Market research is essential for all those who are going to create their own business. Market research for these purposes includes the study of market conditions, forecasting growth and development trends, and the study of the competitive environment.
Instructions
Step 1
Everyone who is going to create their own business asks questions - will my product be competitive? Who will buy it? Is there a free niche in the market or is it already occupied? To do this, the future business owner needs to conduct a market research.
Step 2
Market situation is a situation that develops in the market at a certain point in time, in which the process of selling and buying goods takes place. A good knowledge of market conditions will reduce your risks, because without this knowledge you will not have a primary idea of the market situation with a product similar to yours.
Step 3
The next step after studying market conditions is forecasting. After analyzing the trends that exist on the market for goods similar to yours, now and comparing them with those that existed a year or two ago, you can draw certain conclusions about how this market segment is developing in principle.
Step 4
It is also very important to be able to evaluate your competitors: your market strategy depends on the level of competition. If there are many competitors, then more aggressive advertising, website promotion, etc. will be needed. To assess competitors, you will need to study three indicators:
1. the actual products of competitors;
2. their marketing strategies;
3. the differences between yours and theirs.
Step 5
Thus, market research involves analyzing information about various companies that produce and sell goods similar to yours. Sometimes it seems that it is quite difficult to do this, since many companies hide most of the information about themselves and their own products. However, company websites, business press, professional forums can often provide at least a minimum of information. Do not forget about other ways to study the market: for example, if you are looking to open a hairdresser, then perhaps the method that will give you the most information will be bypassing competitors' establishments.
