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Introduction to Market Research
Introduction to Market Research Good instincts and intuition certainly play important roles in business But gut feelings about your customers' needs and preferences aren’t enough If you want to minimize risk and improve your chances of success, you need sound, objective data That's where market research comes in Market research is the process of collecting and analyzing information about the customers you want to reach, called your target market This information provides you with the business intelligence you need to make informed decisions Market research can help you create a business plan, launch a new product or service, fine tune your existing products and services, expand into new markets, develop an advertising campaign, set prices or select a business location Types of Market Research Market research methods fall into two basic categories: primary and secondary Your research might involve one or both, depending on your company’s needs Primary research involves collecting original data about the preferences, buying habits, opinions and attitudes of current or prospective customers This data can be gathered in focus groups, surveys and field tests Secondary research is based on existing data from reference books, magazines and newspapers, industry publications, chambers of commerce, government agencies or trade associations It yields information about industry sales trends and growth rates, demographic profiles and regional business statistics Using Market Research Market research allows you to pinpoint a host of key business factors about your market It can help you identify: o o o o o o Growth trends in your business sector Size of your target market Best location for your business How your business stacks up against the competition Factors that influence buying decisions Degree of demand for your product or service It also can reveal key information about your customers and prospects, including: o o o o o Their demographic profile The types of features or special services they want What they like and dislike about your product or service How they use your product or service How often they buy and how much they will pay for your product or service Once you analyze the results of your market research, you'll be in a better position to create a focused business plan, develop a targeted advertising campaign, set competitive prices, select a new business location or take other steps to grow your company Market-Research Techniques Market research can provide critical information about the buying habits, needs, preferences and opinions of current and prospective customers While there are many ways to perform market research, most businesses use one or more of five basic methods: surveys, focus groups, personal interviews, observation and field trials The type of data you need and how much money you?re willing to spend will determine which techniques you choose for your business Surveys Using concise, straightforward questionnaires, you can analyze a sample group that represents your target market The larger the sample, the more reliable the results o o o o In-person surveys are one-on-one interviews typically conducted in high-traffic locations such as shopping malls They allow you to present people with samples of products, packaging or advertising and gather immediate feedback In-person surveys can generate response rates of more than 90 percent, but they are costly With the time and labor involved, the tab for an in-person survey can run as high as $100 per interview Telephone surveys are less expensive than in-person surveys, but costlier than mail However, due to consumer resistance to relentless telemarketing, getting people to participate in phone surveys has grown increasingly difficult Telephone surveys generally yield response rates of 50 percent to 60 percent Mail surveys are a relatively inexpensive way to reach a broad audience They're much cheaper than in-person and phone surveys, but they only generate response rates of percent to 15 percent Despite the low return, mail surveys are still a cost-effective choice for small businesses Online surveys usually generate unpredictable response rates and unreliable data because you have no control over the pool of respondents But an online survey is a simple, inexpensive way to collect anecdotal evidence and gather customer opinions and preferences Focus groups In focus groups, a moderator uses a scripted series of questions or topics to lead a discussion among a group of people These sessions take place at neutral locations, usually at facilities with videotaping equipment and an observation room with one-way mirrors A focus group usually lasts for one to two hours, and it takes at least three groups to get balanced results Personal interviews Like focus groups, personal interviews include unstructured, open-ended questions They usually last for about an hour and are typically recorded Focus groups and personal interviews provide more subjective data than surveys The results are not statistically reliable, which means they usually don't represent a large segment of the population Nevertheless, focus groups and interviews yield valuable insights into customer attitudes and are excellent ways to uncover issues related to new products or service development Observation Individual responses to surveys