Market research is a tool that should allow the entrepreneur to validate the commercial feasibility of his project and fulfill many other objectives.
The conclusions of the market study may, for example, highlight a declining sector, an unprofitable activity, or a market hyper-competed with by large companies, which leaves little room for a new entrant.
To meet its objectives, which we will present in the first paragraph, a market study must make it possible to obtain sufficient and quality information on several essential points. We will propose in a second paragraph a list of questions to ask.
Objectives of the Market Research
The objectives of the market research are as follows:
- Ensure that your project is commercially coherent and that there is a real opportunity to be seized,
- Constitute a support tool for your financial forecast,
- Professionalize your approach and bring weight to the creation file,
- Allow validating the commercial offer of your future company.
Consistency and Business Opportunity
This is the main objective of market research: to validate that the idea is commercially exploitable, that your offer meets a need (whether in terms of its quality, characteristics, and its price), and ensure that a market can be exploited with the means available to you.
A support tool for Financial forecasting
The market study and the financial forecast (also called forecast or forecast balance sheet) are two closely linked tools: the market study feeds the economic forecast on several items (the forecast turnover in particular) and makes it possible to justify what ‘we budget there.
Professionalize the process and bring weight to the file
An in-depth study of the industry, customer behavior, existing business solutions, and how major competitors operate can only benefit the entrepreneur. This allows them to develop their knowledge of the sector and increase the chances of future business success.
This work will also improve your file, which will benefit you a little more in your search for partners.
Allow validating the commercial offer
The market study allows as we saw in the first point, to validate its commercial offer. The study’s information makes it possible to refine it and possibly adapt it if interesting opportunities have been identified.
Also Read: What Is Quantitative Market Research? How To Do It?