Have you ever done any market research? If not, you may be missing out on some valuable marketing insights and information that you could capture with a little research. Market research is a vital part of the process that most small businesses or start-ups don’t do. However, it might be the most important thing a new business does before formulating its business plan, location, or marketing strategy.

Marketing research is the process of collecting data and opinions from consumers, employees, or a specific subgroup within the public, to improve decision making and reduce the risk associated with those decisions. Individuals/companies can use the information obtained from marketing research to assess knowledge, attitudes, perceptions or opinions about products, services, advertising, brands and/or companies. The two types of research are qualitative (words) and quantitative (numbers).

Qualitative research is an in-depth analysis of relatively few respondents, providing a holistic view and understanding of the issue at hand. For example, if a company is interested in testing company logos, qualitative methods would provide valuable data.

– Focus groups are an “informal” gathering of 6-10 people from your “target group” to have an in-depth conversation of opinions about your product, brand, advertising and other areas of your product and/or service.

– Face-to-face interviews usually involve a one-on-one conversation with your consumers or decision makers. These methods may be more expensive than a traditional survey, but will provide a more comprehensive assessment.

Quantitative research seeks to summarize data and generally applies some form of statistical analysis. Using this method, for example, a company could measure the level of satisfaction of its customers and then, in turn, make internal changes to increase that satisfaction.

– Researchers should use surveys or questionnaires when trying to measure the opinions of an audience more precisely.

*Telephone surveys are typically the most expensive, but are the most effective in getting respondents to complete the survey.
*Mail surveys can be relatively inexpensive, but the response rate on a mail survey is typically 3-10% and takes longer to complete. These cannot be used when results are needed quickly.
*Online surveys are relatively new, but are rapidly growing in popularity. With online surveys, you can ask survey questions, but also get feedback on things like logos (using image files) or commercials (using streaming video).
*Intercept interviews are a tool a business uses when they don’t have a list of their customer base, like a restaurant or sports team, but still want to measure customer satisfaction.

For a small business owner, it might be helpful to hire a marketing firm or market research firm to help with this type of in-depth research; however, he does not mean that he cannot ask his current clients or contacts for his account. Just remember that you don’t have to do all of this yourself, it’s always good to consult with experts in areas you are unfamiliar with or inexperienced to make it the best use of your time and done right.

Now what do you do with all that great qualitative and quantitative information when you receive it? It is imperative that you include it in your marketing materials, website, correspondence, sales presentations, advertising, and many other areas of your marketing plan. When you figure out what your target market wants or likes, it’s important NOT to ignore those results.