In our last post we covered the importance of identifying your target market. Visit HERE if you didn’t read it yet. You will not regret it. After completing the exercises outlined there, you’ll have to use some market research strategies to confirm your educated assumptions about who your target market is.

Market research involves studying a specific group of consumers -in other words, a market. As we mentioned in the previous blog, market research is one of the most valuable activities a business owner can invest in. The continual research keeps you connected and informed about your customer’s thoughts, motivations, and behaviors. In turn, this deeper connection lets you take advantage of opportunities or trends that may have been missed otherwise. The market research will improve the success rate of everything you do for your business and minimize risk and assumption-based decision making.

You must start with a clear question that you want to be answered when you begin your market research. Without a clear question in mind, you’ll quickly get off track and fail to end up with the information you need. Think about questions like:

• Am I right about my target audience’s perceptions?
• Are there any interests from my target audience in the new product or service?
• Is more information needed about my target audience’s purchase motivations?
• Are there new trends followed by my target audience?
• Have any recent economic developments impacted my target market?
• Is there any room for improvement for my customer service?
• Any changes trends in my target market the past year?

Market research needs to be conducted periodically. No matter how long you have been in business or how well you think you know your marketplace, blind spots can still develop.Trends shift, economic and political climates change– factors beyond your control can impact environments in unexpected ways.

You can approach your market research with two main types – primary and secondary – in three main areas – consumer, competitor, and environment.

Here is  a helpful breakdown to use to organize information when you’re conducting your market research. It will help you do research that is comprehensive and cost-effective.

To cover those areas of research, you can rely on primary or secondary research:

1) Secondary research : second-hand data or research that has been completed already and can be applied to your objectives. You can find these in statistics, trade journals, public surveys by larger companies, government publications and studies, newspapers, trade journals, and consumer reports.

2) Primary Research :  first-hand information obtained directly from your customers or about your customers through customer surveys, observations about the competition, etc. This research approach can provide information directly from the source. It can be time-consuming and costly – but it is also the most valuable, current, and specific. The approach allows you to discover what works and what doesn’t. You can even just look into adding value to existing offerings – thus giving yourself an edge on the types of products that consumers are interested in.

With primary research, you have the opportunity to study the lead generation strategies that your competition uses and make note of  the types of potential customers that you see in their stores.

Let’s look into some strategies for cost-effective secondary market research approach by linking them to the three areas of market research.

What about those cost-effective strategies on the primary market research you shouldn’t look at?

Analyze what you’ve learned when you’ve completed your market research. Weigh the outcome while you are looking back to your original question.

Elaborating on this part will allow you to understand how the market research has supported the question(s). You get confirmation or refutation on your original assumptions about questions such as :

• Does your target market exist in your targeted geographic area?
• Does the target market need or want what you’re selling?
• Through what channels will the target market want to buy your products or services? How will targeted people want you to communicate with them?
• Is the target market showing interest in your new product or service?
• How large is the target market in your local area? Can it support your business growth?

From this preliminary research, you may look into different areas of your research to dig into more information. Be ready to face some hard facts if any are discovered. Being truthful with yourself will let you avoid starting something not needed or desired in the targeted area. To support your business, perhaps there is not a large enough market base in your area. You don’t want to be dealing with the wrong type of customers after investing thousands of dollars. It is okay to change your mind with valuable information available to you now. You can make better decisions about your target market, marketing strategies, and product or service offerings.

You may be able to find ways to improve your offerings and expand your target market by including more people or a larger share of the marketplace if your product or service is flexible enough.

It is important to understand that your market research is ongoing– especially in these difficult times, with COVID-19 causing so much uncertainty. Every time you talk to a customer, supplier, or sales rep, you’re gathering information about your clientele and conducting market research. Even innovating your business depends on how much you listen to your target market.  You have to get your staff involved by allowing them to keep a log at the point of sale to record customer comments and complaints. Online tools like reviews are bringing tremendous value in studying and observing your clientele, so don’t take them for granted. Build in a review strategy. If you are a retailer or wholesaler of any items online or offline, review the logs for customer’s returns and the reasons to get valuable feedback on your offerings.

Remember, life involves change, and your audiences, trends, products, and services also change. So always look ahead of the curve to keep on top of your marketplace.

Make and plan market research as a regular part of running your business. Allocate time and money for primary research at least once a year. When it comes to trends and all environmental changes beyond your control, planning ongoing research is the invariable way to stay ahead of the competition. Our next blog will help you apply the information about your target market to build or refine your marketing strategies and not the tactics. Now that you understand who your target market is, as well as consumers’ thoughts and behaviors, you can determine what to say and how to reach your market. Communicating with your audience – strengthening the message sent out – is the backbone of your marketing materials.

Devoted to your business growth,

When you don’t know where you are going, look where you came from.