by Sherry Shafer, Drake University SBDC, Des Moines, IA Large companies with plenty of resources have made market research into a very sophisticated process, learning everything that is possible about their consumers. For example, Coke knows that we put 3.2 ice cubes into a glass, see 69 of their commercials every year, and vending machines cool our cans to 35 degrees. However, many smaller companies cannot afford a separate marketing research department to gather and monitor information. But that's no reason to forget about market research all together. It's not enough to know the answers to the basic questions about your business, you also need to know WHY people buy your products and services. The first step in market research is identifying what you really need to find out. That is, do you need to obtain general information about how your target market thinks about your product or service or will a simple confirmation of the general trends in your industry do? The type of information you are seeking will shape how you approach your research. Generally market research can be categorized as primary or secondary. Primary research involves the actual data gathering of specific usage patterns, product feature likes and dislikes, etc. Secondary research includes the research most of us are used to doing—library research with books, periodicals and on-line on the internet. With secondary research, someone else has done the primary research and has written it up in a form that's easier for you to use. May reports are available on line now. There are several places you can look for information for your market research, a few of which are outlined below: - Public Library. The reference section of your local public library usually will have a collection of indexes and directories that contain detailed information you can use in your research.
- Government publications and information services. Government census data can be broken down into all kinds of categories—race, age, sex, family income, employment, education, and housing, just to name a few. These data also can be mapped for you according to very specific location criteria.
- Trade Associations. Trade associations are an invaluable source of data on everything from salary surveys and market trends to company profiles and the key players in the industry.
- Internet research. Today, you can find data, information, secondary market research and industry reports on most products and services. It takes time, but is well worth the effort.
- Small Business Development Centers. Your local Small Business Development Center can assist you with your market research.
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