and focus groups are sometimes at odds with people's actual behavior When you observe consumers in action by videotaping them in stores, at work or at home, you can observe how they buy or use a product This gives you a more accurate picture of customers' usage habits and shopping patterns 5 Field trials Placing a new product in selected stores to test customer response under real-life selling conditions can help you make product modifications, adjust prices or improve packaging Small business owners should try to establish rapport with local store owners and Web sites that can help them test their products Secrets of Successful Market-Research Studies Whether your goal is to expand into new markets, introduce a new product or service, or gauge customer reactions, even the smallest of small businesses can benefit from a simple but well planned marketresearch study Market research helps you understand your market, your customers, your competitors and larger industry trends Good research will reveal details about your current customers and help you target new customers For example, before you open an organic produce market, find out if there's a demand for food grown without pesticides and if customers will pay more for it In addition to giving you insight into customer needs, market-research studies can help you avoid costly mistakes, such as introducing an unpopular new line of goods or developing a service that no one really wants Coca-Cola's introduction of New Coke in the 1980s shows what happens when decisions aren't supported by good research Coca-Cola revised the formula of its traditional Coke brand of soft drink and lost millions in sales By performing a study and asking people what they thought of the new formula, the company could have avoided public-relations headaches When you set up a market-research study for your business, follow these basic guidelines: Use the right sample The research sample — your study’s group of participants — has to be just the right size Too large a sample costs too much, and too small a sample offers inaccurate results You also need to make sure you have the right samples from your overall population Even a sample as small as percent of a market or group will work, as long as the sample truly reflects the overall geographic area or population you want to query Mirror the market Your surveys must reflect all characteristics of the market, such as geographical area or population group from which it is drawn Nielsen TV ratings are based on very small samplings of the overall audience, but they're accurate to a few percentage points For example, if half of your target market is aged 65 and older and half is 30 and younger, make sure that the sample size accurately reflects your demographic If one-third of your market lives in one town and two-thirds lives in another, your survey must reflect the geographic split in order to give you accurate information about your market Get quantifiable results Successful studies follow proven approaches, often based on the world of statistics and sampling But don’t worry — you don't need a PhD in mathematics Most results can be tabulated with simple arithmetic and broken down into percentages that anyone can understand If you follow these guidelines, you’ll collect information that can contribute to the success of your enterprise In short, market-research studies can save money, save time and — above all — save you from disaster Market Understanding Your Target Market No business can be all things to all people Instead, you must reach specific customers and satisfy their particular needs As an entrepreneur, you must identify those customers and understand as precisely as possible what they want The process of finding and studying potential customers for your venture doesn´t have to be complex or expensive but it is extremely important In a nutshell, it requires you to find out everything you can about the customers you intend to pursue Once you have that information, you´ll have a much better chance of capturing those customers for your business The facts you need to know about your target market fall into these three categories: Demographics Begin your research by checking the demographics of the region you plan to target You ´ll want to know the population´s make-up in terms of age, gender, income level, occupation, education and family circumstances (married, single, retired and so on) To find that information, you´ll probably need to visit the local library Good sources available at most libraries include: o o Country and City Data Book, published by the U.S Department of Commerce Survey of Buying Power Data Service, published by Sales and Marketing Management Geographic and lifestyle factors Give some thought to where and how your target customers live Are they Southerners or Yankees; urbanites, suburban soccer moms or country folk? Are they risk-takers or conservative; athletes or couch potatoes; spenders or savers? The answers will help determine what you can sell to them, how you should sell it and at what price Customer needs Consider all the reasons why people might buy your product or service For example, say you´re opening a string of health clubs Will your customers come to meet other people, to take exercise classes or to play racquet sports with their friends? Find out by talking to people in the local fitness industry and by quizzing friends or acquaintances