Do you know what it is and, above all, how to do a market study for your project or enterprise? In the business world, exhaustive analyzes are rarely carried out to learn a little more in detail about everything that surrounds a brand, product or service (both before its launch and after).
Currently, for example, there are still many projects that are launched without prior investigation of their viability in the market . And, by not carrying out that initial step, many brands fail in their attempt to make a dent in their eCommerce or business in a specific commercial sector or niche.
For this reason, today I have decided to share with you this complete guide, where I will reveal each and every one of the steps to follow to carry out a market study . Although first, as usual, we will start by analyzing the definition of this topic and its business benefits.
What is market research?
A market study is an investigation that is carried out in various industries to better understand the commercial perspectives before the launch of a brand, product or service, with the aim of trying to recognize the potential responses of customers and the competition towards them. .
In this business document we seek to collect a complete and exhaustive investigation, which seeks to provide us with data to be able to anticipate the feedback that the market will not give, mainly, the potential clients of the Brand and the different competitors in the sector.
All this, in short, referring to the services that this organization offers or the products that it is going to sell. And, thus, knowing which are the ones that, hypothetically, will have the greatest impact on potential clients. In the same way, this market study will give us qualitative data to be more competitive.
What is a market study for?
Once we have understood what a market study is and, before knowing how to carry it out step by step, we need to emphasize its uses.
For this reason, you should know that, by preparing this document, we will be able to intuit with greater precision the virtual evolution in the short, medium and long term of our brand, service or product:
Anticipate market viability:
One of the main data that this type of study can provide is that of the potential profitability that the business can obtain, as well as the possibility of predicting the risks that it will have to assume. In addition, it allows us to discover the preferences, objections and some trends that our potential customers will opt for.
Know the competition better:
This market study also helps us to reveal the future steps that, in theory, our competitors could take within that niche, based on the past evolution of their respective businesses.
In addition, the study of our potential competition, in this case, mainly helps us to recognize improvements in the different production and sales processes (characteristics of the product or service, quality, price and distribution methods thereof, among many other issues) .
Improve the scope of Marketing actions:
For a Digital and Offline Marketing plan to work properly, there is nothing better than having data and statistics on the purchasing habits of our target audience and, in addition, having knowledge of some of the strategies that our competitors are already implementing.
Benefits of completing the market study for your business
You may have the idea that a market study is a document only for very large companies and markets.
This is a mistake, because all companies and businesses are competing on the same playing field ; and an analysis of this caliber helps you to know the rules of that game.
I am going to show you, therefore, the benefits or advantages that you obtain when you dedicate part of your time to creating your own:
» You know your target audience better
With regard to the topic of the Buyer Persona or, more generically, your target audience, I am referring to their purchasing behavior regarding your products and/or services.
With a market study you can better understand the needs of your potential customers.
This will help you a lot to create your own database, which you can segment in a very simple way every time you launch a new strategy or Marketing Plan , for example.
» You can anticipate changes
A study of this type helps you to know the trends of the sector in which you have your business, being able to anticipate what is to come.
This gives you a competitive advantage that consumers value very positively, as well as a margin of maneuver that allows you to put “preventive” and not “corrective” measures.
» You know your competition
Competitors are as important, if not more so, than your own potential customers. And it is essential that you know them well, as it will help you measure your target market and you will be more competitive.
» You discover new market niches
It allows you to have a deep knowledge of your sector and, more specifically, of the specific market niche you are targeting with your project, which is provided by this analysis that I am proposing today, it opens up new horizons of action where you can diversify your business.
You already know how good a market study is. In the next section I will show you how you can do it in a simple way.
» You can design product strategies
Creating and modifying your strategies as you see fit in each case allows you to price and define your campaigns much more precisely , thus increasing your chances of success.
It also helps you make the best decisions every time you consider making a new release.
Designing a product launch strategy can be very expensive if it fails; On the other hand, with a good market study you minimize the level of risk considerably.
How to do a market study in 3 steps?
A market study is based on the collection of information that you must then order to make the appropriate decisions.
There are many ways to capture the important information with which you can build the final document.
It is good that you establish an order in the achievement of the tasks that lead you to develop your market study.
1) Define the objectives
Every market study begins with a first step, that is, start any work methodology that you are going to use, being clear about why and what we are doing it for.
Being clear about your quantitative and qualitative objectives will help you better plan the way in which the different steps should be approached and the most appropriate methodology for each one of them.
What do you need to know? After defining the problem and setting the objectives of the analysis, specify and limit the information that you really need to obtain, so as not to get lost in a great tide of data and irrelevant statistics.
2) Collect market information
Information is power, and everything you can know about the progress of your sector will help you better understand the market study, and where you should go.
Therefore, use all the means you have at your disposal to analyze in depth how the sector in which you work is doing:
• Visit the web pages of all official entities that provide you with relevant information
The Chambers of Commerce, business associations or the Ministry of your Autonomous Community can give you a broad view of the situation of the sector in your geographical area.
In the event that your business is not geographically limited, analyze the global economic situation , as well as all the relevant details that you must take into account within your sector.
• Make a list with all the congresses organized by the sector
Try to attend at least a couple of fairs and events , to learn more about aspects that may not be published on any website, however relevant it may be.
• Locate all the specialized publications of your industry
• Interview with industry experts
A good way to know the situation of the sector in which your business is located is by listening to the opinions of the experts.
For example, organize a meeting with a manufacturer in your sector and let him tell you his vision of it.
All this information you get from your sector helps you understand what the trends are and how you can stay ahead of what’s new. In this way, you avoid receiving an unpleasant surprise that, if you do not anticipate it in time, can cause you to lose market share.
3) Observe consumers, define the target audience
This is the most important market research step of all . It does not mean that the rest are not necessary, but you should pay special attention to the information you collect from users.
Use different research sources to collect information:
• Direct observation
If you need to have your business in a physical location, then you should observe the behavior of consumers in locations similar to yours, or the one you want to acquire in case you are thinking of setting up your business.
Analyze the amount of traffic of people that pass through the area, the hours, the type of clients that enter the premises similar to yours , their age, their sociocultural and economic level, etc.
And if you are doing a market study for your business because you plan to incorporate a new product, do this exercise in your own place.
• Research in social networks
Ordinary users are usually very honest when it comes to evaluating a product or service on the Internet. Observe and analyze the opinion they have of both your competition and your own business.
Take advantage of communication in the main social networks , to ask what they think about your product, what they would change, how they value the incorporation of a certain service, etc.
• The polls
An essential in any analysis of this caliber: a survey is the best tool to validate any launch of a new product, service or even a business.
They help you to have a real and updated image of the perception that people have about your idea, product or service.
Although you can also take advantage of its potential to research prices , analyze your competition or assess whether your marketing plan is adequate.