All business owners know that without a doubt, gathering information and researching the market situation is necessary and necessary before starting any activity. In this regard, studying and predicting the process of short-term and long-term business changes is considered one of the necessary and important conditions for establishing the desired business.
By means of market research tools, it is possible to take steps for the stability and progress of all economic activities of any business. In the rest of this article, a complete description of market research (market studies) has been discussed.
Market research (market studies):
Market studies are a very important part of feasibility reports ( feasibility studies) that are used in industrial and service projects. These studies are carried out independently of other sectors, and the results show whether there is a demand for this type of product or service in the market or not?
As much as market and marketing topics are more important, market studies, collecting and recording and analyzing data to describe and classify the market and predict it will be more important.
Market study methods:
The implementation of projects using resources (raw materials, human resources, technology, etc.) is achieved when the process of feasibility studies is done accurately and on time. Because one of the most important concerns for investors is the supply of goods or services, and if the offered product or service is not welcomed, that plan will fail.
Therefore, by preparing market studies that are properly expertise and have credibility, it can reduce a large amount of project risk and measure the market situation correctly and provide a way to prevent possible failure during which it can be done in time. Appropriately, given a positive response to the market’s needs.
By preparing market studies for business managers and investors, you can get detailed information about customers, competitors and other effective factors in the market, which can improve economic activity with a deep and accurate understanding of this situation.
Also, by using the results of feasibility studies, it is possible to provide the necessary background for increasing productivity and creating ideas. Therefore, it can be said that conducting market studies at any stage of business life has special features and importance.
How to conduct market research:
After understanding the concept and degree of importance of conducting market studies, we come to the conclusion that for correct and principled market research, consultants and experts are needed. The presence of a professional consultant can provide effective solutions by examining the current situation and economic analysis, as well as predicting the future of the market. These solutions are reliable and contribute to the success of the collection.
In this regard, Top One’s specialized team can be used to obtain this necessity in the field of market studies and prepare an explanatory plan. In this regard, the most important services that investors can receive from Top One for market studies are as follows:
- Market measurement and market situation analysis
- Identify the strengths and weaknesses of the market
- Providing effective solutions to penetrate the market
- Select the target market
- Market financial studies
- Implementation of market information management systems
- Market research and review of competitors
- Supply chain and logistics review
- Analysis of supply and demand of the project under study
Market studies or market surveying actually measure the attractiveness and dynamism of the business in question. This section is actually a part of the industrial evaluation of the business in question. Therefore, in order to develop business strategies, this method can be used, and it can also be used for people who want to enter the market for the first time.
When a business is started, no matter how many details of the desired product or service are designed more carefully, but there is no market for the demand for that service or product, the plan will fail. Therefore, after designing the business model, one of the most important measures to be taken is to check the level of market traction and attractiveness of the business in question.
Basic concepts of marketing:
The market analysis actually has various dimensions, which are described below:
Dimensions of market evaluation:
David Aker introduces the following dimensions for market evaluation:
- Market size
- market trend
- Market growth rate
- Cost structure in the market
- Distribution channels
- Success factors
The goal is actually to predict the attractiveness of the market now and in the future. This information will direct the company’s investments and cause success in the future.
Market volume is actually the number of transactions in the market and the available potential. In fact, the sellable number of a product is called the market volume. In fact, the number of customers and the volume of their effective demand make the market volume. Next to market size, the market potential is the upper limit of market demand. That is a number of customers who may not even make a purchase but may request goods or services in the future. We can get the required information from the following sources.
- Government information
- Trade association information
- Financial information of influential and large companies
- Research from customers
The upward and downward movement of the market in a certain period of time is called the market trend. For new products, this calculation is very difficult and requires careful analysis. There are several ways to do this, which are just mentioned:
- Customer analysis
- Choice modeling
- Competitor analysis
- Risk analysis
- Product research
- Advertising research
- Marketing mix modeling
- Market simulation
Market growth rate:
In the market growth rate method, they predict the future based on historical and previous data. This methodology provides a simple preliminary forecast that may not reveal critical points. In this regard, it is better to focus the information only on the product and historical data, to work on the complementary products of the desired product, and to do this methodology for this set of information.
As a result of using this method, checking the product life cycle curve can be very helpful, and in cases where the product or service is new, checking the curve of similar products can provide acceptable information.
In fact, it can be said that the market opportunity is obtained from offering a better and more complete product than the competitor’s product, so it is better to compare the different dimensions of the product with the competitor’s and also consider its legal and cultural barriers. Because it is possible to measure the opportunity in the market.
Industry Cost Structure:
In this section, the fixed and variable costs of the industry are calculated. One of the best tools for this work is Michael Porter’s value chain, and this information can help companies and businesses in choosing and developing a competitive strategy related to the market.
The following factors should be evaluated for distribution channels:
- Existence of appropriate distribution channels
- The formation and existence of new distribution channels
- Distribution channel strength
Some key success factors for achieving very important marketing goals that should be considered include:
- Achieving economies of scale
- Access to specific resources
- Technology and production process
- Access to distribution channels
Another common methodology in the qualitative assessment of the market is the macro industry survey, for which Michael Porter’s five competitive forces model can also be used. In general, this model shows that:
How attractive is the industry and is it profitable to invest in it or not?