Introduction to Market Research
In the world of business, it’s an ever-changing atmosphere that runs constantly hot and cold, habitually black and white, and never completely the same way twice. Today’s business is so far removed from the business of a few years ago that most attempts to start a business with a 2002 formula – for example – unequivocally and utterly fail in the 2008 climate. For this reason, market research is vital if one would hope to find out the crucial aspects of the marketplace that will help a business succeed in the long-term.
It’s essential that a person starting up a business knows if there will be enough demand for their products and/or services in the marketplace. In order to gain the biggest advantage for sustainable success, businesses need to flourish within their first year of operation. Most businesses are failing simply due to a lack of basic market research. It’s this caution-to-the-wind, head-first dive into business that will ensure nothing but failure.
Market research is also a key component to your business due to the “pre-emptive” way in which it can be implemented. By using market research to test a new business idea or product before its full-scale release, proprietors can properly gauge the atmosphere and develop a plan for launch. By analysing other aspects like competitor activity, market research can help paint a clear picture of the current marketplace, thus allowing a niche to be carved out for your new business.
In this guide to market research, you will find answers to some of the most asked questions regarding the marketplace and the idea of conducting thorough research before attempting to solidify a position in the business world.
Ways in Which Market Research can Benefit You
Doing a good bit of initial market research is a tremendous step in ensuring your business will succeed. Here are just a few ways in which doing the proper market research can benefit your business:
- Helps to gauge the marketplace as a whole, or in distinct areas, thus discovering whether or not your business idea is marketable
- Discover the value and also the value of demand for products you’re hoping to sell on the market
- Helps to uncover current marketplace trends which may affect your sector, both now and in the future
- Discover specific information about your target/niche customers, i.e. who they are and where they live, as well as certain aspects like gender, age, employment status, yearly earnings, and buying habits
- Uncover your competition and find out their many strengths and weaknesses in order to formulate a strategy to take over the lion’s share of the marketplace
- Find out whether or not there are potential business partners interested in your particular niche or business
Further Information about Market Sectors
It’s always important to approach market research like a Q & A session. You ask yourself the pertinent questions, and then perform research for the answers. This is especially important to do when it comes to your business idea and market sector.
Questions to ask:
- How much of the market share will I have to seize in order to be successful?
- Have I found sufficient demand for the products/services I plan to market?
- Are these (my) types of markets growing or shrinking?
- What are some of the current trends that can help or hurt my business?
What do the forecasts look like for the next three years or so?