Market research is a very important thing to help you know what will and will not sell. Conducting the right market research can save you a lot of time and wasted effort in making a product or service that will just not sell. This is where market research comes in, many of our readers have a website, forum or blog of their own and I am pretty sure that the majority of you would not of conducted market research to see whether or not the idea is well liked or not. However it is an important stage in making something that can do very well. If you know there is a market for that sort of thing you can create a very successful business that can earn you a lot of money. So, how can you conduct research that will be effective for you? There are two types of market research that leads into many other things:
Primary Market Research
Primary research is the best type of research as it is more relevant to you. This type of research usually costs more though as it takes a lot more resources to complete. Types of primary market research includes focus groups, telephone calls and questionnaires.
So, what makes this the best type of market research is that you can ask direct questions that relate to your business. Ask people that will be interested in your type of product or service and it can give you an insight in what people want from the idea and what can make it better than your current competition.
You can have a really good talk to future clients about what they want to be offered this way. The only issues are the cost so you can not ask many people about what they think and also many people find phone calls to be a pain and will not complete the survey.
Secondary Market Research
Secondary research costs less (or even nothing) compared to primary research but it is a lot less related to your business. This type of research includes checking out the market environment by looking at what your future competition offers and what people like/dislike about it. This information is already available online and can be found for free. Another useful thing is to check the cenus (where you look at the age group and gender of people in areas) which can be good for a business that will not be running online.
There are issues with this too though. The information may not always relate to what you want to know and it also may be outdated research that is not relevant any more because of this.
Overall market research is a very important starting stage in the start of your business life. However it can be an expensive and hard task. Always try and aim to complete primary research if you have the funds to do so but if you do not have the money to do so even secondary research is important to secure the best chances of success for your business.