by Romy Schorr,
Ladies Who Launch member, Los Angeles

Let’s say you start a small perfume business. You write a business plan, secure funding, design a logo, choose a name, and spend hours negotiating boutique shelf space. But despite tremendous effort and a terrific product, your perfume isn’t selling. Unfortunately, your bottle is dull and unappealing. If only you’d done market research …

Deciding against market research is a mistake small business owners often make, believing that passion for their product is enough. They see market research as expensive, unnecessary, and too complicated, not to mention a potential source of harsh, negative feedback. But they need to understand that tuning in to the lifestyles, needs, and preferences of potential customers can make their businesses more successful. Big businesses, which wouldn’t dream of launching a product without market research, all know this.

Market research helps businesses:

· Test the appeal of a product
· Obtain feedback
· Check in on customer needs
· Review an advertising campaign before it is launched
· Talk to the target audience
· Understand market trends and conditions
· Make informed business decisions
· Size up the competition
· Set prices
· Create development and sales strategies
· Anticipate challenges and obstacles before it’s too late

Research data provides businesses a solid footing and points them in the right direction. However, it is not an absolute science or a guarantee of success. This process allows for tweaks, fine tuning, and, most importantly, early warning of major obstacles to your success.

What Are the Different Types of Market Research?

With guidance and advice, you’ll be able to do some basic market research to fit any budget (or no research budget) if you’re willing to put in a little work.

Primary research. Collecting data by directly talking to your target customer (or a competitor’s customer) about your product or service and obtaining answers to specific questions.

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