In recent articles, we’ve looked at what market research is and the main two categories of research available to start-ups. Today, we’ll be taking a closer look at how new companies can approach their market research and get the answers they need to make key strategic decisions. So let’s dive in.
How To Do Market Research As A Start-Up
Step One: Determine Your Purpose
Before getting started, it can help to outline what you want to achieve through your research. What questions would you like answered? How will you use the information you get? And are your findings going to be business critical? There are many things you can learn from market research from what prospective clients think of your product, to what market share your main competitors currently hold. Having a goal in mind will help you ask the right questions, and choose the best methodology.
Step Two: Choose Your Methodology
As we’ve seen, there are two main types of market research. These are primary research, where you approach your target audience directly, and secondary research, where you get information from government bodies or third party organisations. Choosing the right methodology is essential. Consider your business strategy and research goals. Evaluate the pros and cons of each approach. Take into account any time constraints and budget restrictions. Then decide what would work best for you.
Step Three: Know Your Audience
Now you’ve chosen your research focus and preferred methodology, it’s time to start thinking about your target market. Have you created an ideal customer profile? Do you know what their typical interests and buying behaviours might be? This stage is where you really start to consider the best way to approach your market, and how you’re going to conduct your research . Will you be gathering information online? Talking to people in interviews? Or recruiting people for a formal study? Knowing your audience, and how they look for products, can help you decide the best way to proceed.
Step Four: Focus Your Questions
Asking the right questions can give you the insight you need to make important business decisions. For example, if you’re using your market research to scope out the competitive landscape, you might frame your questions around selling points. What does your audience believe your selling points are? How do they feel you compare to competitors? And which product are they more likely to choose, and why? This kind of feedback can provide insight into not only their preferences, but also how they see your brand.
Step Five: Look For Helpful Tools
Now you have a plan in place, you can start looking for tools to help you conduct your research. There are many free tools that you can use to get a basic understanding of market trends. If you’re looking to outsource your research, you can also look for providers that specialise in your industry.
Step Six: Analyze Your Findings
After you’ve conducted your primary research, or sought information from third party sources, then it’s time to take a look at your findings. Try to keep an open mind about what the data is telling you, and consider adapting your marketing strategy in response to your findings, where appropriate.
Final Thoughts
Market research is an on-going process. Whether you’re a new company entering the market, or an SME trying to accelerate your growth, there is always something to be gained from listening to your audience. While the process outlined here may seem simple, honing your skills and research methodology can take time. Because of this, you should update your research regularly, learn new market research techniques, and seek external support if needed. For more information about market research, check out the blog.
