Perform Market Research Before Starting a Business
It is often neglected the business is market research. Indeed, although there are many successful entrepreneurs do not do market research, but it is certain that the number of entrepreneurs who are successful and do market research far more than those who do not do market research. Both in terms of quantity, as well as a percentage.
That is the reason why market research becomes important for even small scale businesses. Market research should not be done with advanced technology, in-depth scientific study, or expensive and even if you can not do market research, there are many companies that can conduct market research to make the business as Redshift Research. Of course research to large scale are likely to need it. However, for small-scale research, the most important thing is to get the required data about what the character of the target market.
Types of Market Research
Market research can be divided into two types: primary research and secondary research. Primary research is the collection of market data in accordance with current conditions and performed right on target buyers, while secondary research is the collection of market data delayed from the current conditions and carried out in a broader scale by third parties.
Besides useful to get the current conditions, primary research can also be used to monitor the competitors based on market perspectives. The method can be done for primary research can be:
- Interview (via phone, chat, or face to face)
- Survey (online or offline)
- Questionnaire (online or offline)
- Focus Group Discussion (FGD)
Primary research is often not enough. In a broader scale, we need data from a third party that can explain more detailed information about the target market. Then when we must conduct secondary research? When the primary research has not fully provide the data we need on the market, both demographic and psychographic. Secondary research methods are not much different from the primary research, only third parties and do not necessarily describe the current condition (could be too late in the span of months to years).
Information that Must be Provided by Market Research
Market research should be able to get the following data:
How big is the size of the industry? How does the growth prospects for the future? What trends are emerging at a later time and how large / long effect?
Characteristics of the target market
- What the market needs related products / services you provide?
- The value of what you give on your products / services to address those needs?
- Anyone interested in purchasing a product / service?
- How do they know the product / service?
- How do they buy it?
- What makes them buy back?
- What factors make them buy the product / service?
- What factors make them satisfied with the product / service?
- What is the fee they want or deserve to spend to buy?
- And a variety of other questions.
Who are our competitors? What makes the target market choose a competitor? What price do they offer? What kind of market characteristics of our competitors? How big is the threat of new players in the products / services do we offer? Are there any products / services that affect our sales?
This information will be used to develop the company’s strategy (in the form of data internal / external which is then used in the SWOT analysis). Market research complete and accurate will make the company’s strategy to be more powerful to achieve specified targets.