Market research invaluable to business owners

Market research invaluable to business owners

10684102_sMarket research is an invaluable tool Illinois business owners can use, especially during the start-up phase of their company, to define and target consumers who may be interested in their products or services.

Additionally, market research can help companies determine gaps in their current market and how they can alter their services to meet the demands of their customers. Often, this can result in enhanced operations and improved profitability.

For example, before the airline company, JetBlue, launched its operations, market research efforts determined that passengers cared more about innovative entertainment options and comfortable seating than being served a hot meal while on their way to their destination. Due to these findings, the airline focused on providing a comfortable experience for its passengers by investing in upgraded seating and television modules. This alternative solution to flight amenities was so successful that many other airlines followed JetBlue’s example. 

Primary and secondary methods 

There are two types of market research business owners can use to find out more about their customers. This includes primary and secondary research.  Primary research refers to studies companies conduct while using their own resources. When conducting primary research, business owners must determine how they want to question their target group of consumers.  Executives may choose to conduct phone or in-person surveys, send out direct mail or host group discussions. When deciding upon which method to use, business owners should take cost into account, in addition to how long the research will take.

In comparison, when a business performs secondary research, it collects information compiled by trade associations, the government, media sources, and any other organizations with valuable data. When engaging in secondary research, a business can save money and time because it does not have to perform the surveying using its own resources.   

Tips for conducting research 

Regardless of whether a company chooses to perform primary or secondary market research, it should adhere to the following guidelines for success. Business owners should:

  • Determine what the problem they want to solve is, or the main goal of their research, before they begin
  • Figure out how the data will be collected and analyzed
  • Consider how much money and time they want to spend performing research
  • Check that there are no errors in the data and create a report of what they find

Knowing how to properly conduct research and where to begin can be overwhelming, especially to new companies. Business owners who want to benefit from conducting market research should consult with an attorney who has in-depth knowledge of opportunities available to companies.

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