Sat, 02 Dec 2023

How to do market research for a startup

18 Nov 2022, 21:33 GMT+10

Launching a startup today is not easy. Sometimes it seems that there are no more ideas, that everything already exists in the market. However, this is not entirely true, because the same idea can be presented differently. To know if your project can be successful or not, you need to understand how to do market research for a startup.

Market research is a process of gathering information that makes it possible to know market conditions, competitors and potential customers. These researches are essential when deciding to invest in a new business because they allow you to obtain important data, such as: who is interested in your project? How old are they? Where do they live? What are their economic possibilities? Thanks to the use of market research software tools, you can get many answers to start a new business, or to block or edit it before making a launch that would lead to failure.

Researching a particular industry allows you to analyze your company's position in today's competitive market. A startup that is born without research behind it cannot grow in the right way, because it does not take into consideration what are the problems it might encounter, what are its strengths and what is the right target audience.

Define the objective of the market research

Without defining the goal, no strategy can work. The same goes for market research: what do you want to get out of this data? Why do you need them? What is your ultimate goal? Market research can be used for many things: investigating the problems of a company, understanding if a new product can please customers.

Thanks to the data obtained from market research it is possible to reduce risks, increase sales, and make customers happier. Not all companies grow in the same way, they can take different directions according to their goals. This is why establishing immediately what your goal is allows you to clarify, both within the company and for the public that follows you and purchases your services or products.

Ask the right questions

If you don't ask the right questions, you can't get valid answers. Some questions you have to ask yourself, for example: who are your competitors? What is the potential size of your market? Can you position yourself in any market niche? What's your budget? What is that thing that makes your business unique?

Once you have answered these questions, you will be able to clarify your project. You can then create a questionnaire to ask questions of your audience. A survey is a very powerful marketing tool, you go directly to your potential customer and ask him what he expects from your company, what products he would like to buy, what problems he is experiencing. In this way it is possible to obtain honest, valid, accurate answers. Thanks to the tools offered by survey software, it is possible to obtain and examine the data quickly. Online surveys are easier to fill out than telephone surveys because they are short, creative, fun.

Know the competitors

How can you position yourself in a particular market if you don't know your competitors well? Before starting a business you need to know what are the flaws and strengths of those who work in the same industry as you. This helps you come up with a marketing strategy that works by proposing something different than what already exists. If there are two identical brands in the market, the customer will buy products from the brand they already know.

But if the new brand offers a few more advantages or works according to an important philosophy, customers may change their mind. Market research always includes the analysis of the sector to which it belongs and studies the similar products or services that are offered by competitors. This analysis is done using specific marketing tools, but also by directly examining the sites of the major competitors.

Analyze the potential audience

To know how to do market research for a startup you absolutely have to analyze the potential audience. Before starting the business you need to have a clear idea of ​​who your target audience is. In this way you can find the right communication to use, you can know what his tastes are and propose services and products that he likes. The goal of any business is to acquire new customers and create long-term trusted customers.

Thanks to a detailed scheme it will be easier to meet the expectations of potential customers by offering them special discounts and personalized plans. Users love to feel important and unique, so it's your job to make them happy. Other things to do are: estimate the total market potential, do the market segmentation and understand how big the target audience is.

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