Amazing Young Business Builders The Market Research
THE MARKET RESEARCH Market research is a very important component of business strategy . We need to study the market to see if there is room for our idea, to improve it and to create the best business plan . To do so, we need to get organized to gather information about competitors and possible consumers . A location study is also very important.
Is there a market for my idea? Try to answer the following questions: 1. Does it satisfy or create a market need ? 2. Can you identify potential customers ? 3. Is our product/service unique, distinct or superior to those offered by competitors? 4. What competition will it face? 5. Is the product safe for public use and does it comply with relevant regulations and legislation ?
The market? A market is any one of a variety of different systems, institutions, procedures, social relations and infrastructures whereby persons trade, and goods and services are exchanged, forming part of the economy. It is an arrangement that allows buyers and sellers to exchange things.
The market? Markets vary in size, range, geographic scale, location, types and variety of human communities, as well as the types of goods and services traded.
The market share The market share is the percentage or proportion of the total available market or market segment that is being serviced by a company. It indicates how well a firm is doing in the marketplace compared to its competitors.
Competitors analysis Competitor analysis is an assessment of the strengths and weaknesses of current and potential competitors. This analysis allows the entrepreneur to identify opportunities and threats in the market.
Competitors analysis To study your competitors you must look at: Location Products and services Prices Image and Communication strategies Weak points Strong points
Customers and consumers customer /ˈkʌstəmər/ a person who purchases goods or services from another. consumer /kənˈsumər/ a person or organization that uses a good, commodity or service.
Customer study A customer study should gather information about: Target Customer Profile Consumer Needs Customer Attitude Consumer Desirability Customer willingness to pay Customer Spending Power Use a survey to get such data
Consumer profile First, define your target consumer profile: Age Sex Interests Needs Spending power Willingness to pay etc.
The survey A customer study can be made with the help of a survey . A survey is a structured interview and is managed by an administrator. When the questions are administered by the respondent, the survey is referred to as a questionnaire or a self-administered survey.
The survey These questions should help you study your possible customers: 1. What needs do you have related to “our idea”? 2. what woul you like us to offer you? 3. What do you think about our idea? 4. Do you usually spend money on this kind of products/sevices? 5. How much would you pay for this product/service?
Location study Is the place you've chosen the best location for your business? Consider: Your business needs Local Population features Visibility Security Traffic Signage options etc.
Market research results Oportunities /'ɑ:pər'tu:nəti/ possibilities due to a favorable combination of circumstances Threats /θret/ declaration of an intention or a determination to inflict harm on another Conclusions /kən'klu:ʒən/ the act of making up your mind about something
Now, it's your turn! Exercise : Make a market research: Study the market Study your competitors Study your potential consumers and customers Study the location Find out about your threats and oportunities Get your own conclusions