Market research is an effective way to learn about potential customers, their opinions, habits, trends and future plans. Use it to determine the geographic area of a business and demographic characteristics of customers such as age, gender, income and educational level.

Market research may make the difference between the right and wrong decisions that affect sales. It may reveal unfilled needs, suggest marketing strategies or identify the competition's strengths and weaknesses. It involves asking questions, recording information and taking time to learn from the information. Market research develops an information base to estimate sales, develop market strategy and decide how to enter the market.

Objectives:

• New product/service concept testing, evaluation and market potential assessment

• Product/service refinement testing, evaluation and market potential assessment

• Target market identification and evaluation

• Distribution channel new product/service receptivity, price sensitivity and sales potential

Competitor research

Business takes place in a highly competitive, volatile environment, so it is important to understand the competition. Questions like these can help:

1. Who are your five nearest direct competitors?
2. Who are your indirect competitors?
3. Is their business growing, steady, or declining?
4. What can you learn from their operations or from their advertising?
5. What are their strengths and weaknesses?
6. How does their product or service differ from yours?