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Online Market Research or How to Properly Test Your Target Market
Online Market Research or How to Properly Test Your Target Market
July 16, 2009
The current economic climate is having an impact on businesses large and small. Many are suffering while others are discovering new opportunities. In fact, some people who have recently lost their job, be it through redundancy or otherwise, are thinking about launching their own business. What is clear is that the uncertainty in the economy means that researching a business’ market has never been more important.
Market research is an important tool for any person who wants to launch a business and for small firms looking to grow their business by launching new products or services. Market research involves scientifically-led studies to collect necessary market information, enabling entrepreneurs to make the right commercial decisions.
It’s an essential stage in the business start-up process but many entrepreneurs don’t do it – not least because of the supposed cost. Market research determines the feasibility of a project and it’s a way to adapt a business’ strategy (communication, pricing policy, products range…)
What it is...
It’s important to carry out market research in order to:
- confirm an idea
- make a project credible
- professionalize the setting-up approach
- convince financial partners and others
Online research has revolutionised market research, providing both opportunities and challenges to researchers and research users. Online market research has grown rapidly in recent years as a key form of data collection for primary research activities.
What it offers...
Online market research offers both large and small research focussed organisations the chance to eliminate the costs involved with face-to-face, postal and telephone data collection.
There are a number of benefits to commissioning online research, including:
- Easier targeting of respondents across numerous segmentation variables provides access to a precise and qualitative panel which ensures the collation of reliable data on sensitive issues.
- Multi-country projects no longer need to be an obstacle to research – worldwide research can be conducted at the click of a button.
- An inexpensive way to conduct large research projects - it is possible to get hundreds of responses for less than a thousand pound.
- Most large research suppliers have access panels which provide an easily accessible, reliable respondent base which can respond promptly to online questionnaires.
- It allows for a very rapid turnaround – research can be undertaken and results received within a few days as opposed to several weeks involved with face-to-face and postal data collection methods.
- The use of video, images and audio for richer questionnaire environments will return a greater quality data.
For a business which needs to gain a general view from a large cross-section of the population, and in as short a time as possible, there is no doubt that online research offers a viable benefit.
Starting a business? Launching a new product or service? Test the market first!
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Comments
Hi All i think Market research is the most important step in starting your business and has several steps in itself.
I'd always advise someone to do market research first. But in this order:
1) Your own searches on the web and using tools like Google's Adwords Keyword Tool and Google Insights. It only costs you time, and boy, you'll learn a lot about your market and competitors.
2) Your own survey, using services like Survey Monkey, and posting it in busy relevant forums.
3) Your own paper questionnaire if you can find an appropriate gathering of your potential customers.
4) Paid marketing research to add finesse to the above.
Cally
I actually don't agree with you. First of all Online Market Research is less expensive than other way to collect information because it just ask less people to work on it, as simply as that.
Then, it is definitely not that expensive if you keep it simple. Of course you won't survey 10000 people to reply to a complex 20 minutes long questionnaire...etc...
But asking some feedback to your target market in order to complete your market research and add some value and statistics to your business plan is better than only asking feedback from friends or family (not impartial by the way) or better than doing nothing.
Having some feedback from 1000 people on a precise project, on a precise market with a simple 10 key questions questionnaire is already relevant and don't cost that much (from 400 pounds).
Not that expensive and can play a vital role in obtaining financial support for your company. So spending a bit to earn more and avoiding mistakes? Yes definitely something that every pre start-ups should do but many don't know that they can afford it...
Doing proper research is essential, but it is important to note that online market research, using a reputable and properly managed, properly segmented, panel, in multiple countries and languages, remains an expensive activity, and cannot be set up "at the click of a button" as the article implies. The input of a wide range of professionals is required to ensure that the results are statistically sound and can be compared across languages and countries.
It takes time and a bit of money to do a proper and precise market research but way less than starting without doing it and then pay for your mistakes (reproducing...).
A few years ago I was about to rush headlong into a new venture when an adviser pointed out that I hadn't done enough research (along with a few other things!).
She stopped me wasting a lot of time and energy.
And probably a nervous breakdown too.
Read more: http://startupdonutblog.co.uk/2009/07/14/last-night-an-adviser-saved-my-...