Market research is the most important part of the journey of your Entrepreneurship.
It is important because no matter how good the product is, if you don’t know what type of market it fits in well then there’s no point to launch it or ask the investors to invest their money into it.
What’s in this
- What is Market Research?
- How to do Market Research?
- Primary Marketing Research
- Secondary Marketing Research
What is Market Research?
I have an existing Investment opportunity only for dog owners “protein shakes” for dogs.
I call it “Protienogs” it guaranteed success and when the investor ask me how do you perfectly know it?
Then I replied “Trust me” I can feel it and my Guts says to me this product can do extremely well in the market because no one is doing that.
Actually no serious investor invests their money on your gut and you should neither. It doesn’t matter at all that how good you think your idea is, but before you finally mortgage your house or quit your day job.
You owe it to investigate thoroughly the Market Viability.
It is the realistic data-driven prediction on whether it can succeed in the marketplace.
And actually this applies to fortune 500 companies and to the day to day trimmer seller on Amazon. One way or another, the market will always judge your product.
Wouldn’t you rather hear the verdict before you sink your life saving into it. Let’s take an example to understand it better
Kizi has been giving her homemade soaps to her friends and to her colleagues as gifts for a while now.
And then getting a lot of feedbacks enough that she is actually entertaining the idea to start a small business.
But, before leaaving her office job, how can she know whether a market for this really exist? The answer is market research.
How to do Market Research?
Marketing researching companies generate exhaustive reports on pretty much any industry you can think of, including the Hand made Global soap markets.
They include many findings like market size, growth rate, demographics, industry leaders even how facial scrubs perform vs liquid body washes.
And it’s all available to Sita as the downloadable PDF for like 3 lack of INR.
Maybe Sita can afford that but literally I can’t especially when I am starting, fortunately, there are plenty of affordable options as well in this world.
Primary Marketing Research
Primary marketing research is all about collecting data on your own. It’s often more expensive and time-consuming than the secondary market research, but it always saves you money in the long term,
Simply because you narrow down your audience and focus only on the features that they are interested in
Martin wants to introduce a new variety of sandwich at his popular food truck
He wants to sell a double chicken with garlic bread and with the mustard sauce.
Before rolling it out, he asked his existing customers to fill out a survey, post some polls on his company’s social media account.
And just to be really thorough, pay a web service to get survey responses from the type of people who frequent food trucks and he found that people who tend to like chicken and don’t like mustard oil.
He has wasted a lot of money here on a hack of expensive ingredients that would have actually lowered sales. And that’s all thanks to the primary market research.
Many experienced marketing researchers will tell you that when it comes to collecting data, nothing beats face to face conversation.
That’s because customers are humans with emotion s, and the most successful products are the once are solve the pain.
Marketing pains are anything that causes frustration or inconvenience to customers. It’s a problem that your product could solve potentially. And the best way to find it out is by talking directly to the peoples.
Big companies conduct interviews with a lot of people having different demographics and regions.
But just because you can’t afford that, it doesn’t mean you shouldn’t talk to the people when you can.
But don’t bother asking your friends and family, they are likely to be nice and encouraging, but what you need is brutal honesty.
For instance, Sita starts taking her hand made soaps to the local farmer’s market.
And she makes sure that she strikes up a conversation with anyone who will give her the time and she notices a trend in the people who say they wouldn’t buy hand made soap online because
They are concerned about packaging waste and that’s the Marketing Pain. right!!!
Now she decides to make sure all her packaging is made of the recyclable materials and that it’s mentioned prominently in advertising.
For the truly introverted entrepreneurs, the internet does offer a sneaky shortcut to finding the market pain: the dreaded comment section.
If your competitor has any sort of marketing pain and you will find people happily complaining about the drawbacks or features that wish the product had.
There’s even a successful electronic company that had made its whole business model developing products based on complaints on Amazon reviews.
This is a very generalized overview of marketing research, there’s a lot more to it: Industry lifecycle, market penetration, federal regulations.
Thankfully, there are a lot of resources out there the small business administration list of organization that offers free market reports,
And can help you to connect with a counselor or advisor, but be careful of business coaches who think their job is to be your cheerleader only. While this encouragement is nice and you don’t want to be encouraged off a cliff.
And now that’s the most important part of market research and that is objective honesty
No matter you love your product or idea, if the research tells you otherwise, well that can be a good thing. It means you can save yourself a lot of money and effort.
And freeing up your time to develop an idea that will work for you in the long run as well.
Secondary Marketing Research
Big Market for Market Research
Firstly you should keep in mind that bigger the market, more will be the customers.
The reason is that the market has become big due to its customers and the faster it’s growing the more new customers who are much easier to sell to than older customers already stuck in their ways.
Analyze the Competitors to do Market Research
A major part of the market research is analyzing competitors if the Site wants to get into the homemade soaps market.
She needs to know what the successful brands are, how much they cost, what is the most popular scents and ingredients are.
She can even credit reports on these companies for a fee (unlike personal credit scores, business credit scores are publicly available )
It tells her whether they are financially stable, and how much risk is there in the industry.
Search engines and social media for market research
Search engines and social media, both have made collecting any kind of information easier than ever.
Simply Google or Twitter search will often tell you who is the major player in an industry are. And with the Google ads account you can see how much competition there is for your Keyword.
And Google Trends is an easy kind of fun way to find out what’s hot and what’s not for market research. (seriously you can burn a lot of time in here).
By just searching on the Google trends you can tell what time of years that thing is most on people’s mind.
What geographic region even what related search tend to overlap.
This can all be useful while designing my product and advertising strategy. And all of this considered secondary marketing research. Information that already exists that you can or find for free.
But now here’s the catch
If you are really serious about success you need to do primary Market research.
If you apply whatever I’ve told you above about the market research then you can get a better understanding of your customers.
When you combine all the things, you will be surely able to create a clear and compelling pictures
Of your customer’s wants, needs, behaviors, and what not. But, the more you understand them, the better you will be able to come up with the value providing services or products which ultimately solve the problem. So that it is for now and thanks for reading this blog.
Market research is the process of finding the viability of a product or service through research conducted directly with valuable customers.
The four types of market research include surveys, interviews, focus groups, and customer observation.
The 3 main types of market research are
1. Exploratory Research
2. Descriptive Research
3. Causal Research