Market research surveys are the basis for most market research. Market research surveys are used to collect information from a small sample of the market population to allow you to predict what the entire market wants. Market research can be used to improve the competitiveness of an existing business, help develop a new product and to explore a market niche for newly established businesses.

There are two types of market research surveys -quantitative and quantitative. Quantitative surveys are all about the numbers; how many people saw our ad; how many people would buy our product; and how many people recognize our product. Qualitative surveys are more open ended and try to determine what people are thinking or why people do what they do.

Quantitative survey data forecast are more or less accurate depending on sample size. A larger sample generally results in more accurate predictions. Larger samples are more expensive to survey so you have to trade off cost for accuracy. There are statistical rules that predict the accuracy of the predictions for a given sample size and a given market size.

With qualitative surveys sample size is less critical because you are more interested in discovering a general trend or sensing than a precise measurement. The keys to successful market research or product development surveys are keep it short, no more than two minutes, and easy to understand and answer.

Today the preferred delivery method for market research or product development surveys is online. There are a number of online survey tools available to help you develop an email or web based market research surveys, provide an email or web based survey and analyze the responses to the survey. Some online sites like surveymonkey.com offer free tools. These free tools generally do not include the more sophisticate statistical analysis help that you find in the online survey tools offered for sale. Just type in “online survey tools” into your favorite search engine and you will find lots of offers to consider.

The toughest part of designing market research surveys is ensure you ask the right questions. You can only get answers to the questions you ask and it is very disappointing to start to analyze your survey response data only to discover you have gaps in the information you collected. If you are piloting your first survey it would be a good idea to test it with a small group before you go live with your larger sample. A test will help you determine if the questions are clear and the responses are providing you with the data you anticipated.

If you had a product to sell that was used only by people over the age of 50, it probably would do you no good to advertise in magazines or on television shows that are aimed at people between 20 and 30 years of age. To be effective, marketing and advertising efforts need to be placed in front of the people that can actually use the product and not the thousands of others who can not and will not ever consider it. Many old time advertisers believed it is better to fire a single bullet from a rifle aimed directly at the target instead of shooting a hundred pellets from a shotgun and hoping one gets close.

Blind canvassing or taking the shotgun approach only works in certain industries where the potential customer base is undefined. Industries such as fast food or many family oriented restaurants and those that cater to wide range of consumers can often benefit from shotgun advertising.

However, niche companies and those that are after a specific demographic rarely achieve success unless they conduct specific research on product marketing.

It is considered the best use of the marketing budget by being aimed at the best customer. The return on the investment is the best measure of the marketing effort as well as how many new sales or repeat sales are generated by the fewest dollars. In many areas of advertising it is a numbers game and the more people who see the ad, the better chance there is of making a sale.

However, smart business owners look at the return on their advertising investment to determine the meaning of a successful campaign. For
example, by sending out 10,000 ads to a generalized area, there may be only 100 responses. Of that 100, one turns into a customer. Although the 10,000 ads only cost you about $100, that translates into $100 per new customer.

Targeted ads, historically return four times as many respondents with a fourth of the effort. This translates into 2,500 ads going out with 100 respondents with four turning into customers. With A $50 charge, this translates into $12.50 for the new customer, a significantly higher return on the investment. While the numbers will vary based on the type of product or service being offered and the quality of the ad going out, it is representative of the difference in the approaches taken in advertising.

If you have every stopped at a roadside travel center along an interstate highway, you have probably seen volumes of advertising about travel spots. Tourist attractions and vacation information fills racks at these centers because they are geared towards the traveler. There is a reason these same brochures are not handed out in elementary schools.

Being able to target the marketing effort will take research to determine the location of the most people that can use the information you have to offer. However, once you find the potential customers and send them the right message about your company, you can be prepared for a much bigger return on your investment.