What is Marketing Research

Marketing research is the process of collecting valuable information to help you find out if there is a market for your proposed product or service. The information gathered from market research helps budding entrepreneurs make wise and profitable business decisions.
The key to any successful business is to understand what it is that your customers want and giving this to them in a way that is profitable for you.
Many entrepreneurs make the mistake early on of thinking that they know what their customers want without ever asking them. This can result in some very expensive mistakes later on.

> Types of market research

There are two main types of market research you can carry out for your business:

1. Primary Research (otherwise known as ‘Field Research’): this is information you gather first hand yourself through exercises like customer questionnaires or polls.
2. Secondary Research (otherwise known as ‘Desk Research’): this means collecting and analysing information that is already available and has been collected by someone else e.g. reports, statistics, websites etc…

It is important that you carry out both types of research to help you decide if your business idea is viable.

>Market Research Activities

Examine existing products / services

Look at other similar products / services on the market:

• Can you learn from them?
• What do they do well?
• What do they do badly?
• How is your product going to be better than everything else that is available?

Examine your target audience

Look at your target customers:

• What are their needs? A questionnaire is a good way of finding out what your customers want.
• You could also talk to someone who is an expert in this area. For example, if you are producing a piece of craft, how about talking to a successful craftsperson in your area? You might learn many valuable lessons.

Carry out a product demonstration

You could show your product to some of your target customers and ask them for feedback before you start selling it.

Keep an eye on the market

Even after you begin selling, keep an eye on what is selling well and what is not selling for you.

• Perhaps you should drop the products that are not selling and concentrate on the ones that are?
• Ask your existing customers if there is anything else that they would like to buy from you.