Published on 10/11/2018 by Any Business.Com.Au

Know your marketplace: why research is important

To start and run a successful business you need to know all about your potential and existing customers and the marketplace you operate in.

Market research is a valuable tool for all businesses. Statistics and other market research data help you make informed decisions about the marketing of your business. Using market research, you can understand your potential customers and their needs, as well as what your competitors are doing.

Why is market research important?

Obtaining statistics and conducting market research can give you a better understanding of your market, your customers and their needs, as well as giving you a better insight into your competitors. This greater understanding of your market can help you better focus your marketing efforts, make informed decisions about your business and make the most of available opportunities.

How often should I do market research?

It's important to regularly assess who your competitors are, their strengths and weaknesses, who your customers are and what they want, and whether there are any gaps in the market. This can be crucial during all stages, including starting, running or growing your business.

It's also helpful to understand market trends so you can make the most of your business opportunities. Look for information in market reports, government statistics, trade publications and industry association publications to find out new developments and possibilities both in your industry and in the commercial environment.

Research your customers

You can collect customer data first-hand through email, online surveys, interviews, and talking directly to your customers. This kind of direct customer research can help you discover what their needs are, what they're willing to pay for different products and also anticipate demand for your products. Finding out how your customers think and behave, as well as their likes and dislikes can also help you better target your marketing efforts.

Using existing data on customers

If you've been in business awhile, you may already have tools and information on customers that could assist in your research.

Internal tools that may hold useful data on customer behaviour and purchase insights, could include your:

  • Customer Relationship Management (CRM) database
  • Customer Loyalty or Reward Program information
  • Point of Sale (POS) system and sales records
  • Inventory Management System
  • records of customer complaints
  • records of customer feedback or suggestions
  • internal reports on customer service benchmarks and targets
  • website statistics and traffic information.

Example of how research can help

If, based on research, you find that your customers are looking for an affordable family-friendly restaurant, your business could draw on strategies that would cater to that need. Marketing is about working out what problems your business or product can help solve.

Research your competitors

You can collect competitor data first-hand through observation (adverts, sales, trade magazines, general advertising or site visit), networking or the internet (website, blogs and other social media). This competitor data can feed into your strengths, weaknesses, opportunities, threats (SWOT) analysis when you develop your marketing plan. Analysing your competitors can also help you understand where your business or products fit in the marketplace.

How do I research my competitors?

When analysing your competitors, consider the following:

  • Who are your competitors?
  • What do they offer their customers?
  • Where are they located?
  • What marketing strategies do they use?
  • How do they communicate with their customers?
  • Do they have an online or social media presence?


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AnyBusiness.com.au

Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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