The importance of market research in 21st century can never be over emphasized as it allows prospective business owners to generate ideas that will enable them to solve an identified problem.
The market research also enables them to meet the needs of people living in a particular environment, market, or community.
It allows the business people to avoid a mountain of risk, anxiety, and second-guessing and It also allows them to draw up a business plan that is worthy of their idea.
Suffice to state that market research is the critical first step of starting up the business process. It involves scoping out the competition, to figure out who they are, and understanding the size of the market as well as the nature of demand and supply for their product/service. It also involves a careful analysis of consumer trends and preferences.
In market research, you want to find your market, prospective businessmen will like to ask all the questions that need to be asked, understand just how unique their business idea is, market research makes all the difference.
In this article, however, details on market research would be highlighted. Below are the top 7 market research ideas to consider before starting a new business
1. Knowing The Value Of Your Business Idea
The concept of value can be quite abstract. People define value in different ways depending on their geographical location, financial resources, upbringing, and culture. With changes in the environment, fluctuating pop culture trends; rises, and falls in the economy, value also changes with time.
As an entrepreneur, you can think of value or ‘market value’ as the problem-solving ability of a business, consider that the purpose of a business is to consistently provide products and services that benefit consumers and other businesses too. Your business would fulfill this purpose by solving a problem that has no solution.or one that has solutions that can be greatly improved.
To determine the value of your business idea, the survey is a useful way of probing the minds of people, your feelings, and intuition while valid will not be enough here objectivity is key. Once you are satisfied with the value of your business idea, the problem is going to solve and it will appeal to a wide pool of people, then you are good to proceed
2. Identifing the Target Audience
In identifying your target audience, you figure out exactly who is seeking solutions to the problem your business is going to solve, because your customers are the bread and butter of your operation. The three different customers you need to consider are:
The purchasers, who make the decisions and actually hand over the money,the influencers, individuals, or groups who have sway and influence over what people buy,the end-users: the people who actually use your product or service.
These three might all be the same person or completely different people, what their occupations are, how they relax, and what they are willing to spend money on.
Another option is to buy expert market research data. Affordable market research data on consumer preferences and behaviours can be purchased at affordable prices from several market research companies.
Just make sure that the data you are buying is ethically sourced and that it targets the geographical region you are most interested in.
Once your new company/product is functional, all the time you have taken to understand your customers will make them feel heard and valuable. This does wonder to increase customer loyalty.
Furthermore, use the information gathered during this stage to develop a customer profile. This is a detaile of a typical potential customer, and it addresses characteristics like sex, age, income, and level of education. Customer profiles are valuable when trying to come up with a communication or marketing strategy.
3. Checking Out The Competition
Competition is just an important sign that your idea is relevant and valuable in the current market. Now, your job is just to figure out what you can do better than your competition. Additionally, you want to identify the different classes of competitors based on how often you will interact or compete with them.
To observe your competition, visit their websites and follow their social media pages. In essence, become a customer of the competition and learn what they do properly and where they fall short.
Furthermore, another important strategy is to talk to the competition,so in your surveys, you could include questions like: “Where do you go to purchase this service? How often do you go? Why?
4. Capturing and implement the idea
The business idea is the body of thought and reflections about the nature and structure of the business and what should be the guiding principles on which to build the business. It guides the direction of the enterprise, idea tells the entrepreneur what to do and not to do.
5. Knowing the best idea/ opportunity
This stage is an investment decision stage. Criteria for accepting or rejecting the project called selection factors, are put to place, such selection factors may be obejective or subjective.
6. Recognising the need for running a venture
A venture must be fully recognized. The very propelling influence needs a mature or drive that is responsible for the entrepreneur mindset to run a venture.
7. Conducting self approval
Define your value, competitive strength, behavior, resources and other capabilities.prospective entrepreneur must analyse themselves and see if they posses the occupational, professional and entrepreneurial competence needed to run an enterprise being contemplated and value assessments are technically referred to as company profile.
Market research is just about learning about what’s going down in the market. That is, this sort of study allows you to understand what solutions people are actually looking for, what trends might influence their choices, and how your business can offer value and grow rapidly.