Both new business owners and entrepreneurs take the time to do thorough market analysis before taking a dive into starting a new company. There are a number of key questions one needs to answer before they fully understand the market of their potential industry. Assessing your market and your market opportunities includes the process of investing time and resources to identify whether or not you will fit into all aspects of the market to make your business profitable.
The following is a list of questions you should consider when working to fully understand your market:
- What is the current size of your market?
- Is there room for growth in your market?
- How much market share do you have? Or, how much is available to take?
- Who are the biggest competitors in the market?
- How does your product fit in with the current market?
- Who are the current customers in the market and what are their buying habits?
As you can see from these questions, it’s important to understand what your business idea is going to bring to the market, and if you are going to be able to succeed. Market research includes more than just researching the basics; it also includes using your resources to answer all these questions and understand your business capabilities .Also, doing the market research to answer these questions will allow you to better understand if there is a demand for your product or idea.
Market research can assist you in finding the answers to these questions.
Size of the market – this means identifying how big the market is, which is crucial in determining whether or not there is room for your product. For example, if there are already multiple businesses offering the same product, why are consumers going to need a new option? If you proceed, you will need to make sure there is room for your product in the market.
Growth – if your product has a market, you need to make sure there is room for growth and that you will be able to push sales into the future. Just because there is high demand now, doesn’t necessarily mean there will be continuous growth into the future.
Market share – market share basically means how much percentage of the market your business holds. If you are losing market share to other businesses, or the market is already full and there is no room to compete, you might want to consider moving on. If you cannot hold the market, then you will not be able to reach customers.
Competition – competition is always an aspect you need to continue to research. Understanding your competitors will allow you to understand their successes and failures. Which means you can make better business decisions. Also, knowing how your consumers feel about the competition can help you in the long run to make your product better fit their needs.
Our Product – if there is no room for your product in the market, then you will need to reassess. But, if your product is able to sell in the current market, then you need to continue to research where your future lies. Understanding where your product aligns with the market is a never-ending game, and it’s important to continuously work to see how consumers view your product, and how your product compares with others.
Customers – customers and the overall market are one of the most important aspects of your business. You need to ensure you understand your target customers and their needs, especially when entering a market where customers have other options.
There are so many factors you need to assess when working to better understand your market. MarketResearch.com’s newly upgraded solution, Profound, helps users find the information they need to better understand their market. This cost effective solution allows users to purchase individual sections, chapters, tables or charts from syndicated reports without having to purchase the entire report, making it easier to acquire the bits and pieces of data you need to assess a business for an affordable cost.
To learn more about how Profound can help you, visit our website and sign up for a free trial.
Thanks for reading!
Caitlin Stewart
Marketing Associate
MarketResearch.com
