This study helps start-up companies of all kind to understand the market and consumer behaviour well, and to identify the expected problems and obstacles in the market, and thus raise the project success rate and the revenues instead of the project failure rate and the losses.
Every day, there are many pioneering businesses and projects that appear and are launched in the market, with the hope that they will succeed and be fruitful and gain a special place in the eyes of the consumers. But, you know, there are lots of projects that close their doors forever.
You might wonder if the market study only benefits big companies. Actually, that's not true. All businesses, even small ones, need market research in order to learn more about their market performance.
Suppose you want to bring a particular product to a market. What would you need to do? In short, you will need to study the market to understand the needs of consumers, for example, what is the average income in the target market? What is the size of the target market? Which is the preferred way to ship a product to the consumer in the target market? And other questions will give you a sense of what consumers expect in the product you plan to sell to them.
Therefore, in this article we are going to learn about the concept of (market research), what are the different stages of market study, the importance of market research for individuals and companies, and what are the most common ways of gathering market research.
What is meant by market research?
The concept of “market study” or as it is also called “market research” means, in short, conducting a study aimed at collecting the necessary data about consumers' needs, desires, attitudes, and preferences, and any other data about them, would help their owners to find them more easily, resulting in higher sales and revenues for their owners.
What are the stages of market research?
1 – First stage:
The first stage is to determine the main objective of the study or research. Are you doing this for a specific product or for a commercial project as a whole?
2 – Second stage:
The second stage is determining your target audience. Are they your real customers or potential consumers for example?
3 - Third stage:
The stage of collecting supply and demand data in the market, by knowing the quantity of products or services offered and sold in the market, which are collected directly through market field surveys, and indirect contact with customers through, for example, social media platforms.
4 - Fourth stage:
Studying your competitors is an essential part. After all, if these companies are in this market and succeed, So that means there's something that they're doing in the right way, and there's nothing wrong with trying to figure out which aspects of your strategies can be improved or modified.
What is the importance of market research?
1- Understanding the actual wants and needs of consumers and other details such as: average spending, average monthly income, consumers’ buying habits and the best way to ship products, etc.
2- Determining the size of the target market may also be beneficial if you want to introduce new products in the near future.
3 - Predict common problems and constraints in the target market, and therefore be willing to provide appropriate solutions to those problems and constraints.
4 - Some gaps and opportunities undetected or unnoticed by competitors may ensure the entrepreneur gains a good position among competitors.
5 - Discover new segments of customers that have not been dealt with before, and this can be done through various types of marketing research.
6 - By studying the market one can find out the prevailing prices, and therefore the products are properly priced. It is neither higher than normal which makes customers reluctant nor lower than normal so customers lose confidence in its quality or relevance.
7 - This is an important step for those who have projects already in place but plan to introduce new products or expand into new markets. They are also necessary for those whose work is a transaction, such as import and export projects, before each transaction a market study is preferred to ensure that the sale is quick and easy
Even small, medium and enterprises projects also need to examine markets occasionally. This ensures that they keep abreast of changes in markets, helping them to continue to succeed and take advantage of undiscovered opportunities from competitors, which guarantee them superiority and greater success.
What are the most popular methods used in preparing market research?
In order to do a good market study, you can get the above points right. You can do this by finding answers to the following questions.
1- Which segment of customers do I offer the service or product to? What are their needs, characteristics and interests?
2- Who are my competitors in the market, and what are their strengths
3- Are there alternatives to the good or service I am offering in the market?
And to get precise answers to those questions. You can rely on field research "going to the market", asking your target clients. Refer to the published papers in the field of your project.
Then we use the method of providing the service or product to the consumer or customer. It is one of the distinguished methods of preparing a market study because it provides detailed information about the consumer desires, and have proved effective in motivating consumers to evaluate the service or product after obtaining it.
Example: You might present a piece of your product as a gift if the customer evaluates his experience of your product.
The most important points to consider during the market study:
• The specifications of the product, its most important uses and the target segment in the market must be defined, in addition to identifying alternative products.
• The level of demand for the product and the seasonal changes that affect the product must be known.
• The volume of consumption of the product and the most important motives for its purchase must be determined.
• You must identify the competitors and the nature of this competition, in addition to creating a comparison between the local or imported product.
• You must determine the means of advertising that must be relied upon to promote the product.
In conclusion, market research or market study is now necessary for any company or organization looking to increase sales, reduce losses and differentiate in the market by understanding the actual desires and needs of consumers in order to meet them.