Thursday, September 10, 2009

Market research

 I really don’t like Market Research.  Actually it’s not that I don’t’ like it, I just don’t like doing it.  The information it provides, though, is invaluable.

 Market Research is the second most important part of your plan, just behind the idea.  You need to be able to show investors, venture capitalists, and banks proof that there is an actually need for your product.  It will also show you how accurate your assumptions about your target market were.

 Now before you do market research, you need to have already figured out who your target market is.  The reason for this is that information from people you are not trying to reach is irrelevant; and is a waste of your time and the time of the people who gave you the information. So go figure out who it is you want to reach, and then come back and research them.

 Market research takes the form of a survey.  You begin with a couple qualifying questions. For example, if you are looking to reach people between 20 and 30 years old, who are still in college, you can do something like this:

           Are you between 20 and 30 years of age?

                        Yes___            No____

            If yes, are you still in college?

                        Yes___            No____

 If you answered no to either of these questions, you may stop here, thank you for your time. Other wise please continue.

 Then you can continue with the rest of the questions.  As for the questions you want to ask, first decide what it is you wan to prove.  Let’s say you are looking to prove that college students between 20 and 30 years of age pay for college themselves, without the use of student loans, and you want to figure out how they afford college.  You do not want to ask leading questions.  A leading question is a question that leads to, or infers, a specific.  Given the above scenario, a leading question would be

            How many jobs do you work to pay for college?

                        1___    2___    3___

That is leading the participant to say they pay for college through working.  What about scholarships, loans, etc?  And what kind of work, part time or full?

 A an example of a non leading question is

How do you pay for school? And what percentage of your costs does this provide?

  1. Loans   ________
  2. Family/ Friends ________
  3. Part time work _________
  4. Full time work _________
  5. Scholarships   _________
  6. Other ________________

 You want to get as many details from your market research as possible.  That said, you should try to make the survey as short as possible, try to keep it no longer than two pages.  So keep the questions concise and to the point.

 Now that you have created your survey, you need people to fill it out.  First, utilize your network by emailing the survey out to people you know.  Add a blurb about what you are doing, what it is for, and who you are looking to reach.  Then ask your contacts to send it to their contacts.  Also, use Facebook and Myspace if you can.  There are online polls you can set up, and quizzes you can create and use to reach the more techno savvy individuals.

 Then there is always the traditional manner of going somewhere your target market goes and asking them to fill out the survey in person.  Try to make the experience as easy and non awkward for the participant as possible.  For example, if you are in your late 40’s and are trying to reach people in their late teens, you personally approaching them in the mall will probably not be received well. So hire some high school kids to get the surveys out there for you

 Most importantly, know your audience.  If you want to reach the Goth culture, dress like one.  If you want to reach church goers, go to a church- not a death metal concert.  If you are looking to find young professionals, don’t send and old fat white man to get them.  You want to try and mach your audience in the way they dress, act and speak- and you want to reach them on their own turf. 

 These are not rules, they are general guidelines.  Be approachable, nice and competent and you will generally always be well received. 

 FYI- If you are going to survey at a specific business, ask permission first…

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