▷ 5 Key Steps to Effective Market Research

Are you a coach or want to create your own training organization? Before creating your first training program, you should do some market research. The same is true in the context of creating any business or launching a new project, service or product. This step consists of collecting data related to a specific market, interpreting and analyzing it to see if your project can be implemented or not…

By going through this basic process, you identify all the elements that characterize your target market. Thus, you will know if you are going to get clients and you will be able to perform different actions to succeed in your project of setting up a company or launching a new service or product.

Thus you will reduce the risks and uncertainties related to your project, while discovering its potential success. The data collected will be useful to implement your communication strategy and improve your business position.

This approach is necessary to know the feasibility of your project. To learn more about this, feel free to sign up for this module “Creating and Referring to Your Training Organization” in the course “Creating and Developing a Training Activity”.

But already, to conduct a successful market study, follow these basic steps…

Determine the purpose of the study

Market research requires time, money, and sometimes human resources. Before getting started, define what your goal is regarding this process. To save time and avoid a lot of expense, consider your target market issues as well as different assumptions about your project.

Be well informed of your desired market

After choosing a target market, learn more about it by identifying its geographical distance, the type of interested users or customers, or the services or products of your competitors. Also learn about its evolution in terms of scale and value to develop your future strategies.

Apart from users and customers, document your suppliers as well as direct and indirect competitors in your market. Determine the prices and number of your suppliers and your bargaining power against them.

To increase your chances of outperforming your competitors, select:

  • Your direct competitors: those who offer the same services or the same products as you;
  • Your indirect competitors: those who are able to offer alternative products to your offer;
  • market leaders
  • Their average financial figures: market share, export share, margin, turnover, annual growth;
  • Standards that distinguish them from each other and from your company;
  • The elements that distinguish a failed business versus a successful business.

Take the time to familiarize yourself with the cost of distribution and the usual distribution channels and methods. The same applies to the regulations applicable in relation to your sector, the barriers that may prevent you from accessing the market, the legislation applicable to your offer as well as its consequences for your activity. You should also know the legal framework in which your offer is developing.

You can find this various information on websites dealing with your market, in professional online databases, such as Xerfi where you can buy studies online. Also consult professional press and reports from consulting firms, sector organizations, union websites, chambers of commerce, search engines, INSEE or other public databases.

market research plan

The market research plan contains secondary data and primary data. The first is obtained from the research you conducted, and the second result from the methodologies you developed as part of your studies. If you have a small budget, you can buy market research online.

Secondary data is the one that you will collect in the various media mentioned above allowing you to learn more about your target market. They can provide answers to the hypotheses regarding turnover, merchandise returns, orders, market share, sales volume, communication budget, invoices and receipts.

To obtain the primary data, perform a qualitative or quantitative analysis. Such a process requires the selection of the sector of activity, the market as a whole, or even the segment of customers.

Qualitative analysis will allow you to observe or understand purchasing behavior or any other phenomenon related to your offer. Thus, your final evaluation will be based primarily on psychological and behavioral criteria.

However, choose quantitative analysis for quantitative information in order to provide answers to your hypotheses. For this, you should consider a panel or sample of users or consumers that represent the entire population who might be interested in your offer.

From this various information, you can draw up a market research plan that usually offers:

  • competitive analysis;
  • brand awareness assessment;
  • the behavior of potential customers in the future;
  • Expected turnover
  • produced quantities.

Organizing data collection

As part of the qualitative analysis, it is advisable to conduct various group interviews or face-to-face interviews in order to think of the project as a group or to test a new service or product.

If you choose quantitative analysis, choose tools such as surveys or questionnaires to compare your competitors’ numbers to yours or to measure frequency. These tools are also effective for checking your customers’ satisfaction level or for calculating key indicators, such as your brand awareness rate.

Analyze and display the results

Draw cross tables to find connections between the information collected and make it easier to interpret to try to answer your hypotheses. Thanks to these tables, you will be able to calculate the correlation coefficients between the different results.

Once the analysis is complete, present the market research findings along with the resulting recommendations in the form of a report. To get a brief overview of your balance sheet, you can use the Ansoff and BCG matrices.

conclusion

For any future entrepreneur or entrepreneur, market research is an essential process before launching a new project, service or product or even before setting up a business. Thanks to this approach, you can ensure the feasibility of your project or otherwise while ensuring the achievement of your goals. By following these five key steps related to supply, market, demand, and project environment, you will be able to effectively succeed in your market research.

Feel free to take a look at this module “Creating and Referring Your Training Organization” from the “Creating and Developing a Training Activity” course.

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