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