Market research is an essential prerequisite for all sound business decisions. What’s the point of putting out a product if there is no interest in it, or entering a market that is absolutely saturated with a practically non-existent budget?
However, there is market research, and there is market research done right.
We spoke to two entrepreneurial masterminds, Alastair Sanderson and Richard Sanderson from Oxford, about their tips and tricks. The brothers have been in business since 2009 and have since expanded to three continents, so we can be certain their market research tactics work. Here’s their advice.
Trends
“A great place to start doing some research is Google Trends,” says Richard Sanderson. It will provide a clearer picture of the things people search for online. You can get an overview of the products and services people are looking for, see how the volume of these searches has fared over time, and examine specific geographic locations.
It’s useful for spotting patterns and defining the terms people are using, which will help you come up with your own marketing copy. All in all, it’s a great place to start your research if you are still in a very early stage of product/service development.
Census Data
“The US Census Business Data is full of information you can use to help you make important decisions,” says Alastair Sanderson. The data tools you have access to provide insight into facts and figures about economic indicators, about income and money stats, employment statistics – all of which you can use in your future development and marketing strategies.
Make sure you are interpreting this data correctly, though. Knowing the average income in a certain area is one thing, but knowing whether the residents of this same area will be ready to part with their money for a specific product is quite another.
Global Shipping Data
Alastair Sanderson lists global shipping data as his best market research tool. Every time an item is imported or exported, the companies involved need to report the price, their details, and the HS Tariff Code of the item, and this data can prove to be invaluable.
“Getting the data set for a product you are interested in or a competitor you would like to investigate is not only easy and cost-effective, but also extremely enlightening. When I looked at one of my competitors recently, I found out that they were building all of the goods in India despite claiming to do it in the USA. More than that, I effectively found out their cost of goods sold and from that could work back to work out their total revenue. I then matched this with their export data to get a fairly solid list of the customers outside of the USA, which I could then focus on,” says Sanderson.
Other Data Sets
“Other valuable sources of information to take note of are the Pew Research Center and Living Facts,” says Richard Sanderson. “They are sister companies providing insight into the minds and habits of customers.”
The Pew Research Center has data on social trends and the use of technology, which you might find useful, and they provide good demographics breakdowns to help you make sense of the data.
Living Facts is all about American life, with insight into faith, health, work, and other topics that might help you make important decisions about your target audience.
Check Your Facts
Both Alastair and Richard Sanderson reiterate the importance of checking the source of your data before choosing to rely on it, as well as making sure you double-check any numbers before taking action.
You don’t want to believe everything you read online. Ultimately, knowing which sources to trust can mean the difference between a clever business move and a mistake based on a lack of reliable information.
To learn more about Richard Sanderson and Alastair Sanderson go to sandersonholdings.com.
