Market research is an essential part of business development. If you want your new business to sustain itself, make sure to conduct market research on your target market and find out what their problems are. Then figure out who your real competitors are. Market research is a key component of any successful new business, and it can help you identify your target market, comprehend consumer problems, and recognise competitors. It is the best way for entrepreneurs and business owners to understand market trends and improve their businesses.
Market research can be conducted at various stages of a business life cycle. The whole process can be broken down into four stages: pre-launch, launch, post-launch, and beyond. It can help you determine the viability of a product or service, and to decide whether or not to launch a product or service. If you know your market well, you can make a better business strategy against your competitors to establish and grow your brand.
What are the objectives of your market research?
The goals you set for market research are influenced by your overall objective. For instance, if you want to learn about your market, you will learn about the factors that influence it.
The objectives will also affect the types of market research you will require to do:
Primary market research includes:
- Monitoring how effective sales is
- Knowing what competitors offer in terms of quality
- Knowing your competitors’ communication channels
- Studying the active competition within the market
Secondary market research includes:
- Newspaper reports
- Government data
- Existing surveys and studies
- The published company reports data
Primary market research is when you do research on the market by yourself or as a business with the intent to understand customer requirements and improve your products, services, and functionality.
Secondary market research is different from primary market research because it uses information from sources that already exist.
What are the key points of effective market research?
There are four important steps to any market research study:
- Investigate if there was similar research conducted before.
- If you have the budget, use existing data that serves your objectives.
- How will the existing data be used and who will use it?
- Do you need to do primary market research? Who do you need to talk to?
What are the types of customers you meet?
Most businesses have three types of customers: regular customers, brand promoters, and target customers. You can learn how your target customers think and adapt to their needs to convert them into regular customers and brand promoters.
The ‘savvy’ customers
These types of customers do not care about the quality or effectiveness of a product or service but are only interested in getting the best value. Savvy customers are aware of all the prices from other companies too. So, you will need to carry out secondary market research to understand what your competitors are offering. You can then adjust your price and make it more competitive and improve your sales.
The market influencer
An influencer is someone who knows your target market well and can influence others. They are not only well acquainted with your target market, but they can also influence other potential customers who can make purchases based on their opinion.
An industry expert does not bother about the price of a product or service, but instead about the value and quality. They are more concerned with their product or service’s impact on the customer than with the price of the product or service. Industry influencers are good candidates for primary market research. Allow them to use your products or services, and they can help you in influencing your prospective customers in return.
An end-user is a customer who uses your products or services every day. End users are usually overlooked when it comes to market research, but they make for excellent candidates as they make you understand their frustration level and limitations. By understanding their frustrations and limitations, you can better understand the requirements of your potential market and make more informed decisions.
What is the value of a market research firm study?
Talking to target customers is important, but published market reports are no less valuable. You can find many of these in business groups, libraries, and trade associations. They are handy for keeping up with trends and exploring new market opportunities.
However, you need to read these reports alone in isolation and avoid making comparisons with your business. Some of these studies may not be relevant to your target market, and they cannot provide accurate data on what consumers want in your area. Also, do check the date of publication too. In a rapidly transforming industry landscape, like in technology, a report might be outdated within a few months.
Many businesses start as an idea in a business owner’s mind. The challenge is converting these ideas into reality and sustaining them as a business. You will need to consult a market research company to research our business idea to understand how viable it would be. An expert consultant or a firm can help you find all the necessary information and also assist you in developing a strategy that will help you succeed.