Suppose you want to start a carpet cleaning business and you want to see if there is market for your business, how do you go about it? If you are looking forward to starting a business, the best way to go about it is to conduct market research. Market research involves gathering information on what your customers want to help you better understand how you are going to structure and organize your business. Market research helps in providing valuable information to identify and analyze potential pitfalls to avoid, as well as opportunity areas to target.
Processes in Market Research
The process of carrying out
market research involves three key areas including;’
– Setting out goals for your
– Developing a plan on how to
– Analyzing data and drawing
The market research process
should not be complicated. You need to understand the two types of market
research, which are primary research and secondary research. In primary
research, new data is gathered directly by researchers or the company
interested in the data. It occurs in the form of interviews, surveys,
questionnaires, focus groups among others. For secondary research, you collect
and analyze secondary data, data which is already available in books, research
magazines, and statistical reports among others.
For secondary data, there are
different way to go when looking forward to collect this type of data. It can
either be through quantitative methods or qualitative methods. Qualitative
methods aims at getting data from people’s reasoning, opinions, motivations,
emotions among others. You can also collect data through participant
observation, a process which involves acting as customer and collecting the
data. Another method employed is what we call direct observation, where a
researcher collects information by just watching, instead of taking part in.
It is very important to analyze
data you get otherwise there would be no any importance of collecting the data.
Results of the market research process are analyzed, and a SWOT process
performed. The findings of data analyzed plus strategies employed in SWOT
analysis help in determining the success or failure of a business.
It should be noted that it’s very
important to conduct market research. Market research should occur on a regular
basis to help businesses be at par with what’s happening as well as to be
updated on the trends and changes happening in the industry. Market research
helps in identifying problems and opportunities in the market, formulating
market strategies, determining consumer needs and wants, for sales forecasting,
as well as determining market potentials.