Doing a Market Research for your Business
Doing a market research is a way for you to find out how much market is available for your product or service. It is essential for understanding that market you are competing in, finding your unique selling point and knowing who will be buying your products. When you find your USP or unique selling point, you will be able to set yourself apart from your competitors and your USP is something that you should highlight when you are doing your advertising.
The most important thing you need to know is determining your target market and potential customers. Finding the right market is important so that you will know if you will be able to sell the service or product that you offer. You can start by asking any existing customers about their opinions. The type of customers that you will get will depend on the services or products that you offer. Once you have identified your market, you can proceed with your market research. You can also visit local business forums and see what happens there to get an idea.
It is important that you get the right kind of information from old customers that you have and from the new customers. You should find out if they will buy what you will be offering. Pinpoint any concerns that they may have like the quality of your product or how you will do against your competitors. It is important that you also investigate your pricing. You should consider your costs and how much your competitors are offering for the same product or service. Get feedback from any potential customers about the price they are willing to pay for what you will be offering. Knowing what they think about your competitors is also important and if there would be anything that you could do just as well or maybe even better than your competitor. Once you have your business up and running, you can ask customers why they prefer your business over those of the competitors. You can also gauge how they feel about the pricing of the competitor.
Learning more about your competition is also very important. You can know more about them by looking into their market reports or any other published information that they have. Among the details that you would be able to get would be their turnover, sales pattern and profit. You can check libraries, trade publications and associations and the local chamber of commerce for these reports. You could also opt to directly go to your competitor. You can ask what they offer and check out their advertising too. Whatever information that you get can be used to develop a business that will challenge your competitor in terms of quality, service and pricing.
Two other ways to know more about the market, customer and competitor are:
- Create focus groups.
Gather small groups of people to give you feedback on your product after trying it out.
- Use questionnaires. It is preferable to have your questions answered by either a choice of answers or a scale rating. It could be useful to have questions asking for opinions.
Market reports and trend analysis will give you an idea about the market you will be entering, the competitors and if there are trends that you should be aware of. Your research will also depend on the finances that you have, the product or service that you are offering and the market you are in. So before you start up that business, do your research first!
Thanks for reading :).