, but it's also important to know how many people in the US have smartphones, live in rural areas, and are over the age of 65. This information will help you understand your target market and how to reach them.
Forgetting to update your market research
The frequency of your market research updates will depend on the industry you're in and how quickly it changes. For example, if you're in the tech industry, you'll want to update your market research more frequently than if you're in the food industry.
That said, a good rule of thumb is to update your market research every six months to ensure that your pitch deck is always up-to-date.
Some good sources of market research are:
- Government statistics
- Industry reports
- Company websites
- Online surveys
The Census Bureau is, of course, the go-to source for population data. They offer a variety of reports and data sets that can be accessed for free. The Census offers a variety of data products, including the Census Factfinder, which allows you to search for data by geographic area.
For healthcare research, one great source is the Centers for Disease Control and Prevention, which offers a wide variety of data sets on everything from health care costs to immunization rates. The CDC also has a handy dandy tool called the National Center for Health Statistics Data Finder, which allows you to search for data sets by topic, keyword, or data set name.
The Bureau of Labor Statistics is another government agency that offers a plethora of data sets, including information on employment, wages, and productivity. The BLS also has an online data portal that makes it easy to find the data sets you need.
For industry-specific data, the best bet is to check out trade associations. These organizations often have detailed information on their respective industries, including statistics on market size and growth. Many trade associations also offer market research reports that can be purchased or downloaded for free.
Finally, don't forget about good old Google. A simple search can often turn up helpful market research data, especially if you're looking for information on a specific industry or market segment.
Some popular alternative tools for market research are Google AdWords Keyword Planner and Alexa Rank. Google AdWords Keyword Planner is a free online tool that allows you to research keywords and get estimates for how many searches are performed for those keywords each month. Alexa Rank is a free online tool that measures the traffic of a website and ranks it relative to other websites.
Another popular tool for market research is Forrester Research. Forrester is a global research and advisory firm that provides insights, data, and analysis on a wide range of topics to help businesses succeed. They offer a variety of market research reports that can be purchased for a fee.
When conducting market research, it is important to consider the source of the information. Make sure to use reputable sources that are up-to-date and relevant to your business. Avoid using old data or data from unreliable sources. Also, be sure to verify that the data is accurate and complete before using it in your pitch deck.
How much does a market research report cost?
This is a common question asked by entrepreneurs who are preparing to pitch their business idea to investors. The answer depends on the scope of the project and the quality of the research.
There are a few things to keep in mind when budgeting for market research:
- The cost of market research can range from a few hundred dollars to tens of thousands of dollars.
- The quality of the research is more important than the quantity.
- There are many ways to get market research data, including online surveys, focus groups, and interviews.
When it comes to pitch decks, market research is essential in order to understand the needs of your target market and position your product or service accordingly. However, it's important to use the right data and avoid common mistakes.
Quality market research is critical to any pitch deck because it helps investors understand the opportunity and the potential for growth. Good market research can also help investors identify risks and potential challenges. By including quality market research in your pitch deck, you can give investors the information they need to make informed decisions
Conclusion
In conclusion, it is important to include quality market research in your pitch deck in order to give investors the information they need to make informed decisions. There are a variety of sources for market research data, including government agencies, trade associations, and online search engines. When selecting market research for your pitch deck, be sure to choose data that is relevant and up-to-date. Finally, remember that market research is only one piece of the puzzle; your pitch deck should also include a well-crafted story and compelling visuals to truly capture the attention of investors.