who go to health clubs Then you can design and market your club accordingly Once you´ve considered the key demographic factors, you can begin to assemble a customer profile, a more focused statement that describes your target market in detail Consult that profile when you make decisions about issues such as what products and services to offer or advertise; how much to charge for various products; and expansion plans Market Survey In what type of business, industry or profession you work? (Please check one.) Agriculture/forestry/construction Data processing/computers Finance/banking/insurance Health care (medical, dental, etc.) Real estate Wholesale trade Retail trade Other: (please specify) Communications/publishing/advertising Education Government/public administration Manufacturing Personal/business services (consultant, CPA, lawyer, etc.) Transportation/public utilities What is your position? (Please check only one.) Chairman of the Board Owner/Partner Other Company Officer (V.P., Treasurer, etc.) Manager Scientist or Engineer Sales Clerical Other: _ (please specify) President/CEO Director Department Head Supervisor/Foreman Other administrative position not mentioned Technical Specialist Retired How many people, including yourself, work at your company, including branches, international offices and plants? (Please check only one.) Under 10 25 - 49 75 - 99 250 - 499 1,000 - 4,999 10,000 or more 10 - 24 50 - 74 100 - 249 500 - 999 5,000 - 9,999 4a What are your company’s annual gross sales or revenues? (Include all plants, branches, divisions and subsidiaries.) Less than $250,000 $500,000 - $999,999 $5 million - $9.9 million $25 million - $99.9 million $250,000 - $499,999 $1 million - 4.9 million $10 million - $24.9 million $100 million or over 4b What year did your business start? _ Do you serve on your company's board of directors? Yes No Are you on the board of directors of any other company? Yes No No 7a Are you an owner or a partner of a business? Yes 7b If you answered yes, in what industry or profession were you employed and what was your job title before you became an owner or partner? Industry or Profession: _ Job Title: 7c Are you considering starting or buying a new or additional business? Yes No 7d If you are planning to start or buy a new business, when you plan to so? In the next six months In 13 to 24 months Not sure In to 12 months More than 24 months from now In the last 12 months, have you been directly involved in initiating, recommending, ordering or approving the purchase of any of the following products or services for your firm? (Please check all that apply.) Accounting services Answering/paging systems Building materials/equipment Computers and computer accessories and/ or related computer equipment (include time-sharing) Credit cards Fax machines Insurance Office supplies (including office paper) Real estate and/or office or plant location Telecommunications equipment/services Travel services Advertising /PR/sales promotion Banking and financial services Car/truck/van purchase or lease Computer software Copiers Express mail/courier/package delivery, overnight delivery Office furniture and fixtures Other office machines (calculators, typewriters, postage meters, etc.) Temporary office help/employee recruitment None of these Which express mail/package delivery services you use? (Please check all that apply.) Federal Express United Parcel Service Emery/Purolator U.S Postal Service/Express Mail DHL Other: (please specify) Motivation Survey How knowledgeable are you about computers? Very Slightly Somewhat Not at all Which of the following are important to you when evaluating a computer equipment purchase? Check all that apply After-sales support Best price for features Easy to use Lowest price available Newest technology available Reputation of vendor Warranty Attractive product Brand name Hardware compatibility Most features/functions Product quality Compact size Other: (please specify) Which of the following sources of information you use to make decisions about computer or software purchases? (Please check all that apply.) Business publications Colleagues In-store displays PC Publications Radio Trade shows Other: (please specify) Catalogs Consultants Manufacturer's reps Personal experience/knowledge Television Newspaper Which of the following publications you rely on for information regarding your business or your plans to start a business? (Please check all that apply.) Business Nation Business Week Byte Computer Shopper Computerworld Entrepreneur eWeek Forbes Fortune Home Office Computing Inc Independent Business MacCentral Macworld Online PC Magazine PC Novice PC World None of these As a small-business owner, please check those of the following topics covered in Entrepreneur magazine that you consider useful Tax information Financial (raising money, etc.) Marketing strategies Latest office equipment Franchise information All of the above New ideas for business Computer technology Company profiles Management tips Latest small-business trends and statistics None of these Female Are you: Male What is your total annual household income? (Include income from all family members and all sources—salary, bonuses, investment income, rents, royalties, etc.) Less than $30,000 $40,000 - $49,999 $60,000 - $74,999 $100,000 - $149,999 $250,000 - $499,999 $1 million or more $30,000 - $39,999 $50,000 - $59,999 $75,000 - $99,999 $150,000 - $249,999 $500,000 - $999,999 On Target You need market research to hit the mark with prospects But if costly surveys and focus groups aren't in your financial picture, try these creative, budget-friendly ways to get to know your target audience Entrepreneur magazine - August 2004 By Isabella Trebond Would you shell out $200 for a pair of shoes without trying them on? Plunge into a steaming bath without dipping a toe in first? Of course not?but people the business equivalent every day Many an entrepreneur has found out too late that nobody wants to buy hand-quilted Christmas stockings at $24.99 a pop, or that moneyed customers won't trudge to the unfashionable part of downtown for luxury stationery The paradox: Conventional market research is expensive (corporations regularly budget tens or hundreds of thousands of dollars for it), but no one needs it more than a startup entrepreneur A couple of marketing blunders won't put a giant manufacturer out of business, but just one can sink an entrepreneur with shocking ease This article walks you through the basic steps of do-it-yourself market research We'll skip the tried-andtrue but unaffordable techniques?like focus groups, professional surveys and direct-mail questionnaires? and fast forward to ideas for those of us with more creativity than cash The focus is on startup research, but many of the same techniques can also be used to refine your marketing plan for an existing business or to figure out why it's not flourishing the way you think it should You'll start by roughly defining your typical customers, determine if enough of them exist, and, finally, try to decipher their buying habits, preferences and prejudices Step 1: Define Your Target Customers Your "target customers" are those who are most likely to buy from you Resist the temptation to be too general in the hopes of getting a larger slice of the market That's like firing 10 bullets in random directions instead of aiming just one dead center of the mark?expensive and dangerous Try to describe them with as much detail as you can, based on your knowledge of your product or service Rope family and friends into visualization exercises ("Describe the typical person who'll hire me to paint the kitchen floor to look like marble ") to get different perspectives?the more, the better Here are some questions to get you started: H Are your target customers male or female? H How old are they? H Where they live? Is geography a limiting factor for any reason? What they for a living? How much money they make? This is most significant if you're selling relatively expensive or luxury items Most people can afford a carob bar You can't say the same of custom murals l What other aspects of their lives matter? If you're launching a roof-tiling service, your target customers probably own their homes Get specific For example, if you're selling collectible comics through a Web site but aren't willing to brave international export regulations, your customer location can stay in the United States Or if you're planning to open a custom-tailoring shop and need busy executives to come for three fittings, you may need to limit it to your local area Step 2: Decide if You Have a Market Before you commit hours to researching what customers want from you, it makes sense to find out whether you have a viable target market The cheapest and simplest way to this is through "secondary data," or information someone else has already gathered for you Usually, this takes the form of various statistics and can only answer closedended questions: How many? When? Where? Your own questions will depend on your customer profile and become more tightly targeted based on what you find out as you go You can find answers in a number of ways: Reference librarians: Most are delighted to help you research Often, they'll practically it for you These days, they can look up a lot of what you need on computer databases, and you have a decent chance of walking away with all your answers Printouts may cost several cents per page The local field office of the Department of Commerce: It should supply you with free or nearly free information on population, demographics, housing, the economy, market trends, surveys of current businesses, and more The business libraries of local universities: These often have more specific information on business trends than a public library Ask the librarian for help Your local SBA branch or Small Business Development Center: It has a multitude of publications and business literature full of advice and market forecasts Once you've got all the answers, it's time for a judgment call: Do you have a working market? Only you can decide if 14 competitors are too many for 19,000 target customers, or if you want to gamble on the fact that your target customer spent 30 percent more last year than three years ago If you don't like the numbers, at least you've just saved yourself a potential financial disaster Now you're armed with a much better grasp of market conditions to revamp your business idea or marketing direction and return to Step Portrait of a Customer Before your research is over, your ideas about your target customer may change several times Add explanations and qualifiers under each category as they occur to you; these will document your thought processes and remind you of how you got to the final concept This is a preliminary customer profile for an