|
Market Research before Starting a Business
Market research is a process whereby you gather information about competitors, consumers and distributors within your target market. By this you are identifying your consumers buying habits and attitudes to current and future products or services. Before starting a business it's a rule that you should research your target market.
Researching your target market
Target market can be summarised as people or a group of people which you plan to market and sell your products or services to. Initially, you should find the market potential, size and shares.
Market Potential means the annual growth rate which is measured in percentage.
Market Size means the value of sales made annually by all firms within a market which is measured in dollars.
Market Share means the strength of firms in the market. If one large firm dominates it could be difficult to penetrate the market.
Types of Research
Market Research is broken down into 2 categories which are Primary Research and Secondary Research. Researching your market before you begin will help you when it comes to marketing your business.
Primary Research
This is when you get information directly from people within your target market. This is done in the field by interviews, observation, retailer research and many other ways.
Secondary Research
This is when you gather information through trade associations, trade magazines, market intelligence reports, government publications, newspaper articles and many other ways.
Once you've gathered all the data about your target market then you should formulate a strategy to penetrate that market. | 
