Market Research Process

1182 Words3 Pages
bulb-icon

Recommended: Entrepreneurship as a business

Imagine that you find yourself in any of the following situations:

1. You are currently working for someone else, and you have an idea for a new product or service.

2. You own a small business and you have been successful with your first product or service. Now you have an idea for a new product.

3. You work for a large corporation, and the product that you manage has started to lose sales even though the market appears to be growing.

In situation #1, the question you are asking yourself is, "Should I quit my job and start a new business to sell this product?" The sub-question is "Will this idea work?" If the idea is going to work, and you can make a significant profit by starting the business and selling the product, then starting the new business is something you should consider. If not, then starting a new business is the wrong decision. To start your new business, you will need to quit your job, get a second mortgage on the house, work incredibly hard getting everything going and so on. If the idea does not work after doing all of that, it will be a major disappointment and a big financial loss.

In situation #2, the scenario is similar. Your small business is up and running and making a profit. Should you risk that profit on a new product? Is it worth it to invest the profit in this new product, or should you put the profit in the bank and wait for a better idea?

In situation #3, you have a mystery. A product that has been working is now losing sales for some reason. Your job is to find out why so that you can correct the problem.

Somehow you need to reach out to potential customers and/or current customers and find out what they are thinking. You need to ask questions and get some concrete answers. Do people need the product or service you are offering? If so, how many people need it? Which features are important to these people and which are not? What price would customers be willing to pay, and why?

The process that you use to get answers to questions like these is called market research. There are two ways to look at the process: From a business standpoint, market research is a way to get answers to important questions before investing a lot of time and money creating a new product or service.

Show More
Related

  • Comcast Essay

    3033 Words  | 7 Pages

    The first chance a company is a new product may not be what the clienteles want and see it as the necessity. This risk is severe when you base your concepts for new merchandise merely on an impulse, or without conducting sufficient market investigation. Businesses that are not in touch with their clienteles are also likely to issue with the product. One issue that is often met by product designers is determining on what features must be encompassed in the product. There problem that occurs among merchandise because it has too little features and having too much. The second risk is product growth procedure may include mechanical hurdles and functioning risks that must be overcome. The corporation may be developing completely new merchandise that will deliver new and better assistance to clients. The item may also select to adapt its existing product by adding new features that will make it more interesting to the market. The third risk is a financial risk. A new product that you have established may not be able to produce sufficient demand at a price that will transport revenue for the business. The cost of production, as well as the costs of advertising the product, may not be enclosed by the selling value. The company needs first to identify what the risk is how they really will affect everyone involved. The company must do a risk assessment. This assessment will help the company be able to understand the weight of the risk will have on the company. The company will need to prioritize the risk in order of importance. The final step is to mitigate planning, implement, process motoring of the risk that will be affected. The company need create surveys for employees and for customers to see what feature should be offered with the new product. These elements are essential and will show how customer friendly it will be for customers. The company needs to make sure the customers

    Read More

  • Urban Outfitters Continuing Case Study Part 2: Creating a Business

    1297 Words  | 3 Pages

    Invest on our idea to a new business we need to consider what kind business we try to establish.

    Read More

  • History Of Johnson & Johnson

    2307 Words  | 5 Pages

    What we conclude from our research that there’s no single organization free from facing complications and difficulties. Each and every organization face few or many strategic problems. Johnson & Johnson had a problem with one of their products, and they were smart in handling that problem to keep the company on the safe side without letting it effect it negatively. It is very important to act quickly to fix the problem before many consumers notice.

    Read More

  • The Net Promoter Score: Ultimate Question by Frederick Reichheld

    2926 Words  | 6 Pages

    ...o when I get into the business field I could possibly implement the idea into any business I work for if they have not already adopted the idea into their company before I get hired. I was intrigued personally by this process do to the fact that I have recently experienced on a personal level the occasions of businesses asking for my personal experience in everything from retail stores, grocery stores and even restaurants who have asked me to take surveys to try and win something just by taking their survey

    Read More

  • How to Foster Breakthrough Innovation for 3M Way

    1482 Words  | 3 Pages

    ...f five people to generated new product ideas, among other tasks. One of their roles is to assist business units within 3M to generate new product ideas. They accomplish this by drawing up a plan to create ideas for products that will be marketable ten years in future. Once they have that plan in mind, they backtrack to the present year with new product ideas that are possible with today's technology. They then predict which additional products will be added year by year that will build upon each year's new technological advances to achieve their tenth year vision.

    Read More

  • Target Market: What Is The Potential Market Size?