entrepreneur's actual business idea He wanted to offer faux paint effects, but wasn't sure if there was enough of a market in his area for him to this for a living Going only on his own knowledge, this is the customer profile we came up with (comments, qualifiers and all): a Gender: Both, since many clients will be couples Age: Late 20s to 40s?let's say 29 to 45 Very young people usually can't afford this, and the older generation might be too conservative g Location: The Denver area Since projects usually require at least a few days to complete, it's not practical to drive long distances every day p Income: $60,000 upwards for the household combined Since the cost per job ranges between $500 and up, people who make less than that aren't likely to be able to afford this a Occupation: Probably white-collar Other factors: Owns a home?many landlords won't let renters paint, especially when it comes to daring effects like this Married?because couples have a greater pooled income and are more likely to be homeowners No young children?because parents aren't as likely to invest in fancy paint effects and might also be worried about the safety of kids around chemicals during the process When creating a customer profile, you'll want to use secondary research to answer questions like the following: f How many people in the Denver area are between 29 and 45 years old? f How many of these are married? f How many couples have young children (under age 10)? f How many have a combined household income of $60,000 or more? f What percentage of them own their own homes? f Are the numbers of homeowners and relatively high-income families in my area increasing or decreasing? d How many decorative painters and faux finishers work in my area? Who are they? d How many were there five years ago, three years ago and last year? Are there more of them now than before? b How many clients hired them last year? b How much did they make on average? b Where are they located? Are there more of them in certain areas than others? Step 3: Get to Know Your Marketing Once you decide you have a viable market, it's time to find out more about it Secondary research helps you refine your customer profile and gives you broad guidelines for your marketing efforts But because it's all derived from information that focused on others, it's only so much sophisticated guesswork that applies to everybody in your position Market research that's done specifically for your business, or "primary research," is where you'll get intimate with your own unique market Keep your mind open to any information, but also keep a list of primary research questions handy, such as: Who influences your customers and how? Spouses, neighbors, peer groups, professional colleagues, children and the media can all affect buying decisions Look for hints that one or more of these are a factor for you f Why they buy? Distinguish between the features and the benefits your product or service offers Features describe what it is; benefits are what your customers get out of it The latter is why your customers pay you Are they looking for a status symbol, a savings in time or energy, a personal treat or something else? s Why should customers choose you and not your competition? What can you offer that the competition doesn't? c How your customers prefer to buy? Many businesses benefit from the broader market provided by the Internet and mail order, while others better with a physical presence Don't assume you fall into one category or the other; customers may surprise you Keep those questions in mind as you take the following research steps: Read, read, read Articles, interviews and survey results published in trade periodicals reflect specialist knowledge of your market Publications that focus on your business type are invaluable for forecasting upcoming trends and identifying customers' needs But ads, letters to the editor, and other "extras" can be even more revealing Study the ads (full- and half-page ones as well as the classifieds) of businesses similar to yours; watch for features your competitors most want to emphasize or de-emphasize To get an overview of recent changes, order back issues, or find them in the library Are there more or fewer ads now than last year or three years ago? Do those that have lasted have anything in common? Readers' letters often contain information on what your customers like or dislike about certain products or companies Editorial pieces frequently highlight hot trends, which should have a bearing on your marketing plan Say you're starting a creative sewing pattern company If three sewing magazine editors in as many months mention the plus-size market, and you see half a dozen letters complaining about the lack of choices in larger sizes, you've just received a hint in neon Tap the Internet Newsgroups and discussion lists on the Internet debate every imaginable topic Chances are, some of them partially match your customer profile They may be talking about the type of product or service you offer—or can be encouraged to so Best of all, everything they've ever said has been archived It's like having a ready-made, if somewhat chaotic, focus-group transcript at your disposal You can glean information just by finding archived threads relevant to your business and paying attention to comments made by those who fall into your target demographic As a shortcut, type the names of your competitors (you