Market-Research Techniques

Author : Jo Ann Joy
Marketing research is necessary to determine what types of businesses have the potential to succeed, what area is right for your business, and are there enough potential customers to make your business economically viable. Most businesses use one or more of the following market research methods:1. 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. In-person surveys are one-on-one interviews typically conducted in high-traffic locations such as shopping malls. You can give people a sample of your product and gather immediate feedback. In-person surveys get good results, but they are expensive. The estimated cost is $100 per interview.2. Telephone surveys are less expensive than in-person surveys, but consumers resist and resent relentless telemarketing. It is difficult to have participation in phone surveys. The response rate is approximately 50%.3. Mail surveys are a relatively inexpensive way to reach a many consumers. They are the cheapest research method, but they typically only generate a 3% response rate.4. Online Surveys may generate unpredictable response rates and unreliable data, because you have no control over the respondents. An online survey will only give you simple and sometimes vague responses. However, they are inexpensive, and you may to gather helpful information about what items capture the customer's attention.5. Focus groups use a moderator who asks a series of prepared questions and invites discussion about the questions among a group of people for one or two hours. These sessions usually take place at facilities where the sessions can be videotaped. Usually there is an observation room with a one-way mirror like an interrogation room. The researcher can gain immediate information.6. Personal interviews include unstructured, open-ended questions lasting for about an hour. They are usually recorded. Like focus groups, the data is more subjective data than data from surveys. They usually do not represent a large enough segment of the population to gather statistically reliable information. They do give insights into customer attitudes and are potential issues about new products or service.7. Observation of surveys and focus groups may not give true
representations of actual behavior. If you can arrange to observe consumers in action by videotaping them in stores, at work, or at home, you get a much more accurate view of their buying behavior, usage habits, and shopping patterns.8. Field trials is the process of placing a new product in selected stores to observe customer responses in an actual selling setting. The observations may help you make product, price, or packaging modifications.Whatever kind of market research you use, the purpose is to determine whether you can reasonably expect success from the business you have chosen to start in a particular market. The more information you have, the better you will be able to answer the key questions about the potential success of your business idea.Jo Ann Joy, Esq., MBA, CEO
Copyright 2006 Indigo Business Solutions. All rights reserved.You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Road, Phoenix, AZ 85016Copyright 2006. Indigo Business Solutions is a registered trade name.The future of your business starts here.About the author
Jo Ann Joy is the CEO and owner of Indigo Business Solutions, a legal and business consulting firm. Indigo Business Solutions is a "one stop shop" for small businesses. We differ from other business consulting firms, because we offer comprehensive legal and business counseling. We can offer most of the professional services that a business requires. We work with our clients to develop strategies that create value and competitive advantage.Jo Ann has a law degree, an MBA, and a degree in Economics, but she is not a traditional attorney. Rather, she is a strategic business attorney who works closely with clients to create and implement strategies that will greatly improve their performance and chance of success. Her background includes commercial and real estate law, accounting, financial planning, mortgages, marketing, product development, banking, and business strategies. She ran a successful business for 10 years, and she has written and given presentations on many different legal and business subjects.For more information about these and other important business topics and for legal consultation, please visit our website at http://www.indigobusinesssolutions.net/
Keyword : marketing, market research, surveys, focus groups, field trials, interviews, telephone survey