This is a sample of our “Business Services” work. This one page excerpt is from our document that will help entrepreneurs conduct market research. Market research can be used to find out if there is a market for your idea before you launch, or it can be used after launch to determine how to grow your revenues and customer base by expanding or changing your offerings.
This document lays out the nuts and bolts of why, when, and how to conduct market research, and what to do with your data once you’ve collected it.
Needs Assessment and Market Research
Understanding your market and how best to serve its needs
Remember the primordial rule of successful entrepreneurship: Know thy customer.
Identifying what your customers want and how you can best serve them is key to a successful business model. David Ogilvy, the founder of Ogilvy & Mather, one of the largest marketing firms in the world put it best:
“The most important word in my vocabulary is TEST. If you pre-test your product with consumers, and pre-test your advertising, you will do well in the marketplace.”
The most successful innovators and entrepreneurs are those that spend time and energy understanding their consumers. One major beverage company we recently spoke to told us they spend more than $20 Million per year on market research alone: that’s more than 4% of their yearly profits1. Their CEO told us he would never consider introducing a new brand, product or distribution avenue without months of market research to truly identify consumer needs. Sound like a lot? Think again. Your competitive advantage depends on knowing exactly what your customers want, when they want it, and what prices they are willing to pay. Luckily, you don’t need to spend millions to get ahead of the curve.
This chapter discusses the essentials of market research and runs you through the steps you should take. Each step is explained in more detail in the following pages. We have used the example of an organic coffee shop entrepreneur, Jill, to illustrate each step.
Table of Contents in this document
Step 1: Determine the Goals of Your Market Research
Step 2: Start with Free or Inexpensive Web-based Research
Step 3: In-depth Qualitative Research
Step 4: Quantitative Research