Performing Market Research

So now that you know market research is important, how do you go about it? There are five basic steps:

• Define your market research goals.
• Determine what types of information you want to gather.
• Select appropriate methods to gather data.
• Collect and analyze the data.
• Formulate findings and conclusions.

Although large corporations often spend millions of dollars on market research surveys, smaller start-up companies typically use less formal research methods. There are several good ways to begin your market research:

• Look for data other experts have already collected. Some reliable sources of information include government publications and websites, statistics from market research firms, studies released in trade journals, and demographics provided by your local Chamber of Commerce.
• Collect your own data by asking potential customers to fill out questionnaires or answer surveys.
• Use simple observation techniques such as counting the number of people purchasing or inquiring about a certain item to develop a sense of its level of customer appeal.