Small business need market research as much as any large business would. In fact, small businesses require business research more than the larger businesses. Marketing research is a method of collecting, arranging and analyzing all the market data relevant to a particular product, service or business. When it comes to small businesses, they need to be extra cautious while launching a new product or reviving their existing products. Business research reports guides them about all the essential business related things that they need to know before taking such major step. However, there is always a chance of mistakes, which can prove costly for smaller businesses. Since marketing research has a budget, you have to be wise when it comes to spending it.
Common Market Research Mistakes
Small business can easily find hidden niche markets and discover innovative techniques about identifying loyal customers, new business opportunities and prevailing competition. However, following are the common mistakes that small business owners tend to do that keep them away from all the benefits of business research reports.
Mistake #1: Business Research is Expensive
This is the biggest misunderstanding and perhaps one of the reasons why small business owners avoid market research. Contrary to the common assumption, marketing research techniques like focus groups and surveys are inexpensive. Results and accuracy of your business reports highly depend on the Market research company that is handling your research project.
Mistake #2: Using Inadequate Methods
There are numerous tools and methods of market analysis, which you need to use for researching your target market. However, small business owners prefer using easier techniques thinking they will draw the desired results. Most of them use only the secondary business research, which is easier and inexpensive. However, such reports lack complete information making then inaccurate and incomplete.
Mistake #3: Family Focus Groups
Many small businesses are new to the market; naturally, they are unaware of the tricks of marketing research. They prefer on the basic business research technique of focus groups. However, they prefer collecting information from a group of family and friends. It is not a right group to select for such crucial market analysis. People chosen for focus groups research have to be customers of your product and they must belong to different background but with same behavior about your product.
A few businesses carry the attitude of a big company. Having been in the business for generations, they find market research a total waste of time. It is a dangerous thinking for those who want to successfully launch a new product or capture a new market.
MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world.
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