Most of the business fail to survive in the market. There are several reasons why startups fail. Companies should prepare a solid foolproof plan to survive in the market among many competitors.
Some common reasons why a startup fails:
- Not having a strategy
- Not having a skilled team
- Ignoring customer need
- Not having a business model
- Cost issue
- Outdated products/services
It is crucial to conduct market research before starting a startup.
Certain market research steps you need to conduct before launching a product/service or the startup.
Identify the research purpose
The market research depends on the specific goals and needs of the business. The market helps to understand the customers’ preferences, needs, and expectations. Here are a few purposes of market research:
- Identifying market opportunities- It helps to get an idea about the business’s new opportunities, including trends, potential niches, and tastes of customers.
- Product development and improvement- it helps to gather feedback from the customers on their existing goods and services. This helps to offer better services and goods with the best user experience.
- Understanding customer needs- it helps to gain insights into customers’ preferences which allows us to make a better product to meet their expectations.
Examine the target market
it involves a comprehensive study analysis of the specific group of customers that a business aims to reach with its products or services. Some key aspects to consider when examining the target market:
- Needs and preferences- how can we solve the problem of the customer with our product?
- Technological Adoption- what types of devices do customers use?
Are they early adopters in technological terms?
- Demographics- the age, gender, income, and education of the targeted customers
- Geographical factors- what could be our targeted area…? Is it local, regional, national or international?
Analyze the competitors
Analyzing competitors provides (SWOT) strengths, weaknesses, opportunities, and threats to our business. This helps to position our business effectively. It is the crucial aspect of every business which helps in strategic planning.
- Strength and weakness- Identifying the strengths and weaknesses helps businesses to take strategic advantage.
- Financial performance- analyze the financial statements if possible. Helps to evaluate growth, profit, and financial stability.
- Distribution channels- it helps to know the distribution channel of the competitors. How they distribute the products. It helps to evaluate their distribution work.
- Customer review/feedback- it helps to know the satisfaction or dissatisfaction of the customers towards the product. Analyze the feedback/review of the customer products/services.
Select a research method
Some research methods are used by the researchers which depend on the objective of the study, the nature of the research question, and the available resources.
Survey research
- Objective- gather quantitative data and opinions
- Method- surveys through questionnaires, interviews, and online forms.
- Applicability- Useful for collecting data on attitudes, behaviors, preferences, and demographics.
Observational research
- Objective- to observe and analyze behaviors, interactions, or actions.
- Method- observe and record information without direct interaction with participants.
- Applicability- it helps to know real-life behaviour and environmental patterns.
Interviews
- Objective- To gather in-depth qualitative information, opinions, and insights.
- Method- Conduct one-on-one or group interviews with participants.
- Applicability- Interviews allow for open-ended questions and follow-ups, providing rich and detailed responses.
Conduct the research
Conducting research involves several key steps, regardless of the chosen research method.
- Define the research objective
- Develop interview protocol
- Select participants
- Conduct interviews
- Record and transcribe
- Data analysis
- Draw a conclusion
- Prepare a research report
- Communicate result
Analyze the result
Analyzing the result of the research, especially from interviews involves interpreting the gathered data to draw meaningful conclusions and insights.
It is essential to revisit the data and findings to ensure completeness and accuracy. The goal is to transform raw data into actionable insights that can inform strategic decisions and improvements for the product or service.
Follow-up
Follow-up actions are the most crucial role to play which ensures that the research is effective or needs improvements. It helps to enhance customer satisfaction through business strategies and follow-ups.
By actively following up on the research findings and implementing strategic changes, businesses can maintain a competitive edge, adapt to market demands, and enhance their offerings.
It helps to contribute to the long-term success and growth of the business as your customers are happy with your products/services.
CONCLUSION
Market research is the most effective way to gain insights into your customer base, competitors, and overall market. It provides in-depth knowledge of how it can help businesses.