The Stages Of Market Research: Environment, Competition, Demand
How to do a market study? What are the stages of market research? What is a market study made of? How to properly carry out market research?
Market research is a step in the business creation process that can be tedious but is in any case essential to secure your project and gain confidence.
Only after completing your market research will you be able to know:
- if there is a market for your idea, and therefore if it represents a real opportunity,
- which players are already present on this market,
- if there is a place for your business in the market and with what strategy,
- how to make your offer unique and attractive.
The results of the market study will inform the choice of commercial positioning and will make it possible to sketch the economic model.
First Step Of The Market Study: The Study Of The Environment.
The environment corresponds to everything that is around the company, it is the ecosystem in which it evolves. It is necessary to learn about the characteristics of this environment, economically, societally, culturally, technologically, environmentally or legally.
How is society evolving? What are the consumer trends? Are there any cultural changes? Have new technologies emerged?
The study of the environment ultimately consists in carrying out a diagnosis external to the company: this is the opportunities and threats part of the famous “SWOT” matrix.
In order to be complete, you can mix a SWOT approach with a PESTEL analysis of the environment.
Second Stage Of The Market Study: Competition.
There is little chance that you will be the first to enter your market. And only if you know your competitors will you be able to differentiate yourself.
So you need to learn about your competitors: who they are, what they do, how they do it. This will be the second step in your market research. Only then will you be able to offer real added value to your customers.
Indeed, there would be no point in doing what already exists in the same form and in the same way. On the other hand, offering a new product, or an existing product but in another form, distributed through other channels, or with a different level of range, will allow you to make your place.
Step 3 The Market Study: The Analysis Of The Demand.
Last step in market research: the question now is who buys the products or services of your competitors. Because it is potentially to them that you will address your offer.
You will only be able to satisfy their needs better or otherwise if you know them well. It is therefore essential to know who they are, how, when and where they consume, their expectations, their obstacles, their purchasing motivations, or the communication channels they use.
For this, it is strongly recommended to carry out a survey or questionnaire with your potential customers: this will be a major step in your market research, not to say the highlight.
It is then up to you, based on all the information collected, to define a promising positioning for your product, if possible distinctive compared to your competitors. By offering real added value and knowing how to promote it, you will put all the chances on your side to generate turnover!