Marketing the New Venture 213before consulting secondary sources. There are a number of online survey Web sites,
such as http://zoomerang.comand http://surveymonkey.com.
Step 4is designing the sample. Occasionally a researcher will be able to speak to all
of the people or collect data on all of the companies of interest. In this case, a census is
performed instead of a sample. But usually the large number of people or companies
makes it necessary to focus on a small proportion as representative of the total popula-
tion—a sample. The key issues in sample design are representation and reliability. A sam-
ple need not be large to be representative of the whole population. National polls of vot-
ers may include only 1,500 participants to represent 60 million voters, but if the sample
is properly chosen these polls are surprisingly accurate. To guarantee statistically pure
national samples, the venture probably should employ professional market researchers.
For smaller, do-it-yourself efforts, researchers must simply ensure that the people they
speak to have the necessary information, and very small samples—one, two, and three
respondents—are seldom sufficient.
Step 5,data collection, is the actual execution of the study. Data must be collected in
an unbiased and uniform manner. The correct design of the instrument and sample help
to ensure this, but it is also important to train survey recorders and telephone interview-
ers, check the data records for errors, and scan responses.
Step 6encompasses the final stages of a market research project: analysis of the data
and interpretation of the results. Often a final report is written, even when the project
is relatively small and the goals of the study fairly narrow. This ensures that a record
exists for the future and that others in the organization can refer to the study as neces-
sary. One important caveat about market research—it can tell you what is, but it fre-
quently cannot tell you what could be. Henry Ford once said, “If I had listened to cus-
tomers, I’d have given them a faster horse.”^12
Market Research on Innovations. Market research on innovative products and servic-
es is particularly relevant for entrepreneurs. Considerable work has been done in this
area of buyer behavior. The entrepreneur whose objective is to successfully introduce a
new product or service has three intermediate goals: (1) to remove impediments to the
purchase of the innovation, (2) to increase acceptance of the new product, and (3) to
encourage repurchase over time. Impediments always confront an innovation, and they
can take many forms. For example, existing channels of distribution may be difficult to
breach, making it hard to present the product to the target market.
Next, the innovation entrepreneur must attempt to appeal to a wide audience and to
gain broad market acceptance. Initial buyers may have special characteristics that make
innovations appealing to them—for example, high levels of education and literacy, high
levels of income, an open attitude toward change, sensitivity to external changes, and
high social status. Age is negatively correlated with the propensity to adopt innovations.
However, the segment of buyers immediately attracted to the innovation is usually too
narrow to support production and organization. Marketing can broaden the appeal, and
once the product or service is widely used, repurchase can be encouraged.
The marketer who understands the diffusion process is in the best position.
Diffusion refers to the aggregate market understanding and acceptance of an innovation,
whether it is a product, a service, or an idea. The most widely accepted model for the
diffusion process has five stages.^13