Market Research

Market Research – Know your target market!


If you are an entrepreneur that wants to start a business or an existing company that wants to expand, in that case, you need to research the potential market. As a result, this will help you identify who are your competitors, who are your clients and how attractive the business (market) is. Then, it will identify problems before they happen and it might save your company. Imagine you consider selling ice in the North Pole, or by the same token, sand in Egypt? Yeah, right? Look at “The Ansoff Matrix” and if you are in any of the 4 situations, in that case, you need market research and analysis.

Read: How Market Research Helps You Thrive In Your Market

To clarify, the purpose of market research is to help companies make better business decisions about the development and marketing of new products. Therefore, as a result, market research should give answers: Firstly, what is the market? In addition, how is it segmented per different criteria?

By the same token, who is your ideal client? In addition, what are their needs, fears, pains, hopes, and dreams? Consequently, who is your competitor? Is someone else equally serving the same need to your clients? What lessons can we learn from history and correspondingly, what are the trends?

Furthermore, how do consumers talk among themselves about the products and in front of the market? In addition, are there any gaps in the market?

Read: 5 Reasons Why Market Research Is Crucial For Your Business

To put it briefly, the answers to these questions will give you an understanding of your market as a result. In any case, you might need one or all of the steps we can offer to help you:

Market Research

STEP 1: Country Analysis (PESTLE)

Initially, entering a new country has challenges of its own. The PESTLE analysis (Political, Economic, Social, Technological, Legal and Environmental analysis) describes a framework of macro-environmental factors correspondingly used in the environmental scanning component of strategic management.

This is a part of the external analysis when conducting a strategic analysis or doing market research and gives an overview of the different macroenvironmental factors the company has to take into consideration. It is useful to know the situation of the government, economy, as well as legal and environment stances where you start a business.

In conclusion, it is a useful strategic tool for understanding market growth.

Read: How To Conduct Market Research For Your SME (Part 1: Country Analysis)

STEP 2: Industry Analysis

Entering a new industry is also challenging. Knowing a country is one thing, but knowing your industry is a completely different thing. That being the case, Porter’s Five Forces Analysis is a model that gives a comprehensive overview as an illustration of each of the aspects of the industry:

1) The threat of new entrants.

2) The threat of substitute products/services.

3) Bargaining power of clients.

4) Bargaining power of suppliers.

5) Competitive rivalry.

Read: How To Conduct Market Research For Your SME (Part 2: Industry Analysis)

Subsequently, knowing these 5 components gives you a better understanding of the industry you are trying to enter and might prevent you from making crucial mistakes.

STEP 3: Timeline: Industry changes through time & Forecasting

Additionally, we can also offer you business intelligence on where the industry is heading. We can screen the industry, backwards up to 10-20 years, understand how the industry progressed and offer you a reasonable forecast on the next 3-5 years as a result.

STEP 4: Competitor Analysis

The competitor analysis is aimed at companies that consequently, need to see where they are positioned. With this in mind, we can screen your competitors based on several criteria. We can also identify direct competitors (companies offering the same product/service to the same market), indirect competitors (companies offering substitutes of your product/service to the same market) or benchmarking from insights from companies that offer similar services, but not to your market.

Read: How To Conduct Market Research For Your SME (Part 3: Competitor Analysis)

STEP 5: Market Segmentation, Targeting & Positioning

Above all, we can understand that you want to offer your service to the world. But in most cases that will require much time and resources. In addition, that will mean offering your solution to people that do not need it at all, therefore creating wastage for your company.

Considering your product/service, we can offer market segmentation (grouping your various clients into segments that have common needs or will respond similarly to a marketing action), then followed by market targeting (choosing the right market segment for your company) and market positioning (creating a product and brand image for that segment) altogether.

STEP 6: Lead Generation – Finding specific contact information 

Finally, gathering contact information for specific market segments is a unique, separate service we offer, namely Lead Generation. Please visit this page to see what we can provide in terms of Lead Generation services.

Read: 3 Proven Reasons To Outsource Your Market Research Efforts

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