Is the Market Research Important? The Answer is Yes....
Market research is "the study of the probable users of a product or service." The object of any business is to identify potential customers so that they may be addressed and informed. Market research can tell you who is interested in or in need of your product or service, what their income level is, where they live, their age, their occupation and so on. Conclusions from this data can help you to identify your target market. Once you know who these people are, you can then begin to tailor a marketing campaign.

Not long ago, businesses of every type would hire outside firms to gather such data. These firms would conduct surveys, place phone calls and wait weeks for information via mail. Today, you can do it yourself, nearly instantaneously: it can all be accessed at the click of a mouse. The world we live in offers numerous outlets from which to gather your materials, from the library to the Internet. Market research is always changing too. Customers' needs shift with the world around us. You have to know your clientele and get to know your prospects, and address both. Thus, it is important to stay in touch with what your market dictates.The following is an introduction to understanding market research, from the various sources from which to gather information to the specific types available. Once you have assimilated this information you will be prepared to conduct the research needed to help your business grow.

Types of Market Research
There are two main types of market research that businesses conduct in order to make more qualified decisions on topics such as advertising, improving service, introducing new products, pricing, etc.

Information About Your Consumers. Obviously you must know who is interested in your goods or services. This begins with demographics. Study the region where your business is located. What's the population? How does it break down by age, gender, income, vocation, marital status, and anything that might be relevant? Take into consideration other factors: Is it a warm weather climate or generally cold? Are people fairly active? Is it a conservative area? What do the residents do for leisure? How much money is generated through tourism? Is it an industrial region? Get to know these people. Find what makes them tick.
All of these things will clue you into whether the population in question needs what you are selling and what their interests are so that you can address these needs.

Information About Your Competition. Do your homework? Find out how many other businesses there are like yours, offering similar goods and services in a fifty-mile region. Study the literature of these businesses, i.e., their brochures, advertisements, press materials, and most importantly their website. Is your pricing competitive? Do you offer the same quality of goods? Who are they targeting with their advertising? What kind of promotional offers are they making? Capitalize on other people's successes and failures. Learn what is working for them and what isn't. This data points to trends in your market. By staying on top of these trends you will be better equipped to forecast what will work and know what will not. No matter what size your business is, you can benefit from this.

Terminology
Many factors come into consideration when fleshing out your prospective market. The World Book Encyclopedia defines prospecting as "the process of identifying possible customers, who are called prospects." In determining your target market, it is essential that you look for individuals who comply with a list of prerequisites: the need for your goods and/or services and the buying power to do so.

Prospects. The group of individuals who make up your target market. These are the people most likely to purchase your goods or services. They meet some or all of your general prerequisites. They live near your business, have the means to buy, and possess the common need for what you're providing.

Preferences. It is likely that your target market has its own list of preferences dictated by region. The income of the area, climate, location, and economy. For example, if you are in a predominately wealthy area, you might want to sell a more upscale item.

Buying Habits. Study past buying records of your target market. What did they purchase in the past? Why did they make this choice? This information is invaluable, as it will help you to set your pricing and appeal to them with your advertising and promotions.

Attitudes and Opinions. What are the prevailing views and notions regarding your business, your competitors, the goods and service you offer amongst your target market? Wouldn't you love to know? Sure you would. By finding out more about your target market, you can begin to divine this information.

Sales Trends. A trend is the general course or prevailing tendency; what the majority of people are doing or buying. What is working right now? What is selling? What are your competitors having success with? What is selling in the rest of the nation? Do what works. Find what the trend is and capitalize on it. Make it work for you.

Forecasting. This is the attempt to determine what the next trends will be. This is, it is trying to determine what the market will dictate six months from now. What will your target market be buying next summer and why. The only way to do this is to stay on top of things, stay informed.

Demographic Profiles. The raw data concerning your target market: median age, income level, marital status, number of children, education level, location of residence. General information about them so that you may know who they are, what they are interested in.Regional Statistics. These differ from demographic profiles in that regional statistics contain broader information about everyone in the region, not just your target market. In the long run, studying this information can help you expand your market.

Degree of Demand. Information that identifies the need of your goods and services to your market. Is the market already saturated? Is there a need or desire for your goods and services in this particular region? For example, the region of Southern New Mexico rarely gets any rainfall, less than 10 inches a year. Thus, you probably aren't going to be able to sell these people too many umbrellas.

Purchasing Power. The factors that make up the purchasing power of your target market include age, income level, and their number. Are you hitting a large group or a minority? Is your target audience wealthy? Concerns like these determine the target market's purchasing power. For example, the target audience which is middle class, ages 12-24, has strength in numbers and collectively a lot of money to spend - all factors that add up to great purchasing power.

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