The cool idea (of a new product/service) strikes an entrepreneur but how can he be certain if it is indeed going to hit the market. The answer is simply test the market for your new product or service? Some entrepreneurs discount the idea of market research thinking his idea is so special that research won’t tell anything useful. With rare exceptions, this is simply not true.
An entrepreneur may believe that his customers will see the product and rush for it. But this may not be the real case, unless you’ve done the homework on how to reach prospects and their influences and decision making. Add to this to gain investment, it is necessary to prove, based on reliable information, whether the idea is wanted or needed by the target market/customer.
Market research is a key to gain a perspective on the target market/customer and getting informed which will enable the decision-making for an entrepreneur. A business plan is based upon figures result derived from market research. Market Research can be categorised mainly in terms of Primary and Secondary research.
Primary research involves collection of data to meet research objective. The data is collected through survey, interview or a focus group while Secondary research involves searching for data/information through journals, articles, or online sources.
The major objective for market research for startups generally comprises the market sizing, concept validation, and pricing. They may not be necessarily being separate projects, but the research plan is to be written to deduce valuable information in these areas. The research may use both qualitative and quantitative techniques, and often secondary research before the primary custom work.
Market research is surely an important component in developing a comprehensive business. Primary and secondary research will help an entrepreneur understand a trend; identify new products/services that could meet the need of a customer.