MARKETING RESEARCH FOR THE NEW VENTURE
Information for developing the marketing plan may necessitate conducting some marketing research. Marketing research involves the gathering of data to determine such information as who will buy the product or service, what is the size of the potential market, what price should be charged, what the most appropriate distribution channel is, and what is the most effective promotion strategy to inform and reach potential customers. Since marketing research costs vary significantly, the entrepreneur will need to assess available resources and the information needed. There are also some research techniques that are not costly and can provide, at least initially, significant evidence to support the market potential for the new venture. One of these techniques is the focus group, which is this discussed later in this section
Marketing research may be conducted by the entrepreneur or by an external supplies or consultant. There are also opportunities for entrepreneurs to contact their local college or universities to identify faculty who teach marketing and are willing to have external clients for student research projects. Suggestions on how to conduct market research are discussed next. Market research begins with a definition of objectives or purpose. This is often them difficult step since many entrepreneurs lack knowledge or experience in marketing an often don't even know what they want to accomplish from a research study. This, however, is the very reason why marketing research can be so meaningful to the entrepreneur.