Market Research 101 for Small Businesses

Market Research 101 for Small Business

Research and Analyze

The current business environment is competitive therefore preparing a small business based on solid market research instead of personal opinion is important to remember for small business owners. The following information is a basic market research 101 for small businesses.

Competition depends on the location of the company whether it is local, national, or global. However, it is most highly researched based on the company’s products and services and the likelihood that they can alter existing offerings to be a direct threat to your business.. Gathering information through market research can reveal demographic characteristics and market size of top competitors. Conducting a thorough market analysis while very important can be very time consuming so working with a marketing expert can help speed up the process, but small business owners need to keep the scope of the project very focused otherwise a market research report can run into the thousands, if not tens of thousands of dollars, which while valuable may be too much information for a small business owner to digest as well as make use of.

Companies should also know the current market trends to keep up with customer needs. The needs and wants of customers are consistently in flux, so constant monitoring of the market is essential especially for consumer companies that need to keep their products current and up to date with existing trends. Consumer buying behavior is also influenced by the latest products and services that competing companies may be offering. The more new small business owners know about the competition, the more they can easily adapt and adjust to changes.

Learning more about the competition in your region or market can help the business in the long run. Knowing business competitors will give owners a better understanding of competitor’s strategies. With detailed insight into the top competition a business owners can aim to create a distinction between their companies from the others. Business owners must identify all of the critical factors that make their target customers to choose their products and services over what the competition is offering on the market today. A small business failure may occur if a new business owner does not take conducting a market research report seriously, resulting in unneeded competition problems.

The following list is several different areas that are important to keep in mind when working on a market research report for your small business, whether doing it yourself or outsourcing the work to a professional business support firm.

Market Analysis Basics

Market Research Solves Competition Problems

Basic Marketing Principles

1. If utilizing a market research firm to support your company in developing a market research report it is essential to watch your budget and do not overspend. Even when keeping the research project in house.

2. Understand the purpose of your market research project. What are the needs of your customers? How do your customers find your competitors currently? How much do they usually spend on products / services like you are offering? Don't waste time and money pursuing non critical information for your business.

3. Determine the correct pricing model. At the conclusion of your basic market research gathering you should have a strong idea of exactly what your pricing model will be for the services and products you are planning on offering.

4. Create a strengths and weaknesses chart comparing you and the competition. Be as detailed as possible for the budget and amount of time you have. Be honest about your strengths and weaknesses, this can be a tough thing to do and where an outsider can provide a neutral opinion. If you are given advice about a weakness that you do not think you have it is good to be open and learn why the person conducting the examination views this as a weakness so you can focus on improving your capabilities, rather then rejecting the constructive criticism.

5. Don't conduct a random survey of the first five - ten questions that come to your mind. It is best to really think hard about your survey questions for customers / potential customers to complete. When you first create a survey questionnaire give it to a few people and read their answers to make sure you are crafting questions correctly and getting valuable information returned. Nothing worse then conducting a 500 person survey and having the results be unsatisfactory due to the way a question was worded.

Don't forget to continually gather information from the market and listen to the feedback and analysis that is revealed. There is nothing worse then gathering lots of valuable data and then completely rejecting it because you had hoped and wanted something else. At the end of the day you are in business to make money and the most successful way to do that is to listen to the wants and needs of your customers and potential customer base and do everything possible to satisfy them.

Techniques for Business Research

More by this Author


Comments 17 comments

nyleinnad profile image

nyleinnad 5 years ago

Start your business right with these marketing research details


mayanne23 profile image

mayanne23 5 years ago

Great article. This will surely help business owners a lot.


richwin831 profile image

richwin831 5 years ago from Pagadian City, Philippines

Interesting article. If only followed by businessman, greater success can be acquired.


arcy 5 years ago

Thanks for sharing this post.I'm planning to start-up a new business.This article gives me lot of ideas and tips. This is great...


nicolekitch 5 years ago

Just wanna say thank you for a great article post.You have done a good job. There is really a good content here.


dave1887 5 years ago

I agree with you guys! This article is one of a kind. This will really help finish my research. Thank you!


adrian9177 5 years ago

starting your business will not go wrong with these wonderful marketing research for business owners


gekbel 5 years ago

Thank you so much for your article. This would really help a lot. I have gained lots of information especially regarding marketing research and the importance of it. Keep up the good work.


jans26 profile image

jans26 5 years ago from New Zealand

Very informative article!


wimbly22 5 years ago

Very informative. Thank you for this article!


reyo0o 5 years ago

I am happy to find this hub. This contains useful information I know I can use this information in the future.

Thanks!


reynm 5 years ago

Market research is one of the key in business success.


mooky9 profile image

mooky9 5 years ago from Manila

It's good to know about the basics first.


marie_iyakin 5 years ago

As a business owner, i found this article very interesting. This is a great way to start a business. Thanks!


iamjewel1925 profile image

iamjewel1925 5 years ago

you just made me realize the important of market research. thanks for this.


wowie69 5 years ago

Researching is a must in almost every thing that you do and it is no different when you're planning to do business. Identifying the general consensus of the market and addressing their needs is the basis of an effective business since the general goal of any business is to gain profit, and you can maximize profit by having more people avail the services you provide because they need it.


starfish29 profile image

starfish29 5 years ago from USA

know the rules and the basics. then you will succeed in your business. i did this with this article..

    Sign in or sign up and post using a HubPages Network account.

    0 of 8192 characters used
    Post Comment

    No HTML is allowed in comments, but URLs will be hyperlinked. Comments are not for promoting your articles or other sites.


    Click to Rate This Article
    working