Checking all Areas

Checking Means “Doing Research”
Research is about finding out whether there is a market for the product or services of a business. The research will also provide other information such as the quality and prices of products that are in the market already. Market research will help provide answers as to whether there is a demand for a type of product or service the business is looking at offering. If carried out properly the research will also highlight areas or strategies by which a business can break into the market.

Research will involve monitoring the reactions of customers and trying to find patterns to customers buying behaviours. From the results, conclusions can be drawn on how to best approach any type of marketing effort to those customers in general.

Market research therefore can be defined as the process of gathering, recording and analysing data that relate to the marketing of goods and services.

Research Has to Be Organised
For marketing research to be of value it has to be organised properly in such a way that the objectives are achieved. If you are a small business owner then there are certain questions that you need to ask when you are carrying out your own simple market research.

These questions include:

  • Who are my customers
  • Where do the customers live
  • Would customers be interested in the products and services that I have
  • Are the prices of the goods and services that I have lower than competing products and services on the market at this time
  • What are the customs and habits of my customers as far as buying is concerned
  • Are the products and services that I have the best available on the market at the present time
  • How does my operation compare with my competitors

If you are looking at running a successful business you will have to get to grips with the market that you are targeting. It would be unwise for your business to go out into the market place without doing a little bit of the homework necessary to tell your business who your customers are, who are your competitors are, the trends in your industry, the problems that could be in the marketplace and the potential future of the type of products that you are wishing to put on the market.

Check your Markets
A market is a place where you find people, businesses or organisations that will buy your products and services. That is, a market is where your customers will be. The success of your business depends on whether there is a market (or customers) available for your products and services and whether they will want your products and services.

What Is Market Share?
Your market share depends on how desirable your product is compared with those of your competitors. Most businesses know who their competitors are and how they are doing. By knowing the approximate total size of the overall market, it is possible for a business to work out their share of the market.

For example, if you manufacture men’s shoes, then using the information from the Govt. Statistics, you will be able to work out the total amount of men’s shoes produced in the the USA over a particular period. It is then possible to arrive at the figure of the approximate size in dollar terms of the men’s shoe market. By dividing that figure by your annual turnover, your market share can be arrived at.

If you keep using these figures for the next few years a market share table can easily be put together. You can then investigate your position in the marketplace, compared to your competitors. Your sales figures are a source of feedback, which can tell you what your customers think about your products.