Market
research is a valuable planning tool for businesses of all sizes and types. What’s
more, you don’t need a huge budget to gather data about your customers’
perceptions and preferences and how they make buying decisions. Market research
can also help you with decisions about where to direct advertising and marketing
resources. All it takes is a willingness to learn and some careful planning.
In
just 60-seconds, we’ll show you how to develop a market research strategy
for your small business.
0:60 What Information
Do You Want to Know and Why?
What information about your current or potential
customers will help you serve them better? Demographic data and travel patterns
can help you determine the feasibility of opening a new location, while knowledge
about their daily schedules can help you set more convenient hours of operation.
0:44 See What’s Already Been Discovered.
There is probably more published information available about your type of
business and target market than you realize. Among the best sources are the U.S.
Census Bureau, national and regional business publications, trade organizations
and your local chamber of commerce.
0:39 Build
on What You’re Doing
It’s easy to make market research a part of
your day-to-day activities. Retailers can use sales receipts, delivery orders
and charge slips to identify where customers live, or monitor inventory trends
to gauge the popularity of certain product lines. Tracking orders of daily specials
helps restaurant owners determine which dishes are most popular on a weekly or
seasonal basis.
0:24 Watch the Competition
You
can gain some valuable insights by studying the practices of successful competing
businesses. No espionage is required. Just be observant about when and where they
advertise, the setting and layout of their various locations, operating practices,
etc. Remember that their approach may be driven by circumstances substantially
different from yours.
0:16 Talk to Your Customers
As
a small business owner, you’re face-to-face with your customers. Your market
research can be as informal as observing customers in the store or doing a survey
and as elaborate as conducting a full-scale research program with focus groups
and computer-generated maps. A market research firm or ad agency will cost more
than a “homemade” strategy, of course, but you will have the benefit
of the consultant’s experience and objectivity.
0:03
Ask SCORE
Many of the information resources mentioned above can be found at
your local SCORE chapter office. And, by working with a volunteer counselor, you
will gain a better understanding of the stories behind the numbers and how they
relate to your business. Counseling is free, and available at a SCORE chapter
near you.
Brought to you by SCORE, America's
small business mentors, at www.score.org.
See
more 60-Second Guides.
Ask SCORE.
Credit:
SCORE Association "Counselors to America's Small Business"
SCORE
is a nonprofit association dedicated to entrepreneur education and the formation,
growth and success of small businesses nationwide. Through a partnership with
the U.S. Small Business Administration, SCORE's volunteer business counselors
have been helping small businesses succeed and grow since 1964. SCORE's 10,500
volunteers provide free counseling and low-cost educational training workshops
to aspiring entrepreneurs and small business owners from 389 office locations
across the country. All of SCORE's business counseling services are available
to U.S. citizens or resident aliens.
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