How Many Steps Does Market Research Involve?
The best technique for doing statistical surveying is to separate it into a few phases. A total market concentrate, by and large, incorporates 4:
- Define geographic area
- Study future customers
- Identify competitors
- Analyze trends
In What Order Should The Different Stages Of A Market Study Be Carried Out?
The different stages of market research are generally carried out in the following order:
Definition Of The Market And Its Geographical Area
The initial step is to explain the issue, the data needs, and the choices because of the review. It is likewise a question of precisely delimiting the market to be concentrated on regarding geological region, client sections, kinds of items and administrations, and so on.
Analysis Of Demand (Your Future Customers)
The second stage seeks to quantify and qualify the demand in this market. Potential and future demand is estimated via quantitative (surveys) and qualitative (interviews) customer studies.
Analysis Of The Current Offer (Your Competitors)
The third step plans to distinguish the current proposal available characterized already comprehensively. The investigation centers around the players present, their situation, piece of the pie, qualities, and shortcomings.
Environmental Analysis (Trends)
Finally, the fourth step is identifying external factors influencing the market, such as economic, technological, social, and regulatory trends.
Also Read: What Are The Objectives Of Market Research?
The 4 Main Stages Of Market Research
Step 1: Define Your Business Market
The first step is to research information about your market. Here is a checklist of some questions you should be able to answer after your analysis:
- Is this market growing or declining?
- What is his size?
- Is it a local, national, or international market?
- How many companies currently share this market? What is their size, profile, market shares, and average turnover?
This involves not only collecting figures but also analyzing them from the perspective of your project.
Step 2: Get To Know Your Customers
This second step aims to target the customers to whom you will sell your product or service. To do this, your customer study must be able to answer questions such as:
- Who needs this new offer?
- Are they professionals, individuals, communities?
- How many customers can you expect?
- Where are they?
- What are their purchasing habits?
- How much are they willing to spend on this product or service?
It is this crucial point of your investigation that it will be necessary, and even essential, to complete with a field study using a questionnaire in particular (quantitative, qualitative analysis, etc.).
Step 3: Identify Your Competition
However innovative it may be, a new offer is likely to have at least one direct or indirect competitor. You will, therefore, need to determine who your current or potential competitors are by answering these key questions:
- Which companies offer an offer that meets the exact needs, even in a different form than yours?
- At what price?
- With what method of distribution?
- Was their offer a success, and why?
- Where are they located?
All this information will help you differentiate yourself from them, build your “competitive advantage,” and make a commercially attractive offer for your customers.
Step 4: Explore Your Market Environment
This involves identifying the opportunities and threats that may impact your future market:
- Are there technological innovations that can change the situation in the short term?
- Is the regulatory or legislative framework for your future activity likely to change?
- Is there any specific aid for this activity?
- Who are the players who contribute to the organization of this market: suppliers, professional organizations and associations, subcontractors, wholesalers, etc.?
Exploring your market’s environment also means starting to plan for your future location by identifying the area best suited to your project and the partners or suppliers present in your territory.
Which Data Sources Should I Use For Market Research?
The CCIs of France give an application that is both exploratory and new. It joins educational records associated with areas – particularly the business creation rate, the system’s thickness, the number of schools, or power gatherings – to help you pick the one that is generally great for your endeavor.
Suppose you wish to complete a business action, for example, cheap food, which requires finding an appealing feature in a bustling spot. In that case, the accuracy of your area decision will be fundamental for the progress of your venture. For business projects, during your market study, you will have to survey the capability of your future catchment region.
INSEE furnishes you with an execution concentrated on an instrument for nothing: ODIL (nearby execution indicative help apparatus). ODIL permits you to gather financial, segment, and humanistic data concerning the catchment region you intend to set up. The most vital phase in utilizing ODIL is choosing at least one exercise and related items.
For instance, to open a kitchen furniture retail business, you would pick the movement “Furniture retail” and the turn of events “Kitchen and washroom furniture.”
It is possible to get information on the central area of France and the abroad offices (Guadeloupe, Martinique, Guyana, Réunion). After choosing your action and your item, you access the geographic determination. ODIL makes it conceivable to gather insights on three geographic levels:
- Municipality of location
- The core target
- The zone of influence
What Is The Most Crucial Step In Market Research?
The most essential stage in measurable reviewing is portraying your endeavor. If your idea of making or taking command over a business should be explained and adequately precise, you can not have even the remotest clue about its specifics. Like this, any survey will be a guaranteed waste of time! The distinction of your business project portrays your survey’s goal, and the more careful your endeavor is, the more exact your examination will be. This way, You will know how to change each factual looking over the stage to its particularities.
Example Of Step-By-Step Market Research
To show the components of statistical surveying, we should accept the case of a French burger eatery in the downtown area:
Begin by surveying the market:
- What number of restaurants offer a similar arrangement? How much slice of the pie could you expect? What are the progressions in the food market in your space?
- To more readily set your goals, you can direct a PESTEL investigation.
Then, at that point, center around clients:
- Their use of affinities, monetary arrangement, tendencies, and economics precisely address your objective client due to abstract and quantitative examinations.
Then, at that point, detail the serious examination:
- Who are your rivals? Where and how are they found? What are their contributions and amounts sold? What sort of menu or items sells best?
Lastly, distinguish administrative qualities and shortcomings and outside factors that could impact your business:
- Providing food should follow various administrative norms (cleanliness, ecological issues, and so on), yet innovative improvements are enormous and permit business people to extend themselves into this area.
Also Read: What Is Quantitative Market Research? How To Do It?
