Often, both entrepreneurs and business owners ask themselves the following questions:
Am I providing something that is wanted or needed in the market?
Who is most likely to buy from me (women, men, younger or older people, etc.)?
Market research is an essential part of the business startup process but many entrepreneurs skip this vital stage because of the supposed cost. Market research determines the feasibility of a project and it is a way to adapt a business’s strategy (such as communication, pricing policy, product range, etc.) to the market. It is significant to carry out market research in order to confirm an idea, make a project credible, professionalise the “setting-up” approach or convince financial partners and others to invest in your business idea.
For a tailor-made study, entrepreneurs need to know that market research can be either primary or secondary:
– Primary research refers to a new project using your own bespoke market research, which is carried out with the aim to answer specific questions. Usually, it includes questionnaires, surveys and interviews.
– Secondary research includes information and data already available, and you can access this information by utilising local libraries, trade associations, business schools, etc.
To sum up, market researchers analyse the data and fully understand the relationship between findings, competitors and the market trends. These specialists also evaluate and draw conclusions based on the findings to aid entrepreneurs to make important commercial decisions.
Understanding the market research process will not only provide knowledge on how it all works, but also indicate how in-depth research provides you with invaluable intellectual data. Due the high level of competition into markets, small businesses and startups need to find the best way to increase funds for their potential projects.