Knowing how to do market research and conduct a competitive analysis gives you the insights needed to shape your business strategy, improve your offerings, and stand out in the marketplace. This guide is designed specifically for new business owners looking to gather practical, real-world information without relying on digital marketing tools or complex analytics platforms.
Here, we’ll break down simple, actionable steps to gather data using direct marketing techniques, in-person observations, and traditional offline methods. If you’re ready to identify growth opportunities, uncover consumer trends, and gain the edge over your competitors, this guide is for you.
What Is Marketing Research and Competitive Analysis?
Marketing research is the process of gathering information about your target customers, their behaviors, preferences, and needs. It helps you understand what your audience wants, how much they’re willing to pay, and how they make buying decisions.
Competitive analysis involves studying your competitors to understand their strengths, weaknesses, pricing, customer service, and marketing strategies. This helps you identify gaps in the market and discover ways to offer something better or different.
Together, marketing research and competitive analysis give you the insights to make informed business decisions, minimize risk, and build a stronger brand presence.
Why It Matters Especially for New Businesses
If you’re launching a new business, you might assume intuition or passion is enough to carry you forward. While those are important, they need to be supported by data, especially if you’re investing time and money into product development, advertising, and distribution.
Here’s what market research can help you uncover:
- Is there real demand for your product or service?
- What features do customers care about most?
- What pricing strategies make sense in your market?
- How are your competitors attracting and retaining customers?
- Which direct (offline) marketing strategies are most effective in your industry?
Without this information, you’re essentially guessing. With it, you’re building with confidence.
Step 1: Define Your Target Market
Before you start your marketing research, you need to know who you’re researching. Define your ideal customer with as much clarity as possible. This might include:
- Age range
- Income level
- Location (neighborhood, city, or region)
- Buying habits
- Pain points or unmet needs
- Preferred shopping methods (in-store, events, word-of-mouth)
Once you’ve defined this group, you’ll be able to focus your efforts and ask the right questions.
Face-to-Face Interviews
Talk to real people who fit your target customer profile. You can find them:
- At trade shows
- In your store (if you have one)
- At community events
- In coffee shops or co-working spaces
Ask open-ended questions like:
- “What challenges do you face when shopping for [product/service]?”
- “What factors influence your purchasing decision?”
- “Where do you usually hear about new businesses in this industry?”
Taking the time to listen directly to potential customers is one of the most valuable and overlooked market research tactics.
Step 2: Visit Local Competitors
One of the most effective ways to begin how to do market research is by visiting your competitors in person. Walk into their store. Try their product. Attend their events. Listen to their staff. Read their printed materials.
Here’s what to look for:
- Store layout and presentation
- Customer service and staff behavior
- Pricing and packaging
- Promotions, loyalty programs, or referral strategies
- Types of customers frequenting the business
This form of observational research is invaluable. Take notes after each visit to build a comparative profile.
Mystery Shopping
Send a friend or colleague to visit a competitor pretending to be a potential customer. Have them ask questions, note how they’re treated, and gather brochures or price lists. This allows you to gain unbiased insights into the customer experience.
Step 3: Analyze Industry Reports and Local Publications
You don’t have to start from scratch. Many industry associations and local business groups publish regular reports or newsletters that include data on consumer behavior, trends, and emerging market needs.
Look for:
- Trade journals
- Chamber of commerce reports
- Government or economic development bulletins
- Library archives on local business trends
- Print magazines focused on your industry
While these sources aren’t tailored to your specific business, they can provide a helpful overview of the broader landscape, helping you spot patterns and prepare for shifts.
Step 4: Attend Trade Shows and Networking Events
If you want to learn how to do market research that’s both efficient and impactful, attend offline events where industry peers and customers gather. These events provide an excellent opportunity to see what’s trending and what your competitors are showcasing.
You can also:
- Collect brochures or catalogs from exhibitors
- Ask questions about how companies position themselves
- Observe customer reactions to various booths and displays
- Talk directly to vendors and suppliers about market demand
Even informal conversations at these events can lead to breakthrough insights.
