Mark Eversfield: Business and economics research analyst, Small Business BC
According to Statistics Canada, more than 50% of B.C. firms that have fewer than five employees close their doors within three years. To avoid becoming part of this statistic, it's imperative for you to conduct market research.
To be successful in business, you have to know who your customers are and what makes them tick. If you don't know this, you won't sell enough to cover your costs.
You have to identify characteristics about your target or niche market such as age, income, occupation and education. Once you've identified those demographics, you'll need to find out what makes them tick. This is where psychographics come in. Psychographics includes information on values, personality and attitudes. Learn which of these qualities are important to your customers and you'll know where to find them.
But knowing your customer is only part of the important market research you should do for your business. Who your competition is and what it's up to is another important piece. Before you open your business, you should know if the number of competitors is increasing, decreasing or staying the same. Are big box stores moving into your market? What products and services are they selling and how are they treating their customers?
The third most important element of your research is industry trends. What technological changes are expected for your business? What threats could negatively affect your business, and what are the opportunities you can take advantage of? Just ask Blockbuster or Rogers Video whether technological changes are important for business survival.
Barb Justason: Principal, Justason Market Intelligence
I couldn't answer this question in 300 words or less. So I put this question to my clients.
"We saved our campaign! If we hadn't researched, we would not have learned that our 'small is good' campaign would fail miserably in Texas."
–Marketing vice-president, international power sports manufacturer
"Marketing research demonstrated that the residents in the neighbourhood would not only accept us as a new service in their community. They would embrace us." –Non-profit community service CEO
"Our company has operated in Metro Vancouver for nearly 50 years. We were considering relaunching with a new name for our 50th anniversary.
"Market research told us clearly that we must not change our name, but instead refresh our brand, update our logo and improve our communications."
–Local service organization president
"Hiring and retention have long been a huge challenge for our company. Workforce research helped us transform our hiring and retention program."
–Human resources vice-president for a large B.C.-based employer
"Wherever there's an oil and gas operation, our company is probably there too. The uncertainty following the oil platform explosion in the Gulf of Mexico in 2010 led us to wonder how our own business might be affected.
"Research of the entire market in which we operate guided us through this turbulent time."
–Global service company sales vice-president
So there you have it, five decision-makers and five impactful marketing research moments.
Kath Britton: Business adviser, Women's Enterprise Centre
As a business owner, your customer is the reason you're in business. You need to find out who your potential customers are and learn about them and what they want. To do this, you need to do market research.
Market research is not just for startup businesses; it's also for established businesses if they are introducing a new product or service.
There are three good reasons to do market research:
1. It will provide objective evidence to determine if your business idea is viable. It can tell you if there are enough of the "right people" in your market.
2. It will help you identify your customer, tell you how big the market is and what the trends are.
3. It will help you make an informed decision about the "4 Ps" of your business: product, price, placement and promotion.
There are two main ways to get information about your market:
1. Primary research: the information that you can get directly from your clients. You can get this information by conducting personal interviews, focus groups and surveys. It's important to ask the right questions so that your clients' responses can provide you with relevant data.
2. Secondary research: the information that has already been compiled by different agencies. You can find it at the B.C. government website, Statistics Canada, libraries, city hall, business centres and chambers of commerce.
Market research is all about getting really curious about your type of business. It is an important key to starting a successful business or launching new products or services.