    1699 Words  | 4 Pages

    Choose a product and niche with a small but sufficient market size. Avoid niches that are too small with low keyword searches. For example, a product that caters to pregnant females between 25-40 years old is probably good. But a product that caters to pregnant females between 25-40 years old who like punk rock music will likely be too narrow. It will be harder to find customers, more expensive to acquire them and the small market size will limit your potential growth substantially.

    Read More

  • How to Start a Small Business

    2008 Words  | 5 Pages

    A few years ago, a friend approached me about partnering with her in the purchase of a day spa. I had always wanted the freedom and satisfaction that comes with being my own boss. After deciding to move forward with my partner and buy a day spa, I learned to put together a business plan, personnel criteria, and marketing plan.

    Read More

  • IDENTIFICATION AND EVALUATION OF A POTENTIAL BUSINESS VENTURE

    1067 Words  | 3 Pages

    I have incorporated factors from Burns’’ (2014) Student Entrepreneurship Exercise, and Mery and Crane’s (2013) New Venture Creation Model to provide a structured framework for idea generation for the venture.

    Read More

  • Critical Reflection In Business

    1708 Words  | 4 Pages

    First of all, in order to get into further details of the tools used to discover and develop the valuable entrepreneurial opportunities for our product, I would like to address the actual product that my group are pitching. Our group came up with the idea of multi-function restaurant table tablets, compromising menus, payments and entertainments into an all-in-one system. The development of our idea start off from the customer experience mapping that we have conducted with some customers. Our group have brainstormed a few different ideas, but we have settled on this final idea. Reason being, we have learned from the course that a good business model yields value propositions that are compelling to customers, by creating a sustainable advantage and delivering significant value and effectively transforms payment received into profits (Teece, 2010, pp. 174). Therefore, with the valuable insights we have gained from what we have learned, our group then believed that our produ...

    Read More

  • Learning Insights in Innovation and Enterprise Module

    719 Words  | 2 Pages

    In the beginning lectures, I had no idea that brainstorming and conceptualizing an idea was part of an elaborate process to generate good product ideas. Great inspiration and a creative idea require deep thinking. I have learned that opportunity identification involves looking into the problems first rather than diving headfirst into the solution. Identifying and analyzing customer’s needs, market size, sustainability and scalability allows easy identification of low and high potential concepts. As stated in the article by Tim Brown (Brown, 2008), human-centric approach of innovation should be part of the design process as it gives insights into the life of an everyday person.

    Read More

  • Key Factors to a Successful Business

    1896 Words  | 4 Pages

    One of the most integral qualities of an entrepreneur as well as that of a successful business is the degree of innovation it possesses. Innovation refers to the creation of new ideas, improvement of existing production processes, and effective problem solving. Innovation allows for increased efficiency in a business, which in turn increases its supply potential and productive capacity. Being innovative may involve either improving upon old methods o...

    Read More

  • Reflection About An Entrepreneur

    1110 Words  | 3 Pages

    Every “true” entrepreneur knows that there will be never enough time or money to make things right when starting a new business. So it’s vital to focus on the most important thing, which is the customer. To understand the importance of knowing customers, imagine an entrepreneur with a flawless and innovative product but doesn’t have enough customers to sustain the business and the opposite is true. For entrepreneurs to be customer-focused they need to understand customers needs rather than focusing on great products or wonderful services. This is what I did on my final project; the idea behind my business is to offer customers who live in a very hot area of the world cold treats but in a different and new way. This point is should be clarified in the “customers” slide in the pitch to show that the owner knows who are the customers and the show why they might be interested in the product or the service the owner is planning to

    Read More

  • The Importance of Marketing Research

    1013 Words  | 3 Pages

    This paper will outline the importance of marketing research and apply that importance to a communication to the management team at Johnson & Johnson’s Consumer Products group. The discussion with management will include the use of current marketing research tools by the company today and the application of each.

    Read More

  • The Importance Of Creativity And Innovation In Business

    1575 Words  | 4 Pages

    Creative ideas and innovative approaches can come from almost anywhere- from your partners, customers, target groups, employees. They can bring you fresh perspectives and ideas, so show them that you’re listening and open to their feedback. That's why it is important an open exchange of ideas to be supported and encouraged by the company.

    Read More

  • Solving The Problem Of Declining Sales

    1013 Words  | 3 Pages

    To solve the problem of declining sales, three basic questions must first be answered. Yarborough defined these as “knowing where you are, where you are going and how you are going to get there” (Yarborough, 1994, p. 13). The appropriate process to solve a problem must define the current state of the issue, find the core cause(s) of the problem and chart a viable course for correction. Additionally, proper instructions and action steps of how the solution will achieved must be part of the process.

    Read More

More about Market Research Process

Open Document