Four Research Questions to Help Shape Your Startup’s Marketing Plan

By Emily Allen, Business Development Intern, MSU Hatch & Spartan Innovations

As we continue falling down the rabbit hole that is “big data,” it’s important for entrepreneurs to understand that correctly analyzing and utilizing insightful information can make or break a marketing campaign. However, many companies, especially startups, continue to launch marketing initiatives without first consulting critical research about their potential customers.

Data comes in all shapes and sizes, but by recognizing relevant information and using this information in a creative, informative, and ethical manner, entrepreneurs can better target specific consumer groups and get their product or service in front of these people. Sounds easy, right?

The short answer: Not really.

Finding out who your customers are, what they want, where they’re directing their attention, and then positioning the right message can all be extremely difficult tasks to accomplish, especially for a startup with limited traction.

So, here are four marketing research questions to ask yourself before building out a marketing plan:

1. What are my customer demographics?

First, you need to build a strong profile of your target audience. After all, they’re the ones who will be driving your revenue, so take the time to learn about them as it will help you create genuine appeal.

For example, if you’re marketing toward a skateboarder, you’d want to find out: What kind of person is a skateboarder? Do they have any specific qualities? How much money do they have to spend on skateboard products? More specifically, this sort of demographic data could include: sex, age, race, marital status, income, spending habits, etc.

Here are some excellent free sources of consumer information that you can use to kickstart your discovery process: Census.gov, Data.Worldbank.org, FedStats.gov, and SegmentationSolutions.Nielsen.com.

2. What benefits are my customers seeking?

Once you know who may be purchasing your product or service, you need to understand why.

Simply put: What are your customers hoping to gain by buying your product or service?

In the skateboard example, some customers may want the product to be durable, while others may want it to look stylish — some may want the product to be both, and those customers will probably be willing to pay more.

By breaking down the key characteristics of your customers’ interest, you can better refine your business to meet their needs. And although this information can sometimes be the hardest to solidify, it can initially be obtained using some simple tactics, such as having a conversation with a member of your audience and developing an understanding of what they like and don’t like about similar products or services in the market.

3. Who are my competitors?

For early stage entrepreneurs, this step is extremely important, however it’s often not researched thoroughly enough. With skateboards, it’s relatively easy to discover the top companies producing and selling these products — you would just perform a quick Google search. But many startups often neglect the idea that competitors can also include companies that sell substitute products. In this case, it’d be bicycles or roller skates.

When talking with customers, remember to ask them about other products or services they may utilize instead of your specific offering, and then include those brands in your competitive research set as well.

4. How can I most effectively reach my audience?

In this era of digital interaction and e-commerce, many young entrepreneurs immediately jump to social media as a way to build awareness and reach customers. But unless they’re paying money to promote posts, it’s rare that the right people will actually see them — thanks to new algorithms implemented on Facebook, Instagram, Twitter, etc. Therefore, the best way to create a significant connection with your audience nowadays is to go where your customers are. If your customers are at the skatepark, go to the skatepark; if they’re at a certain store, go to that store.

This idea may sound counterintuitive in an age of social media, but while the vast majority of marketers are fighting for attention online, few are left making connections in person. And by taking a tangible approach to communicating with potential customers, your brand will undoubtedly stand out. With this being said, you should still make a website and update your social media accounts to participate in online activity, but try not to use these methods as your sole means of marketing and advertising.

Now, despite my recommendation to investigate and study your audience, there is such a thing as too much data consultation. As an entrepreneur, there is a fine balance to be struck between Mark Zuckerberg’s adage “move fast and break things,” and the idea of taking calculated risks. So, at the end of the day, be thorough and conduct great research, but try not to be excessive — becoming a successful entrepreneur can largely depend on who got there first.

Let’s recap:

• Know your customers and understand their needs — the first, and often times most difficult, step in the marketing process.
• Understand your competitors — even those that don’t sell the exact same products as you because substitutes can influence purchasing decisions.
• Be in the same place as your customers — don’t hide behind a computer screen; go out, talk to your audience, and tell them why your product is the best.

Emily is a senior at MSU studying marketing and economics, and will be continuing her education at MSU in the spring by working toward a Masters of Science in Marketing Research. She has been working at The MSU Hatch for a year and a half, and has spent the past two summers interning with General Motors’ corporate marketing department.

To read more from Voices of The MSU Hatch, click here.

Edited by Gerard Smith