Starting any business journey or planning for the future of an existing business requires information from the market place. We cannot always work with instincts, feelings and hypothetical scenarios and situations. You’re more likely to make well informed decisions if you have relevant data to support such decisions.
Market research basically refers to the process of gathering and analyzing data relating to market places or customers. It also means any research which leads to more market knowledge and better informed decision making.
For this exercise to be effective, here are the basic things to consider:
1. The method of research – this could be a primary research method which requires collecting new information by making direct contact with consumers or the target audience e.g. using a questionnaire. A secondary research method could also be applied. This involves collecting information that already exists.
2. The source of information or data. In the case of primary research, information or data can be gathered by using questionnaires (face to face, telephone, online), direct interviews, observation methods or consumer panels. For your secondary research, information or data can also be gathered via research reports compiled by agencies, statistical service offices, newspapers, the internet and even business publications like the Economist.
3. The scope of the research – it is also worth determining the extent to which the research will be conducted. What sample frame will be used and which geographical areas to focus on. Other aspects of the scope of the research will also be what information is required? Is it customer information or competitor information or even information about laws and regulations among others?
4. The type of information – is the research information going to be descriptive? Such as who is buying what, where and when. Will it be comparative? Such as how are we doing against the rest. Will it be it be diagnostic? Such as why are customers behaving in a particular way or will it be predictive? Such as what will customers do if…..?
Very often we tend to think that because research can be an expensive exercise, small businesses cannot undertake or invest in research. It is however even more important for small businesses and start-ups to undertake research before planning for any future growth. We will explain how startups and small businesses can undertake effective research on a small budget in another post.
Credit: Servled
