Market research and market reports

Although there is a lot of market information available, you need to be careful about how you interpret it.

External data might not be in a format that's easy to use. It may have been collected for different purposes or be from a range that doesn't align with your target market.

Take care to avoid the pitfalls of inaccurate and misinterpreted data when using secondary market research.

Inaccurate information

Beware of out-of-date market information. This can be misleading, as the market may have changed significantly since the information was published. It can be particularly hard to tell how recent any information published online is. Some information on the web can be unreliable or biased

Misinterpreted information

Remember that statistics can sometimes be misleading and mask the true picture. For example, an 'average' income for the population in your area might conceal a high proportion of low earners. This means fewer people can afford your product than it appears.

The same principle applies to your own sales records. One or two major customers could distort the picture.

Biased research

Most importantly, don't make up your mind in advance. Finding market information that confirms what you already believe is easy. However, only a realistic picture of your customers and markets will be helpful to your business.