Knowing your market would be the first step in making an effective business strategy. A deep understanding of customers, competitors, and industry trends helps you decide on growth and whether your offerings meet the right needs. Here is what will assist you in knowing your market:
1. Conduct Market Research
First there is Primary Research: It includes gathering new data directly from your target audience. Some methods include:
Surveys: Short surveys that can be filled in easily by customers about their needs, preferences, and opinions.
Interviews: Conducting one-on-one interviews (in person, over the phone, or through video calls) to gain deeper customer insights.
Focus Groups: These involve gathering groups of potential customers to discuss specific aspects of your product or service to gain qualitative feedback.
Secondly, there is Secondary Research: It is an analysis of existing data like industry reports, competitor websites, governmental publications, or market analyses.
Look for industry statistics, trends, and consumer behavior insights that these might serve you in your business decisions.
2. Define Your Target Audience
Create Your Ideal Customer Personas: Make detailed profiles of your ideal customers. This should include:
Demographics: age, gender, income, location, education, etc.
Psychographics: interests, values, motivations, pain points, etc.
Behavioral: shopping habits, preferences, and decision-making.
Segment: Determine the segments in your broad market. While researching your audience, you might find that your products might fascinate one section of the millennial group over others or are more relevant in certain geographically targeted campaigns. Bring your marketing for each segment.
3. Analyze Competitors
Competitive Analysis: Identify both your direct competitors with similar offerings and indirect competitors providing alternatives or solving similar problems in alternate ways. Address the following questions:
What strengths/weaknesses do they have?
What is unique about their offerings/products?
What is their price?
What marketing strategies do they pursue?