The process of gathering, analyzing and interpreting information about a market, about a product or service to be offered for sale in that market, and about the past, present and potential customers for the product or service; research into the characteristics, spending habits, location and needs of your businesss target market, the industry as a whole, and the particular competitors you face Entrepreneur - http://www.entrepreneur.com/encyclopedia/ter m/82436.html
The business that best understands its customers positions itself to meet their needs better than anyone else. You need to understand and enter the conversation going on inside your customers head. Market research also helps with:• Reducing risk.• New product launches.• Understanding why customers are buying or not.• Developing more effective marketing communications.• Understanding your competitors and how to compete more effectively.
Is there a market for your offering? What is the growth potential? How many competitors will you be facing? Are there market gaps you can fill?
Is there an opportunity to extend my product line? How do I position myself more effectively against my competitors? Is there an opportunity to create a market where there are no direct competitors?
Primary Research Direct contact with the target customers - surveys, focus groups, interviews. Allows for in depth questioning and detailed responses. Limited sample size Expensive
Secondary Research Research through other sources - internet, books, libraries. Less expensive than primary research. Provides greater breadth of information. Researcher cant interact directly with market. A combination of primary and secondary research is ideal.
Focus on your market first, then your product. In most cases you will not create a market for your product. You will provide a solution for an existing need or problem. Market segmentation allows for a better allocation of a firms finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and incur the related costs) in servicing specific groups of consumers.
For additional information please contact: The Efficiency Xperts, LLC 119 E. Kings Hwy. Maple Shade, NJ 08052 Office: 858-722-8258 www.theefficiencyxperts.com Bruce Davis, Managing Director