Understanding Your Market
Understanding Your Market by Elaine Simons
Market Research helps you to give the customer what they want; focusing on them and ensuring that all your activities are geared towards their needs.
Successful businesses learn about their customers and, by doing so, they are better able to understand what it takes to make them buy.
So, for a business to boost its profit making potential, it makes sense to do the research that will literally, tell them how!
How will it help you? With any new business idea, elimination of risk is one of the first considerations in the planning process. Your Market Research will ensure that there is a market for your product/service which in these uncertain economic times is even more important. It can help you answer the following questions:
•What volume and value share of the market will you have to capture?
•Are these markets expanding or declining? Is there a demand?
•What are the current trends?
•What are the medium-term forecasts for the next two to three years?
•Who will buy your product or service, who are your target customers, their age, gender, socio-economic status, profession, location, buying habits, ethnic background, interests and so on.
•Why will these specific groups of people (or businesses) buy from you.
•How much they are prepared to pay, and how often.
•And last but not least, be aware of other operators in the market place.
Research your competition. •Who are your competitors and how many do you have?
•Where are they and what are their main activities?
•What do they provide and how do they promote their products or services?
•Are you aware of their reputation?
•What do their customers think of them?
What else do you need to know? Create a list!
Finding outSo where will you find this information?
Desk Research such as libraries, the Internet, Advisory Bodies such as the WEI and Business Link, Chamber of Commerce, Institute of Export, Trade Associations and Banks
As you can see from above, market information is available from a variety of sources and although some of it tends to be general and countrywide, it can provide you with good background information that is useful for your business plan or marketing plan. To get more specific information you could conduct a survey, things to consider are:
•How to identify and select a representative sample group.
•What is the best way of getting the opinions of the selected group (for instance, by phone, e-mail or a personal visit).
•The best way of choosing and phrasing the questions.
•How you will analyse and interpret the results.
Be careful when asking friends or family for their input as potential customers; they may want to encourage or discourage you unduly, so might offer biased views.
Market research will form a major part of your business and marketing plans, so keep your research to refer back to when you are reviewing or developing your
plans in the future.