You had a great idea to develop a product, something that will win the hearts, minds and wallets of your customers. Or maybe you thought about a service that no one else has, one that is unique. Now is the moment! Do not hesitate! Begins!
You know how to do market research?
One issue that the author considers vital is the importance of having a market study in order to obtain information on the three key areas that have to investigate before launching your business. Before you get into shirts eleven staff, you must determine whether you really no market for your product. And not only it is necessary to determine “what” but “how.” To understand, you must perform a market study.
Other entrepreneurs avoid market study because they fear it is too expensive. With all the launch costs they face, does not look so profitable add an extra expense to prove what actually know from the beginning, that your product is viable.
Whatever the reason, do a market study may lead to a death sentence for your product. Think of market research as an investment for the future. Identifying possible improvements of your product on time, you save time and money.
What exactly and how to do market research?
In short, it is a way to gather information that will serve to resolve and avoid marketing problems. A good market research will provide data needed to develop a marketing plan for success. With the market study, you will be able to identify specific market segments in which your product will be well received and will help to create a competitive identity . Market research can also help when you choose the best geographical location to launch your business.
Before you begin your market research, it is recommended that you seek advice or to consult an expert on these matters. This first step will help you decide exactly what information to gather.
As a rule, the market study should give insight into three areas:
1. Market Data
When you begin your search for information, always explores the latest trends. Compare statistics and market growth. What areas appear to be expanding and which areas are declining? Does the figure of the typical customer? What technological developments are influencing the market? How you can use to your advantage? A stable and prosperous market is the key not going to start a business in a market that is in crisis.
2. Data on your audience
For this phase of your research, you should focus on in-depth study of the market. A comprehensive market monitoring, will help you have a realistic estimate of sales. First, you need to determine the limits of the market or the physical limits within which you go to sell your product. Then studies the characteristics of the population spending in this area.
Dear the purchasing power of that location, arrange them according to their income per capita, the average level of income, unemployment rate, population and other demographic factors that may influence. Determines the current sales volume in that area for the product you’re going to sell, and finally estimates the total sales volume can be obtained.
This last step is crucial: Open a business to a community does not always mean an additional volume of sales but a redistribution of the existing market.
3. Data on your competitors
Jointly studying market data and public, you will get a clearer picture of your competition. Do not underestimate and watch both your current competition as to the future.
Check your local competition and, if necessary, at the national level. Analyzes their strategies and operations; You get a clear picture of possible threats, opportunities, strengths and weaknesses of your competition.