Market Research

lowdown

Hi,
Sort of a complicated question so I would really appreciate any input as I don't believe there is necessarily one right answer here.
My question mainly concerns how to ensure the business you are starting is in line with market trends. I find much of the advice and books I come across that deal with starting a business presuppose that the business idea is already suitable.
I suppose it's easy to think "just do some market research", but that's where things get tricky for me. Should I first look at a specific demographic and see if there is a gap in their needs and available products and services? Should I look at a particular industry and see if it is growing (or generating less revenue) and again perform a gap analysis to see if something is missing? Should I look at a given region to see if there is a product or service they don't have yet that others do? Alternatively would it make more sense to review my interests and experience and then try to find a promising industry that aligns with them?
Basically I guess I am asking if there a proper order or methodology to employ when attempting market research. If anyone has any advice or can recommend some good books that might assist with that I would appreciate it.

Thank

GaryBarzel

Market research is a dynamic process focused on understanding the
relationship between consumers and a particular product or company. It
involves the systematic collection and analysis of consumer and economic
data including economic reports and industry trends as well as consumer
attitudes and behaviors.
Once you find the right niche, you can then go ahead and utilize it to your advantage by using the information you came across and building your portfolio to narrow down that gap.

BrunellaD

Entrepreneurs need to consider that Market Research can be either primary or secondary.

- Primary Research: it’s a new research or your own bespoke market research, which is carried out with the aim to answer to specific questions. Usually, it includes questionnaires, surveys, and interviews.
- Secondary Research: it’s a type of research that includes information and data already available. This is also known as “desk research” because, for instance, you can access directly to all information by utilising your local libraries, colleges, business schools, chambers of commerce, trade associations, etc. It can also include scientific reports by medical councils such as the British Heart Foundation, Department of Health, etc.

However, many entrepreneurs make the mistake of believing that they know what their potential customers want without ever asking them. Later on, this can result in some very expensive mistakes. Before you start your own market research, you should avoid the following market research mistakes:

1. Poor Target Market’s details – be sure to define your sample at the beginning of your study and avoid collecting data from wrong respondents
2. Bias Questionnaire – if your questionnaire is not accurate, you will be not able to take the right decision for your potential business
3. Poor incentives for your respondents may cause a low response rates and engagement in your study
4. Conduct a market research without clarify what you hope to achieve (e.g. vague or ambiguous goals)
5. Vague reports without evidences or findings
6. If you are too engaged, ask help to market research companies (e.g. Marketest)
7. Believe you don’t need market research after spending time in your industry

If you have further questions, feel free to get in touch. Hope to be helpful :)

CurtisMLee

Types of Market Research 
Primary Research: The goal of primary research is to gather data from analyzing current sales and the effectiveness of current practices. Primary research also takes competitors' plans into account, giving you information about your competition.

Collecting primary research can include:

• Interviews (either by telephone or face-to-face)
• Surveys (online or by mail)
• Questionnaires (online or by mail)
• Focus groups gathering a sampling of potential clients or customers and getting their direct feedback

Some important questions might include:

• What factors do you consider when purchasing this product or service?
• What do you like or dislike about current products or services currently on the market?
• What areas would you suggest for improvement?
• What is the appropriate price for a product or service?

Secondary Research: The goal of secondary research is to analyze data that has already been published. With secondary data, you can identify competitors, establish benchmarks and identify target segments. Your segments are the people who fall into your targeted demographic--people who live a certain lifestyle, exhibit particular behavioral patterns or fall into a predetermined age group.

saravanan

Market Research is the process that helps marketers and entrepreneurs centre around their business and their customers. Market Research can increase the probability of making correct marketing decisions and therefore reduce risk.