| Running a small business or launching a | | | | all of the details. Answer as many questions |
| start-up company is very time consuming. Most | | | | as possible. Here are a few brief topics for |
| of the time it feels as if there aren't | | | | each category to start your |
| enough hours in the day to get the job done. | | | | research:Customers - Look at the |
| Because of this, many small businesses skip | | | | demographics, psychographics, behavioristics, |
| some of the most important details in | | | | and geographics of your customers. |
| securing their success. Market research is | | | | Demographics are the basic ones like age, |
| one of these crucial steps that many | | | | sex, income level, and marital status. |
| businesses omit. How can you go ahead with a | | | | Psychographics are the ways your customers |
| plan to sell a product when you don't know if | | | | perceive the benefits of your products and |
| it's going to sell? How can you set a price | | | | their motivations for buying. For example, |
| when you don't even know your customer's | | | | two people with the same demographics may buy |
| price sensitivity or your competitors' | | | | two SUVs for two different reasons: |
| prices? Market research, although time | | | | usefulness and style. Behavioristics are the |
| consuming and frequently omitted by small | | | | ways your customers acts. How they spend |
| companies, is largely necessary to ensure a | | | | their free time and what hobbies they have |
| business's success. This article will define | | | | fall under here. Finally, geographics are |
| market research and provide a step-by-step | | | | simply the locations of your customers.Next |
| approach to tackling the subject as a small | | | | look at the type of buyer your customers are. |
| business.Market Research - An | | | | Are they innovators, early, adopters, early |
| IntroductionMarket research is the process of | | | | majority, late majority, or laggards? What |
| collecting data on consumers, competitors, | | | | groups are they influenced by and who do they |
| marketing and sales channels, and the forces | | | | influence? Also determine the level of |
| affecting your industry. Consumer research | | | | involvement your customers will have with the |
| usually contains data on basic customer | | | | product. Is it a high risk product based on |
| characteristics and their buying behavior. | | | | their income level? Is the purchase time too |
| Competitor research includes gathering data | | | | great?Competitors - Start researching your |
| on product lines and pricing, competitors' | | | | competitors' products. See what they offer |
| current advertisements, and some perceptual | | | | and look at their prices. Do some |
| mapping. Channel research simply means that | | | | reconnaissance work and call them up seeking |
| you must view the overall picture. How do you | | | | information. One way to get good results is |
| fit into the industry value chain? Who are | | | | to say you are a local college student who is |
| the best suppliers, distributors, and | | | | doing a profile on the industry this |
| retailers? How will your product reach the | | | | competitor is in. Ask for basic financials if |
| end consumer? Finally, gathering industry | | | | you can. At least see if you can obtain their |
| research involves analyzing Porter's Five | | | | product costs and profit margins for your |
| Forces along with market history and probable | | | | "project."Also look at the current |
| forecasts. Legalities and any political | | | | advertising and promotions your competitors |
| issues that may concern your business fit in | | | | are doing. See how they are affecting |
| here as well.Step 1: Set Goals for YourselfAs | | | | customers. Get opinions on each business and |
| with any project, your first step towards | | | | develop strategies to hedge the competition. |
| completing quality market research is to set | | | | Create a perceptual map to determine how |
| some goals. What do you want to accomplish | | | | customers see the major competitors in the |
| while doing the market research? These goals | | | | industry. Find a point where you can position |
| should focus on the process itself. Setting | | | | yourself in the best possible way.Channels - |
| dates in a timeline is always a good idea if | | | | Start researching manufacturers, suppliers, |
| you've outlined multiple steps for your | | | | distributors, and retailers. Are there ways |
| market research campaign. Here are some ideas | | | | you can cooperate with any of them? Do you |
| for goals:· Segment your market by age, | | | | need to go through a distributor or can you |
| income, and location· Test interest in new | | | | even sell factory direct items? Discover the |
| products and services through product | | | | fastest and most cost effective ways you can |
| comparisons· Improve customer | | | | do business. Do not be afraid to question |
| relations· Develop new strategies to hedge | | | | your current business model.Environment - |
| competition· Optimize product pricesStep | | | | Begin by analyzing Porter's Five Forces. Look |
| 2: Turn Goals into Results Now that you've | | | | at the strengths and weaknesses your buyers |
| outlined all the goals for your campaign, | | | | and suppliers have. Determine if it is easy |
| transform your ambitions into the results you | | | | or hard to enter your market and if you need |
| want. Where as the goals focused on your | | | | to be wary of potential entrants undermining |
| accomplishments during the market research, | | | | your business. Are there substitutes that |
| the results focus on what you want to get out | | | | your customers may switch to? Are there costs |
| of the market research. Think of the ways you | | | | associated with switching products for the |
| envision your business improving after the | | | | customer? Be sure to research any political |
| research is done. Some examples:· You can | | | | and legal problems that may come up with your |
| target the best customer segment possible· | | | | product. Keep an eye out for new laws that |
| You set the best price to ensure high product | | | | may affect your industry and your products. |
| movement· You close sales more quickly by | | | | Places to Find Info This is just a start; |
| knowing customer psychographics· Your | | | | there are many more subjects you can research |
| business has contingency plans· You are | | | | depending on how many resources you have and |
| more responsive and you move faster than your | | | | whether you want to hire a market research |
| competitionStep 3: Start Your ResearchAll the | | | | company to ease your burden. Just remember to |
| preparation is done. You have your goals and | | | | plan your campaign by setting goals for |
| your desired end results. The task of doing | | | | yourself, turning them into desired results, |
| all the market research may seem daunting, | | | | and then beginning to do your market |
| but start small and start easy. Start with | | | | research. Asking questions is the key to |
| the easiest category "customers" and ask | | | | market research. Be as thorough as possible |
| every possible question. Who are they? How | | | | and utilize as many resources as possible. |
| old are they? How much do they make? Do they | | | | Here's a quick list of some places to get |
| have families? Are they risk takers? Etc, | | | | started:- the Internet- S&P Industry Surveys- |
| etc. Move on to "competitors," "channels," | | | | MarketResearch. |
| and "environment" while still asking about | | | | |