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Marketing Research in

Microfinance
Operation.2

Market and Marketing


Marketing often confused with selling.
Marketing cannot be equivalent to selling
because it starts long before the company has a
product.
Selling occurs after product is manufactured
while marketing continues throughout the
product life.
Marketing is the art and science of choosing
target markets and getting, keeping and
growing customers through creating, delivering
and communicating superior customer value.

Market and Marketing


In microfinance, marketing can be seen as
seven step process.
1.Select a target market.
2.Identify what the target market value.
3.Develop profitable products.
4.Communicate product value to target
customers.
5.Deliver products in a way that maximizes
their value.
6.Monitor the delivery to learn from both client
and MFI experience.
7.Make adjustment that increase value for both
client & MFI.

Market and Marketing


Pyramid

Customer Loyalty
Customer
Service
Communicating
Value
Market Research
Product
Development

Microfinance and Market


Research

What is Market Research?


Market research is the process of understanding the
needs, behaviors and preferences of clients-both
current and prospective and to the understand the
environment in which the MFI operates.
MFI market is heterogeneous.
Why MR?
MR enables MFIs to listen to clients.
MR allows the poor to contribute to the design,
management and evaluation of services.
Understand MFI products in relation to other
financial services that low income people use.
Understand customers motivation.
Improve existing products and services

Microfinance and Market


Research

Help in product development that are


responsive to client needs and preferences.
Determine the root causes of customer
desertion and loan losses.
Learn what demand factors may be limiting the
organization's growth.
Improve marketing, promotion and outreach
activities.
Re-engineer delivery systems.
Monitor level of customer satisfaction.
Diversify into new market niches.
Receive feed back about customer service

Microfinance and Market


Research

Market research essentially involves a basic four


step process,
1.Question-Define research questions
2.Methodology-Determine most appropriate
methodology
3.Collection-Collect data both primary and
secondary
4.Analysis-Analyze
the data by customer segments
Determine
Define
Research
Question

appropriate
methodolog
y

Collec
t data

Analyz
e data

Microfinance and Market


Research

1. Define Research Question


Before launching a market research
initiative, it is imperative to define what
question the research is intended to answer.
Research question dont have to be defined
by specialists; indeed, they can be defined
by anyone in the institution as long as the
issue is under control. For example , a
branch manager might want to know why
the branch retention rate has been falling.
Research question depend upon maturity of
institution.

Microfinance and Market


Research

2.Define the Most appropriate Research


methodology
There are many tools for conducting market
research; each has advantages&
disadvantages.
For many questions it may be necessary to
choose tow or three approaches to see if
they generate complementary results.

Microfinance and Market


Research

3.Collect Data
MR can involve collection of primary data or
can rely on secondary data but could also
use collection of both.
4.Analyze Data
Once data is collected, it must be examined,
organized and synthesized to answer the
research questions.
In quantitative research, data tables&
statistical analysis are typically used for this
purpose with graphs being drawn to show
trends & variations.
In qualitative research, transcripts, grids, &
matrices are used to compare the outcomes