Marketing research methods | BDC.ca

3 essential market research techniques to build your business

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Several techniques can help you gauge customer interest in your product. Before starting your research project it may be prudent to see if comparable products are currently offered, and at what price points. If so, can you operate profitably at those price points? From there, you can try various market research methods.

1. A survey is the fastest and easiest option. Rent a booth or table in a high-traffic area, demonstrate some examples of products you would like to sell and ask people what they would pay for these items and what other types of items they would like to see.

2. A test market involves setting up a booth at a trade show and attempting to sell some products at specific price points. Based on your results you can decide if the market would accept the products at those price points.

3. Interviews are a simple and low-cost approach to market research. You develop a series of simple questions and then approach various individuals to answer the questions.

Once you get results, you have to analyze them. Survey a large-enough sample of your target customer base that you can be confident is representative of your audience. If your business is selling its products to a very small number of customers, you may be able to speak with all the customers.

Remember that all surveys have an inherent bias in their design and delivery and so are subject to flawed interpretation and outcomes. Where possible, the best method of assessing market potential is examining actual market behaviour, either by testing your product in a real-world situation or by observing customers of a close competitor. All results provide valuable feedback that should be tabulated and considered.

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