Most businesses can gain valuable insights into existing and potential customers from market research. Statistics and other market research data can also be used to maximise business potential and optimise marketing strategies. Many small businesses underestimate the power of market research, but by knowing what consumers really want, and learning about industry trends, a business is better prepared for the future.
How to Research Your Market
Looking at the strengths and weaknesses of your business is a good start. Where do your products and services fit within the market? What is your unique selling proposition? Knowing the answers will keep your business on the right track.
Essentially, there are two types of market research:
- Primary research. This is information collected firsthand through surveys and talking directly to customers.
- Secondary research. This is information gathered from other sources, such as government statistics and industry surveys.
Market research can take many forms, but there are some central questions you need to answer in order to grow your business.
Who Is Your Target Market?
Understanding your target audience and the demographics of your existing customers will help you focus on the right marketing channels and communicate more effectively.
- Where are your target customers located?
- Where do they spend their time online?
- How did they find out about your business?
- What are they willing to pay for your products and services?
You can gather lots of useful information through emails, online surveys, interviews, and speaking directly to your customers.
Who Are Your Competitors?
Knowledge is power. Keep an eye on your competition and you can optimise your position in the marketplace. Learn how to differentiate your business from others by studying adverts, websites, trade publications, blogs, and social media channels.
- Who exactly are your competitors?
- What products and services do they offer their customers?
- Where are their customers located?
- What are their marketing strategies?
- What are their main strengths and weaknesses?
How Do You Position Your Products and Services?
Once you know more about your target market and your competition, you can take a closer look at the products and services you offer. What makes your products and services different? Whatever it is, you need to communicate it clearly. When you know your niche market, you can set prices that are consistent with audience expectations.
- What are your customers willing to pay?
- What do other companies charge for their products and services?
- Why should consumers do business with you?
Where to Find Statistics
There are many resources to help you refine your business strategy. Here are some of the best:
- The Australian Bureau of Statistics offers community, industry, economic, and social statistics, as well as excellent advice
- IBISWorld provides independent and up-to-date research on over 500 industries, with statistics, analysis, and forecasts
- The Sensis e-Business Report is an annual report that includes consumer analysis, technology insights, and more
- The Australian Small Business Key Statistics and Analysis publication provides key statistics on the characteristics and performance of Australian SMEs
Once you’ve worked out your position in the marketplace, you may even discover new business activities that fit in with your ambitions. Market research is essential to any business, so make sure it’s a part of your business planning and never stop looking for useful data to help your business grow.
If you are interested to explore further on this topic you can always set up time to connect with us by clicking here http://www.businessfreedomgroup.com.au/10k-session/