The precursor​ to Startups & Product Marketing: ‘Market Research’

Smart business considers market research as an integral part of their business strategy. Understanding the consumer behavior, buying patterns, upcoming market trends, and the cultural-social-political-personal factors that affect the business is very relevant. Market research provides you all the information required to understand why and what makesthe customer choose your product.

Research & Development (R&D) departments and private companies are booming in the market. According to the specific requirement of a company, the researcher chooses the type of market research required and determine the demographic factors. Market research requires assets like industrial experts, analytical skills, manpower and a great affinity towards innovation & technology.

So, how exactly can you do the market research for a particular industry?

1. Identify your target and potential customers

You need to identify the persona and characteristics of our target and potential customer based on their age, location, lifestyle, profession, etc., whichever is applicable to your business.

2. Describe the buyer behaviors and patterns

At this stage, you will analyze the buying behaviors and buying patterns associated with the product or service. You will also determine the desired set of features buyer expects in the product or services and the principal price points.

3. Determine the customer needs and demands

The most difficult stage of market research is to determine the needs and demands of a customer, as this requires a strong intuition and sagacity. This varies from products (services) to products (services).

4. Determine the competitive advantages of your product

It is highly important to analyze where you had positioned your product in the market segment and what are your competitive advantages against your competitors. Market metrics like size, trends, life cycle and projected growth, and the factors that motivate your customer to purchase your product/service will all be analyzed at this stage.

5. Project the market share, investment and profit margin trends

By understanding the forecasted spending pattern of your customer, you will be able to determine the market share you are likely to attain in the future, provided you are well-equipped to face the disruption and competition within the market segment. According to the findings you will be able to lay out the pricing structure and project profit margin trends as well, which is a potential sales motivator.

The result of a market research not only helps you determine the growth of your business, but also figure out how your company will fit into and adapt to the marketplace and condition. So, there is much to gain from Market research.

Here are a few tips to plan your market research cost-effectively:

1. Identify your exact needs for the market research
2. Prioritize and concentration on what is relevant for you
3. Assess cost-effective research substitutes
4. Evaluate the cost factors associated with the in-house research vs. hiring a marketing consultancy vs. purchasing market report

Even when you have the option to approach an already established market research company to get your hands on a ready-made research result, it is highly recommended to have market research partner for several reasons. A dedicated market research team would align the research strategy with your business goals and provide you a highly customized research upshot. The industry experts will provide the consultation in all stages, elevating your brand presence in the market. The research partner will understand the pulse of your company and what type of customer you are looking for. Not to mention the cost leadership associated with the research process.

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