Once the entrepreneur has an idea of an activity to start a business, he will have to make sure that the market he wants to launch meets his expectations. For this, it is necessary to carry out a market study.
It’s possible to do this step entirely by the contractor himself, but it is also possible to be assisted, in whole or in part, by a professional in the field.
The objectives of the market study
It will be here for the entrepreneur to ensure that his project can be commercially feasible. It is difficult to imagine starting a business in a declining sector, unprofitable or hyper-competitive by large companies.
An answer will have to be provided, thanks to the market research, to the following central questions:
Concerning the sector and its regulation
What is the regulation applicable to this sector of activity? Are there specific tax provisions?
How is the market doing and what are its prospects?
What are the latest innovations in this sector?
Is the market regular or are there seasonal events?
What are the characteristics of the targeted clientele? (geographical area, consumption habits, income, the age of the population …);
What are the needs of the community and their motivation to buy?
What are their preferences? What do they think of the offer offered by competitors? What could be improved? (These questions are important because they can help you stand out from your future competitors);
About The Offer
What are the existing products on the market?
Who are my main competitors? (size of the company, turnover, geographic location …)
How are my main competitors? (commercial policy, an organization of the distribution, targeted clientele …)
The Different Types Of Market Research
Two main approaches exist for the realization of a market study: the quantitative approach and the qualitative approach. We will also discuss the documentary approach.
Quantitative Market Research
The quantitative market study is essentially based on statistics, key figures, about a market, a branch of activity, a sector. The information obtained will be global.
This market research technique will quantify and measure information. The problem is that this large panel may not be sufficiently precise, unlike a qualitative study.
For more information: quantitative market research .