LibGuides: Business: Industry & Market Research

Industry & Market Research

Market Research
Industry Research

What is market research?

In any business enterprise, it is essential to know your market. Who are your customers and how can your company meet their needs? Markets can be defined by geography, age, gender, interests, lifestyle, or any combination of these things. A thorough market analysis should include:

Size of the market: Different than the size of your industry, the size of the market is how many potential customers you could have. You’ll want to consider everything from your total addressable market (TAM) to your share of the market (SOM).
Demographics: These are details about the age, gender, educational level, occupation, and so on for your target market.
Psychographics: Different than demographics, psychographics help explain your target market’s personality and lifestyle. This is where you’ll explain how your product fits into your customer’s lifestyle.
Geographics: Where do you find your customers? Are they in a specific city or other location? Do your customers live in rural or urban areas?
Behaviors: How do your customers shop for and buy products like yours?
Trends: If your target market is changing their behavior, it’s important to note those trends and how that will impact your sales.

Source: Industry Research Versus Market Research from Bplans.

Web Resources

Bureau of Economic Analysis (BEA)
BEA's economists produce some of the world's most closely watched statistics, including U.S. gross domestic product, better known as GDP. They do state and local numbers, too, plus foreign trade and investment stats and industry data.
Bureau of Labor Statistics (BLS)
From the U.S. Department of Labor, a valuable source for information about buying habits and information to help calculate your consumer price index (CPI).
USA.gov
Data and statistics about the U.S., including maps and population, demographic, and economic data.
Market Sizing
From the Resource Center at Intuit, this article provides helpful information for small business owners about the steps necessary for evaluating market size, in addition to additional sources for research.
Small Business Administration
Provides statistics and information that can be valuable when determining your market size. In addition to general business data that can help you better understand your competitors, it also offers demographic information, consumer statistics, economic indicators, income and earning statistics, and much more.
U.S. Census Bureau
The nation's leading provider of quality data about its people and economy.

Books at Lakeland

Marketing Research by Naresh K. Malhotra
Call Number: HF5415.2 .M29 2019
With a do-it-yourself, hands-on approach, Marketing Research: An Applied Orientation illustrates the interaction between marketing research decisions and marketing management decisions.
The Market Research Toolbox by Edward F. (Francis) McQuarrie
Call Number: HF5415.2 .M383 2016
An ideal resource for busy managers and professionals seeking to build and expand their marketing research skills, The Market Research Toolbox, Fourth Edition describes how to use market research to make strategic business decisions.
The Entrepreneur's Guide to Market Research by Anne M. Wenzel
Call Number: HF5415.2 .W454
This invaluable guide arms entrepreneurs with all they need to know to research and analyze potential markets--key steps in constructing effective marketing plans, establishing sound financial forecasts, and finding backers.

What is industry research?

Knowing your industry is also crucial to any successful business venture. It is important to know who your competitors are and what products they sell, what growth (or decline) is expected in the industry, as well as any trends affecting the industry. There are a variety of places that this information can be gathered-- industry snapshots and statistics from the U.S. Census Bureau, professional or trade association web sites, and business databases to name just a few. A thorough industry analysis should include:

Key players: Who are the key companies or businesses in your industry? Who are the biggest businesses in the industry and what are the core products and services that they sell? What are their business models?
Growth: Is your industry growing or shrinking? You’ll want to show in your business plan how much is sold in your industry, both historically and predictions for the future.
Trends: If there are trends in your industry, you’ll want to discuss those as well and how those trends will impact your business.
Competitors: Who are your key competitors in your industry? Are there businesses who are using strategies that are similar to yours? How are you different?

Source: Industry Research Versus Market Research from Bplans.

Web Resources

List of Trade Associations (Marketing Mentor)
This list of (mostly U.S. based) trade associations and trade shows will help you pick your niche and find your target market.
Economic Census (U.S. Census Bureau)
The Economic Census, serves as the foundation for the measurement of U.S. businesses and their economic impact.
NAICS Codes
The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy.
SIC Codes
A Standard Industrial Classification (SIC) Code identifies the primary business activity of a company. Search by keyword or code (from the Occupational Safety and Health Administration).
Bureau of Labor Statistics (BLS): Statistics by Industry
Provides a variety of statistical resources relevant to industry, such as industry data snapshots, price indices, cost trends, and much more.
Bureau of Economic Analysis (BEA)
BEA's economists produce some of the world's most closely watched statistics, including U.S. gross domestic product, better known as GDP. They do state and local numbers, too, plus foreign trade and investment stats and industry data.

Books at Lakeland

North American Industry Classification System 2012 by Executive Office of the President (EOP) Staff; Bernan Press Staff
Call Number: HF1042 .N678 2012 (Reference Book)
An indispensable volume of official industry codes used by businesses, libraries, and other establishments and individuals to complete tax returns, grant requests, and fill out other forms and to improve analyses and comparisons of different industries.