Before you create any product or start a business, it’s a good idea to find out if there’s a need for what you want to do. If you decide you want to write a book, for example, it only makes sense to find out what else is out there before you tackle such a huge task. Any book on marketing will tell you that you should do “market research” before you develop a product, but few actually tell you how you go about doing it.
The first step to market research is to decide what you need to know. Start with a question. So for example, if you want to write a book on meerkats, your first question might be, “what other books exist on meerkats?” After you have determined the number of books there are, your next question might be, “how well are they selling?” and “who buys them.” To get this information, your first easiest stop is Amazon.com. Change the search box to “books” and type in meerkat. Because of the popular Meerkat Manor TV show, you find a few books that have been published recently.
If you look at the sales rank of the top-selling book (the one from the TV show), it seems like meerkats are kind of in vogue. You’d want to look through the competition and see if you can isolate a different take on the subject than what is already out there. For more detailed information, you may want to leave your computer and talk to people. Stop by a few bookstores and talk to the book buyer. Do they sell books on meerkats? Who buys them?
Another way to get information on trends is to look at magazines and news sites. If you aren’t particularly good at doing research, talk to your friendly neighborhood librarian for a few tips. Some information simply isn’t online or is only accessible through special databases. For example, a few years ago, I discovered that our local library here in little old Sandpoint, Idaho is hooked up to a much larger set of periodical and reference databases through the LiLI (Libraries Linking Idaho) portal. All you need is your library card and a password to get at all kinds of great business information.
In addition to doing online research and talking to people, another way to get valuable marketing information is to use a survey. For example, many times companies will survey their customers to find out what information or products they most need. Surveys might be done online, over the telephone or in person. The key to doing a good survey is asking questions that give you insights about your customer’s motivations and interests. Once you have a good feel for their desires and needs, you are better able to offer products that they would want to buy. If you decide to do a questionnaire or survey, do your customers a favor and keep your questions brief and simple.
After you have gathered information, you need to sit down and analyze what you’ve learned. Based on the information, you need to decide at what point something is a “go” or a “no go.” For example, if you are surveying your customers about a new product and 50% sound interested in it and 50% don’t, you need to decide what that means. Is 50% enough to go forward or not?
Market research is just one tool in your decision-making process. It also is generally done in stages. You do some research, get some answers, and they just lead to more questions. So you go forth and get answers to those questions too until you have enough information to make a decision. Probably the most important thing about doing market research is that it puts you in touch with your customers or potential buyers. Understanding your customers is a big part of being successful in business, so investing a little time in market research is time well spent.