Importance of Research When Entering New Markets

When businesses are entering a new market, one of the critical areas that should not be ignored is doing market research. It is through market research that you will be able to come up with the right strategies to achieve your objectives.

How Market Research is Done

  • Having targeted interviews with potential consumers to understand their market experience and needs.
  • Using social media platforms like Facebook, Twitter, Instagram, and blogs to set up online surveys.
  • Having a survey form on your website with short and concise questions that will lead you to the answers you want.
  • Reading literature that has been written before on your area of interest and mastering some tips that will work for you.
  • Talking to experts who have been in the business that you plan to venture into, so that they can share some of the lessons they have gathered over the years.

Benefits of Doing Market Research

While it would be easier to come from the stage where you conceptualise the idea, to finally executing it without having to do market research, that will lead you to failure. It is only through research that you understand your target market. The benefits include:

Identifying Business Opportunities

It is through research that you will identify some of the ways that you can grow your business. For instance, you will note some of the likeminded companies that you can partner with, and how you can approach them. You will also know who is currently serving your target market, and explore the possibilities of working together either in the future or immediately. Other than partnerships, you will identify areas that have not been explored yet, and how you can make inroads by becoming a pioneer in that location.

Lowering Business Risks

Getting into business is a risk. You can either gain or lose. Think of it like betting on your favourite sport on Unibet Ireland Sports where you can either win or lose. Doing research, even when you are betting, always gives you the information you need to place a safer bet. The same applies to business. You do not want to get into a market that you know nothing about, only to end up getting massive losses. When you do serious market research, you start understanding where you are likely to make profits, and areas that you should tread with caution.

Creating Relevant Marketing Strategies

After you are done with your research, you will start creating the right promotional messages. You will have the advantage of knowing who your target market is, their demographics, and what they need. You can then go ahead and start coming up with the marketing strategy that will sway them to start transacting with your business. You will also know the right platform where you are likely to get more traction for your marketing messages, and where your target market is.

Lets You Understand Your Competitor

When you are entering a new market, chances are that your competitor will not sit still and watch you dominate the market. They will activate their marketing, start giving out discounts and go on a charm offensive to retain their clients, and take the ones who would have wanted to come to you. The essence of research is to also study your competitor and come up with healthy ways that you can compete fairly. Remember that trying to sabotage your competitor is in bad taste and you may end up losing customers if people notice malice.

Knowing where to Advertise and Gain Presence

During the research stage, you start understanding the behaviour of the people you are targeting. You know what their values are, the media products they consume, and what is likely to appeal to them. You can then make a decision on where you will advertise. You can choose to either go with social media if you are targeting the digital generation. If your target is on the older side, you may want to use traditional media such as newspapers and televisions so that they catch your business as they go about their daily activities.

Setting Realistic Goals

It is very much to anticipate that your business will grow and expand fast. It is the reason why people start businesses in the first place. They want to grow, make money, grow, and repeat the cycle. While this is desirable, it is not always the case. The reality hits once you start doing research on the market you are targeting. You may realise that maybe their spending habit does not match with your current goals, and you are forced to readjust your goals or set new ones.