How to Research Your Market
Market research can sound like a daunting task and be a bit overwhelming. I mean, we’re inundated with information every day. Where does one start?!
The greatest tools you can bring to your market research are curiosity and observation. Think of this valuable exercise as a fact-finding mission that will help you make well-considered decisions.
In addition to a spirit of adventure, here are some different types of research you can use to gather valuable information for your business:
General Industry Information
Spend some time both in person and on the Internet observing how companies like yours do business. Take a look at the local landscape, as well as how things may be done in other places. Learn what products and services are offered, how the company communicates with its customers, and how their customers feel about them. Note where there may be opportunities for you to fill needs that are not being met.
This includes a view of the competitive landscape. Direct competitors are those companies quite similar to you, but with some differentiating factors. Coffee shops are a good example. Each offers something slightly different but in essence they are there to provide coffee. An indirect competitor may be a juice bar or tea house. Each offer beverages, but they are not going head to head against coffee.
Trends and Growth
Read industry related publications, located at your library or business resource centre or online, to learn about trends and growth areas. This is valuable information as you continue on in business as well, to ensure that you stay current with what customers want and need, as well as ideas on how to grow your business.
The volume of information can be overwhelming, so remember to scan. Take note of new legislation, industry challenges, and economic influences which may affect the industry in future. And be on the lookout for up-and-comers who are trying new things. When an industry becomes saturated with competitors there are always a few early birds creating new trends. It pays to take note.
Industry Statistics
Statistics are collected by government agencies and provide perspective to understand the larger landscape in which your business operates. Statistics are available at your library or business resource centre, and include a variety of data including general industry and consumer demographics.
Statistics can be overwhelming, so look at them for specific information. For example, collecting demographics for your geography can help determine where to set up shop. The mistake of leasing retail space to sell children’s ware in a neighbourhood full of seniors can be avoided when you understand the demographics of the area.
Interactive Research
There’s nothing like learning about prospective customers directly. Officially known as “primary research” because you are obtaining firsthand information rather than relying on others’ data collection, it’s the only way to get a genuine sense of how people will respond to your product or service. Even then, it can be misleading if it’s not objectively gathered.
Face to face surveys (always keep them brief), online or print surveys, and even focus groups are all tools to engage with people and test both ideas and assumptions. “Do you prefer red or blue” is a leading, non-neutral question because the real answer may be neither. “Select the colour you prefer” and listing several options as well as “other” is a more neutral way to frame your question.
Keep an Open Mind
The key to gathering valuable market research, both primary and secondary, is remembering to stay objective. That means not relying on the people who love you to be your primary source of feedback. As much as they love you – because they do – they cannot be fully objective.
It also means staying flexible to adjust your business proposal, in light of information you uncover. Good market research ensures you have a solid business case with data to support your decisions.
Related posts:
Tips & Tricks of the Trade: Market Research
Market Research: Be in the Know
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