Market research

Market research is the process of systematically gathering, recording and analyzing data and information about customers, competitors and the market. Its uses include to help create a business plan, launch a new product or service, fine tune existing products and services, and expand into new markets. Market research can be used to determine which portion of the population will purchase a product/service, based on variables like age, gender, location and income level.

Market research is generally either primary or secondary.[1] In secondary research, the company uses information compiled from other sources that appears applicable to a new or existing product. The advantages of secondary research are that it is relatively cheap and easily accessible. Disadvantages of secondary research are that it is often not specific to your area of research and the data used can be biased and is difficult to validate. Primary market research involves testing such as focus groups, surveys, field tests, interviews or observation, conducted or tailored specifically to that product.

A list of questions that can be answered through market research:

* What is happening in the market? What are the trends? Who are the competitors?
* How do consumers talk about the products in the market?
* Which needs are important? Are the needs being met by current products?

The Benefits of the Internet

The Benefits of the Internet

Thanks to the Internet it is much easier than it used to be. Just type in your search and there is more information at your finger tips than you could possibly read.

Google have just released a new service – Google Insights to help small businesses conduct there market research based on the trends on keywords so you can see what is hot and what is not – more details in this New York Times article.

Wiki have also entered the market research area with ResearchWikis.com . Since this is developed by users it’s going to take time to be definitive but it could become a tremendous resource. While competitors may wish to keep details quiet, industry watchers will want to share information widely.

Small Business Market Research

Market research is an essential area for small businesses to make sure that they understand what is happening in their market and what their customers want and need.

Unfortunately when you think “market research” you can fall into the trap of thinking of big, formal market research projects conducted by market research agencies and which need a massive budget.

It doesn’t have to be like that and I am offering a free eight page report Small Business Market Research for you to download. I’m not even making you submit your email address because I don’t want to put any obstacles in your way – that’s how important I believe market research is.

There are three aspects of market research:

1. What is happening to the overall market? How is it being affected by the wider economic forces.

2. What do customers want and need? What are the problems they want to solve? What are the consequences and the experiences they want from your product or service?

3. Who are the competitors? What are they offering? Where are you stronger or weaker? How can you emphasise your competitive advantages?