- Identifying Target Market
The first step is to narrow down who your best customers are. This means gathering their demographic data, including geographic characteristics, spending patterns and whether they’re an individual consumer or a small business.
- Assess Your Market’s Spending Habits and Preferences
From there, gain an understanding of how much your target market is willing to spend on your product. In addition, try to determine what specific qualities your product possesses that your target market either likes or potentially dislikes.
- Review Consumption Trends
Once you know a bit more about your audience, learn what’s already happened within the market in regards to your actual product. Look at both past product launches and the future of your product’s niche.
- Project Your Target Market
Ask yourself how large your target geographic area is and how many of your key consumers reside within that region. Don’t forget to consider what competitors you’ll be grappling with.
- Analyze The Competition
After you’ve identified your competitors, take a closer look at what they’re doing. Where are they successful? How are they marketing their product?
- Outline Your Strengths, Weaknesses, Opportunities and Threats
Often referred to as a SWOT analysis, this step offers you a chance to identify both internal and external factors that can support or potentially threaten your product’s success.
“Consumers are faced with what seems like an unlimited number of dining and eating choices. Understanding customer attitudes, motivations and behaviors — along with knowing your competition, market trends and industry forecast — is critical in the ultra-competitive food industry to maintain and grow your business. Utilizing market analysis and research tools can help position your company for future success.”
by Lori Hubbard @ Chron.com
“Market data research can be a time-consuming activity that is easily coloured by an internal bias, potentially jeopardizing the outcome of your research to lead you down an incorrect path. It can be useful to work with an impartial, outside consultant to help develop your market strategy or to develop a business plan, particularly when exploring a new venture.”