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Conducting a Market Survey You may have an excellent product or service to offer to the public. One key to success or failure in business is determining whether there are enough customers willing to buy your product or service on a regular basis. The price of the product or service must give you an adequate profit margin to allow you to survive, make a profit and further develop the business. Before committing your resources to the business, you should measure whether there is a sufficiently large unsatisfied market. The following questions need to be answered to determine what your competitors are doing in your proposed area of business. ¢ Is the market growing at a rate that allows another new business to enter? « Ina declining market, how will you capture business from your competitors? * How do your products or services differ from those of your competitors? ¢ Have you identified a market segment that needs servicing? Steps in Conducting a Market Survey The process of conducting a market survey involves the following steps. 1. Define market survey objectives and specify what information is required. 2. Work out details of the market survey, such as: « sources for obtaining information, * time and cost of conducting the study, * methodology to be used in gathering information, « development of a plan of action. Select sample samples and decide what contacts and visits should be made. Prepare questionnaires and plan for survey interviews. Collect and analyse data. au hw Prepare a report of findings. For new entrepreneurs, a major problem in conducting market surveys is not knowing specific sources and contacts for obtaining information. 
