Research Techniques

> Hello,

Hi!

> Research seems to be one of the essentials
> in effective marketing.

Seems to be?

IS!

What I have learned
> here and a few other places is that the
> majority of your time should be spent in
> researching and making sure that you have a
> market that is large enough to earn a profit
> from and a market that is willing to spend
> with you.

AND

That you have a way to reach the market.

It doesn't matter how big the market is or how much money they spend on your type of product, if you don't know how to reach them or have no way of reaching them (letting them know about your product) you are not in business. Period.

So, you must research this market
> to make sure that it is hungry and large
> enough with a willingness to spend.

And that you can reach them.

> Now my question is this, what resources do
> you use and do you have a particular
> strategy or methodology that you use that
> works for you over half the time thus short
> circuiting the time wasted?

Time wasted?

Time INVESTED!

Unfortunately - or fortunately depending on your point of view - the research needed depends on the market. And the market will often tell you, by its nature, the type of areas you should be looking in.

If my product is suited for people selling their home by auction, then spending time looking in the library or at newsletter lists or even the Yellow Pages may not give me much.

But looking in the real estate section of the newspaper... under auctions... should at least give me the address of these properties because they will be having an open house for several weeks prior to the auction.

My local newspaper even gathers all the open house listings and create a lift out directory I can use to check off the times. To help me organize my "looking schedule." And a quick count shows me there are 496 apartments/houses having an open house this weekend.

But if your market is people who own dogs, then the real estate section of the newspaper is useless to you. In fact, pretty well all the newspaper is useless. And you would need to go to your local authorities to ask them because they handle the dog registrations.

And then there's the TYPE of research you're doing.

While my local authority may not be a good place to find open houses, they may be the ideal place to find out HOW MANY houses sold at auction.

The point I'm making, Taylor, is that depending on the type of research you are doing, and the type of market you are researching, you will use different sources to gather your information.

> Also, how long does it take before you
> realize that you no longer need to do
> anymore research on an idea because there is
> simply no market or time to develop the
> concept?

If I can't figure out how to reach the market, I drop the project like a hot coal. So instead of spending time researching everything about a market only to find out I can't reach them, I first figure out if I can reach them, based on the concept of the project.

As for developing the concept/project... that's really up to you and the rewards you hope to obtain.

Bill Gates might spend several years programing an update to Windows... but he knows the rewards will be well worth the time invested.

If you want a formula to go by, try this:

Estimate the time it will take to get the project on the market.

Estimate the rewards.

Divide the estimated rewards by the estimated time to come up with an hourly rate.

If that hourly rate is below the hourly rate you get from other projects/works/jobs, then drop the project and look for something else.

Using the above we find something interesting...

Jim Straw recently posted a $10,000 finder's fee opportunity.

If the average yearly income is $25,000 for a 40 hour week, then Jim's $10,000 opportunity represents two fifth of a yearly income.

Seeing as you are willing to work 2000 hours (50 weeks times 40 hours) for $25,000, you should be willing to devote 800 hours to finding the thing Jim is looking for because that represents the same hourly rate.

Most people won't do it. In fact, most people will work for someone else for less than they are willing to work for themselves. Most people will devote more of their hours to someone else then for themselves. If they can't make big bucks FAST doing it for themselves, they'll work for less for someone else. Go figure.

> I am researching several markets currently
> and the amount of information on these
> markets is overwhelming.

> I am currently trrying to narrow these
> markets down and find a suitable niche from
> which to base my product development
> decision.

If you want to narrow down and find a suitable niche, instead of thinking niche, think SPECIALIST or SPECIALIZE. It may help clear your thinking.

If the General Market is construction, then list all things which can be constructed.

Each item on your list can be an area you SPECIALIZE in.

Instead of building a small apartment complex of 10 units this month, a single level home next month, a two-storey home the month after and a duplex the month after that, concentrate on one type of construction. Become the expert (specialist) of that type of construction.

You will lose the vast potential of the huge general market - BUT - you will more than likely capture ALL of your "niche" market.

Trump Construction. Master builders. Call 555-5555

We Build Duplexes. Call Trump Construction on 555-5555

If I'm looking to have a duplex built I'll call the second ad and not the first.

THINK SPECIALIST!

As you have not given us any indication of the general market you are researching, it makes it hard to offer any specific suggestions. So hopefully you can adapt these to suit your purpose.

Hope you have found this to be of help.

Michael Ross.


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