Step 5: Use Surveys and Feedback Forms
While online surveys are popular, traditional paper surveys can be just as powerful, especially if your business has a physical location or engages in in-person selling.
How to Use Paper Surveys:
- Hand them out at checkout with a small reward (e.g., discount, free sample).
- Leave them at booths during events or trade shows.
- Include them in mailed materials to past clients or leads.
Be sure to keep it short and simple. Ask:
- What brought you to our store/event?
- What products/services are you looking for?
- What would improve your experience?
This form of direct feedback is not only informative but also builds rapport with your audience.
Step 6: Conduct a Simple Market Mapping Exercise
Create a visual map that outlines key players in your industry, what they offer, and how they compare to your business. This will help you perform a basic but powerful market analysis and identify your positioning.
Your Map Might Include:
- Competitor name
- Price range
- Target demographic
- Key benefits offered
- Offline marketing strategies used
- Locations and distribution channels
Once your map is complete, look for gaps or underserved segments. For example, maybe none of your competitors cater to budget-conscious families, or maybe no one is offering in-person consultations or demos. That could be your niche.
Step 7: Analyze Your Business Neighborhood
Especially for brick-and-mortar businesses, understanding your physical location’s landscape is key. Spend time walking around your area. Notice the foot traffic, other businesses nearby, and what types of people frequent the area.
Ask yourself:
- Is this a high-traffic or low-traffic area?
- Are there complementary businesses nearby that could drive traffic to me?
- What marketing efforts are others using (flyers, signage, events)?
- Is there room for a direct mail campaign or community partnership?
This hyper-local form of marketing research offers targeted insight that broad datasets simply can’t provide.
Step 8: Try Old-School Outreach Methods
Remember phone books? Bulletin boards? Direct mailers? These aren’t relics—they’re still effective in the right contexts.
Some effective direct marketing techniques for follow-up or competitive research include:
- Cold calling local prospects to ask about preferences or needs
- Sending product samples with handwritten notes to local businesses
- Placing flyers in community centers, coffee shops, or laundromats
- Participating in farmers’ markets or craft fairs to test product demand
- Using loyalty punch cards or referral cards to gather repeat customer data
These personal, tactile experiences often resonate more deeply with people and build stronger connections than a screen ever could.
Step 9: Talk to Your Suppliers and Distributors
Vendors and suppliers are often a goldmine of industry insights. They work with multiple businesses like yours and see trends before they hit the mainstream.
Ask them:
- What products are moving fastest right now?
- What common challenges are their other clients facing?
- How are other businesses marketing their goods?
- Are there seasonal trends I should prepare for?
They may also introduce you to complementary partners or events you weren’t aware of.
Step 10: Create a Competitive Profile Sheet
As you gather data on your competitors, consolidate your findings into a simple profile sheet for each one. This makes comparison and strategy development much easier.
Each sheet should include:
- Business name and location
- Target audience
- Core products/services
- Price points
- In-store experience
- Marketing methods used (flyers, radio, print ads)
- Strengths and weaknesses
Compare 5–10 competitors this way. Once you’ve done that, you’ll have a much clearer picture of where your business fits—and how to differentiate effectively.
Bringing It All Together
Conducting market and competitive research may sound intimidating, but it’s simply about asking the right questions, observing carefully, and talking to the people who matter most—your customers and your competitors.
You don’t need digital tools or complex software to succeed. With discipline, curiosity, and practical offline methods, you can build a powerful foundation of knowledge to guide your strategy. By learning how to do market research the old-school way, you’ll gain insights that many businesses overlook in today’s digital-heavy world.
Lakefront CLE understands that connecting people to new products requires more than just traditional methods. We blend innovative marketing strategies with a personal approach to ensure the brands we represent resonate with their target audiences. Contact us to learn more about our customized marketing services and business development solutions.