Before you can introduce any new product or service to the market, the first step is always conducting marketing research to establish the readiness of the market to accepting and using your product. Market research refers to a process of gathering information about your business’s buyers’ personas, customers, and target audience to determine how successful and viable your product or service would be among people. market research will help you understand what is ripe for the market and what has the potential of standing competition.
Here is a step by step guide on the best ways to conduct marketing research.
Determine the purpose of your study
There are a lot of reasons why businesses may conduct market research. It may be that they need research to assess business risks, threats, reduce costs, create opportunities, among others. Before you can start any market research, determine if the analysis is for internal or external purposes. Internal purposes would include aspects such as improving cash flow and business operations. External needs would include objectives such as convincing lenders to inject capital into a business.
Look at Industry Outlook
In your research, you need to outline the current state of the industry. Include the direction of the industry using metrics such as trends, size, and projected growth. Be sure to include relevant data to back up your claims. This second step will be very important to let investors know the position of your business in relation to your industry.
Work with target customers
The truth of the matter is that not every person will be your customer. When analyzing the market, you will be in a good position to understand and determine your potential customers. This is the part of the market research process we call target market analysis. Understand who your customers are and where they come from. Look into aspects such as their age, income, gender, location, educational level, among others.
Compare your competition
To have a better analysis of the market, you need to understand your competition. Take time to understand what other businesses are out there, that provide the same services as yours. Look at what your competition is offering and any shortcomings they might be having. Go through each of your competitors and prepare a SWOT report.
Analyze your findings
Gather any additional information that can help you make better decisions. Once you have all the vital data, start analyzing the data you have into concrete information and vital conclusions. Ensure you prepare a report that points out an overview of your industry, your estimated market share percentage, the outlook of the industry and discounts you plan on offering, and all forecasts.
The last step would be to out the results of your analysis into action. Look at how to use your findings to improve your business and make better decisions from the data you have. Ensure any vital data you have that can give you an edge over the competition is well kept and doesn’t leak to unwanted sources. involve management and other stakeholders to discuss the marketing report and make vital decisions.