Article: Market Research Survivor

Creative Arts Solution

Foundation

a non-governmental foundation  

Article:Market Research Survivor

Author:Olusola David, Ayibiowu

Edition: Second 

Year: July 2017

Published: Online by Creative Arts Solution Foundation
Find it on: Instagram 

Creative Arts Solution Foundation have revealed "Only about half of new small businesses will survive 5 years if the right and authentic original plan is not place".   

  Market Research Survivor 

The word Market Research Survivor is the major key to a new business becoming a profitable and a survivor entity.

The focus on anticipates and minimises risk, identifies potential customers and helps ensure success. 

Therefore, we should able to learn how to research market, identify potential clients and have a strategy for attracting them in order to survived.  

In other words, Market Research or Business Intelligence as it is sometimes called, is a vital weapon in ensuring your new business survives to become a strong profitable entity.

Knowing that is all about anticipating and minimising risk, understanding your potential customers and so helping to ensure success for your new venture. Don't skip this important step in the rush  to get your product to market.

It is often said that finding customers is the most difficult part of running a business. 

One of the major thing amongst others is to research your market, identify potential clients and have a strategy for attracting them before you invest your time and money in a new venture.

 

 Your company formation process, it is a crucial step to select which type of business entity you would like to start e.g Profit making orientation company or Non Profit organization. Further more, before you a start Business consider the reasons businesses fail.

*You can’t pay your bills.When you run
out of cash your business has failed. *You can make profit predictions all day long, but the only thing that helps you pay your bills is cash. If you ever do business with large companies, you will find that many of them are slow to pay. I mean it’s not unusual for a large company to take 4-6 months to pay. They are masters at controlling their cash flow. Learn from them.

*You are offering something people are not willing to pay for.

This one is easy, but so many miss it. Especially, those who end up creating a product or build software without confirming with the market that there is a demand.

*Failing to attract paying customers in a cost effective way.

*You might have a product people are willing to pay for, but you can’t figure out a way to market it in a cost effective way.

*If it costs you more money to get a new customer than you can afford you don’t have a business.

*You don’t have the skills to manage your business and you

are not willing to learn. No one is a born entrepreneur.Entrepreneurs who succeed are fast learners. Learn or your business will fail.

Unable to build a winning team. When you start out, there is a good chance that you have to do everything, but you will only build a business if you can build a team around you.

Unable to create systems. If you look at a successful business, it runs on systems. It doesn’t rely on an all knowing business founder. There are systems within the business that enable the company to scale and grow There are different pros and cons for each kind of business vehicle and so it is important for you to weigh them against your business goal.

*Lack of capital

*Poor planning or unexpected costs

*Poor cash flow management

*Unexpected market factors-growth or reduction in market size

*Underestimating the competition

*New entrants to the market

*Technological problems

*Not having a strong business plan in place

*Lack of understanding of the market

*Poor advertising or marketing

*Weak product Lack of selling and *marketing expertise

*Over trading or over expansion the First Research, a Dun & Bradstreet firm, the global market research industry produces about $50 billion in annual revenue.

Quality, professional market research helps you to ask the right questions for your business. Good market research reports will use a mixture of primary and secondary research to provide accurate information and conclusions.

Primary research 

he information gathered through surveys, interviews and other direct contact with industry experts and participants. For example by contacting industry leaders and canvasing their opinions.

Secondary research

The information gathered from company reports, trade association documents and industry journals, and published market research reports.

It is important and  good plan to carry out both Primary and Secondary research. Then you should check out competition and assess your potential consumer base. This should give you a fair idea of the viability of your business.

However, if you commission professional advice, you can expect a report that will cover the following points;-

Context/Background: This is a review of the recent history of the market; how it has developed into its current size and shape. It will also consider the market in the context of factors such as the economy, social and cultural changes, globalization, and technology, and consider how these factors are affecting the market.

Detailed Market Data: While context and analysis are critical, this section will look at hard numbers. It will use whatever data is available.

Competitor Information: Players, products, profiles, competitive analysis and other information on the market.

Trend Analysis: This will look at what the data indicates about the health of the market and opportunities for future growth. It should cover emerging markets, and new forms of competition.

An understanding of the market potential should be gained from the information above. The size of the market and its possible growth will determine the viability of opening up a business in the sector.

So from this report, or from your own research, you should be able to consider the following types of questions.

Assume your intended business is selling potted plants:-

How many people buy potted plants?

*What is the market value?

*What is your cost price?

*What is the likely gross profit you could make selling a potted plants?

*How many potted plants must you sell to run a successful business

*Is this a realistic number for your business model?

*Is the market already saturated or near saturation?

*Can you enhance your business model-for example can you offer other products, services, sell online, open other outlets?

Market research should answer key questions, expose risks, and will probably throw up other questions. Professional analysts who study markets, products, industries, sectors, and consumer demographics are trained to provide unbiased factual information, clearly stating the risks associated with a market.

If you plan to conduct your own research rather than commissioning a professional Market Research project, be careful that you dont seize on information and data to back up what you are hoping to find  that your business is a great idea!!

But take care to be open to market realities and factors that may even enhance your business plans. Keep a look out for niche markets that may present better opportunities than mainstream, where there is more competition.

Carefully assess market factors.       There are many factors which can affect the size of a market and its pace and direction of growth. They include:

*Regional economics, politics, culture, geography and weather

*Seasonal and cyclical trends

*Fashionability and trends

*Customer wants and needs

*Competing markets

*Technological advances

*Educational opportunities

*Employment

*Regulatory requirements

*Financial incentives, grants and programmes

*Company schemes and productivity. 

*Is there a lot of competition in your market?

*Who are the players?

*Is the market dominated by a few large companies or is it mostly small operators?

*What are the strengths and weaknesses of your competitors?

*What is the market scope of your competitors?

*How profitable are they?

*What types of problems do they face?

*What is your Unique Selling Point (USP)? What can you offer customers that your competitors do not?

*Finding customers is the most difficult part of running a business. 

But without them you dont have a business, so do some demographics research as well, to establish who your customer is.

Make sure you know as much as possible about who will be buying from you.

For example, if youre marketing to consumers:

What is their gender, age, marital status, religion, ethnicity

*Where do they live?

*What is their economic status?

*Do they already buy the product or service you will be offering?

*How are they purchasing these products or services?

*What issues do they have with your competition?

*What do they like about your competition?

*How much are they paying now, and will be willing to pay for your products or services?

*What do they do for a living?

*What are their lifestyles like?

*What do they think of your product or service?

*Why will they buy from you and no one else?

*How will you tell them about your business?

Knowing the answers to these questions will help you promote your business much more effectively.

Then you need to consider marketing and advertising .How will you attract consumers attention, get them to purchase your product, and come back to you for repeat purchases.

What is your USP how should you transmit that message?

*What can you do to assure customer retention?

*How can you exceed customers expectations?

*Can you offer some type of guarantee?

*What are the best advertising routes to reach customers?

Some of the more common advertising routes include Websites, Social networking sites (such as Facebook), Radio, Television, E-mail marketing, E-bay, You Tube, Internet, magazines, newspapers. Trade magazines, Forums and Billboards.

Social media advertising, blogging, and use of other online social forums, has rapidly become one of the biggest platforms on which to advertise your business.

 

In Summary,

Considering what type of advertising will work best for your business depends on who you are trying to reach, your budget, and your product. You need to find the most cost effective method for you.

This information will be valuable in formulating your business plan. Having all this information at your fingertips will give you an edge over your competitors, an understanding of your client base and will improve your businesses chances of survival all over the world today.

Reference:

Management Skills                                                                                                
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