Product Market Research

Business owners should set aside .02 to 1 percent of gross annual sales for market research. You don't need money to research the market with easily accessible tools available at local libraries, small business development centers and on the Web.

This can be broken into five areas: Conducting Your Own Market Research

Establish your objectives.

Check out the competition in an area, for example, will require a different approach than introducing a new product or adapting current advertising or marketing strategies.

Choose the research method. (libraries, biz centers, the internet)

Some research relies on suggestive information like customer surveys and focus groups.

Analyze the information.

Set your objectives

Wanting to launch a new product or repair a bad public image? You'll need to set objectives, create a budget and a timetable for completion.

The Small Business Administration's (www.sba.gov) introduction to marketing goes through the steps to refining your target and set up your research project. The American Marketing Association covers the same ground with an an emphasis on inexpensive approaches to market research such as providing customers with a feedback form in your store, gathering neighbors to test new products, offering a discount on a product or service in return for an hour of a customer's time for an in-depth interview; or doing a direct mail survey of your customers.

Scope the marketplace

If you want to see if there is an interest in your business idea or why a product isn't doing better, it's important to understand your marketplace.

Check out your competitions' places of business, and their Web sites.

Check government and trade group information.

Research the local census demographics.

For existing competition, you will want census breakdowns that provide businesses by zip code.

Where to look

KnowThis has an online tutorial that shows you where to find market research from government and industry standpoint.

FedStats is a good place to start for exploring goverment sites

For a breakdown of businesses by zip code, check out an excellent national database offered by the Missouri Census Data Center or visit the Census Bureau's ZIP business page.

For industry information, check Hoovers Online and Bizstats, but only basic information is free.

Survey customers

Surveys give you valuable information into what consumers needs and wants are. Keep your surveys simple with clear and precise questions and be sure they are not biased or leading.

Where to look:

SurveyMonkey offers small-scaled Web-based surveys

StartUpNation offers ways on how to create market surveys and conduct focus groups.

Microsoft Small Business Center provides dos and don'ts of focus groups.

Hiring a professional

If you' have the budget for market research, marketing firms will package customized research for you.

Search the Market Research Association's online Blue Book directory

Search the American Marketing Association's searchable directory.

The key to finding the right market research is figuring out what you want to know and then spending the time to gathering the information that will provide the answer.