Market Research

Market Research is a methodical, objective collection and analysis of data about your target market, competition, and/or surroundings with the goal being increased understanding. Through the Market Research process, you can take data–a variety of related or non-related facts–and create useful information to guide your business decisions. Market Research is not an activity conducted only once; it is an ongoing study.

When you're doing Market Research, there are some things you should keep in mind.

· Your information will only be as good as your Market Research sample. Be careful when selecting your Market Research sample group to question. To get useful Market Research data, your sample group needs to be relevant to and representative of your target population. Informal Market Research is always tainted to a degree by the relationships of the people involved. 
· Design your Market Research questionnaire carefully. Make sure that it's focused specifically on the information you need to know, and that you haven't included any questions that may offend anyone. Many people are put off by questions that ask them how much money they earn, for instance. If you offend or confuse them, they won't bother to fill out your market research survey.
· Keep your Market Research questionnaire fairly short. If possible, your Market Research survey or questionnaire should all fit on one page. Some people are intimidated by long forms; others see multiple page forms as just too much of an imposition on their time. 
· Always provide some opportunity for detailed answers. Not everyone will take advantage of it, but some will, and sometimes these written-in comments are the most valuable of all. 
· Work out your recording techniques first. Telephone Market Research surveys are popular, but how are you going to record what the respondents say? If you're orally interviewing someone, will you record them or take notes? The purpose of Market Research is to gather and analyze the data, so you've got to have a system of recording the data worked out in advance.
· Set the criteria for the information beforehand. In other words, Market Research is a process, which may shut down or be redirected at any time. 

Benefits of Market Research: Information gained through Market Research isn't just "nice to know." It's solid information that can guide your most important strategic business decisions. Market Research is effective when the findings or conclusions you reach have a value that exceeds the cost of the research itself. 

For example, if you spend $500 on Market Research activities that yields information leading to a revenue increase of $5,000, the research was well worth it! Suppose you spend $500 on a customer survey that uncovers an unmet customer need. You'll have the opportunity to offer a new product or service (or alter your existing product or service) to meet the need and gain new revenues.

Market Research minimizes the risk of doing business. Instead of identifying opportunities, the results of some Market Research may indicate that you should not pursue a planned course of action. For example, marketing information may indicate that a marketplace is saturated with the type of service you plan to offer. This may cause you to alter your product offering or choose another location.