Market research is, without a doubt, one of the most powerful tools we have today. These help determine the feasibility of a certain business idea. Market studies are recommended to be carried out before making any type of investment on it.
We live in a society with many opportunities, but also with a lot of competition. For this reason, it is essential to make use of all the tools and strategies available to protect our heritage. This is how we make sure we make smart business investments. A good market study It is key to developing any type of economic and commercial activity, in a stable and confident manner.
Why do a market study?
Market research is one of the best tools we currently have to make smarter and more informed decisions. They constitute an essential factor for increase the chances of success of any type of business. In addition, it is also a fundamental aspect to improve the products we develop, or the way of marketing them.
There are many benefits of doing a good market study, for this reason, below We share some of the most outstanding.
- Target audiences
We will know more precisely what is the target audience of the product or service that we want to sell. This goes beyond geographic location, age range, or gender. At this point of study we can know more personal aspects, like specific tastes, lifestyle and much more. Thanks to this powerful information, it is much easier to develop messages that reach that audience, which translates into more sales.
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- Law
Another of the most interesting benefits is knowing more precisely everything related to the direct and indirect competition of our brand. Aspects such as the target audience, situation, products and prices. These are data of vital importance to establish more clearly the values or the differential characteristics.
- Consumer Opinion
Market studies are also a great tool to find out precisely the opinion of consumers about our brand and products. Do they cover a need? How much are they willing to pay? Do they have a connection to the brand? What are the characteristics that you value the most?
- Discard products or projects
It is one of the most effective ways to develop more effective business ideas that are likely to be successful.. In fact, it is a highly recommended option to discard any business or product idea, before making a significant investment in it. It is also one of the best tools to innovate within an established business, as well as to transform products, services and ideas, with the aim of adding greater value to the brand, and consequently, increasing sales.
- Safe investment
Although, when developing any type of business, it is impossible to be absolutely certain of the results, a good market study allows us to considerably reduce the chances of failure, because it provides valuable information with respect to the target audience, feasibility of selling the products, and even offers important data regarding the prices of the products or services that are to be marketed.
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What does a market study consist of?
A market study aims to carry out a detailed follow-up on the viability of a certain business model, or on a specific product.
Below we share what they are The basic structures that a good market study must take into account to offer relevant data that allows intelligent decision making.
- Market structure: a good market study analyzes the general structure of the market, for which, it takes into account aspects such as definition of objectives, use of information sources, data treatment, form of analysis, and data processing and development of the final report.
- Study objectives: in order to carry out the study correctly, it is essential to determine precisely what or what the objectives of the study are, something essential to know the viability and profitability, either of the brand or of a specific product that you want to develop . In the same way, it is also possible to carry out a study to know the exact positioning of a company.
- Study tools: Another fundamental aspect is to determine which study tools to use to gather the necessary information. In general, market studies make use of direct observation, surveys, in-depth interviews, and focus groups.
- Definition of the target audience: It is also the most effective way to precisely define the target audience, both in terms of sociodemographic characteristics, as well as in regards to more personal characteristics, such as hobbies, tastes, aspirations, and so on.
- Analysis of the competition: In this type of study, an in-depth analysis of the competition is also made, both direct and indirect. The main objective of this section is to determine how similar companies work, find out what works well for them, identify market trends and, in general, find out the keys to the success or failure of said businesses.
- Conclusions: for the market study, the most important variables studied should be taken into consideration. Hence, in most cases, it is advisable to carry out a SWOT analysis, where the weaknesses, strengths, opportunities and threats of a specific brand can be clearly explored, which will be very useful to determine the conclusions of the study.
Market research is, without a doubt, one of the best tools we currently have to make safer investments with a chance of success. The best? This type of study is possible to do on your own, although it is a fact that requires patience and effort; as well as it is also possible to hire the services of a company specialized in the area. Although in the latter case, the cost of the study can vary considerably, depending on the scope and all the tools used for it.