found these during your secondary research) in the search boxes You can also take it one step further and start your own thread to initiate a more tightly focused discussion A caveat: Some lists and groups don't welcome commercial postings Always observe their rules, and phrase your questions discreetly You can ask any number of questions that don't violate their posting etiquette and still supply you with a wealth of feedback ("What should I look for in a good petsitter?" "What's everybody's favorite brand of low-carb chocolate?" "How much is too much for a handmade harp?" "Where's the best place to buy organic baby products?") You can follow up the answers with further questions until you have the level of detail you want Check out the competition You can learn about what to and not to by studying your competitors Visit their Web sites, and look at their prices, guarantees, testimonials and special offers If they offer newsletters, get on their mailing lists You'll get free information on improvements, new product lines, trends and even customer responses Spend some time analyzing their advertising and sales literature What they emphasize most? What are they not mentioning? Do you see aspects you could improve? Try calling or e-mailing them to ask about their rates and services If they have stores, visit and browse them Write down your impressions as soon as you've up or left the building Keep a record of each one, and ask yourself what all or most of them have in common, why you think that is, and how you can set yourself apart Get students involved Call or visit the Web sites of local business colleges as well as the faculty of business departments at universities and colleges in your area Find out who teaches classes on marketing, preferably small-business marketing Try to persuade them that your business would make a great real-life market research project They may agree, especially if you're willing to provide samples and demonstrations on request You'll have a better chance at certain times of the year, so if you've caught them at the wrong time, ask when might be better and whether they can refer you to anyone who runs on a different schedule If it pans out, you'll have to work with the professor's teaching plan and timetable, but you'll end up with 100 percent relevant, thorough, customized research results put together by people who intend to make a career out of this Researching Your Market Whether you're just starting out or if you've been in business for years, you should always stay upto-date with your market information Here are the best methods for finding your data August 07, 2001 Compiled by Laura Tiffany The purpose of market research is to provide relevant data that will help solve marketing problems a business will encounter This is absolutely necessary in the start-up phase Conducting thorough market surveys is the foundation of any successful business In fact, strategies such as market segmentation (identifying specific segments within a market) and product differentiation (creating an identity for your product or service that separates it from your competitors') would be impossible to develop without market research Whether you're conducting market research using the historical, experimental, observational or survey method, you'll be gathering two types of data The first will be "primary" information that you will compile yourself or hire someone to gather Most information, however, will be "secondary," or already compiled and organized for you Reports and studies done by government agencies, trade associations, or other businesses within your industry are examples of the latter Search for them, and take advantage of them Primary Research When conducting primary research using your own resources, there are basically two types of information that can be gathered: exploratory and specific Exploratory research is open-ended in nature; helps you define a specific problem; and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents Specific research is broader in scope and is used to solve a problem that exploratory research has identified Interviews are structured and formal in approach Of the two, specific research is more expensive When conducting primary research using your own resources, you must first decide how you will question your target group of individuals There are basically three avenues you can take: direct mail, telemarketing or personal interviews Direct Mail If you choose a direct-mail questionnaire, be sure to the following in order to increase your response rate: • • • • • Make sure your questions are short and to the point Make sure questionnaires are addressed to specific individuals and they're of interest to the respondent Limit the questionnaire's length to two pages Enclose a professionally prepared cover letter that adequately explains what you need Send a reminder about two weeks after the initial mailing Include a postage-paid self-addressed envelope Unfortunately, even if you employ the above tactics, response to direct mail is always low, and is sometimes less than five percent Phone Surveys Phone surveys are generally the most cost-effective, considering overall response rates; they cost about one-third as much as personal interviews, which have, on average, a response rate which is only 10 percent Following are some phone survey guidelines: • • • • At the beginning of the conversation, your