Whether you're just starting out or if you've been in business for years, you should always stay up-to-date with your market information. Here are the best methods for finding your data.

The purpose of market research is to provide relevant data that will help solve marketing problems a business will encounter. This is absolutely necessary in the start-up phase. Conducting thorough market surveys is the foundation of any successful business. In fact, strategies such as market segmentation (identifying specific segments within a market) and product differentiation (creating an identity for your product or service that separates it from your competitors') would be impossible to develop without market research.

Whether you're conducting market research using the historical, experimental, observational or survey method, you'll be gathering two types of data. The first will be "primary" information that you will compile yourself or hire someone to gather. Most information, however, will be "secondary," or already compiled and organized for you. Reports and studies done by government agencies, trade associations, or other businesses within your industry are examples of the latter. Search for them, and take advantage of them.

Primary Research

When conducting primary research using your own resources, there are basically two types of information that can be gathered: exploratory and specific. Exploratory research is open-ended in nature; helps you define a specific problem; and usually involves detailed, unstructured interviews in which lengthy answers are solicited from a small group of respondents. Specific research is broader in scope and is used to solve a problem that exploratory research has identified. Interviews are structured and formal in approach. Of the two, specific research is more expensive.

When conducting primary research using your own resources, you must first decide how you will question your target group of individuals. There are basically three avenues you can take: direct mail, telemarketing or personal interviews.

When considering which type of survey to use, keep the following cost factors in mind:

• Mail.

  Most of the costs here concern the printing of questionnaires, envelopes, postage, the cover letter, time taken in the analysis and presentation, the cost of researcher time, and any incentives used.

• Telephone.

  The main costs here are the interviewer's fee, phone charges, preparation of the questionnaire, cost of researcher time, and the analysis and presentation of the results of the questioning.

• Personal Interviews.

  Costs include the printing of questionnaires and prompt cards if needed, the incentives used, the interviewer's fee and expenses, cost of researcher time, and analysis and presentation.

• Group discussions.

  Your main costs here are the interviewer's fees and expenses in recruiting and assembling the groups, renting the conference room or other facility, researcher time, any incentives used, analysis and presentation, and the cost of recording media such as tapes, if any are used.