Q:
What's the best way to determine the market for my business and
whether it's in demand?
A:
Whether you're just starting a business or have run one for
years, ongoing research is vital to both determine the market for a
new product or service and to stay abreast of changes that affect
your market and target audience. You can research and test
everything from your product or service to your advertising
concepts. Research will help you identify who your best prospects
will be, what they need and expect from you, the way they get their
information about your type of product or service, how and when
they buy it, and what they're willing to pay.
There are two types of research-primary and secondary.
Secondary data-information you get from an outside source-is
the easiest and least expensive to obtain. You can purchase studies
from research firms and locate published information in newspapers,
magazines and on the Internet. Make a habit of reviewing the
publications your targeted prospects read for information on what
you offer. Don't forget to scan the ads as well as the
editorial content for new competitive products and services. Search
the Internet regularly for published studies and articles that
relate to the buying habits, preferences and changing demographics
of your target audience. You'll find a database of secondary
research at http://www.dialog.com. And join
Internet discussion groups frequented by your types of prospects to
stay up-to-date on trends and issues.
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Primary research refers to studies you undertake
directly, including focus groups, telephone surveys, polls of
consumers at malls, surveys of current customers, Internet surveys
and geographic market analyses to evaluate potential retail
locations. The costs can range from several hundred dollars to send
a postcard survey to current customers or to pay the price of hors
d'oeuvres and soft drinks for an informal roundtable focus
group, to tens of thousands of dollars for a national telephone
survey. To find a qualified research firm by location or specialty,
visit http://www.quirks.com.
Kim T. Gordon is a multifaceted speaker, marketing expert and
media spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The Business(Perigee),
identifies the 30 "truths" that can make the difference
between success and failure in a homebased business. From formulas
for positioning a business and creating an image to Internet
marketing strategies and tips for work-at-home parents, by reading
just one truth per day, in one month, readers will master a
complete course on homebased business success. To read an excerpt,
get information on media appearances and seminars, receive free
how-to articles and advice, or contact Kim, visit http://www.smallbusinessnow.com.
The opinions expressed in this column are those
of the author, not of Entrepreneur.com. All answers are intended to
be general in nature, without regard to specific geographical areas
or circumstances, and should only be relied upon after consulting
an appropriate expert, such as an attorney or
accountant.