The importance of market research
Undertaking detailed research on your target customers and their buying behaviour is an essential part of starting a new business. Done properly it gives you an understanding of who your customers are, what they need and want, and how best to reach them. But market research analysis should not stop there - once your business is up and running additional market research can help you find new opportunities, test new ideas, assess competitor activity and gauge your position in the market.
Some reasons why businesses don't do market research
Many small businesses fail to undertake any market research at all because:
- they think it's too difficult to carry out
- the information will be too hard to find
- the research will be too expensive
- they are over-confident and therefore don’t think it will help
See our article on Online market research for a cost effective way to undertake research.
What market research tells you
However, when you’re starting out in business it’s essential to gather as much information as you possibly can about your customers. You'll be able to find out their:
- demographics - age, ethnicity, personal characteristics
- occupation
- physical location of home and work
- psychographics (what they like and don’t like).
Customers will choose to buy from you, or from one of your competitors. Make sure you increase the chances of them choosing you by finding out everything you possibly can about your competitors, such as their:
- product range
- customers
- level and type of sales activity
- pricing policy
- future plans for development
- strengths and weaknesses
Sources of free market information
Now Let's Get Started has negotiated FREE access to extensive company and financial information for 3 months or up to 100 searches. Find out more.
Specialised reports from professional researchers can be costly, but there are plenty of online resources where free customer and competitor information can be easily found. Examples are given below.
Trade bodies and professional associations who provide market information, free articles and reports
Trade Association Forum
British Services
Trade Associations and Professional Bodies Directory
Statistics on the socio-economic trends, including income and population data:
National neighbourhood statistics
Up My Street for anything you want to know about an area, from actual property prices to the neighbourhood's favourite newspaper.
UK Statistics Authority for demographic and geographic information.
DataDepot for additional population demographics, lifestyles and spending habits.
Market information from specialist researchers is expensive, but you can often download free executive summaries of research reports from the publisher's website:
Mintel
Euromonitor
Key Note
Jordans
Frost and Sullivan
The importance of market research
Undertaking detailed research on your target customers and their buying behaviour is an essential part of starting a new business. Done properly it gives you an understanding of who your customers are, what they need and want, and how best to reach them. But market research analysis should not stop there - once your business is up and running additional market research can help you find new opportunities, test new ideas, assess competitor activity and gauge your position in the market.
Some reasons why businesses don't do market research
Many small businesses fail to undertake any market research at all because:
- they think it's too difficult to carry out
- the information will be too hard to find
- the research will be too expensive
- they are over-confident and therefore don’t think it will help
See our article on Online market research for a cost effective way to undertake research.
What market research tells you
However, when you’re starting out in business it’s essential to gather as much information as you possibly can about your customers. You'll be able to find out their:
- demographics - age, ethnicity, personal characteristics
- occupation
- physical location of home and work
- psychographics (what they like and don’t like).
Customers will choose to buy from you, or from one of your competitors. Make sure you increase the chances of them choosing you by finding out everything you possibly can about your competitors, such as their:
- product range
- customers
- level and type of sales activity
- pricing policy
- future plans for development
- strengths and weaknesses
Sources of free market information
Now Let's Get Started has negotiated FREE access to extensive company and financial information for 3 months or up to 100 searches. Find out more.
Specialised reports from professional researchers can be costly, but there are plenty of online resources where free customer and competitor information can be easily found. Examples are given below.
Trade bodies and professional associations who provide market information, free articles and reports
Trade Association Forum
British Services
Trade Associations and Professional Bodies Directory
Statistics on the socio-economic trends, including income and population data:
National neighbourhood statistics
Up My Street for anything you want to know about an area, from actual property prices to the neighbourhood's favourite newspaper.
UK Statistics Authority for demographic and geographic information.
DataDepot for additional population demographics, lifestyles and spending habits.
Market information from specialist researchers is expensive, but you can often download free executive summaries of research reports from the publisher's website:
Mintel
Euromonitor
Key Note
Jordans
Frost and Sullivan