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Why Conduct Market Research?

The goal of doing market research is to equip yourself with the information you need to make informed business decisions about start-up, innovation, growth, and the 4 P's:

Product — Improve your product or service based on findings about what your customers really want and need. Focus on things like function, appearance and customer service or warranties.

Price — Set a price based on popular profit margins, competitors' prices, financing options or the price a customer is willing to pay.

Placement — Decide where to set up and how to distribute a product. Compare the characteristics of various locations and the value of points of sale (retail, wholesale, online).

Promotion — Figure out how to best reach particular market segments (teens, families, students, professionals, etc.) in areas of advertising and publicity, social media, and branding.

Basic questions to answer with market research:

  1. Who are your customers? Describe them in terms of age, occupation, income, lifestyle, educational attainment.

  2. What do they buy now? Describe their buying habits relating to your product or service, including how much they buy, their favored suppliers, the most popular features, and the predominant price points.

  3. Why do they buy? Depends on the product and its uses.

  4. What will make them buy from you? Use detailed information about markets, sales figures, and consumer buying motivations.

Types of Market Research

Primary Research

The goal of primary research is to gather data from analyzing current sales and the effectiveness of current practices. Primary research also takes competitor’s plans into account, giving you information about your competition.

How can you collect primary research?