Market Research adds detailed information to the Marketing Plan, part of the Business Plan. The Business Marketing Plan looks at your marketing strategy. This section looks at what Market Research is, where to source the information, how to collect and analyse the information.
Knowing Your Customer
Research for your market involves collecting, recording and analysing information about your customers. By knowing your customers it will help you more effectively target your products/services and your promotions.
At this stage you will have already done the research on your market (External Analysis) and your competitors. And by now you will have a good idea as to what your target market (Market Segmentation) is.
This Research allows you to know these customers even further. Remember, in order to gain and retain customers, you must first know your customers.
The research can help you to:
- Identify which is the most profitable target market to reach.
- Identify your markets consumer motivation.
- What the consumer wants. What are their needs and are these needs being met.
- What price they will pay for the product.
- How and where they will pay for the product.
- How and where they will purchase the product.
- What types of media they use to find out the information. For example, TV, Radio, Newspaper, Flyers etc.
Where to source the information
If you have previous experience in the industry you are setting up in, you can probably start to answer some of the above points already. Start jotting this information down.
Other sources can include:
- Websites
- Local trade directories (Yellow or White Pages), perhaps search by industry and location.
- Does your Local Authority have any useful information?
- Is there any publicly available information? For example a country/regional census can provide a huge amount of information and are usually available online.
- Your local Chamber of Commerce.
- Does your Country/Region have a Trade and Enterprise entity?
- Does the Government produce any figures?
- Trade Associations.
- Publications.
- If your business is already established look at past sales data.
Alternatively information can be purchased from Market Research companies.
Market Research Process
The questions you want to look at here are Who, Where, What, When and Why.
Identify Needs
First off you need to establish what information you need and why and then where you can access that information.
So set your market research brief:
- What do you want to get out of your research? Be very specific and maker sure it is beneficial to you.
- For each of the above objectives you need to state why you need that information – this will help streamline your time and ensure this research will be beneficial to you.
- See what information already exists and is readily accessible. Before spending time and money on gathering new information, check that it does not already exist. Start to answer your objectives if possible.
- Put a time frame on your research process, this will help to keep you focussed.
- Work out what budget you have for this and make sure that what you are spending will provide you with valuable information.
Types of Market Research
Market Research is a whole subject in itself. However, listed below are some types of research methods you may wish to consider:
- Surveys/Questionnaires – Consider questionnaires, mail surveys, door to door interviews, internet surveys, telephone questionnaires, focus groups etc.
- Observation.
- Experiments. For example try new types of advertising to see if they increase enquiries or sales.
Collection of Data
Other things to consider:
- How many people are going to be included in your survey?
- Are you going to take a full cross section of the market or are you just going to focus on your target market?
- Who is going to get the information? Will it be you or an employee etc.?
Analysis of Data
Once all the information has been collected you will need to analyse the results. Keep in mind your research objectives when you are doing this and write up your report, which will summarise your data. Have any recommendations come out of this? These will need to be included in your Marketing Plan.
Return to the top of the
Market Research
page, go back to the
Marketing Plan
page, or return to
Writing a Business Plan
