Market Research Overview

Starting a business in these tough economic times can be a frightening prospect for even the most seasoned entrepreneur. There are no guarantees that investors or the public will be as enthusiastic about your idea as you are, and even if you make it to market, there are no guarantees that your product will sell well enough to make a profit. Many would-be entrepreneurs get discouraged by all the unknown factors, and simply let their idea wither away without becoming a reality. If you want to make sure this doesn’t happen to your project or product idea, it’s essential to take stock of the current market environment.

What is Market Research?

Market research is the term used to define any process whereby a new or existing company collects information about its customers and how they view the products and services that are being offered. For companies that are not yet in existence, market research is simply the process of gathering information that can be used to determine market demand for a certain idea, product, or service in the future. Although market research can be a rather involved process, it’s important to make sure it is conducted thoroughly before you make any major decisions about your next development.

Benefits of Market Research

• Improved Communication With Customers and Stakeholders – A business is only as strong as its supporters, and if you’re conducting regular market research to find out what the public thinks of your brand, products and services, you’ll be in a much better position to advertise to them in a way that is likely to be effective. Also, with the advent of social media in the mainstream marketplace, market research can help you connect with the supporters that are most likely to pass your message on to others.
• Fewer Missed Opportunities – When properly conducted, market research can help you to discover new opportunities for growing your business or increasing customer loyalty. If, in your market research to determine consumer opinion about your brand in the Midwest, you discover that there are no retailers selling your product around large Midwestern cities, you’ve stumbled upon an opportunity for increasing success.
• Minimizes Risk – The more you know about the climate in which your business is operating, the more equipped you’ll be to avoid risky investments or ventures.

Conclusion

Constant evaluation is the key to operating a successful business, and market research not only helps you to evaluate the public’s opinion, it helps you to determine how well your marketing efforts are working. If you want to start conducting market research and don't have a standardized template to communicate your findings, use our Market Research Template. This sample report is a formal management communication document that provides an executive summary, description of the problem, objectives, research design & methodology, information sources, results, action-oriented recommendations, and appendix.