What information a market research should give you about your business and how to start.
Market research is a way of collecting information from the market that helps you to overcome and avoid any marketing problems in the future.
Market research tells you about the viability of the product and how it can expect to do when it’s launched in the future. It tells you about the potential of your business and how many customers are existing who are in need of your business product of service.
A market research helps to create an identity for your product and in this manner also helps to shape it better to face the competition. The market research can also help you choose the proper geographic location for your business where your potential customers are more highly saturated.
Before you begin your market research it is advisable to talk to a consultant, business or marketing professor at a local college or university or contact your local SBA district office. All these sources can point you in the right direction of how to go about doing a market research. They can tell you what kind of information you need for your particular business in order to make key and effective marketing strategies.
A market research should provide you with information in three critical areas of the business which is the industry, the consumer and the competition.
Industry information. A market-research should tell you about the trends that are in current flow in the marketplace. The market research should tell you about the current condition of your field of business such as whether it is a declining or increasing field of business. It should inform you about technological developments that are affecting the industry along with the government legislations and rules. A market research should give you the statistics and the growth potential for your business but comparing it to other existing businesses. You would ideally like to start a business in a thriving and stable industry rather than one which is on the client.
Consumer information. You can derive information about your potential customers and consumers by doing a market survey. A market survey can help you focus the number of sales and the amount of business that you can generate when you launch.
An in-depth look at your consumer will tell you several things about the consumer such as their spending characteristics, purchasing power, per capita income, unemployment rate and other demographic factors. Before you conduct a research on a consumer, you should consider whether your business is limited by any physical boundary or area in which it is going to function.
Looking at the consumer market research you would also be able to determine the current state of the current business that other businesses in your feed are already doing. In a nutshell, you should be able to reasonably estimate the amount of sales that you would be generating. It is very important to note here that starting a new business may simply redistribute the existing consumers rather than creating new ones. This means a lesser share in profit.
We again come back to what we were speaking about earlier about creating a niche.
Creating a niche is another way of generating new customers rather than tapping into the already existing ones. Specializing in a particular field often results in the generation of a completely new customer base. This is something that is good for the business and will be crucial to the success of your business.
Competition information. When you combine the information that you have received about the industry and consumers, you will be able to get a clearer picture about the competition present.
You should not only look at the current competition but also give due attention to potential future competition. When you study your competition you should study the strategies and operations.
Your analysis should give you a clear picture of potential threats from competition, opportunities and weaknesses and strengths of the competition facing a new business. You should get a clear picture of trends that have been established in the industry and where there is an opportunity for an advantage for your business. You can use several secondary research methods such as a library, the Internet as well as articles to learn about accomplishing. If you’re researching a publicly owned company you can contact them to obtain a copy of annual reports.
These reports will not only deliver about the financial state of the company but also what products or service it plans to emphasize in the future. One of the best websites for researching the competition is Hoovers online www.hoovers.com which for a fee provides in-depth profiles of more than 18,000 public and private companies. However there is a lot of free content available on the website as well.
Taking a Closer Look at the Competition when Doing a Business Market Research
Another thing that you should understand about the competition is that it is not always the obvious business week in review. For example, when you look at strategic groups that is competent as we use the same strategies and sell the same product or services you. These are obviously your competitors.
But, the second way to look at competition is to look at the businesses that are targeting the same consumer for that same extra spending dollar and the time. For example if you launch the clothing business, where you will sell latest designer apparel at affordable prices. Now you may feel that there is no other designer apparel store in your area so you do not have any competition. This is not necessarily true. Any other business such as the shoe store or even a beauty salon that invites the same customer to spend money on their appearance can be a competitor. Sometimes you need to go beyond the obvious definitions of competition and think of the box in order to avoid getting sideswiped by an unexpected competitor.
It is a fact that most of the entrepreneurs are clueless about what there competitors are up to. Make sure that you analyze competitor strategy and market position as a part of your market research.