Engaging in market research is an effective way to test a product or service out before releasing it to the market for sale. Your market research results work to pinpoint the markets you need to be targeting with your product or service. It identifies how that market prefers to receive information and allows you to predict how they will respond to the arrival of your product or service into the market.
As you begin to conduct market research for a product or service that is under development, there are five things you should remember to ensure your market research runs smoothly.
1. Research Methods
Every research process centers on two different types of information. Primary and secondary research refers to the kind of data that you collect from a sample of a target market audience. Although each method typically provides the same data, the source of the data is different.
You will collect primary research data directly from a source such as a customer or potential client. Data collection methods typically include interviews, surveys, focus groups or questionnaires. Before you can collect primary research, you need to create the content by writing the survey or interview questions and selecting a focus group moderator.
You will need to develop a data collection execution plan by pinpointing whether the sample population will engage in your research collection by phone, email, internet surveys or in-person focus groups. Primary research methods also need a data results collection method in place so that you can analyze the final information to determine how you will plan for the product or service to enter in the target market.
Secondary research centers on the collection of data that is already complete. It is equally as important as the information you collect through primary research. In most cases, the legwork of data collection is done for you. You just analyze the results and apply those results to the information that you are looking to identify from the market.
The beneficial aspect of using secondary research is having result information given to you from a different perspective. It may trigger a market trend or key piece of data that you did not catch through primary research.
For your market research on a new product or service to be effective, you should include a healthy mixture of primary and secondary research.
2. Remember Your Goals
There is a point of interest that prompts you to conduct market research on a particular product or service in the first place. Ask yourself what you are looking to accomplish by engaging in market research. The answer to that question now becomes your goal and the focal point of your research activity.
As you progress through the stages of market research, keep that initial point in mind. Make every action you take and every decision you make direct you back to your initial goal. It will ensure that when your research comes to a close, the results will allow you to determine whether or not your new product or service will have a successful entry into your target market.
3. Think About Competition
When compiling your research data for final analysis, pay close attention to your competition. Check secondary research sources to determine whether or not any of your competitors has done research on a similar topic.
Having access to a competitor’s market research information may pinpoint any inconsistencies that took place in the research or a critical portion of the target market that never took part in data collection. It gives you a competitive advantage in the target market.
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4. Seek Help
Engaging in market research is a time-consuming task because of the sheer amount of data that you will collect and then have to process. It can also be an overwhelming process to engage in for the first time. There is also the possibility that conducting market research is not feasible at the moment due to company budget restraints.
Each of these scenarios is a valid reason you may want to consider seeking outside help with your market research. Consider reaching out to a market research firms and taking advantage of their professional expertise and connections to provide you with the best research results possible.
5. Engagement Rates
For your market research to produce effective results, you will need to generate as much engagement from the sample population as possible. Consider offering a product giveaway as an incentive for customers and potential customers to participate in your data collection. It does not have to expensive or elaborate. It can be something simple that shows your appreciation for customers taking the time to participate in your research study.
Conducting market research is an essential part of launching a new product or service in a target market. You will gain a sense of how well your target audience will receive the new product or service. Keep each of these five considerations in mind as you progress through your market research process to help make your product or service launch a great success.