Market research is the collection and analysis of relevant information that will enable you to make decisions in connection with your business. It is a fundamental part of the business-planning process and can assist you in such important areas as:

 

identifying potential customers;
understanding existing customers better;
setting realistic targets;
developing effective strategies;
examining and solving business problems;
preparing for business expansion; and
identifying business opportunities.

 

No matter what stage you business is at, market research can provide valuable information to guide you in the planning process. You may be investigating, evaluating, starting, developing, consolidating, expanding, diversifying or even contracting your business. Regardless of the current status of your business, market research is a tool that will make your decision making more effective. In the case of a new business, market research can help provide answers to the following questions.

 

Do people want your product or service?
What characteristic do they seek; e.g. size, colour, features?
What are they willing to pay for it?
Who is most likely to purchase it?
What are the best promotion methods to reach them?
Will the demand be sufficient to sustain the business?

 

For existing businesses, market research can provide:

 

a continuing awareness of customer needs;
information on market and competitor performance;
information on current and future trends;
an identification of problems and how to overcome them;
the changes required to increase demand for your product;
an evaluation of planned changes to your product or service; and
an evaluation of the effectiveness of your advertising.

 

Effective market research is a most valuable business tool, yet flawed or inaccurate research is indeed the opposite and can mislead you into making bad business decisions. With an ever increasing level of competition and with consumers demanding more for their money, accurate and timely information has become the competitive edge needed by most businesses to survive. Whilst much can be done by yourself, you should seek professional help if you are unsure.

 

The Market Research Society of Australia is a good starting point.

 

Two excellent publications available from the Small Business Development Corporation are:
Do Your Own Marketing Research $37.35
Market Research for Small Business $16.50