How to Conduct Market Research
Analysing and Researching Customers and Competitors
Research is a vital skill for small businesses. This article provides an introduction to the subject and shows you how do it quickly, easily and at low cost.
Wouldn’t it be great to see yourself as others see you? You can for your business – using research.
You can use research techniques for lots of things, including;
- Identifying what makes people buy from your business
- Gaining a clear picture of your target audience
- Developing a Unique Selling Proposition or USP
- Finding out what your competitors are doing.
If any of these are important to you then there are a number of research techniques you can use to help you do it.
Legal Requirements
Your own country or state is likely to have regulations concerning what you can and cannot do in the name of research. For example, in the UK you cannot attempt to sell or generate leads under the guise of market research - it’s called sugging.
The UK's Market Research Society has more details on how to keep your research legal, together with providing general principles. ESOMAR provides the details on a worldwide basis. These sites also provide more in-depth guidance on how to conduct research or find a market research partner.
Surveys
A survey allows you to find out the views of a large number of individuals. One simple way to do it is to set up an online survey. Visitors to your web site can be presented with a pop-up box inviting them to take part in the survey. Results can then be gathered to provide a picture of what visitors think about something. You could also email your customer database with a link asking them to compete the survey, which is also a useful way of keeping in touch with them.
Alternatively, you could mail or telephone customers.
Read Market Research Surveys for more details on how to make your surveys a success
In-depth
The disadvantage of surveys is that they only give you a statement of how someone feel at a particular moment of time, but not why they feel that way. For that, you need in-depth research in the form of individual interviews or focus groups.
You don’t need many people to take part, you’ll probably find that in-depth interviews with 5-10 people or 2-3 focus groups with 6-10 people in each will give you enough information. Use a framework covering the areas you want to investigate and then allow the respondents to talk freely. They should tell you things that you never even considered. If they say something that interests you further, investigate it by asking additional questions.
In-depth research is also invaluable in identifying USPs or insights. Read In-depth Customer Research for more details on how to use it.
Secondary research
Many companies produce market research reports on particular market sectors. Although expensive, they can give you invaluable insights into developments in your market and your place in it. They can provide indications on market shares and how the market may be changing, including new products, new entrants and predictions of future developments.
Read Using Publicly Available Research to find out how to make the most of any secondary research.
