Why market research is so important
The foundation of any effective marketing plan is based on market research. Successful business owners know that they need to base their marketing plan on concrete information rather then vague guesswork and hopeful expectations. This means that getting the right amount of market research ultimately determines how well you are going to be able to market your products or services to your consumer. There is a lot to know about how to effectively do market research but it can be done if you take the time to educate yourself about it. Here is why market research is so important-
- Understand what market research really is-The main focus of market research is to help you determine who to structure your marketing plan. You need to know a lot about several different factors so that you can make conclusive and correct decisions about how to market. Some of these marketing factors that you need to know about are-
1. Who is your customer?
2. Where does your product or service fit into the market?
3. Where is your customer most likely going to purchase your product or service?
4. Who is your competition?
5. What is the current state of your market?
Once you begin to gather this information your marketing plan will begin to be more evident. You will need to determine the best possible method for getting this market research.
- Understand your customer-One of the cornerstones of good market research focuses on the customer. You need to develop a profile of who your customer is and what they are looking for in order to make sure that your product or service fits their needs. There are many business owners who overlook this needed step. You need to keep in mind that not everyone will want to buy your product or service so you should not strive to be everything to everyone. Instead when you find who your target market is you can find the best marketing methods to reach them. Some things you will need to know about your customer is-
1. Will one or both genders want your products or services?
2. What is the age range for your target market?
3. What is the income level for your target market?
4. Does your potential customer shop online or need a physical location to shop at?
5. What is the lifestyle, hobbies, and shopping habits of your potential customer?
- Understand where your product or service fits in the market-You will need to have a clear understanding of exactly where your product or service fits in the market. Having this information will enable you to develop the marketing plan that will serve your product or service the best. Some of the questions you should ask are-
1. Will my product or service have a long lifespan in the market?
2. Will my product or service satisfy my customer's needs or wants for the long term?
3. Is my product or service adaptable as the needs of the market change?
- Understand your competition-Another often overlooked part of market research focuses on the competition that your business has. Keep in mind that no matter how great your product or service is you will have competition. Today, because of the internet there is more competition for every business then ever before. You need to keep in mind that your competition is no longer just the business down the street but also the one that may be halfway around the world. You should also not limit yourself to nearby businesses that sell the same product or service but also include businesses that sell a viable substitute and businesses that could develop to challenge your position in the market. This is the best way to get a complete picture of your competition to aid in your marketing plan.