Using Market research when business planning

Many businesses are launched each year and a large proportion of these will fail within the first two years – there are a large number of reasons for this but its long been argued that in order to have a fighting chance of success some form of business planning is an absolute must.

As part of this business planning carrying out some form of market research is essential. A start up can take advantage of a number of market research techniques from carrying out its own customer survey to utilizing data gathered by research groups. The type of market research employed may vary depending on the budgetary restrictions and possibly the market sector being researched.

Market research helps find information on two important business factors

• What customer needs exist
• What competition exists in the market place

Market research may also help

• Devise a product pricing strategy
• Devise an advertising/promotion strategy

A key element in market research is that of analyzing the competition – this can help businesses define how they will position their product and determine their own unique proposition – for example through design, value or function.

Market research is often considered an ongoing activity – not just to be carried out at start up – but one that constantly feeds back information about the market environment and the potential buyers in order that the company can position itself to meet these needs.

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  4. Strategic Planning – Business Aims and Objectives
  5. The six forces model

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