Business Market Research

What is Business Market Research?

Simply put, it is the collection of information that relates to your product and service in your intended market place.

It will help you answer the questions that you must ask in order to work around any problems with your marketing and to solve them.

Let's look at the major questions that you will need answers to ...

• What demand will my product or service have?
  • Who is there to buy it? How crowded is the market?
  • Remember the law of supply and demand. If there is plenty of supply and low demand you are dead. Unless you find an un-filled niche.
• Will your product sell better than the competitions?
  • Is your product so much better or different from the competition that it will sell regardless of your competition? Have you no or little competition?
  • Can you fill your product niche?
• Where will you sell your product or service?
  • What is the best location or area in which to set up your business
• And, if you intend to compete, can you talk to your competitors customers.

Collecting Market Research Information

It is advisable to start collecting your information, through your business market research, before you start your new business.

It should be used to help you decide if your product or idea will fly.

Getting Answers to Your Market Research Questions ...

There are basically only three areas that we need to look at for our answers ...

• The Industry in which you wish to trade and compete.
  • Look at the entire industry, look for trends and growth.
  • Is there room for you or your product in the industry sector?
  • Is the industry growing or shrinking?
  • Who are the new entrants to the industry?
• The Competition. Knowing your competition is vital.
  • You will need to know who they are, where they are, both locally and sometimes even internationally.
  • Are they growing in number and by what means are they gaining growth?
• The Consumer.
  • Market surveys within your proposed area of sales will have to be carried out using potential customers.
  • Define your sales area, the type of customer within that area and their spending power.
  • All the other factors, population, age, unemployment, income levels, etc, all play a role here so get them right.

Based on all the information obtained from your business market research, you will be able to produce sales forecasts for your product or service. A most vital function of your research.

Now that you know what to look for, lets look at where you can find this information.

Finding Your Market Research Information ...

Your researchers will find market research information at or from ...

• Libraries, both university and public.
• Trade associations.
• Government. The U.S. Census Bureau is a great source as is the Department of Commerce.
• Websites, all major online services run websites offering news and industry trends. Try also the Marketing Research Association or the American Marketing Association.
• Chambers of Commerce or your local business development agency will have useful information available to help in your business market research. They can also supply maps showing trading areas as well as potential growth areas.
• Many Universities and Colleges can and are able to help with information. Students wanting to gain experience can be recruited through their business departments and used to conduct surveys on your behalf.
• Dun and Bradstreet also offer many services and references that can be used in your market research.