Market research is a systematic and objective study of the market aimed at documenting the analysis of information generated by such an inquiry says Paul Haarman. It can also be termed as a process that provides strategic marketing decisions by going through different geographical, economic, and social factors.
The significance of market research cannot be denied in achieving business growth as it helps to know all precise facts about a market before taking any steps towards it. There are two types of market research: primary research and secondary research. Market Research initiatives can help organizations understand buyer preferences, segmentation, targeting, positioning, etc.
In this article, we have tried to present you with some very important questions that should be answered during any organization’s effort for performing effective market research. These questions will definitely serve as a guide for all business entities in order to achieve their respective goals.
1. What is the current market size and what is the expected market growth?
The first question that needs to be answered during market research is about the existing market size and its projected growth. It is very important to know these figures as it gives you an idea about the potential of the market and also how much effort needs to be put in order to capture it says Paul Haarman.
2. Who are your competitors?
Once you have an idea about the market size, it is important to know who your competitors are. This will help you understand what strategies they are using, what products they are offering, how pricing is done by them, etc. This information will help you improvise your product and also see how it is better than the competitors’.
3. Do we have any competitive edge over our competitors?
Competitive edge is very important in order to achieve business growth. You need to identify strategies that will provide you with a competitive edge over the rest of the market participants. It can be by improving your products, offering better customer service, providing more convenience to customers, etc. Your efforts must always be focused on taking your business ahead of your competitors and then gradually everyone else will follow suit and tag along with you.
4. What are the needs and wants of consumers?
Consumers want something that they cannot live without; something which adds value to their lives; something which makes their life easier says Paul Haarman. Identifying consumers’ needs and wants is the first step towards market research as it gives you an idea about why people are buying your product, what purpose it is serving for them, what problems they are trying to solve via your product, etc.
5. What do customers think of our products?
Once you have completed all necessary market research efforts and prepared yourself to expand into a new geographical area or introduce some new range of products in your existing markets, then you need to know how consumers are responding to them. Are they satisfied with your services? What sort of changes needs to be brought in order to improve their response? Are there any complaints against you that need immediate attention? You can get answers to these questions by conducting surveys and conducting interviews with your customers.
6. What is the price sensitivity of consumers for our products?
Price sensitivity is an important factor that determines how much demand a product can generate in the market. If the price is too high, consumers will not have interest in buying it, even if they need it. On the other hand, if the price lowers to an extent where it becomes negligible, then there will be no profit margin for the producer. So, finding out the right price point for your product is very important to gauge its success potential in the market.
7. What are our current distribution channels and what new ones should be explored?
Once you know who your target consumers are and what their needs are, you need to know how to reach out to them. This is where distribution channels come into play. They help you get closer to your customers, make it easier for them to buy your products, and also aid in creating brand awareness. Identifying the right distribution channel is important as it will help you reach out to more consumers which can boost up your business growth manifold.
8. What pricing strategies are used by competitors?
Pricing plays an important role in any sector as it not only gives a clear indication. About what value a product holds but also helps companies create a competitive edge over their peers. You need to be aware of the strategies that are being follow by rival firms. Especially those operating in the same geographical area as yours. As they have a higher probability of being use by your target customers. It is important to have a fair idea about them. So that you can come up with ways to beat them at their game.
If you are thinking of entering new geographical territory. Looking for ways to expand the reach of your business. Then market research is one way in which you can identify potential opportunities explains Paul Haarman. By doing research on the geographical area that interests you. Its consumers, their needs and preferences, your competitors’ strategies, etc. You will be able to make better decisions regarding the expansion of your business in these areas.