Market Research...

Starting & Operating a New Small Business		  
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Marketing and Market Research

Information is the "other currency" for business owners. Having adequate capital and cash reserves is critical to running your business. However, information is critical to forming effective and efficient business and marketing startegies. Planning does not work without adequate information.
The Research Process
  1. What do I need to Know?
    • Market Research
      • growth trends
      • market size
      • best location
      • competitive comparisons
      • buying decision factors
      • amount of demand potential
      • potential markets and segments
      • customer profiling - demographics, wants and needs, likes/dislikes, product use patterns, purchase frequency and quantity, lifestyles, geographics, etc.
    • Demand sources
    • Competitive Research
    • Business Climate Research
    • Historical Financial Data and trends
    • Suppliers and Vendors
    • Legal and governmental
    • Regulatory
    • Other?
  2. What do I already Know?
  3. How will I get this information?
  • Exploratory Research:
    • Use self as model, speculate & guess, discuss with friends, suppliers, employees, customers, business associates, competitors, etc.
  • Secondary Data Sources
  • Primary Research:
    • Observation
    • Survey
    • Experiment

Overview of Data Sources
Secondary Data:


Secondary Data is data that has already been collected and organized by other organizations. It may not be in a useful form for your use and it may be somewhat out of date. However, it is generally free and accessible, although it also may be buried or mixed in with data you don't want.

Internal:

  • Sales data
  • marketing activities
  • cost info.
  • distributor reports/feedback
  • financial statements
  • consumer feedback
  • other company records
External:
  • Published indexes, directories, guides, abstracts
  • Government census data, Federal Government and Department of Commerce analyses and reports, State & Local sources, local politicians
  • Industry Sources - trade publications, individual firm publications, professional writings, internal working documents, customer lists.
  • Commercial Sources - Nielsen, Arbitron, SRDS, Starch SMRB, MRCA, AMMO, TAB, other market research firms.
  • Other Sources: academia, institutes, etc.

A great place to start is in your search for useful data and information is your local college or university library. Reference Librarians are trained to help you find information from electronic and printed sources.
     Cabrillo College http://libwww.cabrillo.edu/selintres.html

Another starting point is to take a college course.
Cabrillo College LIBR 21

Another starting point is local online sources such as:
     Cruzio http://www.cruzio.com/

     Bus188 Links

The SBA (U.S. Small Business Administration) and your local SBDC (Central Coast Small Business Development Center, Cabrillo College) are also great sources of both advice and web-linked data
     SBA: Small Business Administration Home Page

     Small Business Development Center

The Federal government is also a great source of information.
     U.S. Census Bureau
      U.S. Bureau of Labor Statistics

Many companies take government information from various agencies and combine it in useful formats for easier accessibilty.
     Inc. Online
Primary Data:

Primary Data is data collected for the first time by a business for its own purposes and organized for its own use. It is generally more expensive to gather in both time, money and labor. However, it is in the form you want and is exactly what you want.

  • Surveys - telephone, mail, personal or group interviews through questionnaires, focus groups.
  • Observation - audimeters, people meters, manual and mechanical counting, personal monitoring.
  • Experiments - panels (measures within a group over time), formal cause/effect, test markets.