In my last blog post, I touched briefly on the topic of market research. In order to understand market research, it’s important to first understand what a market is. A market, in simplest terms, is the group a business sells to. For example, a company that sells toys would have a market of mostly children. It’s important for a business to cater to its target market, as those are the people who are going to be buying the products or services. Some markets are very competitive, meaning lots of businesses try to sell to that group of people. It’s important to research your market before starting your business.
There are two main types of market research, primary and secondary research. Primary research is carried out directly on your market. Secondary research is learned about your market through existing sources. An example of primary research would be a survey, while an example of secondary research would be looking up data online. Both of these types of research are beneficial, and both should be used when conducting market research. It can be helpful to look at other businesses in your target market. These businesses have experience selling in the market, and have likely conducted extensive market research too. The research conducted by other businesses can be helpful for yours too.
Why is market research important? Well, market research gives you information about your customers, which is key to the success of your business. This information includes, who your customers are, how you can reach them, what their wants and needs are, how they behave, and how many potential customers there are. You can use this information about your customers to better fit your business to their wants and needs. In last week’s blog post, I talked about making your business unique. Market research is a great way to find out how to make your business stand out, and how to get your target market to notice you.