interviewer should confirm the name of the respondent if calling a home, or give the appropriate name to the switchboard operator if calling a business Pauses should be avoided, as respondent interest can quickly drop Make sure that a follow-up call is possible if additional information is required Make sure that interviewers don't divulge details about the poll until the respondent is reached As mentioned phone interviews are cost-effective but speed is another big advantage Some of the more experienced interviewers can get through up to 10 interviewers an hour (however, speed for speed's sake is not the goal of any of these surveys), but five to six per hour is more typical Phone interviews also allow you to cover a wide geographical range relatively inexpensively Phone costs can be reduced by taking advantage of cheaper rates during certain hours Personal Interviews There are two main types of personal interviews: The group survey Used mostly by big business, group interviews can be useful as brainstorming tools resulting in product modifications and new product ideas They also give you insight into buying preferences and purchasing decisions among certain populations 2 The depth interview One-on-one interviews where the interviewer is guided by a small checklist and basic common sense Depth interviews are either focused or non-directive Non-directive interviews encourage respondents to address certain topics with minimal questioning The respondent, in essence, leads the interview The focused interview, on the other hand, is based on a pre-set checklist The choice and timing of questions, however, is left to the interviewer, depending on how the interview goes When considering which type of survey to use, keep the following cost factors in mind: • • • • Mail Most of the costs here concern the printing of questionnaires, envelopes, postage, the cover letter, time taken in the analysis and presentation, the cost of researcher time, and any incentives used Telephone The main costs here are the interviewer's fee, phone charges, preparation of the questionnaire, cost of researcher time, and the analysis and presentation of the results of the questioning Personal interviews Costs include the printing of questionnaires and prompt cards if needed, the incentives used, the interviewer's fee and expenses, cost of researcher time, and analysis and presentation Group discussions Your main costs here are the interviewer's fees and expenses in recruiting and assembling the groups, renting the conference room or other facility, researcher time, any incentives used, analysis and presentation, and the cost of recording media such as tapes, if any are used Secondary Research Secondary data is outside information assembled by government agencies, industry and trade associations, labor unions, media sources, chambers of commerce, etc., and found in the form of pamphlets, newsletters, trade and other magazines, newspapers, and so on It's termed secondary data because the information has been gathered by another, or secondary, source The benefits of this are obvious—time and money are saved because you don't have to develop survey methods or the interviewing Secondary sources are divided into three main categories: Public Public sources are the most economical, as they're usually free, and can offer a lot of good information These sources are most typically governmental departments, business departments of public libraries, etc Commercial Commercial sources are equally valuable, but usually involve costs such as subscription and association fees However, you spend far less than you would if you hired a research team to collect the data firsthand Commercial sources typically consist of research and trade assocations, organizations like SCORE (Society Corps of Retired Executives) and Dun & Bradstreet, banks and other financial institutions, publicly traded corporations, etc Educational Educational institutions are frequently overlooked as viable information sources, yet there is more research conducted in colleges, universities, and polytechnic institutes than virtually any sector of the business community Government statistics are among the most plentiful and wide-ranging public sources of information Start with the Census Bureau's helpful Hidden Treasures—Census Bureau Data and Where to Find It! In seconds, you'll find out where to find federal and state information Other government publications that are helpful include: • • • Statistical and Metropolitan Area Data Book Offers statistics for metropolitan areas, central cities and counties Statistical Abstract of the United States Data books with statistics from numerous sources, government to private U.S Global Outlook Traces the growth of 200 industries and gives five-year forecasts for each Don't neglect to contact specific government agencies such as the Small Business Administration (SBA) They sponsor several helpful programs such as SCORE and Small Business Development Centers (SBDCs) which can provide you with free counseling and a wealth of business information The Department of Commerce not only publishes helpful books like the U.S Global Outlook, it also produces an array of products with information regarding both domestic industries and foreign markets through its International Trade Administration (ITA) branch The above items are available from the U.S Government Printing Office One of the best