Alert! Why market research is essential to sustain your business?
The Present era is of entrepreneurs. People are coming out with products and services almost daily. Innovation and sustainable growth are the major factors that each business looks for. So how do you choose which product and service to select for your business? Market research aids in this case. To end the dilemma, strong market research, backed by data and analytics is used to give a clear answer.
So, what’s exactly is Market research?
As per the Cambridge dictionary, means- The collection and examination of information about things that people buy and their feelings about things that they have bought.
Basically, research means gathering information about the preferences and needs of Customers. Getting an answer for this particular point will accelerate the business to grow further. The answer is a sweet spot that we all crave for.
Types of Research-
Primary research is where businesses can carry out primary research or can appoint a third party to conduct research for themselves. The best advantage of primary research is that it’s absolutely precise. Here, research is carried out about only a specific topic or problem and all the focus is solely on the exact place and for solutions. Primary research is something that you collect out of scrap and build upon it.
Some of the examples are- Observation, online and offline surveys, Interviews etc.
Secondary research consists of data, summary, information, and analysis. Secondary research is research which is already done by someone and you are using it for your business. This research is readily available on the internet. Unlike primary market research which is specific, secondary market research is wide in its range.
For a business, its ideal to go from down to top. Means, it’s better for your business if you conduct the secondary market research first and then followed by primary market research.
Market research is something that helps in making the business stronger. Right market research can flourish the business and make it sustainable even during low market times. So, what are the basics of market research right before you launch a product? How to select a product for your business? Here are a few tips that will help you concrete your decision better.
1) Explore the trends in the market-
The market trend is highly used in market research, but what exactly does it mean?
The market trend means a constant change in consumer behavior purchase pattern. The trend is always changing and the dynamics are vast. There is always a demand running for certain types of products in the market. To catch and understand is the key and cater to it is the solution.
The market trend is affected by various factors including economic background, political setup and time of the year. While selecting a product, your market research gives an insight of not only the product selection but also guides on ways to market it and present it.
The market that you are going to sell the products in, is affected by various factors. Always keep on researching and studying the market, especially for the trends and the pattern it carries. The buyer behavior changes throughout the year thus affecting the market trend.
For instance, if you are planning to sell electronics, conduct a survey which tells you what type of electronics are in demand. Study the price range that is already been offered in the market. One thing that you should never forget is that the market pattern changes quite often. Hence, to keep up with the change, you need to look for a product that is evergreen and in demand despite the constant change in the pattern of the consumer in the market.
Often ask yourself, will the product I select make any impact on the market? Will it bring about any change and How will it benefit the already present market.
2) Define the purpose of your business-
Why have you started the business? What are the reasons that made you choose this particular business? This questions may sound simple but are important in defining the base of your business.
Start your business journey with a basic question of “Why”. Why is that you want to do, what you do. After you answer your “Why”, which is the foundation of your business, you can later focus on the “what”.
Simon Sinek has rightly explained the 3 Golden circles. Where one needs to start from ‘Why’, then the ‘What’ and Finally the ‘How’.
Answer the question- Why do you want to start the business, why do you want to select this particular product? And why do you want to take it forward?
Your “why” is the basic purpose of the business and determines the entire flow of how your business grows. You can find your “why" using a known model.
Your 2nd question will be “what”. What is that you need to do which will support your why? Your why will give you an insight into “what” you would sell.
Your 3rd and final question will be “how”. It’s like a chain, each question will lead you to the solution of which product you want for your business.
Once your intentions are set, it’s easier to work in the said direction. While you understand what you want, you also realize what is in demand and what society needs. When you focus on the ‘Need’ instead of the ‘Want’, your sustainability in the market increases, making you a strong component of the industry in the market.
3) Analyze the value proposition that your business will provide to the customer-
There will be many businesses similar to you out there, selling the same products that you sell. So, why should the customer choose you over anybody else? Why he should opt for your products over others? Well, the best way that your business will stand out and create its own mark is by having a unique value proposition.
What is Value proposition and why is it so important?
A value proposition is a promise of benefit given by you to the targeted customer that you will deliver value to them. Generally, a value proposition is attained by problem-solving and adding value to the customer’s life. Your unique value proposition sets you apart from your competition, making the customer come to you. What uniqueness are you providing to your customer is your unique proposition that will attract more customers to you.
What are the factors that contribute to great value proposition?
Today, most people look for ease and convenience. When you as a service provider make their experience easy and convenient, the customer comes back to you.
B. Value for price-
Every buyer out there will buy a product if he sees value in it. The value that he receives should justify the cost he has paid.
Quality, and price are directly proportionate to each other. When you provide them the quality equalling to price, the customer feels satisfied and wants to buys products from you again.
D. Customer support-
Customer supports goes a long way. Prompt customer redressal and query solving help the brand to build trust in the minds of customers. When you provide customer support, it adds to the convenience and trust as a value. Social media has become a popular medium for consumers to share their experience. Thus every business needs to be on social media along with other reasons. Get to know how social media presence can make a positive difference in your business growth.
It is said that people will never forget how you made them feel. Experience will be one of the defining aspects of your brand and the products.
F. Free shipping-
In your online business, free shipping is one of the biggest perks that you can provide. Manier times people do not buy the product because the shipping price is huge.
Variety is one of the best value proposition that a customer will receive. With variety, a customer gets more option which makes his shopping experience better.
4) Determine your audience
Before you start with your business its best to understand who is your target audience. the Target audience is the people who not only need your product but have the willingness to purchase it.
Your marketing campaign can fail if there is no target audience that you want to sell your product to. Marketing your product to random people who aren’t interested in, is a waste of resources and money. It is crucial to market the product to the targeted audience for better returns and conversions.
The best way to determine your target audience is by deduction method. Although in some cases it is quite easy to know who our audience is, like for example if you are selling school supplies, you know your audience is school going children. Study and understand audience behavior, what appeals to them more and what is it that attracts them the most? If the audience is already using a similar product that you are willing to sell, helps you target them as they are the ones who need your product, have the ability to buy the product and are willing to invest in the product.
In most cases, you need to access and study to find out the desired audience. With the help of market segmentation, you understand who is your ultimate audience.
What is market segmentation?
Market segmentation is basically dividing the market, customer, into various characteristics. When you conduct a market segmentation, your views and options narrow down which aids you to reach your target audience.
5) Study the competition-
The business that you are going to undertake, might have competition. The competition may feel overwhelming but it helps you the best when you study and understand it for your benefit.
It is essential to know who your competition is and how they are marketing their business. Understand what are the factors that attract customers to them. What are the unique qualities they provide which helps them succeed?
Price factor plays a crucial role for a customer when he has to choose between two brands. He makes sure that the amount he pays justifies the goods or services that he receives. Hence, it is important when you set a price that is close to the competitor’s price. Keep a watch on the times when the competitor gives out any special offers or discounts to the customer. Such plans help them to garner more customers and increase their base.
Before selecting the product, understand what does the competitor do and how he works, keep yourself in the shoes of the customer and understand what they need and what they want and what they “could” buy instead of your product.
How your product will change the dynamics in the market and add to already existing products by the competitor. What factors you need to add upon so that the customer will choose you instead of the competitor.
Applying the above points will help you reach the desired business and solve your dilemma and would make your business a successful one. It’s not an impossible task to know which product you want select, with the right type of way you can reach the ultimate decision.