Steps to Market Research
STEP 1. Establish The Goals of Your Market Research
What decisions should it help you make?
Your Goal should focus on helping you make crucial decisions about how to meet your customers’ needs.
STEP 2. Determine What Information You Need About….
Your Customers:
Who are they? Where are they? Why do they buy? Where do they buy now?
WHO ARE MY CUSTOMERS?
1. PROFILE:
Economic Level –
Psychological Make-up-
Age –
Sex –
Income Level –
Buying Habits –
2. LOCATION:
Live –
Work –
Shop –
3. MARKET SIZE:
4. COMPETITION:
5. OTHER FACTORS:
CUSTOMER NEEDS
WHAT CAN I OFFER?
Your Competitors
Who are they? What do they offer? What are their competitive advantages? Etc.
Your Environment
What will happen to the industry? Will the economy change? Am I on the right side of the trend? Etc.
STEP 3. Research Secondary Data
That is…look at information gathered by others first (much of it is already compiled and often free through your Community Futures Office).
STEP 4. Analyze The Information and Make Decisions
- Go over research info and compile all useful information
- Interpret what the raw numbers mean regarding prices, products, place
- Look for opportunities, needs that are not met by a competitor
- Take action based on what you learnt
As a result of this market research you should fundamentally understand your market. Above all, you must thoroughly understand who your potential customer is and what makes them tick. Likewise, you should be able to describe where you are in relation to the customer, your environment and your competition....