How to conduct market research
Marketing research is carried out by both future entrepreneurs and actual businessmen in order to collect and analyze useful information about the market of the type of activity they are engaged in. Marketing research is used to find effective strategies, weigh the pros and cons of how to move forward, determine the next steps in a business, and much more. You will have a competitive edge if you have good marketing research skills. To get started, start with step number 1.
Plan Your Market Research
Mentally state the purpose of your research. Market research is conducted to help you and your business become more competitive and more profitable. If your marketing research does not end up producing any benefits, it will simply be wasted time, and you, in that case, would be better off doing something else. Before you start marketing research, it is important to determine what you want to get from them. Your market research may lead you in an unexpected direction – and that’s okay. However, it is best not to start marketing research without at least one or more goals in mind. The following are some questions you may want to consider when designing market research:
Is there a market need for my product? Explore the priorities and habitual spending of buyers. This will help you assess whether it would be justified to place your product in a particular market.
Are my products and services meeting customer requirements? Researching customer satisfaction with your products can increase your competitiveness.
Is my pricing of goods and services effective? Researching your competitiveness and market trends will help you determine the maximum profit available without compromising your business.
Create a plan for effective information gathering. It is important not only what you want to end up with, but it is important to understand how you can collect the information you need. Again, planning will help you achieve research success. Don’t set goals without knowing how to get there. The following are questions you should consider when planning market research:
Do I need to find comprehensive market data? Analyzing existing data can help you make decisions about the future of your business, but finding worthwhile and accurate information can be a difficult task.
Do I need independent research? Building your own database through surveys, target audience research, interviews and other methods can give a company a lot of information about the market in which you operate. To get them, you will need resources, time, which can also be used in other ways.
Be prepared to provide your research and refer to it to take action. Marketing research ultimately influences the actual decisions in a company. When you are doing market research, unless you are self-employed, you usually need to share your research with colleagues and present a plan of action in your mind. If you have a boss, he may or may not agree with the action plan. If you don’t make mistakes in the way you collect data and process it, you will most likely agree with the market trend that your data reflects. Ask yourself the following:
What do my researches predict? Try to come up with a hypothesis before starting research. It will be easier for you to come to a conclusion if you have already considered a similar outcome and will not come as a complete surprise.
What if the assumptions come true? If your market research eventually confirms your assumptions, what implications will it have for your company?
What to do if the assumptions are not justified? If a research result takes you by surprise, how should the company proceed? Do you have backup paths for development in case of unexpected results?
Getting useful information
Use government sources of industry information. With the advent of the information age, it has become much easier for businessmen to access a huge amount of data. Another question is how reliable these data are. In order to come to a conclusion based on market research, it is very important to start research from reliable sources. One of the main reliable sources are government (sources). Market research conducted by the government is usually accurate, well-tested and available freely or at low cost, which is very important for a business that is just starting out.
For example, at the Bureau of Labor Statistics.