How to Conduct Market Research on a Tight Budget

Market research can be costly. You can, however, save money by putting in some of your own time and energy, and you'll still get reliable results that will help you form a good marketing strategy.

Instructions

Difficulty: Easy

Things You’ll Need:

• Library cards
• Bonded paper
• Computers
• Postage stamps
• Telephones
• Trade publications
• Calendars
• Internet access
• American demographics magazine

1. Explore the more traditional methods of market research (see How to Conduct Market Research). Decide if any of those techniques fit your budget.
2. Check out your competitors' Web sites and stores. Compare their pricing, products and customer service to yours.
3. Contact a local university or business school. Suggest that a group of business students do a market study for you as a class project for school credit. You might have to pay for expenses like office supplies and temporary telephone lines, but that is a fraction of the cost of a professional market study.
4. Create a random telephone number and address list from your local telephone books and business directories.
5. Be creative when assembling lists of research prospects. Have a product geared toward new business owners? Read through the listings in your local paper for newly formed businesses. Newlyweds are your targets? Check out engagement and wedding announcements.
6. Take advantage of the volumes of free information available. State and county governments often provide public access to online databases with information about property owners, business entities, and licensed professionals. And the public library's stockpile of trade and marketing journals is the best source of information on demographics, statistics and consumer trends.
7. Conduct a mall survey. Ask shoppers and storekeepers to participate.
8. Let neighbors, local businesses and clubs sample your products.

Tips & Warnings

• When asking people you know to sample your products or fill out questionnaires, make sure to give them a way to respond anonymously with their comments and suggestions. This gives them a way to be honest and still feel as if they're not hurting your feelings.
• Focus on what your competition is doing better than you are, and try to integrate those strategies with yours.
• Not only is your public library a great source of free information, but so is your librarian. Try to get to the library during regular school and work hours, and the librarian will have more time to help you locate the information you need.
• Keep accurate and detailed sales records so they will be useful to you in your research.
• Obtain the shopping center's or mall's permission before you start conducting surveys on their property.
• Be friendly, yet cautious, when approaching strangers in malls or shopping centers. Dress and act professionally.
• If someone is adamant about not speaking with you then leave him or her alone immediately without question.