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Small Business Market Research is the gathering of information and tests about the market for your small business, and can help you determine if there is enough demand for your product and service. It is used to discover the needs and wants of your potential and current customers
There are two types of market research:
1. Primary Market Research is first hand information from customers and potential customers. Primary market research is more expensive and time consuming to perform than secondary market research, however the information it offers can be much more specific and valuable. Primary market research is more useful since you get to ask specific questions where in secondary market research you get more general information. Before conducting small business market research you need to determine what specific information you want to find out. Examples include:
Market Research Surveys by phone, mail or in person can used to assess the potential success of a product or service. Surveys are a highly used method of small business market research. Online surveys are an easy way to reach a large group as long as you have the mailing list.
Market Research Focus Groups usually consist of 6-10 people who gather around to talk about a particular product, service, problems they have and more. A focus group can help you gain valuable insight about potential customers, by discovering their likes, dislikes and problems.
Market Research Individual Interviews- Instead of conducting a group interview (focus group) you can also conduct individual interviews.
2. Secondary market research is simply information someone else has gathered, such as
Reports/ Studies (University studies)
Articles in newspapers and business magazines -many local newspapers and business related magazines offer demographic data.
Data and statistics as well as other information from the library
Government Agencies- Such as the Kenya bureau of Statistics. Recently, Opendata.go.ke was launched by the president. It is a portal to different government data.
Internet search engines have brought information closer than ever before. Even when local information is not available ideas can be inspired by what others know and do.
Don't think that once you start your small business, you don't have to conduct any more market research. Your small business is always evolving and needs to adapt to the changing markets. Here are some market research techniques to use while running your small business.
Keep a sales report- Find out what products are hot and what products are not. Certain products may sell more in certain months.
Competition - Pay attention to your competition. See what changes they are making. Your competitors may be making changes as a result of the changing market needs.
Customer Survey - Perform customer surveys to discover what are the customer's likes and dislikes and how you can improve your business.
Keep a Caller ID - Find out where your customers are calling from. You may discover that large concentrations of your customers are in a certain area and it may not necessarily be where you focus your business. You can then experiment with advertising in those areas.
Small Business Market Research can be expensive and time consuming task depending on the methods you choose. However, the information you obtain from it can be very valuable to your business. If you decide to do it yourself you consider taking a Market Research class. This will help you attain some knowledge of using different market research techniques to effectively collect data. The ability to collect and analyse data is useful for business success.
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