The goal of doing market research is to equip yourself with the information you need to make informed business decisions about start-up, innovation, growth and the 4 P’s:
Product
Improve your product or service based on findings about what your customers really want and need. Focus on things like function, appearance and customer service or warranties.
Price
Set a price based on popular profit margins, competitors’ prices, financing options or the price a customer is willing to pay.
Placement
Decide where to set up and how to distribute a product. Compare the characteristics of different locations and the value of points of sale (retail, wholesale, online).
Promotion
Figure out how to best reach particular market segments (teens, families, students, professionals, etc.) in areas of advertising and publicity, social media, and branding.
Part of being prepared with market research is avoiding unpleasant surprises. Intuition and experience can be helpful at times, but research and facts often paint a more accurate picture of your market.
By conducting research on a regular basis, you can keep up with the dynamics of the economy and demography. You can also adjust to new regulations and technological breakthroughs.
Market research can help you:
Understand your customers and their preferences (4 P’s)
Profile your customers (location, age, gender, income level, etc.)
Create more effective marketing campaigns
Find the best business location
Identify opportunities to grow and increase profits
Recognize changes in demand
Offer new products and services for the new demand
Find new markets within and outside of Canada
Recognize and plan for industry and economic shifts
Shift inventory, price and staff levels as needed
Monitor the competition in your market
Identify competitors
Get information on how your competitors operate
Learn how customers compare you with your competitors
Mitigate risk in your business decisions
Use information, not just intuition, to drive your business decisions
