Market research is the process of learning what consumers want, quantifying the size of the market, discovering the number and nature of the competitors, and finding collaborators or organizations that exist in the market that are interested in your success.
In the life of your business, there will be many critical points at which you'll want to take the time to research your market, but the two most important times are before you start a new business, and when launching a new product or service.
Some questions to get you thinking are:
- Who are my customers and potential customers?
- What kind of people are they?
- Where do they live?
- Can and will they buy?
- Am I offering the kinds of goods or services they want?
- Are my prices consistent with what buyers view as the product's value?
- Are my promotional programs working?
- What do customers think of my business?
- How does my business compare with my competitors?
So how do we find this information? As home business owners, most of us don't have the budget to hire a consulting firm to prepare a market research report, but there are many other ways to research the market ourselves. Go here to read how to do the research on a budget.
Photo by bernardo.bor.