Why is Market research essential as an entrepreneur?
- Keyword research tools help you understand the frequency of a particular searched item on the net by a specific target audience.
- Understanding what’s your unique selling point and finding out where you fit in the mix of the market are essential to the success of the business.
- Having a creative product creates a whole new niche for you to stand out and be different from the competition.
When collecting accurate Market research, it is essential to ask questions about your target market and competitors to determine your stand in the industry. Research conducted for a business set-up may include primary data and secondary data. Even when you already have an established startup, it’s helpful to conduct market research as the company goes through changes so that your values and mission align with your customer base.
Market Research is the process of gathering data and information that will assist you in better understanding how your potential customers will respond to your current or future products and services that you wish to sell.
When you want to start a business, it is vital to conduct Market Research. Market research as an entrepreneur must never be underestimated. Many startups achieve long-term business success because their owners conduct regular market research to understand their target group, identify the customer’s pain points and identify realistic competitors.
Market research can help you understand your customers’ preferences, identify growth opportunities, plan for shifts in the industry and economy, analyze market competition, and check business risks.
When to Conduct Market Research?
It’s beneficial to conduct market research for those whose organizations are already established but are undertaking significant changes, such as relocation or expansion of business. When you conduct market research, it will also help support business-related decisions.
Conducting market research
Here are a few pointers that can help you start your new venture.
Something as simple as keyword research will help you know what your target group is browsing for on the net. The keyword tool will tell you how many users have typed a particular search query on the internet. You don’t always have to create a demand in the customers’ minds; you can help serve their market.
- Who is your competition
- What are your competitors’ strengths and weaknesses?
- Who are your ideal customers?
- What is the size of your target market?
- What are the patterns of purchase or shopping of your customers?
- What price range are your customers willing to accept?
Competitor research
Competitor analysis is essential. Research your competitors’ websites, buy their products and use their services. Look at how they conduct transactions and price their services. Search for reviews online and see how their products fare. If they are doing well, you can do the same or do better; if they do poorly, you can better your game and stand a chance to be at the top.
Discover your Niche
Look at the products being sold in the market today. See where your product fits in the market.
- Is your product cheap, affordable, expensive, or somewhere in between?
- Who are your competitors?
Then keep a draft of your market segment, target customer base, and how you can make your product attractive.
Try being innovative
When you have an innovative product, you create a whole new niche that helps eliminate competition. If you have an enthusiastic team about your product, they can help you achieve your goal. E.g. Once, three university friends invented a pulp drink. They set up a stand at a local jazz music festival and put two containers outside. One bin was marked with a ‘yes’ written on it and the other a ‘no’. Customers were asked to vote and say if the potential entrepreneurs should give up their jobs to make their pulpy drinks full-time. The result ended in the ‘Yes’ bin overflowing by the end of the weekend, and Innocent Smoothies was born.
As an entrepreneur, one needs to figure out what works best for your startup and your ideal customers. Having market research data, though that’s highly important, is not enough to ensure your company’s success. You will also need to figure out how to use data to your advantage and fit it into your budget and at what time.
We at Fairway can help you set up a business in the UAE. Get in touch with us to learn more.
How does market research help an entrepreneur?
Successful business people conduct market research regularly. They use it to keep up with trends, make better business decisions, and maintain the company’s reputation. Research is vital to understand your target market and increase sales, whether you’re starting or expanding your business.
Why is Dubai a good place to start a business?
Dubai’s road system as well as air and sea routes and its professional environment and presence of world-class talent make it an attractive destination for businesses to start up in the Middle East and expand.