Market research is widely viewed as a component of the planning stage of a business. Indeed, market research is critical for new start-ups and should be a key element of any entrepreneur’s business plan. Market research data feeds into a number of areas of the business plan, contributing to sections on:
Determining the sales potential of your products and services
Identifying the demographic characteristics of your customers
Selecting the appropriate business location
Setting the price for your products and services
Attracting customers to your business
Establishing your company image
Setting prices for your products and services
Ensuring advertising is on target
Selling to customers and earning repeat business
Business plans and market research are not solely for new businesses. Accurate assessment of the market and development of an effective plan is critical to the success of both new and existing businesses.
Businesses contemplating significant changes, such as business expansion and relocation, are also wise to use market research to support their decisions. Examples of situations that might call for market research include:
New advertising campaigns
Opening a new location or changing business locations
Increasing production levels
Introducing new lines of products or services
The kind of information gathered through marketing research during the planning and growth stages of your business can also be very useful in its day-to-day operation. A regular flow of market research information can help you to maximize the potential of your current business activities and help you to create a roadmap for future growth.
