How to Do Market Research For Your Business Plan
Market research aims to understand the reasons why consumers buy your product. It examines things such as consumer behavior, including how cultural, social, and personal factors influence that behavior.
Market research is divided into two types:
primary and secondary. Primary research examines customers directly, while secondary research examines information collected by others about customers.
The main survey can be a telephone interview or an online survey with randomly selected target group members. You can also study your own sales records to gather key research.
Secondary research can come from reports found on various other organizations’ websites or industry blogs. You can use one type of research or a combination of both for your plan.
The most important questions that you want to answer with your market research are:
Who are your customers?
Describe them in terms of age, occupation, income, lifestyle, educational achievement, etc.
What do you buy now?
Describe your buying habits regarding your product or service, including purchase price, preferred suppliers, most popular features, and applicable prices.
It’s complicated and tries to dig into the minds of consumers. The answer depends on the product and its application. Cookware buyers can buy products that offer the most effective non-stick surfaces, products that contain the most pans in a package for a certain amount of money, or products that are available in the most decorative colors.
What made them buy from you?
Although some of these questions may seem difficult to you, you will be surprised by detailed information about the market, sales data, and customer motivation. Touching information sources to get as many answers as possible questions will make your plan more convincing and your chances of success higher.
The business plan software program also includes detailed research and online research.
Use this feature when using the software and add additional data that you can find elsewhere. The reason why you add some of your unique material is that everyone who uses a software program matches the same database and you want your business plan to be different from that of the last entrepreneur in your field.
You can also find companies that sell everything to you, from industry research to credit reports for each company. Market research is not cheap.
A large amount of experience, manpower, and technology is needed to develop solid research.
Large companies usually spend tens of thousands of dollars researching things that ultimately decide they don’t care. Small companies cannot do this too often.
For companies of all sizes, the best market research is research that you do yourself. Internal market research can be in the form of genuine telephone interviews with consumers, personalized destruction of numbers from published sources, or maybe competitive information that you have collected for your competitors through social media.
You can collect detailed customer surveys
Including likes, dislikes, and likes, through Facebook and use Google Analytics to measure the numbers that apply to your web visitors. People do research and give their opinions about their online activities, so you get a lot of marketing insight by looking carefully at what is happening electronically.
You also want to do your due diligence in your industry. If you look at comparable companies (and their data), you will find a suitable partner. Note for comparison purposes:
1. Companies with relative sizes
2. Companies that serve the same geographical area that can go global if you want to become a web-based company
3. Companies with the same ownership structure. If your company has two partners, look for companies that are managed by several partners and not by an advisory board of 12 people.
4. A relatively new company. Although you can learn from old companies, today they can be successful because of their 25-year history and reputation.
You want to use the data you collect not only to determine how much business you can do but also to understand how you enter and adapt to the market.
Follow these steps to spend your money wisely on market research:
1. Determine what you need to know about your market.
The more focused the research, the more valuable it will be.
2. Prioritize the results of the first step.
You can’t research everything, so focus on the information that will give you the best (or fastest) payment.
3. Check out cheaper research alternatives.
The Center for Small Business Development and Small Business Administration can help you develop customer surveys. Your specialist association has good secondary research. Be creative.
4. Value yourself the cost of conducting studies.
Remember that you don’t need to spend a lot of money on the internet. If you are considering hiring a consultant or researcher, keep in mind that this is your dream, this is your goal, and this is your business. Don’t pay for what you don’t need.