Market research is a crucial starting point for any business,
but it’s especially important for online businesses that seek
to target a particular niche market. The equation is pretty
simple: if the interest in your product is low, you won’t make
enough sales to keep afloat. The key to online success is to
plan ahead " seek out a ready and willing market that will buy
your product, before launching a marketing campaign.

The Internet offers the start-up business a lot of tools for
market research, so there’s no excuse for not taking advantage
of the available information. It gives you access to a wider
range of consumers than you would normally be able to reach.
Your target market doesn’t have to be defined by geographical
location " instead, you will likely be targeting a group of
people who share a similar interest.

Most online market research is conducted through three avenues:
the Web, email and newsgroups. The first is perfect for checking
out the competition (or lack thereof). It pays to be informed
about your potential market niche ahead of time, so you can
figure out if creating a new business in that area will be a
profitable venture, worth your time and initial investment.

Researching your competition is a good idea for two main
reasons. First of all, it’s important to find out if the market
you intend to target is over saturated. If too many other
businesses already offer the same product you want to sell, it
will be more difficult to successfully break in and rake in a
tidy profit. In addition, researching competitors can help you
focus your business on one specific aspect of a saturated
market that has yet to be adequately exploited. On the other
hand, if you discover that no one has come up with the same
brilliant idea as you, it’s a greater possibility that your
business will flourish.

Secondly, as the old adage says, know your enemy. Find out how
other businesses price their products, take note of the image
they convey and look at how their website is constructed. In
order to be competitive you need to have an edge that sets you
apart from the competition and makes you attractive to your
target market. But, first you must know what will give you that
edge.

After researching the competition, the next step is to create a
survey full of questions related to the companies already
selling in your potential market. The survey, of course, should
also include questions that relate to your own business.

So where do you find participants for your survey? There are
many places online where you can ask for opinions. If you
already have a website, post the survey on your site. Or, try
posting small notices in newsgroups and on discussion boards
related to your market area to elicit some responses.
Newsgroups are also a great place to get the inside scoop on
your potential customers. What are they talking about? What
products are they looking for and can’t seem to find? What do
they look for in a product? You can also ask questions, as long
as it doesn’t sound as if you’re trying to sell them something.

Ads posted on free online classified pages can also yield a
good amount of survey participants, as long as you offer an
incentive, such as a freebie, coupons, etc. Finally, you can
also send out the survey through email to prospects,
associates, and others who might be able to lend a hand.

Investigating Google search counts and popular keywords is
another method of online market research that specifically
looks for trends in what people want to buy through online
stores. The more you know about the customer, the better.

Whether you choose to carry out online market research on your
own or hire a company to do it for you, it is an essential step
that will lay the proper foundation for the future success of
your online business.

About The Author: This article was written by Adam Yax of
http://www.phoenixsynergy.com/. Phoenix Synergy can help bring
new revenue to your business by way of technical marketing
driven by market research. Contact Phoenix Synergy today and
request a free assessment. Reproductions of this article must
include a link pointing to http://www.phoenixsynergy.com/.