Market research is the process of checking the viability of a new service or product through research conducted directly with potential customers. Market research helps you to dig into the target market and get opinions and other feedback from consumers about their interest in your offerings. You may perform this kind of research either in-house, by your company itself, or by involving a third-party company that specializes in market research. It can involve various tools such as surveys, product testing, face-to-face interviews, questionnaires and focus groups. No matter what method or technique you choose to research your target market, quality research provides you a fair idea about the demand, market size, economic indicators, location, pricing, and market saturation. Research conducted using the right techniques is able to answer all your questions necessary to devise a perfect business plan. The basic ones are mentioned below:
- Is your product or service desired in the market?
- If yes, then how many people would be actually interested in what you are offering?
- What is the purchasing power of the potential buyers?
- What are the income range and employment rates in the region?
- Where do your customers live, and where can your business reach?
- How many similar alternatives are already available to consumers?
- How much do potential customers fork out for these options?
- What your potential competition or partners within the industry currently are doing? How successful have they been?
- Can you improve upon their offerings?