Quantitative research is a type of non-experimental market research that provides numerical measurement and reliable statistical predictability of the results to the total target population. Like qualitative research, this is original company research ("primary") on a subject in the normal course of company business ("non-experimental").

Qualitative research is original company research ("primary") on a subject in the normal course of company business ("non-experimental"). It is primarily concerned with getting a subjective "feel" for the research topic, not a numerical, statistically predictable measure.

City and regional test markets may provide the most reliable real-world feedback on new product success. However, small companies generally do not conduct formal market research field studies in a controlled group of stores, where panels of stores are matched and distribution, in-store merchandising, and advertising is done for you by the market research company for tens of thousands of dollars per test group of stores.

To get an accurate handle on the what the market's reaction will be, at least 25 qualified people should be interviewed for each significant product difference or formula. This will provide the basis for directional evaluation and changes in the prototype, or product positioning.

Laboratory studies are a type of primary marketing research that are often used by larger consumer products companies. The downside, for small businesses, is that they cost from $50,000 to over $100,000 per test leg. On the other hand, these tests have a high degree of reliability and correlation with actual market performance when the test product, pricing, and advertising are similar to those actually used in the real market. They can save companies many millions of dollars in potentially wasted marketing spending by showing weaknesses in product, advertising, pricing, or other variables prior to real-world marketing.

Controlled store test-marketing, if affordable, can provide test results that reliably simulate real-market conditions and buyers. These methods can reduce risk and test-market costs as well as save time.

Field studies are a type of experimental, primary market research that is more accessible to small businesses. They are generally real-world tests in a controlled group of stores or in a single city.

Primary research is concerned with the design and implementation of original research; that is, data collected from the source. The advantage of doing primary research is that you can get information on the specific question or problem you need answered, not information that merely applies to your industry or type of business in general.

All businesses, large or small, need to know key information about their marketing environment, competitors, and target buyer/users. Smaller businesses may not be able to afford to purchase ACNielsen data for their industries at a cost of thousands of dollars per month. However, total market size, major competitors by category, and target buyer/user profile information is often available free from industry publications and trade associations.

Secondary research involving the study of information generated by your own company is "internal" research. Here we're talking about information that was gathered for purposes other than marketing — for example, it may have been gathered for financial or management purposes. (If it was gathered for strictly marketing purposes, it would be considered primary research, not secondary.) The most commonly available internal company information includes:

How big is your market? Is it large enough to sustain your business and competition? What is the growth trend for the next five years? Once a market has been identified, what is the size of the actual market that you can compete in? The actual market segment that you can sell to may be a small fraction of the total market. Each total market must be examined in light of:

Today the world is defined by the term "information age." All businesses require accurate and timely information to be successful. Whether your company is large or small, the right amount of financing, equipment, materials, talent, and experience alone are not enough to succeed without a constant flow of the right business information.

Secondary research is something every student has completed at one time or another, usually by doing library research with books and periodicals for a school report. This is usually the cheapest and easiest type of research for small businesses to conduct. However, it may be less reliable than primary research because the information you obtain was not developed with your particular problem or situation in mind.

If your customers are primarily the ultimate consumers or end users of your product or service, identification is generally done in terms of demographic and lifestyle factors.

If you sell to other businesses, who turn around and resell your products and services, your buyers are predominantly channel buyers. Examples of channel buyers from the grocery and drug industry are:

Do you know who your buyers are? Do you understand why they buy your products or services? Assuming that other factors in making the product available (distribution) and known to the buyer (advertising and promotion) are in effect, influences on the buyer may be catalogued by:

Today's marketing environment is influenced by the global marketplace and the explosion of the information age to a degree unprecedented in history. To be fully prepared, a company must recognize and understand:

Competitive spending trends may or may not be a significant influence on your company's marketing spending plans to support products and services. However, in a market where there are one or more large competitors, the amount of money your competitors are willing to spend will impact:

Once you know the identity of your most direct competitors and have a good idea as to your second- and third-tier competitors as well, you should give some thought to which actions they are likely to take in the next year or so. Estimates of competitors' future activity depend on your knowing and understanding their objectives, strength in the marketplace and resources. This important intelligence is key to your company's:

Obviously, your most important objective as a small business is to survive and make money. Realistically speaking, there may be times when you'll decide, after careful analysis, that the competition in one area is simply too hot. Here are some situations that may indicate that the cost of direct competition is unwise and ineffective, from a sales and marketing perspective:

You should be very aware of your first-level competitors— in many cases, you'll know them by name and may even belong to the same business associations they do. If you don't know much about their business operations now, make sure that you do soon! It's to your advantage to know as much as you reasonably can about the details of their businesses. Study their ads, brochures, and promotional materials. Drive past their location (and if it's a retail business, make some purchases there, incognito if necessary). Talk to their customers and examine their pricing. What are they doing well (that you can copy) and what are they doing poorly (that you can capitalize on)?

The information age has increased the number of opportunities for new businesses and products and has tremendously increased the speed at which new products are developed and introduced into the marketplace. As a result, the information age has also increased the need for businesses to be thoroughly familiar with their competitors.

Your competitors are not always who you think they are.

FargoGas: "fastest gas in the West!"

Part of the challenge of marketing is figuring out which distribution method to use for your business. As soon as you decide which business or product category to compete in, distribution decisions must be made based upon what your competition is doing.