November 2, 2009 - 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 main objective is to find out if 'someone' will buy your product as well as if in your target area there is a sustainable need for what you have to offer.

Market data research can give you new, up-to-date and powerful information that could offer you 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. In the short-term it could give you enough of an early and powerful advantage to grab, or consolidate, a share of the market.

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."

Two Ways to Approach Market Research

The Minimum Way:

Look in local libraries for commercial information, local and national newspapers, Yellow Pages, magazines and study 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.

If you talk to friends and family, especially those who run or manage a business; discuss about how you have thought through your business plan.  Seek their support and if possible, also to the extent where they will be your first customers.

This way is mostly done by small businesses and is sometimes sufficient. Bear in mind that the small business owner is unlikely to be competing with big companies.  The idea is 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 gathered to reduce the possibility of failure.  Examine the issues that could not be avoided pre-launch of your business: i.e. BT paying 5 billion dollars for a next generation mobile licence just as mobiles reach the peak of usefulness … Think about it.

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 questions. 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!  One of the more cost efficient waysto get quality market research data is to find an offshore outsourcing services company like Datascension Inc.

Fred St. John is an internet marketing consultant with over 10 years of online marketing experience and has worked for some of the top Fortune 500 companies in the world. You can contact him at Esta dirección electrónica esta protegida contra spambots. Es necesario activar Javascript para visualizarla This e-mail address is being protected from spambots. You need JavaScript enabled to view it .