Chapter Six Snippet
HOW TO CONDUCT MARKET RESEARCH
“Market research is the process of gathering, analyzing, and interpreting information about a market, a product or service to be sold in that market, and the past, present, and potential customers for the product or service; research into the characteristics, spending habits, location, and needs of your business’s target market, the industry as a whole, and the specific competitors you face.” — J. Paul Peter.
Decades ago, when asked why startup businesses often crumbled away, many researchers and business opinion leaders maintained it was a result of the lack of funds and inability to grow their customer base. However, as the years progressed and innovation and research quality improved, it has now been clearly revealed that the reason why over 50 of 100 startup companies that enter the business world every year fail is that they failed to carry out proper
MARKET RESEARCH.
What is Market Research?
Market Research can be defined as the process of collecting and gathering information on your specific target market and understanding the factors influencing the purchase decisions of your prospective customers. Market Research will help you see beforehand if your product has a chance of succeeding in the market, if your product can draw in customers, and your chances against your competitors. Do not allow the fear of negative feedback to deter you from conducting research. Conducting research helps you understand and view your product objectively. This way, you can spot the faults, if any, and make some improvements based on the feedback you have received.
Market research often delays the launch process as it might take months to get a clear picture of your business landscape. However, market research increases the chances of your product succeeding in the market.
Market research answers the following questions for you:
- What Product or service is trending?
- Who are my current customers? Who are my target customers?
- Which of my competitors are my target customers buying from?
- What influences the purchasing decision of my target audience?
- What are the problems customers in my market are currently facing?
- How can I solve them?
- Do my target customers have an issue with pricing?
- What are my industry regulations?
- How do they affect my business?
Market Research gives you a clear and detailed plan instead of giving the biased illusion that everybody will love your product. There are two main types of research your company can conduct to gain in-depth information on your potential market. They are Primary and Secondary.
