How to conduct market research

Video: How To Do Market Research! (5 FAST & EASY Strategies) 2024, July

Conducting market research is important for any novice entrepreneur. The rapid growth of the company at the first stage of its development is associated with a correct assessment of the market situation, forecasting its development trends, calculating the likely sales volume and analyzing the activities of competitors. For a clearer picture of who will purchase your product or service, a comprehensive market analysis is needed.

Instruction manual

Develop a research concept: define goals, set goals, develop a system of performance indicators.

Start by determining your current market position. Weigh the options for choosing the time for market promotion, the location of the enterprise within the area, the specific conditions for the purchase or rental of premises. Consider the dimensions of the room, the proposed equipment and equipment in the analysis. Perhaps the company will need storage facilities, window dressing, etc.

Analyze the assortment of goods in the warehouses of your company at the time of opening, understand the possibility of further expansion of stocks and assortment.

Evaluate the competitive relationships you need to consider. How strong are the competitors in your chosen field of activity? What is the strategy for their promotion on the market? Is cooperation with competitors possible?

Gather information about potential consumers of your products. Methods of obtaining primary information about consumers include observation, experiment, personal communication, interviewing (survey). By collecting the primary information, you can identify a specific group of customers for whom the goods and services of your company are intended. Divide customers into groups, determine the needs of each group and how to satisfy them.

Identify the factors influencing the increase or decrease in the purchasing power of the main groups of customers, this will help you describe their behavior and predict the sale of products.

Consider environmental factors: economic, political, cultural, etc. They can change the current state of the market in the next two to three years, which is very important for starting a business.

Analyze possible ways to promote a product on the market, distribution channels, ways to stimulate it, strategies for conducting an advertising campaign.

Combine the results of the analysis together in the form of an analytical report. If necessary, enter market analysis data into the business plan of the future enterprise - this will allow you to assess the risks at the start of the business and outline ways to reduce them.