Operating at home

taking your service or products to the customer

Market Research

As opposed to using information as a problem solver, research is generally carried out before a problem occurs, or before a change is about to be initiated. For example, how do your clients perceive the level of service you provide, and how can it be improved, or if a product line is altered, what is the likely impact on customers and, ultimately, profit margins?

Market research is an important part of any business, allowing an informed assessment of business activity to be made. Research in this area is usually conducted by questioning (either formally or informally) your past clients about their opinions of your business or product.

Market research objectives

An intelligent business operator will make a profile of their customer base and use the information to develop marketing strategies. This intimate knowledge can be useful for predicting future behaviour. Before you start collecting and evaluating information, determine the objective of the research. Is it:

to increase the amount of information you currently have; or
mainly aimed at discovering or defining a particular problem;
to investigate an opportunity; or
used to evaluate the effectiveness of something you are already doing.

A lack of resources may restrict the amount of research you will be able to undertake, so restrict your objectives to those most relevant to fulfilling your immediate information needs.

Following are some suggestions for defining your overall research objectives:

Make it specific and feasible.
Keep it simple
Relate it to the information needs or problem facing the business.
Check if you need the input of other relevant people.

The above information and much more is discussed at the SBDC's workshop, Introduction to market research,and Marketing Today available through your local Small Business Centre. For information about these workshops, and the range of publications available on the subject of marketing, call the SBDC on 131 BIZ (131 249). You can also make an appointment with our marketing specialist at the SBDC.

The marketing plan

The marketing plan is a section in your business plan. Frequently, new business owners, who do not have the time, skills or perceived need for a full business plan, pull together the information they need about the market specifically to calculate potential sales, and subsequent cash flow.

Developing the ability to sell

People often confuse marketing with selling. Selling is the culmination of the marketing process.

Selling is where you approach clients, tell them about your service or product, and reach an agreement whereby you make an offer at a price, and they accept. This is making a sale. As this transaction is repeated, so the business grows in volume, and profits (providing the pricing is correct).

People often find it difficult to get out there and 'sell' the business. They often underestimate the amount of time it takes to win the work. In fact, potentially 30-40% of your time can be spent running the business and marketing the business, rather than doing the work to generate cash flow.

Successful selling takes planning and tenacity: knowing who to target, how to initiate the contact, how to ask for the work, and how to maintain a positive attitude when your potential customer or client says no. Fear of rejection is experienced by most new sales-people, and it needs to be overcome. By attending sales training courses, your confidence can be increased.

The first step in attracting customers is building awareness of your service or product.

Using the media

An effective use of advertising media will improve the image of your business, raise public awareness, attract new customers, and increase sales with established customers. It is aimed at building volume and increasing profit.

Utilise your local, state or national media channels to market your product or service further. This does not have to cost you money if you come at it from the right angle.

Three basic steps to create a Media Release are as follows:

Create a media release.
Call - Telephone each media organisation and ask who would be the best person to talk to. Explain your story idea and ask if you can send them through a media release for consideration.
Call again - Check if they have your media release and to see if they have any queries. If they are not interested in this story, ask what sorts of stories they are interested in, when and how they prefer to hear about them.

Useful Websites

Australian Direct Marketing Association www.adma.com.au
Institute of Management Consultants www.imc.org.au
Market Research Society of Australia www.mrsa.com.au
Marketing Teacher www.marketingteacher.com/Lessonstore.htm