One of the most important tools you can use for your business is good market research. Being able to do your own market research gives you a unique perspective into your business and its potential. Knowing your market is invaluable when planning for your current and future business plans.
Market research allows you to identify your target customers and understand their needs and values. Market research helps you to determine key competitors and their strengths. It aids in understanding your market position, your pricing strategies, and in implementing those planned strategies.
Here are a few places to start to do market research on behalf of your business:
Know your goals and make sure those goals are specific and can be measured so that you can know that your marketing activities, including research, are moving you closer to achieving those goals. Some of those may include measures for sales, number of customers, customer retention measures, or average sale per transactions.
Know your industry’s trends. When researching look for current trends impacting your business such as sales trends, customer trends and regulatory changes like food safety. These trends will help you understand your market better. Publications from trade associations or universities can be good sources for this information.
Review your market’s demographics. What is the market’s population, age, income levels and education levels? All these could determine if your market holds those key or target customers in your market.
Look at those customer preferences. What do your target customers value? How do they make their buying decisions? One way to look closely and in person is to be a secret shopper. Go to those stores where your customers will shop and to stores outside your home area. Ask questions as another shopper, “Why do you like that brand? What made you choose this particular product? Do you always shop at this store?” You can also use this time to talk to buyers, department managers, or even local chefs. Ask them questions on their preferences, their reasons for buying from a particular producer. Just make sure and be aware of the time of day and day of week for those individuals.
Talk to your customers get their feedback. Do not just talk to family and friends. Take the time to talk and listen to your customers in person and online. Ask what you can do to improve.
Know your competitors. Visit their store or where their product is sold. Visit their website and social media pages to read reviews, market plans, pricing and current product lines. This can be important not only to know your market but to know where you may fit in that market. While researching their businesses and products you can use this time to do price research also. See what online and in-store prices are for your products. Then, take a look at your cost and breakeven price to see where you stand and how you will be able to price your products for your market.
Once you have conducted your own market research, you are in a better position to make a strong sales plan and develop promotional strategies based on the target customers, your goals, and your expected sales.
If you have questions about getting started with your own market research, contact KCARD at (859) 550-3972 or kcard@kcard.info.