Entrepreneurs from the small businesses category usually have a tremendous need for research. Almost every growing business requires efficient, prompt and comprehensive research. But most entrepreneurs do not understand how to effectively execute the marketing research & analysis process to meet their business goals.
Marketing research for small business owners who have witnessed the fact that they are running a growing business, must have to execute an in-depth strategic marketing analysis, which could allow them to understand their current position in the marketplace, identify opportunities to increase market share, and get a better understanding of the customers as well as competition. It will also assist in making tactical decisions based on facts rather than intuition.
The following gives an explanation of how to conduct accurate marketing research & analysis which is essential to the success of every small business.
Analyse the market facts
This analysis can let an entrepreneur understand his or her position in the marketplace as defined by the market share. Market share is the percentage of sales a company accounts for within a given market. It can be measured by sales volume (total units sold) or sales revenue. Getting an understanding of the business’ market share, the entrepreneur, then want to identify the trends in your overall market. In this bid, experience of being into the actual market plays its role. Intuition and gut feeling can influence in knowing about the drivers of growth. An entrepreneur must have to ask himself, what drives sales in his market? Are they driven by price? Are they driven by new technology? Are customer preferences changing? How do these changes affect your business? Recognizing the trends in the market reveals to threats that could have an impact on sales, and also reveals opportunities to capture more market share.
Pin pointed approach for your target segment
The target market analysis will give the entrepreneur a thorough understanding of your potential and current customers. First, he has to identify key demographic statistics about the target customers, such as their age, gender, total population, income, education, occupation, and geographic location. Identifying key demographic information about the potential and current customers allows the entrepreneur to understand the changes within his target market. For example, you can find out if their population is increasing or decreasing, and pinpoint where the largest number of these customers live in order to know where to locate and focus your advertising efforts.
Most of the demographic information can be collected through government sites and through surveys. Several industry associations often provide sch data. In this, media tracking can also help. A note of caution here, although there are many do-it-yourself online surveys, it would be wise to use a professional researcher to create and execute the survey so that you can feel confident with the statistical results of the survey. The research data which will get gathered will allow the entrepreneur to create a profile of his target customers, and help in developing realistic projections to determine how much of product or services they will buy.
Analyse your competitors
This analysis helps entrepreneur to develop strategies which will allow them to effectively compete with their competitors. First, find out the companies that operate within your industry. Some of these companies will be direct competitors, and others will be your indirect competitors. Focus on analyzing the companies that are falling in the category of direct competition. Among other factors, an intelligent entrepreneur should try to find out their market share, their overall sales and profit, how they advertise to their customers, and how they distribute their products and services. Understanding these variables will allow the entrepreneur to figure out their strengths and weaknesses, help in discovering better product and services. This will also help in developing a competitive advantage.
For the growing businesses entrepreneur or the business owner have to invest in the success of his small business by the above mentioned steps to execute accurate marketing research & analysis. This kind of research definitely allows the business owner to create a strategic plan that is based on data and statistics and will help in making more informed decisions.