After you have developed your business idea and tested it, and are now in place, ready for practical implementation, what follows is putting your idea down to action. However, before you start any business, you should do thorough research to identify the needs of your target market and whether there is a demand for your product or service. Researching your competition, the local and national economy, and trends in the industry can give you a better understanding of the market and help you create a competitive advantage.
Questions that many startups ask themselves on market research include the following:-
- What is market research?
- Should I invest in marketing research?
- How do I do market research?
- Is marketing research necessary for startups?
What is market research?
Market research is a process whereby suppliers or producers of a new product or service undertake to understand the viability of a new product or service. An individual who desires to start a new business must undertake market research. Market research is an essential guide toward proper decision-making. Through market research, you can discover the target market and get an opinion from potential customers about their interest in the product or service. Furthermore, Market research results facilitate the pricing structure and confirm the suitability of the business location. But how do you conduct market research?
How do I conduct market research?
How one conducts marketing research is a pertinent question that many new suppliers and producers of goods and services ask. You can conduct market research through surveys and product testing. You can perform market research in-house, do it yourself, or use a company specializing in market research activities. Market research is a critical component worth investing in, especially for a new product or service. It is more so for start-ups. In some environments, especially in the suburbs, you can conduct market research by meeting some dwellers from whom you can gather the required information about the product.
Why Should I conduct Market research?
Market research is necessary to undertake market segmentation and differentiation for your product or services. From the market research, you may acquire confidence in the viability of the product or services you plan to offer. Market research also provides the trust necessary for the pricing process. Through market research, you can determine the forces of demand and supply, which are vital in pricing.
Is market research required for start-ups?
Is marketing research necessary for startups? What will happen if someone starts a business without doing any market research?
Startups that merely generated ideas turned the ideas into business ideas and selected the so-called best idea needed to confirm the suitability and reality of the thinking against the market voice. It is common for individuals to start implementing their ideas and find that they are not viable. To avoid failure along the way, conducting market research is a vital step for startup businesses for the following reasons:-
· It is a means to test the viability of the idea.
· It is also a means to test the level of demand for the product or service.
· Market research lets you determine the proper segment for your product or service.
· Gathering price information for your product or service is also a product of market research.
· Determining the expected life span of the product or service in the market.
· It is also a tool for assessing competition.
· The success of the startups is not left to happen by chance; instead, it is predetermined.
· Most Startups established without market research ended up failing before no time.
For further reading please go to the Role of Market Research for startups which is readily available and accessible.