Market research. Is it necessary?
Posted: Thu Dec 12, 2024 9:17 am
Of course it is necessary. Conducting a market study is an essential part of any company's business strategy . We need to know the environment that surrounds us, the situation of the market we are in or want to enter, know which companies are already operating, how they are positioned, their market volume, their marketing actions and other important aspects. We also need to know the total market volume. Is there room for our company? Will it generate sufficient income? For all these reasons, it is essential to conduct an in-depth market study, although for many it may be a boring and unpleasant task.
Table of contents
What is a market study?
Steps to follow to carry out a market study
Determine the target market
Analyze market size and development
Analyze the competition
Customer segment analysis
Final market analysis report
What is a market study?
A market study is a set of actions that a company carries out to understand its customers and competitors . Information is collected and analyzed about what consumers are like and act like, what they are looking for or algeria phone number library much they are willing to pay. On the other hand, the strategy that companies competing in that sector are carrying out is studied, as well as what products or services they offer, at what prices, under what conditions, etc.
This enables the company to make better decisions regarding its business strategy, while allowing it to adapt to market trends and maximize success.
Steps to follow to carry out a market study
Depending on the type of sector, company or market we are analyzing, the study may be more or less comprehensive. However, in general, the following steps are the minimum necessary to carry out a market study that allows conclusions to be drawn .
Determine the target market
Analyze the size and development of the same
Analyze the different competitors
Analyze customer segments
Draw conclusions and prepare a report
Let's go a little more in-depth into each step.
Determine the target market
We must determine the market we want to target . Know the geographic scope of the market, the products and services sold there, their average price, the type of company that competes there and the different types of customers that move there.
We must also know whether there are barriers to entry or not and what they are, whether it is regulated (be careful when geographically it covers several countries with different regulations) and also know what entry channels operate in that market and the costs they can generate.
Analyze market size and development
We must analyse the current market size and the percentage of the market held by the various competitors . But not only that, we must also see how the market has grown or declined in recent years and what the future development forecasts are. Because we do not want to enter a market that is losing strength year after year. Finally, we must also analyse the degree of concentration of the market, to see if it is concentrated, fragmented or atomised.
Analyze the competition
Which companies are competing in this market? Is there any differentiation or are they all offering a similar value proposition ? Does our value proposition fit in this market? Does it differentiate us?
Table of contents
What is a market study?
Steps to follow to carry out a market study
Determine the target market
Analyze market size and development
Analyze the competition
Customer segment analysis
Final market analysis report
What is a market study?
A market study is a set of actions that a company carries out to understand its customers and competitors . Information is collected and analyzed about what consumers are like and act like, what they are looking for or algeria phone number library much they are willing to pay. On the other hand, the strategy that companies competing in that sector are carrying out is studied, as well as what products or services they offer, at what prices, under what conditions, etc.
This enables the company to make better decisions regarding its business strategy, while allowing it to adapt to market trends and maximize success.
Steps to follow to carry out a market study
Depending on the type of sector, company or market we are analyzing, the study may be more or less comprehensive. However, in general, the following steps are the minimum necessary to carry out a market study that allows conclusions to be drawn .
Determine the target market
Analyze the size and development of the same
Analyze the different competitors
Analyze customer segments
Draw conclusions and prepare a report
Let's go a little more in-depth into each step.
Determine the target market
We must determine the market we want to target . Know the geographic scope of the market, the products and services sold there, their average price, the type of company that competes there and the different types of customers that move there.
We must also know whether there are barriers to entry or not and what they are, whether it is regulated (be careful when geographically it covers several countries with different regulations) and also know what entry channels operate in that market and the costs they can generate.
Analyze market size and development
We must analyse the current market size and the percentage of the market held by the various competitors . But not only that, we must also see how the market has grown or declined in recent years and what the future development forecasts are. Because we do not want to enter a market that is losing strength year after year. Finally, we must also analyse the degree of concentration of the market, to see if it is concentrated, fragmented or atomised.
Analyze the competition
Which companies are competing in this market? Is there any differentiation or are they all offering a similar value proposition ? Does our value proposition fit in this market? Does it differentiate us?