Market research is about finding out answers to questions that specifically deal with whether or not there is a local/national market for your product/service: be that about price, quality, quantity etc.
The idea is not to find out if 'someone' will buy your product, but that in your target area there is a sustainable need for what you have to offer.
Further, market research can give you new, up to date and powerful information that could, say, highlight clear signs as to how to break into a market or take a market to higher levels.
Competitors may not be able to match the knowledge you have gathered - say improved product features - so in the short-term it could give you enough of an early and powerful advantage to grab, or consolidate, a share of the market.
(From the Business Link web site)
"There are two main sources of marketing research information:
Primary research - involves the collection of new information, for example market surveys, telephone questionnaires and focus group research in direct contact with customers
Secondary research (also known as desk research) - involves accessing data that is already available, for example economic trends and specific industry sector reports."
The Myth
To many of us, the term 'market research' was something you did if you had a multi-million pound business and you required highly statistical commercial/demographic/product profiling to turn probability into fact. The cost of hiring experts - if you could convince yourself that they would consider taking on your project - was another determining factor against the whole mystique of market research.
There WAS some justification in the past for thinking that market research was beyond the small business owner. There were a number of problems to overcome: the lack of affordable marketing services/agencies, no in-house analysis skills, poor/costly demographic information, and not least our own lack of knowledge in the subject. But, none as big as the business owner not making time for market research before launching a business, service or product.
Two Ways to Approach Market Research
The Minimum Way:
Look in local libraries for commercial information, local and national newspapers, Yellow Pages, magazines and down your local high street for businesses similar to the one you intend to start and assess from a distance how much room there is for another similar business. Talk to friends and family - especially those who run or manage a business - about how you have thought through your business plan and seek their support: and possibly to the extent that they will also be your first customer/s. This is the way of most small businesses and is sometimes sufficient bearing in mind that the small business owner is unlikely to be competing with big corporations or bulk manufacturing so it's a case of producing a better product than is currently available locally.
The Investigative Way:
Find out what market research is: what you have to do, where you have to do it and how to use the information you gather to reduce the possibility of failure to those issues that could not be avoided pre-launch of your business: i.e. BT paying 5 billion pounds for a next generation mobile licence just as mobiles reach the peak of usefulness …so if they get caught..!
Preparing for Market Research
As research is time consuming, and at times costly, planning is vital if you are to ensure your data is sufficient to cover all of your information needs. For instance, if you did your research without first compiling a cash flow forecast you will not be able to ask people if they will pay, as a minimum, the breakeven cost of an item. You should also ensure that the information you seek is the most critical information you need and not that which confirms something you already know. Ensure the questions you ask are those that get the fullest and most honest response and not the easiest: for those asking or telling!
BizHelp24 – UK business and finance information, news, help and services for small businesses BizHelp24 is a UK business and finance resource providing Small Business Help, Start up Information, news and services; for individuals and Sole Traders. Comprehensively covering a wide range of key business, finance, and service topics. Employment and personal information includes Work Times and Break Entitlement, Body Language, employee Holiday Entitlement and Employment Contracts. Credit Policy information includes Letter of Credit, useful Credit Notes, Business Loans. and Cash Flow Control. Other information areas include Bankruptcy, Homeworking, Business Failure, Company House and Company Names,
The free content within this entire web site is for information only.
The content is believed to be accurate, but only in general terms. Specific advice is needed for individuals & businesses.
ROK Connect Limited (Registered in England No.3573320) t/a
Biz Help 24 is registered with the
Data Protection Act 1998 No.PZ7082780
