One of the most important aspects of each business is marketing. One of the best strategies to promote product sales and awareness is by initially taking a market survey to identify the needs of your target market.
Market surveys–where you actually speak to members of your target audience–are an important part of market research. You can choose to hire a company to do it for you, but conducting the interviews yourself will most likely give you a much better idea of the needs of your target audience and will provide you with insights that you might not otherwise have gleaned.
Sourced from: http://www.entrepreneur.com/encyclopedia/market-surveys
Fortunately, you can hire an expert company to conduct the survey but it is best to perform it yourself to form a bond with the market. The following are the essential components of each survey;
1.Surveys. With concise and straightforward questionnaires, you can analyze a sample group that represents your target market. The larger the sample, the more reliable your results will be.
- In-person surveys are one-on-one interviews typically conducted in high-traffic locations such as shopping malls. They allow you to present people with samples of products, packaging, or advertising and gather immediate feedback. In-person surveys can generate response rates of more than 90 percent, but they are costly. With the time and labor involved, the tab for an in-person survey can run as high as $100 per interview.
- Telephone surveys are less expensive than in-person surveys but costlier than mail. However, due to consumer resistance to relentless telemarketing, convincing people to participate in phone surveys has grown increasingly difficult. Telephone surveys generally yield response rates of 50 to 60 percent.
- Mail surveys are a relatively inexpensive way to reach a broad audience. They are much cheaper than in-person and phone surveys, but they only generate response rates of 3 percent to 15 percent. Despite the low return, mail surveys remain a cost-effective choice for small businesses.
- Online surveys usually generate unpredictable response rates and unreliable data, because you have no control over the pool of respondents. However, an online survey is a simple, inexpensive way to collect anecdotal evidence and gather customer opinions and preferences.
2.Focus groups. In focus groups, a moderator uses a scripted series of questions or topics to lead a discussion among a group of people. These sessions take place at neutral locations, usually at facilities with videotaping equipment and an observation room with one-way mirrors. A focus group usually lasts one to two hours, and it takes, at least, three groups to get fair results.
3.Personal interviews. Like focus groups, personal interviews include unstructured, open-ended questions. They usually last for about an hour and are typically recorded.
Focus groups and personal interviews provide more subjective data than surveys. The results are not statistically reliable, which means that they usually do not represent a large enough segment of the population. Nevertheless, focus groups and interviews yield valuable insights into customer attitudes and are excellent ways to uncover issues related to new products or service development.
4.Observation. Individual responses to surveys and focus groups are sometimes at odds with people’s actual behavior. When you observe consumers in action by videotaping them in stores, at work, or at home, you can observe how they buy or use a product. This gives you a more accurate picture of customers’ usage habits and shopping patterns.
5.Field trials. Placing a new product in selected stores to test customer response under real-life selling conditions can help you make product modifications, adjust prices, or improve packaging. Small business owners should try to establish rapport with local store owners and Web sites that can help them test their products.