Market Research

Market Research - Foundation of successful marketing.

Market research might sound complicated, but it is simply the process of asking questions about the market, finding the answers, and using those answers to make decisions. Market research is an opportunity to organize market information to make better decisions regarding the direction of your organization. It builds the foundation for developing a successful marketing plan.

Successful market research will identify sales opportunities and the obstacles and challenges you may face. This allows you to reduce risks and develop an appropriate and targeted plan of action.

Market research should help you:

1. Determine Target Market - What types of customers are buying similar products?  Where are these customers located?  How do they live?  What other products are they interested in?  Where do they shop?  What are the prices of similar products?
2. Identify Customer Needs - What are these customers demanding from their suppliers in terms of the Universal Market Demands?  Do your products meet these needs as is or do you need to adapt your products to meet market demands?  Study other products in the marketplace.
3. Locate Marketing and Promotion Opportunities - How do you reach these customers and where do they buy - trade shows, personal visits, websites, catalogs?  How can you reach these markets?  What trade show or sales methods are attracting attention?

How to do Market Research

Market research can be done using many of the same resources used in the product development process.  Trade Publications, Retail Catalogs, and the Internet are great sources for information. Explore sources of information that don't have any cost, first. These include information on the internet, observing the local and regional market, and looking at consumer magazines or catalogs.

Market research will give you insight into current market trends that may give you new areas you can expand into it. One example is the current interest in green, ecological, and sustainable products. Market research can tell you how your products may fit into these high demand categories and where the best opportunities are for you to market to these consumers.

Comprehensive market research will help you determine if your products meet the needs of your target market or if they need adaptation and further product development to succeed. This research should address how your products meet the Universal Demands of the Marketplace and will allow you create a specific, targeted marketing plan. The more extensive and complete your understanding of the market the greater your chance of success.

Market research often starts with looking at general market information, and then getting more specific. This diagram from the Into the Market Manual, from IFAD and Traidcraft, helps to explain the different levels of market information:

Into the Market Manual, 2004, Traidcraft Market Access Centre and IFAD (International Fund for Agricultural Development). The complete Into the Market Manual offers additional information on Market Research and can be downloaded for free off the IFAD website: www.ifad.org