'Market Research' is very important before starting a business. But what exactly is Market Research/Analysis ?
Question:
How different is the Market research done by individual start-up entrepreneurs as compared to that done by large corporations like Microsoft etc.
Answer:
Market Research, is actually a group of activities, defined more by purpose and scope than by a specific methodology or a series of particular tools.
The basic question behind market research is . . Will they buy ? (The product, service or experience)
In escence, this is the question behind every offer and commercial proposition, the question that fuels the balance of supply and demand in every market. So how do you go about conducting market research . ? That depends on exactly what it is you are proposing, and who's your real target.
Market research looks into every variation that motivates the potential customer, and continues asking subsequent questions until a final VALUE PROPOSITION and a final MESSAGE are developed. Question like:
Who will buy, at what price, with what options, in which locations, under what circumnstances will they switch or remain loyal to the buyng experience.
1) Your first step is to determine a break even value (exactly how much you need to sell to stay above board and be profitable) this shall be measured in $$ and in units.
2) One you know how many units you need to sell you must identify, who you think will be the most probable consumer group. This is simple but depends on what you are selling. It´s totally different to market pet grooming (for which almsot any knowlege on your neighbourhood is enough) than to market a presidential candidate. !
3) Once you link your target volume to a consumer group or target segment then you will know what kind of market research tools you will need. In general, when starting out, smaller and simpler are always better. Focus groups are a good tool for scalable marketing, There is also direct interviews and open surveys (surveys and polls are probably the most abused tool in market research and probably the reason why people have mistified MR making it look like something you need an MBA for.)
The best market research comes from experience think if you would buy than probably many others would too. Look at how some of the worlds Marketing ICONS were produced (the STAR WARS concept is a great example of experience marketing)
4) develop a way to measure your progress, as you start collecting information from your target segment identify exactly what you will do, will you change your product design, will you change your sales pitch, your distribution "channel" Than turn the information into SALES.
The biggest mistake un MR is to conduct the research and modify the VALUE PROPOSITION without actually impacting sales. Remember you are marketing for one reason, and that is to GROW your concept and GROW your business. this is first done through SALES. . !
Market research is basically finding out if people in a particular area want the item you are selling. for example, you dont want to open a hip hop dance club in a predominatly senior community. Market research is done by studying demographics and information about the area as well as polling people, yes. There are many ways to get this done. Depends on the type of buisness, and who your target customer is.
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