Before any business idea is put into place it is important to conduct thorough market research. Market research refers to the process of collecting data to determine whether or not a product or service is popular, whether it meets the needs of the target demographic and it also highlights any competition. But, how is market research done?
The Importance of Market Research
Market research is conducted before any business concept is finalised to avoid any mistakes or wasted resources. After all, there is very little point to having a business idea that has either already been done or is of no use to anyone. There are different ways that market research can be carried out but the most popular include assessing the current competition, monitoring data and sales, collecting existing data from other customers and also organising focus groups. In short, market research is used to determine whether or not your business concept is worth pursuing.
Tips for Conducting Market Research
At the early stage of any business idea it is important to test the waters and see where you stand. This can be done in different ways but to get the most out of your market research there are a few things you can do.
- Clearly identify your target audience and outline the data you want to collect. What do you want to find out? What information do you need? Are you focusing on testing a product or do you want to know about your competition? Having an end goal helps to guide your market research in the right direction.
- Ensure your research group is relevant to your business concept. If you are trialling a new gaming console you are likely to want feedback from young gamers, whereas if you are trialling a new kitchen appliance you will want to focus more on stay-at-home parents or chefs.
- Thoroughly collect and analyse all data. Any missed information can lead to anomalies.
- If you are conducting a focus group be sure to have enough participants to collect a broad range of opinions. Asking a handful of people isn’t enough.
- When looking at your competition take into consideration who their target market is and what their end goal is. Each business will have slightly different aims for their product or service and comparing yours with anything too dissimilar will not give accurate feedback.
Before going ahead with any business concept market research is vital. It is the ideal way to familiarise yourself with your potential customers and the competition you face.
Baytree Media Group Ltd