One of the main objectives of any company or business is to launch new products or services to the market and that these have a great reception among the public.
With this, the company generates profit, grows, distances itself from the competition and positions itself as an innovative and reliable benchmark. However, this is not always the case. Only a small percentage of the products and services that are launched on the market are widely accepted by the public.
If you are within this percentage of accepted products or services, you need to carry out a market study beforehand. We tell you what it is and how it is done.
Market research: what is it?
The easiest way to explain what a market study is and why it is done is by comparing it to a relationship. At the beginning, during the first months, both people need to get to know each other, explore together, discover tastes, interests, lifestyles and habits or routines of each other.
This information helps us to get an idea of what our life will be like with that person. That is, if we can combine or not.
Or, what is the same, if it will be well received by the audience, it will be profitable and viable in economic terms. This market study includes qualitative and quantitative aspects and is used for B2B and B2C proposals. *If you don’t know what B2B is , click on the link to find out.
Why is a market study done?
Seeing the previous definition, the objectives of a market study are easily identifiable.
In general, it serves to find out if a project, product or service is viable and to have a forecast of how it can evolve in the long term. But it is also useful for:
- Discover the size of the target market to which a company or business is directed.
- Determine the brand positioning that it has or may have.
- Predict the behavior of the ideal customer when faced with a new commercial offer or proposal.
- Take advantage of the competition, anticipating with a defined plan.
- Create a viable marketing strategy, based on the information obtained from the market study.
- Set a price that is adapted to the market we are targeting.
- Refine an initial idea into a final success-oriented idea.
Who can do a market study?
This tool is very useful for any company or entrepreneur who wants to launch a project. In the case of newly created companies, or small businesses of entrepreneurs who are just starting out, it is vitally important to carry out a market study to discover if the initial idea of their project is viable. That is to say, if it has a place in the market, what type of client is its target, what is the competition doing…
In the event that it is a company or business that is already underway, but wants to launch a new product or a new service, the ideal is, before doing so, to also use this tool. Furthermore, experts recommend not investing in design or development until a market study has been carried out.
Therefore, to the question who can do a market study, the answer is anyone who is going to launch a project or a new offer.
How to do a market study
If you find yourself in any of the above situations, you are probably thinking of doing a market study. But what are the steps to follow?
Today this first step is very easy. The Internet is full of information. And consulting it is available to everyone. Ideally, you should collect information on:
- What is the situation in your sector? Check data, statistics, censuses and legislation that could affect you.
- Upcoming trends that may emerge. Thus, it will be easier to anticipate them.
- What do companies in the same sector do? Follow each step they take to be able to guess what strategy they are carrying out.
- Information about your company. Also take a look at your sales history, results of previous campaigns, production reports…
Another source of information that should not be wasted are the consumers themselves. If you prepare an interview with simple but strategic questions, you can obtain very relevant data for your market study.
You can spread these through your social networks, your acquaintances, a friendly company that can send it to its clients or database, organizations such as chambers of commerce, business institutes, associations…
Think carefully about the questions you are going to include. You can come to very valuable conclusions.
Analyze your competition
The next step to explain how to do a market study is to analyze the competition. To do this, you can choose actions such as the following:
- Visit their website. This can give you an idea of the topics they deal with, the products or services they sell the most, what their value proposition is, their differential point, what type of landing page they use…
- Follow them on social networks . In this alternative, the most interesting thing is to read the comments that the public leaves on your publications. Thus, we can know what topics interest them and even detect some needs that we can cover.
- Go to their establishments . If they have physical locations, you can go take a look. Take note of how they have placed their offers, how they serve customers, prices, decoration…
- Make a contact. Finally, you can pose as a customer and ask the questions that interest you most.
Study your ideal client
In addition to analyzing your competition, you should also closely follow the footsteps of your ideal client. It is very important that you know everything about him.
- Demographic characteristics. This group includes age, sex, place where you live or job, among other data.
- Social features. In this case we are talking about hobbies, interests, favorite books, movies or series, groups to which you belong, places you like to go, or blogs you usually read.
- emotional characteristics. Last but not least, it is essential to know their concerns, frustrations, desires, fears, dreams and desires.
Perform a SWOT analysis
To finish, we suggest you carry out a SWOT analysis. These are the acronyms for Weaknesses, Threats, Strengths and Opportunities. This study consists of reflecting on each of these variables and detailing them as much as possible in a report.
This will help you enormously to know which is the best way to launch your new project or offer. And, if you are looking to go one step further, start developing a CAME analysis; Correct, Adapt, Maintain and Exploit. In case you already have a running business, it will be very useful for you.