5 Competitive Market Research Tips to Help You Stay Ahead of the Competition

Market Research is Key

Earlier this year I spent 2 days at OpenView Venture Partners Market Segmentation Forum where Luke Hohmann
discussed a very specific process towards excellent market
segmentation.  Since the event I have been working on a detailed market
segmentation project which has included a substantial amount of
competitive market research.  

Many small businesses avoid this type of market research because
they don’t know where to start, but I’m here to tell you that you can
(and should) do it.  If you don’t know where to start, you are in the
perfect position to begin.  All I can tell you is that you should dive
right in because once you do, you’ll be glad you did.  To help you get
started, I have assembled 5 tips from my work over the past 2 months.

1. Have a Goal
   Before you begin
   your research, define one or more goals. Your goals will define the
   path you take with your market research.  Beginning competitive market
   research without a goal will waste your time
2. Have a Hypothesis
   You’ll
   likely already have some ideas as to the nature of the market you are
   researching- this is your hypothesis.  Your market research should
   attempt to confirm or nullify this hypothesis.  When you nullify your
   hypothesis, form a new one and continue.  I guarantee this will happen
   at least once during your research.
3. Be Open Minded
   Let your research guide you, not the other way around.  Be open minded
   and learn about the market.  Instead of trying to confirm your
   hypothesis, you should try to nullify your hypothesis.  If all you do
   is confirm your original hypothesis, you haven’t learned anything new
   about your market (which may be acceptable in some cases).
4. Use Measurable Data
   Your
   research should be based on measurable data points instead of anecdotal
   notes and opinions.  You must approach competitive market research from
   an analytical perspective.  You want to learn about key competitors,
   relative market share, product price points, etc.  If all you have is
   opinionated statements, you haven’t gone far enough in your research.
5. Document Your Results
   A very
   important part of conducting market research is to document your
   findings.  I, of course, used a Central Desktop workspace to organize
   and document my research from the very beginning.  I have many wiki
   pages and online spreadsheets that I have used throughout the process.

A question I kept asking myself when I began this project is “How
do I know when I am done?” and after beginning my research, I have
learned that market research is never “done.”  You may have a
hypothesis that you can’t nullify, but that could all change with a new
market competitor next week.

One of the most awesome things about conducting this type of market
research is the feeling that all your research has led you to a
hypothesis that you can’t nullify.  The process has been very rewarding
and nothing like I would have ever expected.  If you have ever done
formal market research or segmentation, you’ll know exactly what I
mean.