Q: I've created a new product that I think customers
will really want to buy. At this point, I'm finalizing the
packaging and marketing approach. What should I do next?
A: Like many enthusiastic entrepreneurs, you have a
terrific idea for a new product or service, and you're rushing
headlong to bring it to market. Just be sure you don't skip a
vital step--testing. There's a big difference between thinking
you have the next great idea and proving that it's something
your target audience is willing to pay for. Some entrepreneurs skip
the testing phase altogether because they think it's too costly
or difficult. But there are many forms of affordable research, and
even a modest amount of testing can make the difference between
success and failure, whether you're launching a new product or
service or simply want to increase sales for your business.
Use market research to answer questions, including:
- Who will be your customers?
- What are their characteristics, likes and dislikes, and
purchasing habits?
- Do they presently purchase the kind of product or service you
offer?
- How often, where and how?
- Are they brand-loyal?
- What product or service features will induce them to
switch?
- How much will they pay?
- Which promotional programs will have the greatest appeal?
- Which product names, slogans and packaging do they prefer?
- Where do they learn about products and services like
yours?
Mix It Up
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Primary research can be quantitative or qualitative.
Quantitative research, such as surveys, mall intercept studies and
telephone polls, examines statistically projectable samples of a
specific population and allows you to generalize your results to
larger groups. Focus groups and personal interviews fall under the
heading of qualitative research, which is more subjective and uses
a smaller number of sample subjects.
Often, a combination of quantitative and qualitative research
works best. Suppose you've just created a new product--an
educational puzzle for children. You could start testing it with an
online survey conducted among a sample base of parents with
children in the proper age group. Then you could move on to
informal focus groups. Rather than use a focus group facility and
professional moderator, you could get the necessary qualitative
information by inviting groups of parents and children to your home
or office to play with your new toy. That way you could ask
questions and observe consumer reaction at the same time with very
little cost.
Or let's say you own a store that specializes in speedy
delivery of window shades and blinds and are considering adding
custom curtain design to your list of services. You could start
with a survey of your current customers, focused on whether or not
they'd be interested in the new service. This could be as
simple as asking customers a question or two when they come into
the store, or you could create a formal questionnaire. If you got a
positive response, your next step might be telephone interviews
with a sample base drawn from your targeted prospect group.
Find Qualified Help
To find a qualified research firm, visit www.quirks.com. This
site provides a searchable database of companies that specialize in
a broad spectrum of research types, including Web-based surveys,
which are increasingly replacing phone, mall intercept and mail
surveys, thanks to their quick turnaround time and dramatically
lower costs.
In all, there's an effective form of research to suit every
need. So to make sure your latest and greatest idea is the winner
you're hoping for, put it to the test.
Kim T. Gordon is an author, marketing coach and media
spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The Business, identifies the
30 "truths" that can make the difference between success
and failure in a homebased business. Kim offers one-on-one coaching
by telephone to motivated individuals, providing practical
marketing advice and budget-conscious strategies unique to your
business. To receive free how-to articles and advice, get
information on coaching and appearances, read a book excerpt, or
contact Kim, visit http://www.smallbusinessnow.com,
a huge site devoted exclusively to marketing your small
business.
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.