5 Reasons Why Small Business Needs To Do Marketing Research

Most small businesses in most developed countries incorporate retail or service operations like small grocery stores, small shopping centers, bakeries, hairdressing shops, small restaurants, personal care or health care centers, carpenters or mechanics, personal trainers, and online trading (e.g., online trading services, auction sites, etc.). The advantages of being a small business owner are many. For one, you don’t have to be involved with accounting. You only need to know how to operate your computer and your Internet connection. Online banking and invoicing are also not needed.

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5 Reasons Why Small Business Needs To Do Marketing Research

Most small businesses in most developed countries incorporate retail or service operations like small grocery stores, small shopping centers, bakeries, hairdressing shops, small restaurants, personal care or health care centers, carpenters or mechanics, personal trainers, and online trading (e.g., online trading services, auction sites, etc.). The advantages of being a small business owner are many. For one, you don’t have to be involved with accounting. You only need to know how to operate your computer and your Internet connection. Online banking and invoicing are also not needed.

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You can start a business anywhere and you can be assured of finding a customer if your market is saturated with similar products and services. Small entrepreneurs also have the advantage of lowering their overhead expenses since there’s no need for rent and building and utility bills. You also don’t need employees unless you want to employ contract workers or on-site management staff. In contrast, established companies have to hire sales, marketing, management, clerical, and other staff to handle the day-to-day tasks that keep the business running smoothly.

One way to overcome the difficulties encountered in establishing your own business is by seeking new customers through advertising and public relations campaigns. The size of a new market, however, is not unlimited. It may be more difficult to penetrate into a new market compared to an established market. Nevertheless, if you can extend your existing market base by promoting your business in related industries, you’ll increase your market share and reduce your operation costs.

A wise businessman knows how to compete successfully and he makes every effort to stay ahead of his competition. He also decides whether to enter a new market or not based on the circumstances of his existing one. As a small entrepreneur, you might have a limited amount of capital to spend. Thus, you need to determine whether your product or service can still offer something unique to your competitors. You can still compete successfully if your product or service has undergone significant improvements since your competitors have adopted some of the latest trends in technology.

Successful businessmen also make use of market research to determine whether their product or service can still outdo that of competitors. Market research is particularly useful when deciding whether to enter a new market or not. For instance, in a growing and competitive global economy like the US, it is difficult for start-ups to survive for at least two years without selling their products and services to a defined target area. This requirement forces them to carry out thorough market research.

Before you conduct market research, you should have a clear idea of the market requirements of potential customers. You should be able to forecast the market trends and activities of your competitors. It is essential to be familiar with the market behavior of potential customers so that you can plan and implement new market development strategies accordingly. Market research helps entrepreneurs to determine critical issues that may affect the performance of their businesses. These issues include the competition, financial situation, business processes, customer needs, business objectives, etc.

When conducting market research, you should carefully look into factors that could affect sales and profit level of your firm. Factors such as marketing strategy, customer’s preferences, company image, and the company’s ability to innovate and adapt are crucial to identify the appropriate target market. The research should also consider current market conditions, industry trends, and the competition. You should take note of the market analysis results. Your analysis of the market trends and activities will be very helpful in determining the appropriate target market and the appropriate business development strategies.

Conducting market research on buying habits of your target customers is also an essential step in establishing the appropriate target market. It is important to establish your target customer so that you can establish the appropriate buying habits that should be encouraged or discouraged. For instance, if most of your target customers are professionals, then you should focus your buying habits on those professional people. However, if most of your target customers are students, then you can concentrate your buying habits on those students.

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