Market Research - Basics

Market research will help you get to know your customers and your market. It will put you in an excellent position to meet your needs as well as those of your customers. Market research involves asking questions and gathering information about the potential market, competition and customers.

When should you conduct market research?

• Before opening a new business;
• When introducing a new product/service;
• To keep existing market share (markets are always changing).

Why conduct market research?

• to analyze the market;
• to analyze the market's response to the new product/service;
• to analyze effectiveness of advertising and promotion;
• strategic planning.

Are there different types of market data?

• Primary - generated first-hand by your business through customers, employees, suppliers etc.
• Secondary - data that already exits. It comes from outside sources and includes census reports, surveys etc.

What are some sources of primary market data?

• customer service inquiries;
• salespeople and prospects;
• competitors;
• trade journals;
• service and professional organizations;
• complaints;
• people who are retired from the industry;
• mentors.

What are some sources of secondary market research data?

• local library;
• Canada Business Service Centres;
• Economic Development Departments;
• Business Development Bank of Canada;
• media (survey data);
• local offices of trade associations;
• chambers of commerce;
• consulates and embassies;
• college / university libraries;
• internet;
• other government agencies and departments;
• bureaus of statistics;
• private organizations who conduct market/regional studies.

What are some primary market research methods?

• polls;
• questionnaires;
• phone;
• in person;
• direct mail;
• in a magazine, newspaper, newsletter;
• table tents & counter cards;
• focus groups;
• product/service sampling.

What type of data can secondary sources yield?

• market data;
• demographic statistics;
• scientific study data;
• media survey data;
• public polls;
• patent and trademark data;
• legal information;
• contacts;
• information on business procedures;
• prices and specifications.

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

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