public sources is the business section of public libraries The services provided vary from city to city, but usually include a wide range of government and market statistics, a large collection of directories including information on domestic and foreign businesses, as well as a wide selection of magazines, newspapers and newsletters Almost every county government publishes population density and distribution figures in accessible census tracts These tracts will show you the number of people living in specific areas, such as precincts, water districts or even 10-block neighborhoods Other public sources include city chambers of commerce or business development departments, which encourage new businesses in their communities They will supply you (usually for free) with information on population trends, community income characteristics, payrolls, industrial development, and so on Among the best commercial sources of information are research and trade associations Information gathered by trade associations is usually confined to a certain industry and available only to association members, with a membership fee frequently required However, the research gathered by the larger associations is usually thorough, accurate and worth the cost of membership Two excellent resources to help you locate a trade association that reports on the business you're researching are Encyclopedia of Associations (Gale Research) and Business Information Sources (University of California Press) and can usually be found at your local library Research associations are often independent but are sometimes affiliated with trade associations They often limit their activities to conducting and applying research in industrial development, but some have become full-service information sources with a wide range of supplementary publications such as directories Educational institutions are very good sources of research Research there ranges from faculty-based projects often published under professors' bylines to student projects, theses and assignments Copies of student research projects may be available for free with faculty permission Consulting services are available either for free or at a cost negotiated with the appropriate faculty members This can be an excellent way to generate research at little or no cost, using students who welcome the professional experience either as interns or for special credit Contact the university administration departments and marketing/management studies departments for further information University libraries are additional sources of research General Market Survey Are you: Male What is your age? 18-24 35-44 55-64 Female 25-34 45-54 65 or over What is the highest level of formal education you have completed? (Please check only one.) Attended High School Attended College Post-Graduate Study Without Degree What is your marital status? Married Separated or Divorced Graduated High School Graduated College Post-Graduate Degree Single, Never Married Widowed How many children under the age of 18 live in your household? What is your total annual personal income? (Include income from all sources— salary, bonuses, investment income, rents, royalties, etc Please check only one.) Less than $30,000 $40,000 - $49,999 $60,000 - $74,999 $100,000 - $149,999 $250,000 - $499,999 $1 million or more $30,000 - $39,999 $50,000 - $59,999 $75,000 - $99,999 $150,000 - $249,999 $500,000 - $999,999 In which state and ZIP code area is your main residence? State: _ ZIP code: _ What is your total annual household income? (Include income for all family members and include all sources—salary, bonuses, investment income, rents, royalties, etc Please check only one.) Less than $30,000 $40,000 - $49,999 $60,000 - $74,999 $100,000 - $149,999 $250,000 - $499,999 $1 million or more $30,000 - $39,999 $50,000 - $59,999 $75,000 - $99,999 $150,000 - $249,999 $500,000 - $999,999 9a Do you own a home, condominium or co-op as your primary residence? Yes No 9b If “Yes,” what is the present market value of your primary residence? Under $100,000 $100,000 - $199,999 $200,000 - $299,999 $300,000 - $499,999 $500,000 - $749,999 $750,000 - $999,999 $1 million - $1.9 million $2 million or more If $2 million or more, please estimate value: _ (please specify) 10 Do you own a second home, condominium or co-op? Yes No 11 What is the total net worth of yourself and all members of your household? Include the estimated market value of your business if you own one, all real estate, including primary residence, car, household possessions, bank accounts, stocks, bonds and other investments and assets Less than $50,000 $100,000-$249,999 $500,000-$749,999 $1 million -$1.4 million $2 million -$4.9 million $10 million and over $50,000-$99,999 $250,000-$499,999 $750,000-$999,999 $1.5 million -$1.9 million $5 million -$9.9 million ... gauge customer reactions, even the smallest of small businesses can benefit from a simple but well planned marketresearch study Market research helps you understand your market, your customers,... fittings, you may need to limit it to your local area Step 2: Decide if You Have a Market Before you commit hours to researching what customers want from you, it makes sense to find out whether... grasp of market conditions to revamp your business idea or marketing direction and return to Step Portrait of a Customer Before your research is over, your ideas about your target customer may