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What is market research?

What is market research?You may think that you have stumbled across the best invention since the wheel. But, if it doesn't get your customers in a spin, you may as well forget it.

To ensure that your business is worthwhile, you will need to conduct market research.

What’s market research?

Market research is where you ask questions to find out if anyone will buy your product or service and whether there is an ongoing need for what you have to offer. Questions will cover things like price, quality, competition and quantity.

There are two main sources of market research information:

Primary research involves asking people questions to get new information, for example doing surveys and focus groups with potential customers. This article will talk more about this.

Secondary research involves reading what other people have written about the industry you’re interested in. You could learn about economic trends and read specific industry reports. You can find this information in books, trade newspapers and magazines and online.

Primary research

You can get two types of information from primary market research: Quantitative, which involves gathering statistics, and

Qualitative, which involves gathering statements about why people do things.

Effective market research should include both types.

Quantitative research questions

Question 1 Ask the customer how often they use products like yours. For example, if you were planning to sell customised t-shirts, you could ask how often they buy a new t-shirt. This can help you to work out how big your potential market is.

Question 2 Ask the customer to rate your business or service on a scale of 1-5 based on, value for money, quality, how often they would use/buy it?

Qualitative research questions

Question 1 Similar to the quantitative question 1, this time you would ask your customers why they gave the answers they did. What stops them using products like yours more – are they too expensive, or just not enjoyable enough?

Question 2 As above, ask your customers why they gave the scores they did for your business idea. What would make them buy your product or service? Do they think it’s useful? How much would they pay for it, if anything?

Market Research gathering

The above examples are just some of the questions you could ask. In fact the sky is your limit, provided the questions are relevant.

But before you reel off a massive list of questions, you may like to consider how you will gather this research.

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